Document:

Exhibit 4.2

 

EXECUTION COPY

 

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, 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. 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. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE
TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 18(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY,
THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii)
OF THIS NOTE.

 

THIS NOTE HAS BEEN ISSUED WITH ORIGINAL
ISSUE DISCOUNT (“OID”). PURSUANT TO TREASURY REGULATION §1.1275-3(b)(1), ALEX YAO SHI, A REPRESENTATIVE OF THE
COMPANY HEREOF WILL, BEGINNING TEN DAYS AFTER THE ISSUANCE DATE OF THIS NOTE, PROMPTLY MAKE AVAILABLE TO THE HOLDER UPON REQUEST
THE INFORMATION DESCRIBED IN TREASURY REGULATION §1.1275-3(b)(1)(i). ALEX YAO SHI MAY BE REACHED AT TELEPHONE NUMBER 86-13951100456.

 

China
SXT Pharmaceuticals, Inc.

 

Series
B Senior Secured Convertible Note

 

	Issuance Date: May 2, 2019 (the “Issuance Date”)	Original Principal Amount:U.S.$[     ]

 

FOR VALUE RECEIVED,
China SXT Pharmaceuticals, Inc., a company organized under the laws of the British Virgin Islands (the “Company”),
hereby promises to pay to the order of [          ] or its registered assigns (“Holder”) the amount set forth above as
the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”)
when due, whether upon the Maturity Date, on any Installment Date with respect to the Installment Amount due on such Installment
Date (each as defined below), or upon acceleration, redemption or otherwise (in each case in accordance with the terms hereof),
to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate (as defined below)
from the Issuance Date until the same becomes due and payable, whether upon the Maturity Date, on any Installment Date with respect
to the Installment Amount due on such Installment Date, or upon acceleration, conversion, redemption or otherwise (in each case
in accordance with the terms hereof). This Series B Senior Secured Convertible Note (including all Senior Secured Convertible Notes
issued in exchange, transfer or replacement hereof, this “Note”) is one of an issue of Senior Secured Convertible
Notes issued pursuant to the Securities Purchase Agreement, as defined below (the “Subscription Date”), by and
among the Company and the investors (the “Buyers”) referred to therein, as amended from time to time (collectively,
the “Notes”, and such other Series A Senior Convertible Notes and Series B Senior Secured Convertible Notes
issued pursuant to the Securities Purchase Agreement, collectively, the “Other Notes”). Certain capitalized
terms used herein are defined in Section 31.

 

     

     

    

 

1. PAYMENTS OF PRINCIPAL.
On each Installment Date, the Company shall pay to the Holder an amount equal to the Installment Amount due on such Installment
Date in accordance with Section 8. On the Maturity Date, the Company shall pay to the Holder an amount in cash (excluding any amounts
paid in Ordinary Shares on the Maturity Date in accordance with Section 8) representing all outstanding Principal, accrued and
unpaid Interest, any Make-Whole Amount and accrued and unpaid Late Charges (as defined in Section 24(c)) on such Principal, Interest
and Make-Whole Amount, except that any Restricted Principal hereunder shall be satisfied on the Maturity Date (in lieu of a cash
payment) by Maturity Netting (as defined in the Investor Note). Other than as specifically permitted by this Note, the Company
may not prepay any portion of the outstanding Principal, accrued and unpaid Interest, Make-Whole Amount or accrued and unpaid Late
Charges on Principal, Interest and Make-Whole Amount, if any.

 

(a) Securities
Contract. The Company and the Holder hereby acknowledge and agree that the Securities Purchase Agreement and the Note Purchase
Agreement (as defined in the Securities Purchase Agreement) each is a “securities contract” as defined in 11 U.S.C.
§ 741 and that Holder shall have all rights in respect of this Note, the Master Netting Agreement (as defined in the Securities
Purchase Agreement), the Investor Note, the Securities Purchase Agreement and the Note Purchase Agreement as are set forth in 11
U.S.C. § 555 and 11 U.S.C. § 362(b)(6), including, without limitation, all rights of credit, deduction, setoff, offset
and/or netting (collectively, “Netting” or “Net”) as are available under this Note, the Master
Netting Agreement and the Investor Note and all Netting provisions of this Note, the Investor Note and the Master Netting Agreement,
including without limitation the provisions set forth in Section 7 of the Investor Note, are hereby incorporated in this Note and
made a part hereof as if such provisions were set forth herein.

 

(b) Investor
Prepayments; No Share Issuance or Sales until Fully Paid. Upon the consummation of any Investor Prepayment, the aggregate outstanding
Restricted Principal under this Note shall automatically become Unrestricted Principal hereunder, on a dollar-for-dollar basis,
in an amount equal to the aggregate amount of cash paid in such Investor Prepayment. Notwithstanding anything herein to the contrary,
the Ordinary Shares issuable upon conversion of Restricted Principal hereunder shall not be issued by the Company and may not be
sold by Holder until such portion of the Investor Note equivalent to the Restricted Principal subject to such conversion (each,
an “Investor Prepayment Amount”) has been Fully Paid (as defined below) pursuant to an Investor Prepayment or
otherwise upon maturity of the Investor Note (to the Company or to such other Persons as directed by the Company in writing) and
such Restricted Principal becomes Unrestricted Principal in accordance with the preceding sentence. “Fully Paid”
means, with respect to any applicable Investor Prepayment, that the Holder shall have either (x) delivered evidence to the Company
that the Holder irrevocably instructed its bank or other financial institution, with respect to an account of the Holder (or an
affiliate of the Holder) containing at least an amount in cash equal to the applicable Investor Prepayment Amount, to deliver such
Investor Prepayment Amount from such account by wire transfer to the Company in accordance with wire instructions set forth in
the Flow of Funds Letter (as defined in the Securities Purchase Agreement) (unless modified by the Company prior to the date of
such Investor Prepayment by delivery to the Holder of new wire instructions, duly executed by an executive officer of the Company,
on letterhead of the Company), or (y) if the Company and the Holder have accounts at the same bank or other financial institution,
by an internal “ledger” transfer by such financial institution of such Investor Prepayment Amount, in each case, as
evidenced by either an e-mail or other written or oral confirmation by the applicable receiving financial institution that such
transfer has been completed or wire has arrived, in each case, of such Investor Prepayment Amount.

 

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(c) Prohibited
Transfer or Severability Reduction. Upon any Prohibited Transfer (as defined in the Investor Note) of, or Severability Event
(as defined in the Investor Note) under, the Investor Note, (x) the Investor Note shall be deemed paid in full and shall be null
and void, and (y) 75% of the remaining Restricted Principal of this Note shall be automatically cancelled (with the remaining 25%
of the Restricted Principal of this Note automatically becoming Unrestricted Principal hereunder).

 

(d) Investor
Netting Right Reduction. Upon any exercise by the Holder of Investor Netting Rights (as defined in the Investor Note), the
Restricted Principal hereunder shall automatically and simultaneously be reduced, on a dollar-for-dollar basis, by such portion
of the aggregate principal of the Investor Note cancelled pursuant to such Investor Netting Rights (as defined in the Investor
Note).

 

(e) Single
Integrated Transaction. The Company hereby acknowledges and agrees that (i) the Holder shall be entitled to exercise the Investor
Netting Rights through any means permissible under applicable law, including without limitation, Netting and (ii) the obligations
of the Holder under the Investor Note and the obligations of the Company under this Note arise in a single integrated transaction
and constitute related and interdependent obligations within such transaction.

 

(f) Grant
of Security Interest. The Company hereby grants and pledges to the Holder a continuing security interest in the Investor Note
of the Holder, including any and all cash, proceeds, funds, credits, rights and other assets therein or arising therefrom, from
time to time, and any additions, dividends, profits and interest in the foregoing and any replacements or substitutions therefore
(collectively, the “Collateral”) to secure prompt repayment of any and all amounts outstanding hereunder from
time to time and to secure prompt performance by the Company of each of its covenants and duties under this Note. Such security
interest constitutes a valid, first priority security interest in the Collateral, and will constitute a valid, first priority security
interest in later-acquired Collateral. Notwithstanding any filings undertaken related to the Holder’s rights under the New
York Uniform Commercial Code, the Holder’s Lien (as defined in Section 14(c) below) on the Collateral shall remain in effect
for so long as any Restricted Principal remains outstanding.

 

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(g) Order
of Conversion and/or Redemption. Notwithstanding anything herein to the contrary, with respect to any conversion or redemption
hereunder, as applicable, the Company shall convert or redeem, as applicable, First, all accrued and unpaid Interest and
Make-Whole Amount hereunder and under any other Series B Notes held by such Holder, Second, all accrued and unpaid Late
Charges on any Principal and Interest hereunder and under any other Series B Notes held by such Holder, Third, all other
amounts outstanding (other than Principal) hereunder and under any other Series B Notes held by such Holder and, Fourth,
all Principal (other than Restricted Principal) outstanding hereunder and under any other Series B Notes held by such Holder, in
each case, prior to any conversion or redemption, as applicable, of any Restricted Principal hereunder, in each case, allocated
pro rata among this Note and such other Series B Notes held by such Holder.

 

2. INTEREST; INTEREST
RATE.

 

(a) Interest
on this Note shall commence accruing on the Issuance Date and shall be computed on the basis of a 360-day year and twelve 30-day
months and shall be payable in arrears on each Interest Date, with the first Interest Date being June 1, 2019, and shall compound
each calendar month and shall be payable in accordance with the terms of this Note. Interest shall be paid (i) on each Interest
Date occurring on an Installment Date in accordance with Section 8 as part of the applicable Installment Amount due on the applicable
Installment Date and (ii) with respect to each other Interest Date, on such Interest Date in cash.

 

(b) Prior
to the payment of Interest on an Interest Date, Interest on this Note shall accrue at the Interest Rate and be payable by way of
inclusion of the Interest in the Conversion Amount on each Conversion Date in accordance with Section 3(b)(i) or upon any redemption
in accordance with Section 11 or any required payment upon any Bankruptcy Event of Default. From and after the occurrence and during
the continuance of any Event of Default, the Interest Rate shall automatically be increased to eighteen percent (18.0%) per annum
(the “Default Rate”). In the event that such Event of Default is subsequently cured (and no other Event of Default
then exists (including, without limitation, for the Company’s failure to pay such Interest at the Default Rate on the applicable
Interest Date)), the adjustment referred to in the preceding sentence shall cease to be effective as of the calendar day immediately
following the date of such cure; provided that the Interest as calculated and unpaid at such increased rate during the continuance
of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default
through and including the date of such cure of such Event of Default.

 

3. CONVERSION OF
NOTES. At any time after the Issuance Date, this Note shall be convertible into validly issued, fully paid and non-assessable
Ordinary Shares (as defined below), on the terms and conditions set forth in this Section 3.

 

(a) Conversion
Right. Subject to the provisions of Section 3(d), at any time or times on or after the Issuance Date, the Holder shall be entitled
to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable
Ordinary Shares in accordance with Section 3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction
of an Ordinary Share upon any conversion. If the issuance would result in the issuance of a fraction of an Ordinary Share, the
Company shall round such fraction of an Ordinary Share up to the nearest whole share. The Company shall pay any and all transfer,
stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the transfer agent of
the Company (the “Transfer Agent”)) that may be payable with respect to the issuance and delivery of Ordinary
Shares upon conversion of any Conversion Amount.

 

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

 

(i) “Conversion
Amount” means the sum of (w) the portion of the Principal to be converted, redeemed or otherwise with respect to which
this determination is being made, (x) all accrued and unpaid Interest with respect to such portion of the Principal amount (y)
the Make-Whole Amount, if any, and (z) accrued and unpaid Late Charges with respect to such portion of such Principal, such Interest
and Make-Whole Amount, if any.

 

(ii) “Conversion
Price” means, as of any Conversion Date or other date of determination, $8.38, subject to adjustment as provided herein.

 

(c) Mechanics of Conversion.

 

(i) Optional
Conversion. To convert any Conversion Amount into Ordinary Shares on any date (a “Conversion Date”), the
Holder shall deliver (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59 p.m., New York time,
on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Company. If required by Section 3(c)(iii), within two (2) Trading Days following a conversion of this
Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the
Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated
by Section 18(b)). On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company shall
transmit by facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such Ordinary Shares
may then be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto as Exhibit
II, of receipt of such Conversion Notice to the Holder and the Transfer Agent which confirmation shall constitute an instruction
to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the second (2nd) Trading
Day following the date on which the Company has received a Conversion Notice (or such earlier date as required pursuant to the
1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date
of such Ordinary Shares issuable pursuant to such Conversion Notice) (the “Share Delivery Deadline”), the Company
shall (1) provided that the Transfer Agent is participating in The Depository Trust Company’s (“DTC”)
Fast Automated Securities Transfer Program, credit such aggregate number of Ordinary Shares to which the Holder shall be entitled
pursuant to such conversion to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal
at Custodian system or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, upon
the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice,
a certificate, registered in the name of the Holder or its designee, for the number of Ordinary Shares to which the Holder shall
be entitled pursuant to such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and
the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the
Company shall as soon as practicable and in no event later than two (2) Business Days after receipt of this Note and at its own
expense, issue and deliver to the Holder (or its designee) a new Note (in accordance with Section 18(d)) representing the outstanding
Principal not converted. The Person or Persons entitled to receive the Ordinary Shares issuable upon a conversion of this Note
shall be treated for all purposes as the record holder or holders of such Ordinary Shares on the Conversion Date. In the event
of a partial conversion of this Note pursuant hereto, (x) the Principal amount converted shall be deducted from the Installment
Amount(s) relating to the Installment Date(s) as set forth in the applicable Conversion Notice and (y) the amount of Restricted
Principal converted, if any, shall be set forth in the applicable Conversion Notice. Notwithstanding anything to the contrary contained
in this Note or the Registration Rights Agreement, after the effective date of the Registration Statement (as defined in the Registration
Rights Agreement) and prior to the Holder’s receipt of the notice of a Grace Period (as defined in the Registration Rights
Agreement), the Company shall cause the Transfer Agent to deliver unlegended Ordinary Shares to the Holder (or its designee) in
connection with any sale of Registrable Securities (as defined in the Registration Rights Agreement) with respect to which the
Holder has entered into a contract for sale, and delivered a copy of the prospectus included as part of the particular Registration
Statement to the extent applicable, and for which the Holder has not yet settled.

 

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(ii) Company’s
Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share
Delivery Deadline, either (I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
to issue and deliver to the Holder (or its designee) a certificate for the number of Ordinary Shares to which the Holder is entitled
and register such Ordinary Shares on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with DTC for
such number of Ordinary Shares to which the Holder is entitled upon the Holder’s conversion of this Note (as the case may
be) or (II) if the Registration Statement covering the resale of the Ordinary Shares that are the subject of the Conversion Notice
(the “Unavailable Conversion Shares”) is not available for the resale of such Unavailable Conversion Shares
and the Company fails to promptly, but in no event later than as required pursuant to the Registration Rights Agreement (x) so
notify the Holder and (y) deliver the Ordinary Shares electronically without any restrictive legend by crediting such aggregate
number of Ordinary Shares to which the Holder is entitled pursuant to such conversion to the Holder’s or its designee’s
balance account with DTC through its Deposit/Withdrawal At Custodian system (the event described in the immediately foregoing clause
(II) is hereinafter referred as a “Notice Failure” and together with the event described in clause (I) above,
a “Conversion Failure”), then, in addition to all other remedies available to the Holder, (1) the Company shall
pay in cash to the Holder on each day after such Share Delivery Deadline that the issuance of such Ordinary Shares is not timely
effected an amount equal to 2% of the product of (A) the sum of the number of Ordinary Shares not issued to the Holder on or prior
to the Share Delivery Deadline and to which the Holder is entitled, multiplied by (B) any trading price of the Ordinary Shares
selected by the Holder in writing as in effect at any time during the period beginning on the applicable Conversion Date and ending
on the applicable Share Delivery Deadline and (2) the Holder, upon written notice to the Company, may void its Conversion Notice
with respect to, and retain or have returned (as the case may be) any portion of this Note that has not been converted pursuant
to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company’s obligations to
make any payments which have accrued prior to the date of such notice pursuant to this Section 3(c)(ii) or otherwise. In addition
to the foregoing, if on or prior to the Share Delivery Deadline either (A) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver to the Holder (or its designee) a certificate
and register such Ordinary Shares on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, the Transfer Agent shall fail to credit the balance account of the Holder or the Holder’s
designee with DTC for the number of Ordinary Shares to which the Holder is entitled upon the Holder’s conversion hereunder
or pursuant to the Company’s obligation pursuant to clause (II) below or (B) a Notice Failure occurs, and if on or after
such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) Ordinary Shares corresponding to
all or any portion of the number of Ordinary Shares issuable upon such conversion that the Holder is entitled to receive from the
Company and has not received from the Company in connection with such Conversion Failure or Notice Failure, as applicable (a “Buy-In”),
then, in addition to all other remedies available to the Holder, the Company shall, within two (2) Business Days after receipt
of the Holder’s request and in the Holder’s discretion, either: (I) pay cash to the Holder in an amount equal to the
Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the Ordinary
Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In
Price”), at which point the Company’s obligation to so issue and deliver such certificate (and to issue such Ordinary
Shares) or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of
Ordinary Shares to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) (and to issue
such Ordinary Shares) shall terminate, or (II) promptly honor its obligation to so issue and deliver to the Holder a certificate
or certificates representing such Ordinary Shares or credit the balance account of such Holder or such Holder’s designee,
as applicable, with DTC for the number of Ordinary Shares to which the Holder is entitled upon the Holder’s conversion hereunder
(as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product
of (x) such number of Ordinary Shares multiplied by (y) the lowest Closing Sale Price of the Ordinary Shares on any Trading Day
during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance and payment
under this clause (II) (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing Ordinary Shares
(or to electronically deliver such Ordinary Shares) upon the conversion of this Note as required pursuant to the terms hereof.

 

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(iii) Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and
addresses of the holders of each Note and the principal amount of the Notes and Restricted Principal held by such holders (the
“Registered Notes”). The entries in the Register shall be conclusive and binding for all purposes absent manifest
error. The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the owner of
a Note for all purposes (including, without limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding
notice to the contrary. A Registered Note may be assigned, transferred or sold in whole or in part only by registration of such
assignment or sale on the Register. Upon its receipt of a written request to assign, transfer or sell all or part of any Registered
Note by the holder thereof, the Company shall record the information contained therein in the Register and issue one or more new
Registered Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note to the designated
assignee or transferee pursuant to Section 18, provided that if the Company does not so record an assignment, transfer or
sale (as the case may be) of all or part of any Registered Note within two (2) Business Days of such a request, then the Register
shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case may be). Notwithstanding anything
to the contrary set forth in this Section 3, following conversion of any portion of this Note in accordance with the terms
hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount
represented by this Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof
as contemplated by Section 3(c)(i)) or (B) the Holder has provided the Company with prior written notice (which notice may be included
in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall
maintain records showing the Principal, Interest, Make-Whole Amount and Late Charges converted and/or paid (as the case may be)
or Restricted Principal becoming unrestricted and the dates of such conversions, Investor Prepayments and/or payments (as the case
may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender
of this Note upon conversion. If the Company does not update the Register to record such Principal, Interest, Make-Whole Amount
and Late Charges converted and/or paid (as the case may be) or Restricted Principal becoming unrestricted and the dates of such
conversions, Investor Prepayment and/or payments (as the case may be) within two (2) Business Days of such occurrence, then the
Register shall be automatically deemed updated to reflect such occurrence.

 

(iv) Pro
Rata Conversion; Disputes. In the event that the Company receives a Conversion Notice from more than one holder of Notes for
the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion,
the Company, subject to Section 3(d), shall convert from each holder of Notes electing to have Notes converted on such date a pro
rata amount of such holder’s portion of its Notes submitted for conversion based on the principal amount of Notes submitted
for conversion on such date by such holder relative to the aggregate principal amount of all Notes submitted for conversion on
such date. In the event of a dispute as to the number of Ordinary Shares issuable to the Holder in connection with a conversion
of this Note, the Company shall issue to the Holder the number of Ordinary Shares not in dispute and resolve such dispute in accordance
with Section 23.

 

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(d) Limitations
on Conversions. The Company shall not effect the conversion of any portion of this Note, and the Holder shall not have the
right to convert any portion of this Note pursuant to the terms and conditions of this Note and any such conversion shall be null
and void and treated as if never made, to the extent that after giving effect to such conversion, the Holder together with the
other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”)
of the Ordinary Shares outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentence,
the aggregate number of Ordinary Shares beneficially owned by the Holder and the other Attribution Parties shall include the number
of Ordinary Shares held by the Holder and all other Attribution Parties plus the number of Ordinary Shares issuable upon conversion
of this Note with respect to which the determination of such sentence is being made, but shall exclude Ordinary Shares which would
be issuable upon (A) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of
the other Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company (including, without limitation, any convertible notes or convertible preferred shares or warrants, including, without
limitation, the Warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion
or exercise analogous to the limitation contained in this Section 3(d). For purposes of this Section 3(d), beneficial ownership
shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the number of outstanding Ordinary
Shares the Holder may acquire upon the conversion of this Note without exceeding the Maximum Percentage, the Holder may rely on
the number of outstanding Ordinary Shares as reflected in (x) the Company’s most recent Annual Report on Form 20-F, Report
of Foreign Issuer on Form 6-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by
the Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of Ordinary
Shares outstanding (the “Reported Outstanding Share Number”). If the Company receives a Conversion Notice from
the Holder at a time when the actual number of outstanding Ordinary Shares is less than the Reported Outstanding Share Number,
the Company shall notify the Holder in writing of the number of Ordinary Shares then outstanding and, to the extent that such Conversion
Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section 3(d), to exceed the
Maximum Percentage, the Holder must notify the Company of a reduced number of Ordinary Shares to be purchased pursuant to such
Conversion Notice. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1)
Business Day confirm orally and in writing or by electronic mail to the Holder the number of Ordinary Shares then outstanding.
In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Note, by the Holder and any other Attribution Party since the date as of which the Reported
Outstanding Share Number was reported. In the event that the issuance of Ordinary Shares to the Holder upon conversion of this
Note results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the
Maximum Percentage of the number of outstanding Ordinary Shares (as determined under Section 13(d) of the 1934 Act), the number
of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds
the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled ab initio,
and the Holder shall not have the power to vote or to transfer the Excess Shares. Upon delivery of a written notice to the Company,
the Holder may from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery
of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice;
provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day
after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other
Attribution Parties and not to any other holder of Notes that is not an Attribution Party of the Holder. For purposes of clarity,
the Ordinary Shares issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially
owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability
to convert this Note 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. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 3(d) to the extent necessary to correct this paragraph
(or any portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained
in this Section 3(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation
contained in this paragraph may not be waived and shall apply to a successor holder of this Note.

 

    - 7 -

     

    

 

(e) Right
of Alternate Conversion Upon an Event of Default.

 

(i) General.
Subject to Section 3(d), at any time during an Event of Default Redemption Right Period (regardless of whether such Event of Default
has been cured or if the Holder has delivered an Event of Default Redemption Notice to the Company), the Holder may, at the Holder’s
option, convert (each, an “Alternate Conversion”, and the date of such Alternate Conversion, each, an “Alternate
Conversion Date”) all, or any part of, the Conversion Amount (such portion of the Conversion Amount subject to such Alternate
Conversion, the “Alternate Conversion Amount”) into Ordinary Shares at the Alternate Conversion Price.

 

(ii) Mechanics
of Alternate Conversion. On any Alternate Conversion Date, the Holder may voluntarily convert any Alternate Conversion Amount
pursuant to Section 3(c) (with “Alternate Conversion Price” replacing “Conversion Price” for all purposes
hereunder with respect to such Alternate Conversion and with “Redemption Premium of the Conversion Amount” replacing
“Conversion Amount” in clause (x) of the definition of Conversion Rate above with respect to such Alternate Conversion)
by designating in the Conversion Notice delivered pursuant to this Section 3(e) of this Note that the Holder is electing to use
the Alternate Conversion Price for such conversion. Notwithstanding anything to the contrary in this Section 3(e), but subject
to Section 3(d), until the Company delivers Ordinary Shares representing the applicable Alternate Conversion Amount to the Holder,
such Alternate Conversion Amount may be converted by the Holder into Ordinary Shares pursuant to Section 3(c) without regard to
this Section 3(e).

 

(f) Pre-Delivery Shares. 

 

(i) General.
On or prior to the Issuance Date, the Company shall pre-deliver to the Holder two million Ordinary Shares (the “Pre-Delivery
Shares”) issuable pursuant to the terms of this Note.

 

(ii) Conversions
Related to Pre-Delivery Shares. At any time at the election of the Holder, if either (x) the Holder elects to convert any portion
of the Conversion Amount hereunder (whether pursuant to a voluntary conversion under Section 3(c), an Alternate Conversion under
Section 3(e), as an Acceleration pursuant to Section Error! Reference source not found. or as otherwise permitted hereunder)
with respect to which the Holder elects to apply Pre-Delivery Shares, in whole or in part, against the Ordinary Shares otherwise
deliverable with respect thereto, as specified by the Holder in the applicable Conversion Notice (each, a “General Pre-Delivery
Application Notice”) or (y) with respect to any Installment Conversion, to the extent the Holder elects in a writing
to the Company (each, an “Installment Conversion Pre-Delivery Application Notice”, and together with each General
Pre-Delivery Application Notice, each a “Pre-Delivery Application Notice”) to apply Pre-Delivery Shares, in
whole or in part, against the Ordinary Shares otherwise deliverable with respect to such Installment Conversion, in each case,
such aggregate number of Pre-Delivery Shares specified in the applicable Pre-Delivery Application Notice (the “Pre-Delivery
Conversion Shares”) shall reduce the aggregate number of Ordinary Shares required to be delivered to the Holder in such
Installment Conversion, Alternate Conversion, or other conversion hereunder, as applicable, on a share-by-share basis and, thereafter,
such Pre-Delivery Conversion Shares shall cease to be deemed to be Pre-Delivery Shares hereunder and pursuant to the other Transaction
Documents.

 

    - 8 -

     

    

 

4. RIGHTS UPON EVENT
OF DEFAULT.

 

(a) Event
of Default. Each of the following events shall constitute an “Event of Default” and each of the events in
clauses (ix), (x) and (xi) shall constitute a “Bankruptcy Event of Default”:

 

(i) the
failure of the applicable Registration Statement (as defined in the Registration Rights Agreement) to be filed with the SEC on
or prior to the date that is five (5) days after the applicable Filing Deadline (as defined in the Registration Rights Agreement)
or the failure of the applicable Registration Statement to be declared effective by the SEC on or prior to the date that is five
(5) days after the applicable Effectiveness Deadline (as defined in the Registration Rights Agreement);

 

(ii) while
the applicable Registration Statement is required to be maintained effective pursuant to the terms of the Registration Rights Agreement,
the effectiveness of the applicable Registration Statement lapses for any reason (including, without limitation, the issuance of
a stop order) or such Registration Statement (or the prospectus contained therein) is unavailable to any holder of Registrable
Securities (as defined in the Registration Rights Agreement) for sale of all of such holder’s Registrable Securities in accordance
with the terms of the Registration Rights Agreement, and such lapse or unavailability continues for a period of five (5) consecutive
days or for more than an aggregate of ten (10) days in any 365-day period (excluding days during an Allowable Grace Period (as
defined in the Registration Rights Agreement));

 

(iii) the
suspension (or threatened suspension) from trading or the failure (or threatened failure) of the Ordinary Shares to be trading
or listed (as applicable) on an Eligible Market for a period of five (5) consecutive Trading Days;

 

(iv) the
Company’s (A) failure to cure a Conversion Failure or a Delivery Failure (as defined in the Warrants) by delivery of the
required number of Ordinary Shares within five (5) Trading Days after the applicable Conversion Date or exercise date (as the case
may be) or (B) notice, written or oral, to any holder of the Notes or Warrants, including, without limitation, by way of public
announcement or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion
of any Notes into Ordinary Shares that is requested in accordance with the provisions of the Notes, other than pursuant to Section
3(d), or a request for exercise of any Warrants for Ordinary Shares in accordance with the provisions of the Warrants;

 

    - 9 -

     

    

 

(v) except
to the extent the Company is in compliance with Section 10(b) below, at any time following the tenth (10th) consecutive
day that the Holder’s Authorized Share Allocation (as defined in Section 10(a) below) is less than (A) the number of Ordinary
Shares that the Holder would be entitled to receive upon a conversion of the full Conversion Amount of this Note (without regard
to any limitations on conversion set forth in Section 3(d) or otherwise) at the Alternate Conversion Price in effect as of such
date of determination, and (B) the number of Ordinary Shares that the Holder would be entitled to receive upon exercise in full
of the Holder’s Warrants (without regard to any limitations on exercise set forth in the Warrants);

 

(vi) the
Company’s or any Subsidiary’s failure to pay to the Holder any amount of Principal, Interest, Make-Whole Amount, Late
Charges or other amounts when and as due under this Note (including, without limitation, the Company’s or any Subsidiary’s
failure to pay any redemption payments or amounts hereunder) or any other Transaction Document (as defined in the Securities Purchase
Agreement) or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated
hereby and thereby, except, in the case of a failure to pay Interest and Late Charges when and as due, in which case only if such
failure remains uncured for a period of at least two (2) Trading Days;

 

(vii) the
Company fails to remove any restrictive legend on any certificate or any Ordinary Shares issued to the Holder upon conversion or
exercise (as the case may be) of any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder under
the Securities Purchase Agreement (including this Note) as and when required by such Securities or the Securities Purchase Agreement,
unless otherwise then prohibited by applicable federal securities laws, and any such failure remains uncured for at least five
(5) Business Days;

 

(viii)
the occurrence of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $50,000 of Indebtedness
(as defined in the Securities Purchase Agreement) of the Company or any of its Subsidiaries, other than with respect to any Other
Notes;

 

(ix) bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within thirty (30) days of their initiation;

 

(x) the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or
any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts
generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action
or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under
federal, state or foreign law;

 

    - 10 -

     

    

 

(xi) the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or
insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition
of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order,
judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order,
judgment or other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

(xii) a
final judgment or judgments for the payment of money aggregating in excess of $100,000 are rendered against the Company and/or
any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged, settled
or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, any
judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $100,000
amount set forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which
written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an
indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within
thirty (30) days of the issuance of such judgment;

 

(xiii)
the Company and/or any Subsidiary, individually or in the aggregate, either (i) fails to pay, when due, or within any applicable
grace period, any payment with respect to any Indebtedness in excess of $100,000 due to any third party (other than, with respect
to unsecured Indebtedness only, payments contested by the Company and/or such Subsidiary (as the case may be) in good faith by
proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP)
or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $100,000, which breach
or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder, or (ii) suffer
to exist any other circumstance or event that would, with or without the passage of time or the giving of notice, result in a default
or event of default under any agreement binding the Company or any Subsidiary, which default or event of default would or is likely
to have a material adverse effect on the business, assets, operations (including results thereof), liabilities, properties, condition
(including financial condition) or prospects of the Company or any of its Subsidiaries, individually or in the aggregate;

 

    - 11 -

     

    

 

(xiv) other
than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches any representation,
warranty, covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant or other
term or condition that is curable, only if such breach remains uncured for a period of two (2) consecutive Trading Days;

 

(xv) a
false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that either (A) the Equity
Conditions are satisfied, (B) there has been no Equity Conditions Failure, or (C) as to whether any Event of Default has occurred;

 

(xvi) any
breach or failure in any respect by the Company or any Subsidiary to comply with any provision of Section 13 of this Note;

 

(xvii)
any Material Adverse Effect (as defined in the Securities Purchase Agreement) occurs;

 

(xviii)
any provision of any Transaction Document (including, without limitation, the Security Documents) shall at any time for any reason
(other than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against the parties thereto,
or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall be commenced by the Company
or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability
thereof (including, without limitation, the Security Documents);

 

(xix) this
Note and/or any Security Document shall for any reason fail or cease to create a separate valid and perfected and, except to the
extent permitted by the terms hereof or thereof, first priority Lien (as defined in the Securities Purchase Agreement) on the Collateral
hereunder in favor of the Holder or any material provision of this Note and/or any Security Document shall at any time for any
reason cease to be valid and binding on or enforceable against the Company or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by the Company or any governmental authority having jurisdiction over
the Company, seeking to establish the invalidity or unenforceability thereof; or

 

    - 12 -

     

    

 

(xx) any
material damage to, or loss, theft or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute,
embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than fifteen (15) consecutive days,
the cessation or substantial curtailment of revenue producing activities at any facility of the Company or any Subsidiary, if any
such event or circumstance could have a Material Adverse Effect;

 

(xxi) if
Mr. Feng Zhou ceases to be the chief executive officer of the Company and a qualified replacement, acceptable to the Holder, in
its sole discretion, is not appointed within 15 Business Days; or

 

(xxii)
any Event of Default (as defined in the Other Notes) occurs with respect to any Other Notes.

 

(b) Notice
of an Event of Default: Event of Default Redemption Right. Upon the occurrence of an Event of Default with respect to this
Note or any Other Note, the Company shall within one (1) Business Day deliver written notice thereof via facsimile or electronic
mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to the Holder.
At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event
of Default (such earlier date, the “Event of Default Right Commencement Date”) and ending (such ending date,
the “Event of Default Right Expiration Date”, and each such period, an “Event of Default Redemption
Right Period”) on the twentieth (20th) Trading Day after the later of (x) the date such Event of Default is
cured and (y) the Holder’s receipt of an Event of Default Notice that includes (I) a reasonable description of the applicable
Event of Default, (II) a certification as to whether, in the opinion of the Company, such Event of Default is capable of being
cured and, if applicable, a reasonable description of any existing plans of the Company to cure such Event of Default and (III)
a certification as to the date the Event of Default occurred and, if cured on or prior to the date of such Event of Default Notice,
the applicable Event of Default Right Expiration Date, the Holder may require the Company to redeem (regardless of whether such
Event of Default has been cured on or prior to the Event of Default Right Expiration Date) all or any portion of this Note by delivering
written notice thereof (the “Event of Default Redemption Notice”) to the Company, which Event of Default Redemption
Notice shall indicate the portion of this Note the Holder is electing to redeem. Each portion of this Note subject to redemption
by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price equal to the greater of (i) the product
of (A) the Conversion Amount to be redeemed multiplied by (B) the Redemption Premium and (ii) the product of (X) the Conversion
Rate with respect to the Conversion Amount in effect at such time as the Holder delivers an Event of Default Redemption Notice
multiplied by (Y) the product of (1) the Redemption Premium multiplied by (2) the greatest Closing Sale Price of the Ordinary Shares
on any Trading Day during the period commencing on the date immediately preceding such Event of Default and ending on the date
the Company makes the entire payment required to be made under this Section 4(b) (the “Event of Default Redemption Price”)
(except, solely if any Restricted Principal is included in such Conversion Amount subject to redemption pursuant to the applicable
Event of Default Notice (such amount of Restricted Principal, the “Eligible Event of Default Restricted Principal Amount”)
and the Holder elects to effect Event of Default Netting (as defined in the Investor Note) pursuant to the terms of the Investor
Note, such Event of Default Redemption Price shall be reduced, on a dollar-for-dollar basis, by such portion of the Event of Default
Restricted Principal Amount subject to such Event of Default Netting (each, an “Event of Default Restricted Principal
Amount”) and such Event of Default Restricted Principal Amount shall be satisfied on such Redemption Date by Event of
Default Netting (as defined in the Investor Note) (solely if the applicable Event of Default does not include a Bankruptcy Event
of Default) or automatically satisfied on such Redemption Date by Event of Default Bankruptcy Netting (as defined in the Investor
Note) (solely if the applicable Event of Default includes a Bankruptcy Event of Default), as applicable, with respect thereto).
Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section 11. To the extent redemptions
required by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the
Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section
3(e), but subject to Section 3(d), until the Event of Default Redemption Price (together with any Late Charges thereon) is satisfied
in full, the Conversion Amount submitted for redemption under this Section 4(b) (together with any Late Charges thereon) may be
converted, in whole or in part, by the Holder into Ordinary Shares pursuant to the terms of this Note. In the event of a partial
redemption of this Note pursuant hereto, (x) the Principal amount redeemed shall be deducted from the Installment Amount(s) relating
to the applicable Installment Date(s) as set forth in the Event of Default Redemption Notice and (y) the amount of Restricted Principal
redeemed, if any, shall be set forth in the applicable Event of Default Redemption Notice. In the event of the Company’s
redemption of any portion of this Note under this Section 4(b), the Holder’s damages would be uncertain and difficult to
estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a
suitable substitute investment opportunity for the Holder. Accordingly, any redemption premium due under this Section 4(b) is intended
by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity
and not as a penalty. Any redemption upon an Event of Default shall not constitute an election of remedies by the Holder, and all
other rights and remedies of the Holder shall be preserved.

 

    - 13 -

     

    

 

(c) Mandatory
Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, and notwithstanding any conversion
that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the Maturity
Date, the Company shall immediately pay to the Holder an amount in cash representing (i) all outstanding Principal, accrued and
unpaid Interest, Make-Whole Amount and accrued and unpaid Late Charges on such Principal, Interest and Make-Whole Amount, multiplied
by (ii) the Redemption Premium, in addition to any and all other amounts due hereunder, without the requirement for any notice
or demand or other action by the Holder or any other person or entity, except that any Restricted Principal then outstanding hereunder
shall be satisfied through Bankruptcy Event of Default Netting (as defined in the Investor Note) (in lieu of such cash payment
hereunder); provided that the Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Event of
Default, in whole or in part, and any such waiver shall not affect any other rights of the Holder hereunder, including any other
rights in respect of such Bankruptcy Event of Default, any right to conversion, and any right to payment of the Event of Default
Redemption Price or any other Redemption Price, as applicable.

 

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5. RIGHTS UPON FUNDAMENTAL
TRANSACTION.

 

(a) Assumption.
The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing
all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of
this Section 5(a) pursuant to written agreements in form and substance satisfactory to the Holder and approved by the Holder prior
to such Fundamental Transaction, including agreements to deliver to each holder of Notes in exchange for such Notes a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Notes, including,
without limitation, having a principal amount and interest rate equal to the principal amounts then outstanding and the interest
rates of the Notes and, if applicable, a restricted principal equal in amount to the Restricted Principal then outstanding hereunder,
respectively, held by such holder, having similar conversion rights as the Notes and having similar ranking and security to the
Notes, and satisfactory to the Holder and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation
whose common equity or ordinary shares, as applicable, is quoted on or listed for trading on an Eligible Market. Upon the occurrence
of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date
of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Note and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein. Upon consummation of a Fundamental Transaction, the Successor Entity shall deliver to the
Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time after the consummation of
such Fundamental Transaction, in lieu of the Ordinary Shares (or other securities, cash, assets or other property (except such
items still issuable under Sections 6 and 15, which shall continue to be receivable thereafter)) issuable upon the conversion or
redemption of the Notes prior to such Fundamental Transaction, such shares of the publicly traded common equity or ordinary shares,
as applicable (or their equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled
to receive upon the happening of such Fundamental Transaction had this Note been converted immediately prior to such Fundamental
Transaction (without regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of
this Note. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company
to waive this Section 5(a) to permit the Fundamental Transaction without the assumption of this Note. The provisions of this Section
5 shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations
on the conversion of this Note.

 

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(b) Notice
of a Change of Control; Redemption Right. No sooner than twenty (20) Trading Days nor later than ten (10) Trading Days prior
to the consummation of a Change of Control (the “Change of Control Date”), but not prior to the public announcement
of such Change of Control, the Company shall deliver written notice thereof via facsimile or electronic mail and overnight courier
to the Holder (a “Change of Control Notice”). At any time during the period beginning after the Holder’s
receipt of a Change of Control Notice or the Holder becoming aware of a Change of Control if a Change of Control Notice is not
delivered to the Holder in accordance with the immediately preceding sentence (as applicable) and ending on the later of twenty
(20) Trading Days after (A) consummation of such Change of Control or (B) the date of receipt of such Change of Control Notice,
the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change
of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice shall indicate the Conversion
Amount the Holder is electing to redeem. The portion of this Note subject to redemption pursuant to this Section 5(b) shall be
redeemed by the Company in cash at a price equal to the greatest of (i) the product of (w) the Change of Control Redemption Premium
multiplied by (y) the Conversion Amount being redeemed, (ii) the product of (x) the Change of Control Redemption Premium multiplied
by (y) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient determined by dividing (I) the greatest
Closing Sale Price of the Ordinary Shares during the period beginning on the date immediately preceding the earlier to occur of
(1) the consummation of the applicable Change of Control and (2) the public announcement of such Change of Control and ending on
the date the Holder delivers the Change of Control Redemption Notice by (II) the Conversion Price then in effect and (iii) the
product of (y) the Change of Control Redemption Premium multiplied by (z) the product of (A) the Conversion Amount being redeemed
multiplied by (B) the quotient of (I) the aggregate cash consideration and the aggregate cash value of any non-cash consideration
per Ordinary Share to be paid to the holders of the Ordinary Shares upon consummation of such Change of Control (any such non-cash
consideration constituting publicly-traded securities shall be valued at the highest of the Closing Sale Price of such securities
as of the Trading Day immediately prior to the consummation of such Change of Control, the Closing Sale Price of such securities
on the Trading Day immediately following the public announcement of such proposed Change of Control and the Closing Sale Price
of such securities on the Trading Day immediately prior to the public announcement of such proposed Change of Control) divided
by (II) the Conversion Price then in effect (the “Change of Control Redemption Price”) (except, solely if any
Restricted Principal is included in such Conversion Amount subject to redemption pursuant to the applicable Change of Control Notice
(such amount of Restricted Principal, the “Eligible Change of Control Restricted Principal Amount”) and the
Holder elects to effect Redemption Netting (as defined in the Investor Note) pursuant to the terms of the Investor Note, such Change
of Control Redemption Price shall be reduced, on a dollar-for-dollar basis, by such portion of the Change of Control Restricted
Principal Amount subject to such Redemption Netting (each a “Change of Control Restricted Principal Amount”)
and such Change of Control Restricted Principal Amount shall be automatically satisfied on such Redemption Date by Redemption Netting
(as defined in the Investor Note) with respect thereto). Redemptions required by this Section 5(b) shall be made in accordance
with the provisions of Section 11 and shall have priority to payments to shareholders in connection with such Change of Control.
To the extent redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments
of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary
in this Section 5(b), but subject to Section 3(d), until the Change of Control Redemption Price (together with any Late Charges
thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 5(b) (together with any Late Charges
thereon) may be converted, in whole or in part, by the Holder into Ordinary Shares pursuant to Section 3. In the event of a partial
redemption of this Note pursuant hereto, (x) the Principal amount redeemed shall be deducted from the Installment Amount(s) relating
to the applicable Installment Date(s) as set forth in the Change of Control Redemption Notice and (y) the amount of Restricted
Principal redeemed, if any, shall be set forth in the applicable Change of Control Redemption Notice. In the event of the Company’s
redemption of any portion of this Note under this Section 5(b), the Holder’s damages would be uncertain and difficult to
estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a
suitable substitute investment opportunity for the Holder. Accordingly, any redemption premium due under this Section 5(b) is intended
by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity
and not as a penalty.

 

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6. RIGHTS UPON ISSUANCE
OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

 

(a) Purchase
Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase shares, warrants, securities or other property pro rata to all or substantially
all of the record holders of any class of Ordinary Shares (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of Ordinary Shares acquirable upon complete conversion of this Note (without taking into account
any limitations or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at
the Alternate Conversion Price as of the applicable record date) immediately prior to the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary
Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that to the
extent that the Holder’s right to participate in any such Purchase Right would result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to the extent
of the Maximum Percentage (and shall not be entitled to beneficial ownership of such Ordinary Shares as a result of such Purchase
Right (and beneficial ownership) to the extent of any such excess) and such Purchase Right to such extent shall be held in abeyance
(and, if such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such
number of days held in abeyance, if applicable) for the benefit of the Holder until such time or times, if ever, as its right thereto
would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder
shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent
Purchase Right held similarly in abeyance (and, if such Purchase Right has an expiration date, maturity date or other similar provision,
such term shall be extended by such number of days held in abeyance, if applicable)) to the same extent as if there had been no
such limitation).

 

(b) Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of Ordinary Shares are entitled to receive securities or other assets with respect to or
in exchange for Ordinary Shares (a “Corporate Event”), the Company shall make appropriate provision to ensure
that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option (i) in addition
to the Ordinary Shares receivable upon such conversion, such securities or other assets to which the Holder would have been entitled
with respect to such Ordinary Shares had such Ordinary Shares been held by the Holder upon the consummation of such Corporate Event
(without taking into account any limitations or restrictions on the convertibility of this Note) or (ii) in lieu of the Ordinary
Shares otherwise receivable upon such conversion, such securities or other assets received by the holders of Ordinary Shares in
connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had
this Note initially been issued with conversion rights for the form of such consideration (as opposed to Ordinary Shares) at a
conversion rate for such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence
shall be in a form and substance satisfactory to the Holder. The provisions of this Section 6 shall apply similarly and equally
to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of this Note.

 

7. RIGHTS UPON ISSUANCE
OF OTHER SECURITIES.

 

(a) Adjustment of Conversion Price upon
Issuance of Ordinary Shares. If and whenever on or after the Subscription Date the Company issues or sells, or in accordance
with this Section 7(a) is deemed to have issued or sold, any Ordinary Shares (including the issuance or sale of Ordinary Shares
owned or held by or for the account of the Company, but excluding any Excluded Securities issued or sold or deemed to have been
issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Conversion
Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Conversion Price then in effect is
referred to herein as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then,
immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance
Price. For all purposes of the foregoing (including, without limitation, determining the adjusted Conversion Price and the New
Issuance Price under this Section 7(a)), the following shall be applicable:

 

(i) Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one Ordinary
Share is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof is less than the Applicable Price,
then such Ordinary Share shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting
or sale of such Option for such price per share. For purposes of this Section 7(a)(i), the “lowest price per share for which
one Ordinary Share is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any
Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof” shall be equal
to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect
to any one Ordinary Share upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise
or exchange of any Convertible Security issuable upon exercise of such Option or otherwise pursuant to the terms thereof and (y)
the lowest exercise price set forth in such Option for which one Ordinary Share is issuable (or may become issuable assuming all
possible market conditions) upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option or otherwise pursuant to the terms thereof, minus (2) the sum of all amounts paid or
payable to the holder of such Option (or any other Person) with respect to any one Ordinary Share upon the granting or sale of
such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise
of such Option or otherwise pursuant to the terms thereof plus the value of any other consideration consisting of cash, debt forgiveness,
assets or any other property received or receivable by, or benefit conferred on, the holder of such Option (or any other Person).
Except as contemplated below, no further adjustment of the Conversion Price shall be made upon the actual issuance of such Ordinary
Share or of such Convertible Securities upon the exercise of such Options or otherwise pursuant to the terms thereof or upon the
actual issuance of such Ordinary Shares upon conversion, exercise or exchange of such Convertible Securities.

 

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(ii) Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one Ordinary Share is at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant
to the terms thereof is less than the Applicable Price, then such Ordinary Share shall be deemed to be outstanding and to have
been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share.
For the purposes of this Section 7(a)(ii), the “lowest price per share for which one Ordinary Share is at any time issuable
(or may become issuable assuming all possible market conditions) upon the conversion, exercise or exchange thereof or otherwise
pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if
any) received or receivable by the Company with respect to one Ordinary Share upon the issuance or sale of the Convertible Security
and upon conversion, exercise or exchange of such Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest
conversion price set forth in such Convertible Security for which one Ordinary Share is issuable upon conversion, exercise or exchange
thereof or otherwise pursuant to the terms thereof minus (2) the sum of all amounts paid or payable to the holder of such Convertible
Security (or any other Person) with respect to any one Ordinary Share upon the issuance or sale of such Convertible Security plus
the value of any other consideration received or receivable consisting of cash, debt forgiveness, assets or other property by,
or benefit conferred on, the holder of such Convertible Security (or any other Person). Except as contemplated below, no further
adjustment of the Conversion Price shall be made upon the actual issuance of such Ordinary Shares upon conversion, exercise or
exchange of such Convertible Securities or otherwise pursuant to the terms thereof, and if any such issuance or sale of such Convertible
Securities is made upon exercise of any Options for which adjustment of the Conversion Price has been or is to be made pursuant
to other provisions of this Section 7(a), except as contemplated below, no further adjustment of the Conversion Price shall be
made by reason of such issuance or sale.

 

(iii) Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for Ordinary Shares increases or decreases at any time (other than
proportional changes in conversion or exercise prices, as applicable, in connection with an event referred to in Section 7(b) below),
the Conversion Price in effect at the time of such increase or decrease shall be adjusted to the Conversion Price which would have
been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price,
additional consideration or increased or decreased conversion rate (as the case may be) at the time initially granted, issued or
sold. For purposes of this Section 7(a)(iii), if the terms of any Option or Convertible Security that was outstanding as of the
Subscription Date are increased or decreased in the manner described in the immediately preceding sentence, then such Option or
Convertible Security and the Ordinary Shares deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 7(a) shall be made if such adjustment
would result in an increase of the Conversion Price then in effect.

 

(iv) Calculation
of Consideration Received. If any Option and/or Convertible Security and/or Adjustment Right is issued in connection with the
issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the “Primary
Security”, and such Option and/or Convertible Security and/or Adjustment Right, the “Secondary Securities”),
together comprising one integrated transaction (or one or more transactions if such issuances or sales or deemed issuances or sales
of securities of the Company either (A) have at least one investor or purchaser in common, (B) are consummated in reasonable proximity
to each other and/or (C) are consummated under the same plan of financing), the aggregate consideration per Ordinary Share with
respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest price per share for which one
Ordinary Share was issued (or was deemed to be issued pursuant to Section 7(a)(i) or 7(a)(ii) above, as applicable) in such integrated
transaction solely with respect to such Primary Security, minus (y) with respect to such Secondary Securities, the sum of (I) the
Black Scholes Consideration Value of each such Option, if any, (II) the fair market value (as determined by the Holder in good
faith) or the Black Scholes Consideration Value, as applicable, of such Adjustment Right, if any, and (III) the fair market value
(as determined by the Holder) of such Convertible Security, if any, in each case, as determined on a per share basis in accordance
with this Section 7(a)(iv). If any Ordinary Shares, Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor (for the purpose of determining the consideration paid for such Ordinary
Shares, Option or Convertible Security, but not for the purpose of the calculation of the Black Scholes Consideration Value) will
be deemed to be the net amount of consideration received by the Company therefor. If any Ordinary Shares, Options or Convertible
Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company (for
the purpose of determining the consideration paid for such Ordinary Shares, Option or Convertible Security, but not for the purpose
of the calculation of the Black Scholes Consideration Value) will be the fair value of such consideration, except where such consideration
consists of publicly traded securities, in which case the amount of consideration received by the Company for such securities will
be the arithmetic average of the VWAPs of such security for each of the five (5) Trading Days immediately preceding the date of
receipt. If any Ordinary Shares, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection
with any merger in which the Company is the surviving entity, the amount of consideration therefor (for the purpose of determining
the consideration paid for such Ordinary Shares, Option or Convertible Security, but not for the purpose of the calculation of
the Black Scholes Consideration Value) will be deemed to be the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Ordinary Shares, Options or Convertible Securities (as the case may be). The fair
value of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Holder.
If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation
Event”), the fair value of such consideration will be determined within five (5) Trading Days after the tenth (10th)
day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination
of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser
shall be borne by the Company.

 

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(v) Record
Date. If the Company takes a record of the holders of Ordinary Shares for the purpose of entitling them (A) to receive a dividend
or other distribution payable in Ordinary Shares, Options or in Convertible Securities or (B) to subscribe for or purchase Ordinary
Shares, Options or Convertible Securities, then such record date will be deemed to be the date of the issuance or sale of the Ordinary
Shares deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase (as the case may be).

 

(b) Adjustment
of Conversion Price upon Subdivision or Combination of Ordinary Shares. Without limiting any provision of Section 6, Section
15 or Section 7(a), if the Company at any time on or after the Subscription Date subdivides (by any share split, share dividend,
share combination, recapitalization or other similar transaction) one or more classes of its outstanding Ordinary Shares into a
greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced.
Without limiting any provision of Section 4(c) or Section 7(a), if the Company at any time on or after the Subscription
Date combines (by any share split, share dividend, share combination, recapitalization or other similar transaction) one or more
classes of its outstanding Ordinary Shares into a smaller number of shares, the Conversion Price in effect immediately prior to
such combination will be proportionately increased. Any adjustment pursuant to this Section 7(b) shall become effective immediately
after the effective date of such subdivision or combination. If any event requiring an adjustment under this Section 7(b) occurs
during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion Price shall be adjusted
appropriately to reflect such event.

 

(c) Holder’s
Right of Adjusted Conversion Price. In addition to and not in limitation of the other provisions of this Section 7, if the
Company in any manner issues or sells or enters into any agreement to issue or sell, any Ordinary Shares, Options or Convertible
Securities (any such securities, “Variable Price Securities”), after the Subscription Date that are issuable
pursuant to such agreement or convertible into or exchangeable or exercisable for Ordinary Shares at a price which varies or may
vary with the market price of the Ordinary Shares, including by way of one or more reset(s) to a fixed price, but exclusive of
such formulations reflecting customary anti-dilution provisions (such as share splits, share combinations, share dividends and
similar transactions) (each of the formulations for such variable price being herein referred to as, the “Variable Price”),
the Company shall provide written notice thereof via facsimile and overnight courier to the Holder on the date of such agreement
and the issuance of such Convertible Securities or Options. From and after the date the Company enters into such agreement or issues
any such Variable Price Securities, the Holder shall have the right, but not the obligation, in its sole discretion to substitute
the Variable Price for the Conversion Price upon conversion of this Note by designating in the Conversion Notice delivered upon
any conversion of this Note that solely for purposes of such conversion the Holder is relying on the Variable Price rather than
the Conversion Price then in effect. The Holder’s election to rely on a Variable Price for a particular conversion of this
Note shall not obligate the Holder to rely on a Variable Price for any future conversion of this Note. In addition, from and after
the date the Company enters into such agreement or issues any such Variable Price Securities, for purposes of calculating any Installment
Conversion Price as of any time of determination, the “Conversion Price” as used therein shall mean the lower of (x)
the Conversion Price as of such time of determination and (y) the Variable Price as of such time of determination.

 

(d) Stock
Combination Event Adjustments. If at any time and from time to time on or after the Subscription Date there occurs any share
split, share dividend, share combination recapitalization or other similar transaction involving the Ordinary Shares (each, a “Stock
Combination Event”, and such date thereof, the “Stock Combination Event Date”) and the Event Market
Price is less than the Conversion Price then in effect (after giving effect to the adjustment in Section 7(a) above), then on the
sixteenth (16th) Trading Day immediately following such Stock Combination Event Date, the Conversion Price then in effect
on such sixteenth (16th) Trading Day (after giving effect to the adjustment in Section 7(a) above) shall be reduced
(but in no event increased) to the Event Market Price. For the avoidance of doubt, if the adjustment in the immediately preceding
sentence would otherwise result in an increase in the Conversion Price hereunder, no adjustment shall be made.

 

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(e) Other
Events. In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are not strictly
applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated
by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting
of share appreciation rights, phantom share rights or other rights with equity features), then the Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Conversion Price so as to protect the rights of the
Holder, provided that no such adjustment pursuant to this Section 7(e) will increase the Conversion Price as otherwise determined
pursuant to this Section 7(e), provided further that if the Holder does not accept such adjustments as appropriately protecting
its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good
faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination
shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.

 

(f) Calculations.
All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of Ordinary Shares outstanding at any given time shall not include shares owned or held by or
for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Ordinary Shares.

 

(g) Voluntary
Adjustment by Company. Subject to the rules of the Principal Market, the Company may at any time during the term of this Note,
with the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current
Conversion Price of each of the Notes to any amount and for any period of time deemed appropriate by the board of directors of
the Company.

 

8. INSTALLMENT CONVERSION OR REDEMPTION.

 

(a) General.
On each applicable Installment Date, provided there has been no Equity Conditions Failure, the Company shall pay to the Holder
of this Note the applicable Installment Amount due on such date by converting such Installment Amount in accordance with this Section
8 (a “Installment Conversion”); provided, however, that the Company may, at its option following
notice to the Holder as set forth below, pay the Installment Amount by redeeming such Installment Amount in cash (a “Installment
Redemption”) or by any combination of an Installment Conversion and an Installment Redemption so long as all of the outstanding
applicable Installment Amount due on any Installment Date shall be converted and/or redeemed by the Company on the applicable Installment
Date, subject to the provisions of this Section 8. On the date which is the twenty-first (21st) Trading Day prior to each Installment
Date (each, an “Installment Notice Due Date”), the Company shall deliver written notice (each, a “Installment
Notice” and the date all of the holders receive such notice is referred to as to the “Installment Notice Date”),
to each holder of Notes and such Installment Notice shall (i) either (A) confirm that the applicable Installment Amount of such
holder’s Note shall be converted in whole pursuant to an Installment Conversion or (B) (1) state that the Company elects
to redeem for cash, or is required to redeem for cash in accordance with the provisions of the Notes, in whole or in part, the
applicable Installment Amount pursuant to an Installment Redemption and (2) specify the portion of such Installment Amount which
the Company elects or is required to redeem pursuant to an Installment Redemption (such amount to be redeemed in cash, the “Installment
Redemption Amount”) and the portion of the applicable Installment Amount, if any, with respect to which the Company will,
and is permitted to, effect an Installment Conversion (such amount of the applicable Installment Amount so specified to be so converted
pursuant to this Section 8 is referred to herein as the “Installment Conversion Amount”), which amounts when
added together, must at least equal the entire applicable Installment Amount and (ii) if the applicable Installment Amount is to
be paid, in whole or in part, pursuant to an Installment Conversion, certify that there is not then an Equity Conditions Failure
as of the applicable Installment Notice Date. Each Installment Notice shall be irrevocable. If the Company does not timely deliver
an Installment Notice in accordance with this Section 8 with respect to a particular Installment Date, then the Company shall be
deemed to have delivered an irrevocable Installment Notice confirming an Installment Conversion of the entire Installment Amount
payable on such Installment Date and shall be deemed to have certified that there is not then an Equity Conditions Failure in connection
with such Installment Conversion. Except as expressly provided in this Section 8(a), the Company shall convert and/or redeem the
applicable Installment Amount of this Note pursuant to this Section 8 and the corresponding Installment Amounts of the Other Notes
pursuant to the corresponding provisions of the Other Notes in the same ratio of the applicable Installment Amount being converted
and/or redeemed hereunder. The applicable Installment Conversion Amount (whether set forth in the applicable Installment Notice
or by operation of this Section 8) shall be converted in accordance with Section 8(b) and the applicable Installment Redemption
Amount shall be redeemed in accordance with Section 8(c). Notwithstanding the foregoing, if the Holder elects to use an Alternate
Installment Measuring Period for any given Installment Date, the Company shall not be required to deliver any Ordinary Shares pursuant
to such Installment Conversion or any Acceleration related thereto until the later of (x) the second (2nd) Trading Day
after the date the Holder delivers notice to the Company that it has elected to use an Alternate Installment Measuring Period with
respect thereto and (y) the applicable Installment Date with respect to such Installment Conversion or Share Delivery Deadline
with respect to such Acceleration, as applicable.

 

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(b) Mechanics
of Installment Conversion. Subject to Section 3(d), if the Company delivers an Installment Notice or is deemed to have delivered
an Installment Notice certifying that such Installment Amount is being paid, in whole or in part, in an Installment Conversion
in accordance with Section 8(a), then the remainder of this Section 8(b) shall apply. The applicable Installment Conversion Amount,
if any, shall be converted on the applicable Installment Date at the applicable Installment Conversion Price and the Company shall,
on such Installment Date, deliver to the Holder’s account with DTC such Ordinary Shares issued upon such conversion (subject
to the reduction contemplated by the immediately following sentence and, if applicable, the penultimate sentence of this Section
8(b)), provided that the Equity Conditions are then satisfied (or waived in writing by the Holder) on such Installment Date and
an Installment Conversion is not otherwise prohibited under any other provision of this Note. If the Company confirmed (or is deemed
to have confirmed by operation of Section 8(a)) the conversion of the applicable Installment Conversion Amount, in whole or in
part, and there was no Equity Conditions Failure as of the applicable Installment Notice Date (or is deemed to have certified that
the Equity Conditions in connection with any such conversion have been satisfied by operation of Section 8(a)) but an Equity Conditions
Failure occurred between the applicable Installment Notice Date and any time through the applicable Installment Date (the “Interim
Installment Period”), the Company shall provide the Holder a subsequent notice to that effect. If there is an Equity
Conditions Failure (which is not waived in writing by the Holder) during such Interim Installment Period or an Installment Conversion
is not otherwise permitted under any other provision of this Note, then, at the option of the Holder designated in writing to the
Company, the Holder may require the Company to do any one or more of the following: (i) the Company shall redeem all or any part
designated by the Holder of the unconverted Installment Conversion Amount (such designated amount is referred to as the “Designated
Redemption Amount”) and the Company shall pay to the Holder within two (2) days of such Installment Date, by wire transfer
of immediately available funds, an amount in cash equal to 115% of such Designated Redemption Amount, and/or (ii) the Installment
Conversion shall be null and void with respect to all or any part designated by the Holder of the unconverted Installment Conversion
Amount and the Holder shall be entitled to all the rights of a holder of this Note with respect to such designated part of the
Installment Conversion Amount; provided, however, the Conversion Price for such designated part of such unconverted Installment
Conversion Amount shall thereafter be adjusted to equal the lesser of (A) the Installment Conversion Price as in effect on the
date on which the Holder voided the Installment Conversion and (B) the Installment Conversion Price that would be in effect on
the date on which the Holder delivers a Conversion Notice relating thereto as if such date was an Installment Date. If the Company
fails to redeem any Designated Redemption Amount by the second (2nd) day following the applicable Installment Date by payment of
such amount by such date, then the Holder shall have the rights set forth in Section 11(a) as if the Company failed to pay the
applicable Installment Redemption Price (as defined below) and all other rights under this Note (including, without limitation,
such failure constituting an Event of Default described in Section 4(a)(iv)). Notwithstanding anything to the contrary in this
Section 8(b), but subject to 3(d), until the Company delivers Ordinary Shares representing the Installment Conversion Amount to
the Holder, the Installment Conversion Amount may be converted by the Holder into Ordinary Shares pursuant to Section 3. In the
event that the Holder elects to convert the Installment Conversion Amount prior to the applicable Installment Date as set forth
in the immediately preceding sentence, the Installment Conversion Amount so converted shall be deducted from the Installment Amount(s)
relating to the applicable Installment Date(s) as set forth in the applicable Conversion Notice. The Company shall pay any and
all taxes that may be payable with respect to the issuance and delivery of any Ordinary Shares in any Installment Conversion hereunder.

 

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(c) Mechanics
of Installment Redemption. If the Company elects or is required to effect an Installment Redemption, in whole or in part, in
accordance with Section 8(a), then the Installment Redemption Amount, if any, shall be redeemed by the Company in cash on the applicable
Installment Date by wire transfer to the Holder of immediately available funds in an amount equal to the applicable Installment
Redemption Amount (the “Installment Redemption Price”). If the Company fails to redeem such Installment Redemption
Amount on such Installment Date by payment of the Installment Redemption Price, then, at the option of the Holder designated in
writing to the Company (any such designation shall be a “Conversion Notice” for purposes of this Note), the
Holder may require the Company to convert all or any part of the Installment Redemption Amount at the Installment Conversion Price
(determined as of the date of such designation as if such date were an Installment Date). Conversions required by this Section
8(c) shall be made in accordance with the provisions of Section 3(c). Notwithstanding anything to the contrary in this Section
8(c), but subject to Section 3(d), until the Installment Redemption Price (together with any Late Charges thereon) is paid in full,
the Installment Redemption Amount (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder
into Ordinary Shares pursuant to Section 3. In the event the Holder elects to convert all or any portion of the Installment Redemption
Amount prior to the applicable Installment Date as set forth in the immediately preceding sentence, the Installment Redemption
Amount so converted shall be deducted from the Installment Amounts relating to the applicable Installment Date(s) as set forth
in the applicable Conversion Notice. Redemptions required by this Section 8(c) shall be made in accordance with the provisions
of Section 11.

 

(d) Deferred
Installment Amount. Notwithstanding any provision of this Section 8(d) to the contrary, the Holder may, at its option and in
its sole discretion, deliver a written notice to the Company no later than the Trading Day immediately prior to the applicable
Installment Date electing to have the payment of all or any portion of an Installment Amount payable on such Installment Date deferred
(such amount deferred, the “Deferral Amount”, and such deferral, each a “Deferral”) until
any subsequent Installment Date selected by the Holder, in its sole discretion, in which case, the Deferral Amount shall be added
to, and become part of, such subsequent Installment Amount and such Deferral Amount shall continue to accrue Interest hereunder.
Any notice delivered by the Holder pursuant to this Section 8(d) shall set forth (i) the Deferral Amount and (ii) the date that
such Deferral Amount shall now be payable.

 

(e) Acceleration
of Installment Amounts. Acceleration of Installment Amounts. Notwithstanding anything herein to the contrary, during
the period commencing on an Installment Date (a “Current Installment Date”) and ending on the Trading Day immediately
prior to the next Installment Date (each, an “Installment Period”), if the Installment Conversion Price for
such Current Installment Date is greater than or equal to $1.50 (as adjusted for share splits, share dividends, recapitalizations
and similar events) at the option of the Holder, at one or more times, the Holder may convert other Installment Amounts (each,
an “Acceleration”, and each such amount, an “Acceleration Amount”), in whole or in part,
at the Installment Conversion Price of such Current Installment Date in accordance with the conversion procedures set forth in
Section 3 hereunder, mutatis mutandis. Notwithstanding the foregoing, with respect to any given Installment Period, the
Holder may not elect to effect any Acceleration (a “Current Acceleration”) during such Installment Period if
the sum of (x) the Acceleration Amounts with respect to Accelerations previously consummated by the Holder during the applicable
Installment Period and (y) the Acceleration Amount of such Current Acceleration, collectively, exceeds four (4) times the Installment
Amount with respect to such Current Installment Date.

 

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9. NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined
in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith
carry out all of the provisions of this Note and take all action as may be required to protect the rights of the Holder of this
Note. Without limiting the generality of the foregoing or any other provision of this Note or the other Transaction Documents,
the Company (a) shall not increase the par value of any Ordinary Shares receivable upon conversion of this Note above the
Conversion Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Ordinary Shares upon the conversion of this Note. Notwithstanding
anything herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted
to convert this Note in full for any reason (other than pursuant to restrictions set forth in Section 3(d) hereof), the Company
shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals
as necessary to permit such conversion into Ordinary Shares.

 

10. RESERVATION
OF AUTHORIZED SHARES.

 

(a) Reservation.
So long as any Notes remain outstanding, the Company shall at all times reserve at least 200% of the number of Ordinary Shares
as shall from time to time be necessary to effect the conversion, including without limitation, Installment Conversions, Alternate
Conversions and Accelerations, of all of the Notes then outstanding (without regard to any limitations on conversions and assuming
such Notes remain outstanding until the Maturity Date) at the Alternate Conversion Price then in effect (the “Required
Reserve Amount”). The Required Reserve Amount (including, without limitation, each increase in the number of shares so
reserved) shall be allocated pro rata among the holders of the Notes based on the original principal amount of the Notes held by
each holder on the Closing Date or increase in the number of reserved shares, as the case may be (the “Authorized Share
Allocation”). In the event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee
shall be allocated a pro rata portion of such holder’s Authorized Share Allocation. Any Ordinary Shares reserved and allocated
to any Person which ceases to hold any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal
amount of the Notes then held by such holders.

 

    - 23 -

     

    

 

(b) Insufficient
Authorized Shares. If, notwithstanding Section 10(a), and not in limitation thereof, at any time while any of the Notes remain
outstanding the Company does not have a sufficient number of authorized and unreserved Ordinary Shares to satisfy its obligation
to reserve for issuance upon conversion of the Notes at least a number of Ordinary Shares equal to the Required Reserve Amount
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the
Company’s authorized Ordinary Shares to an amount sufficient to allow the Company to reserve the Required Reserve Amount
for the Notes then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date
of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized
Share Failure, the Company shall hold a meeting of its shareholders for the approval of an increase in the number of authorized
Ordinary Shares. In connection with such meeting, the Company shall provide each shareholder with a proxy statement and shall use
its best efforts to solicit its shareholders’ approval of such increase in authorized Ordinary Shares and to cause its board
of directors to recommend to the shareholders that they approve such proposal. In the event that the Company is prohibited from
issuing Ordinary Shares pursuant to the terms of this Note due to the failure by the Company to have sufficient Ordinary Shares
available out of the authorized but unissued Ordinary Shares (such unavailable number of Ordinary Shares, the “Authorized
Failure Shares”), in lieu of delivering such Authorized Failure Shares to the Holder, the Company shall pay cash in exchange
for the redemption of such portion of the Conversion Amount convertible into such Authorized Failure Shares at a price equal to
the sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the greatest Closing Sale Price of the Ordinary
Shares on any Trading Day during the period commencing on the date the Holder delivers the applicable Conversion Notice with respect
to such Authorized Failure Shares to the Company and ending on the date of such issuance and payment under this Section 10(a);
and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction
of a sale by the Holder of Authorized Failure Shares, any brokerage commissions and other out-of-pocket expenses, if any, of the
Holder incurred in connection therewith. Nothing contained in Section 10(a) or this Section 10(b) shall limit any obligations of
the Company under any provision of the Securities Purchase Agreement.

 

11. REDEMPTIONS.

 

(a) Mechanics.
The Company shall deliver the applicable Event of Default Redemption Price to the Holder in cash within five (5) Business Days
after the Company’s receipt of the Holder’s Event of Default Redemption Notice (each, an “Event of Default
Redemption Date”). If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b),
the Company shall deliver the applicable Change of Control Redemption Price to the Holder in cash concurrently with the consummation
of such Change of Control if such notice is received prior to the consummation of such Change of Control and within five (5) Business
Days after the Company’s receipt of such notice otherwise (each, a “Change of Control Redemption Date”).
The Company shall deliver the applicable Installment Redemption Price to the Holder in cash on the applicable Installment Date.
Notwithstanding anything herein to the contrary, in connection with any redemption hereunder at a time the Holder is entitled to
receive a cash payment under any of the other Transaction Documents, at the option of the Holder delivered in writing to the Company,
the applicable Redemption Price hereunder shall be increased by the amount of such cash payment owed to the Holder under such other
Transaction Document and, upon payment in full or conversion in accordance herewith, shall satisfy the Company’s payment
obligation under such other Transaction Document. In the event of a redemption of less than all of the Conversion Amount of this
Note, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 18(d)) representing
the outstanding Principal which has not been redeemed. In the event that the Company does not pay the applicable Redemption Price
to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in
full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly return to the Holder all or any
portion of this Note representing the Conversion Amount that was submitted for redemption and for which the applicable Redemption
Price (together with any Late Charges thereon) has not been paid. Notwithstanding the foregoing, if any Restricted Principal is
included in such Conversion Amount subject to redemption pursuant to the applicable Redemption Notice (such amount of Restricted
Principal, the “Eligible Redemption Restricted Principal Amount”) and the Holder elects to effect Redemption
Netting pursuant to the terms of the Investor Note, such Redemption Price shall be reduced, on a dollar-for-dollar basis, by such
portion of the Eligible Redemption Restricted Principal Amount subject to redemption pursuant to the applicable Redemption Notice
and such Eligible Redemption Restricted Principal Amount shall be automatically satisfied on the applicable Redemption Date by
either Redemption Netting (if such redemption is pursuant to Section 5(b), Event of Default Netting (if such redemption is pursuant
to Section 3(e) without regard to the occurrence of any Bankruptcy Event of Default) or Bankruptcy Event of Default Netting (if
such redemption is pursuant to Section 3(e) as a result of the occurrence of a Bankruptcy Event of Default)). Upon the Company’s
receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, (y)
the Company shall immediately return this Note, or issue a new Note (in accordance with Section 18(d)), to the Holder, and in each
case the principal amount of this Note or such new Note (as the case may be) shall be increased by an amount equal to the
difference between (1) the applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 11, if applicable)
minus (2) the Principal portion of the Conversion Amount submitted for redemption and (z) the Conversion Price of this Note or
such new Notes (as the case may be) shall be automatically adjusted with respect to each conversion effected thereafter by the
Holder to the lowest of (A) the Conversion Price as in effect on the date on which the applicable Redemption Notice is voided,
(B) 75% of the lowest Closing Bid Price of the Ordinary Shares during the period beginning on and including the date on which the
applicable Redemption Notice is delivered to the Company and ending on and including the date on which the applicable Redemption
Notice is voided and (C) 75% of the quotient of (I) the sum of the five (5) lowest VWAPs of the Ordinary Shares during the twenty
(20) consecutive Trading Day period ending and including the applicable Conversion Date divided by (II) five (5) (it being understood
and agreed that all such determinations shall be appropriately adjusted for any share dividend, share split, share combination
or other similar transaction during such period). The Holder’s delivery of a notice voiding a Redemption Notice and exercise
of its rights following such notice shall not affect the Company’s obligations to make any payments of Late Charges which
have accrued prior to the date of such notice with respect to the Conversion Amount subject to such notice.

 

    - 24 -

     

    

 

(b) Redemption
by Other Holders. Upon the Company’s receipt of notice from any of the holders of the Other Notes for redemption or repayment
as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4 or Section 5(b)
(each, an “Other Redemption Notice”), the Company shall immediately, but no later than one (1) Business Day
of its receipt thereof, forward to the Holder by facsimile or electronic mail a copy of such notice. If the Company receives a
Redemption Notice and one or more Other Redemption Notices, during the seven (7) Business Day period beginning on and including
the date which is two (2) Business Days prior to the Company’s receipt of the Holder’s applicable Redemption Notice
and ending on and including the date which is two (2) Business Days after the Company’s receipt of the Holder’s applicable
Redemption Notice and the Company is unable to redeem all principal, interest and other amounts designated in such Redemption Notice
and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata
amount from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for redemption
pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven (7) Business Day
period.

 

12. VOTING RIGHTS.
The Holder shall have no voting rights as the holder of this Note, except as required by law (including, without limitation, the
BVI Business Companies Act 2004) and as expressly provided in this Note.

 

13. COVENANTS.
Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with their terms:

 

(a) Rank.
All payments due under this Note (a) shall rank pari passu with all Other Notes and (b) shall be senior to all other Indebtedness
of the Company and its Subsidiaries.

 

(b) Incurrence
of Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
incur or guarantee, assume or suffer to exist any Indebtedness (other than (i) the Indebtedness evidenced by this Note and the
Other Notes and (ii) other Permitted Indebtedness).

 

(c) Existence
of Liens. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, allow
or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively, “Liens”)
other than Permitted Liens.

 

    - 25 -

     

    

 

(d) Restricted
Payments. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem,
defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part,
whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness
(other than the Notes) whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness
if at the time such payment is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Event
of Default has occurred and is continuing or (ii) an event that with the passage of time and without being cured would constitute
an Event of Default has occurred and is continuing.

 

(e) Restriction
on Redemption and Cash Dividends. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly
or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution on any of its share capital.

 

(f) Restriction
on Transfer of Assets. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
sell, lease, license, assign, transfer, spin-off, split-off, close, convey or otherwise dispose of any assets or rights of the
Company or any Subsidiary owned or hereafter acquired whether in a single transaction or a series of related transactions, other
than (i) sales, leases, licenses, assignments, transfers, conveyances and other dispositions of such assets or rights by the Company
and its Subsidiaries in the ordinary course of business consistent with its past practice and (ii) sales of inventory and product
in the ordinary course of business.

 

(g) Maturity
of Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
permit any Indebtedness of the Company or any of its Subsidiaries to mature or accelerate prior to the Maturity Date.

 

(h) Change
in Nature of Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
engage in any material line of business substantially different from those lines of business conducted by or publicly contemplated
to be conducted by the Company and each of its Subsidiaries on the Subscription Date or any business substantially related or incidental
thereto. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, modify its
or their corporate structure or purpose.

 

(i) Preservation
of Existence, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its
existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified
and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary.

 

(j) Maintenance
of Properties, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all
of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases
to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

    - 26 -

     

    

 

(k) Maintenance
of Intellectual Property. The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable
to maintain all of the Intellectual Property Rights (as defined in the Securities Purchase Agreement) of the Company and/or any
of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.

 

(l) Maintenance
of Insurance. The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such
amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is
carried generally in accordance with sound business practice by companies in similar businesses similarly situated.

 

(m) Transactions
with Affiliates. The Company shall not, nor shall it permit any of its Subsidiaries to, enter into, renew, extend or be a party
to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange
of property or assets of any kind or the rendering of services of any kind) with any affiliate, except transactions in the ordinary
course of business in a manner and to an extent consistent with past practice and necessary or desirable for the prudent operation
of its business, for fair consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in a
comparable arm’s length transaction with a Person that is not an affiliate thereof.

 

(n) Restricted
Issuances. The Company shall not, directly or indirectly, without the prior written consent of the holders of a majority in
aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than as contemplated by the Securities Purchase
Agreement and the Notes) or (ii) issue any other securities that would cause a breach or default under the Notes or the Warrants.

 

(a) Financial
Test; Announcement of Operating Results.

 

(i) Financial
Tests

 

(1) Available
Cash Test. At any time any Notes remain outstanding, the Company’s Available Cash as of each Fiscal Quarter shall equal
or exceed, as applicable: (x) if prior to the Mandatory Prepayment Event (as defined in the Investor Note), $1,000,000 or (y) from
and after the Mandatory Prepayment Event, $2,000,000 (the “Available Cash Test”).

 

(2) Minimum
Cash Flow Test. At any time any Notes remain outstanding, the Company’s Free Cash Flow shall not be less than $500,000
(the “Free Cash Flow Test”, and together with the Available Cash Test, the “Financial Tests”).

 

    - 27 -

     

    

 

(ii) Operating
Results Announcement. Commencing with the Fiscal Quarter ending June 30, 2019, the Company shall publicly disclose and disseminate
(such date, the “Announcement Date”), if any Financial Tests have not been satisfied for such Fiscal Quarter
or Fiscal Year, as applicable, a statement to that effect no later than (x) the forty-fifth (45th) day after the end
of such Fiscal Quarters ending June 30 and December 31, as applicable or (y) the ninetieth (90th) day after the end
of the six-month period ending September 30 and such Fiscal Year, as applicable, and such announcement, in each case, shall include
a statement to the effect that the Company is (or is not, as applicable) in breach of any Financial Test for such Fiscal Quarter
or Fiscal Year, as applicable. On the Announcement Date, the Company shall also provide to the Holders a certification, executed
on behalf of the Company by the Chief Financial Officer of the Company, certifying that the Company satisfied the Financial Tests
for such Fiscal Quarter if that is the case. If the Company has failed to meet any Financial Test for such Fiscal Quarter (a “Financial
Covenant Failure”), the foregoing written certification that the Company provides to the Holders shall also state a Financial
Test has not been met (a “Financial Covenant Failure Notice”). Concurrently with the delivery of each Financial
Covenant Failure Notice to the Holders, the Company shall also make publicly available (as part of an Annual Report on Form 20-F
or on a Report of Foreign Issuer on Form 6-K, or otherwise) the Financial Covenant Failure Notice and the fact that an Event of
Default has occurred under the Notes.

 

(b) Independent
Investigation. At the request of the Holder either (x) at any time when an Event of Default has occurred and is continuing,
(y) upon the occurrence of an event that with the passage of time or giving of notice would constitute an Event of Default or (z)
at any time the Holder reasonably believes an Event of Default may have occurred or be continuing, the Company shall hire an independent,
reputable investment bank selected by the Company and approved by the Holder to investigate as to whether any breach of this Note
has occurred (the “Independent Investigator”). If the Independent Investigator determines that such breach of
this Note has occurred, the Independent Investigator shall notify the Company of such breach and the Company shall deliver written
notice to each holder of a Note of such breach. In connection with such investigation, the Independent Investigator may, during
normal business hours, inspect all contracts, books, records, personnel, offices and other facilities and properties of the Company
and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the
records of its legal advisors and accountants (including the accountants’ work papers) and any books of account, records,
reports and other papers not contractually required of the Company to be confidential or secret, or subject to attorney-client
or other evidentiary privilege, and the Independent Investigator may make such copies and inspections thereof as the Independent
Investigator may reasonably request. The Company shall furnish the Independent Investigator with such financial and operating data
and other information with respect to the business and properties of the Company as the Independent Investigator may reasonably
request. The Company shall permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with,
and to make proposals and furnish advice with respect thereto to, the Company’s officers, directors, key employees and independent
public accountants or any of them (and by this provision the Company authorizes said accountants to discuss with such Independent
Investigator the finances and affairs of the Company and any Subsidiaries), all at such reasonable times, upon reasonable notice,
and as often as may be reasonably requested.

 

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14. SECURITY.
This Note is secured to the extent and in the manner set forth in Section 1(f) of this Note.

 

15. DISTRIBUTION
OF ASSETS. In addition to any adjustments pursuant to Section 7, if the Company shall declare or make any dividend or other
distributions of its assets (or rights to acquire its assets) to any or all holders of Ordinary Shares, by way of return of capital
or otherwise (including without limitation, any distribution of cash, shares or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”),
then the Holder will be entitled to such Distributions as if the Holder had held the number of Ordinary Shares acquirable upon
complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note
and assuming for such purpose that the Note was converted at the Alternate Conversion Price as of the applicable record date) immediately
prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record
holders of Ordinary Shares are to be determined for such Distributions (provided, however, that to the extent that the Holder’s
right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, then the Holder shall not be entitled to participate in such Distribution to the extent of the Maximum Percentage (and
shall not be entitled to beneficial ownership of such Ordinary Shares as a result of such Distribution (and beneficial ownership)
to the extent of any such excess) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder
until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or
made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there
had been no such limitation).

 

16. AMENDING THE
TERMS OF THIS NOTE. Except for Section 3(d), which may not be amended, modified or waived by the parties hereto, the prior
written consent of the Required Holders shall be required for any amendment, modification or waiver to this Note. Any amendment,
modification or waiver so approved shall be binding upon all existing and future holders of this Note and any Other Notes; provided,
however, that no such change, waiver or, as applied to any of the Notes held by any particular holder of Notes, shall, without
the written consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest,
or extend the Maturity Date, of the Notes, (ii) disproportionally and adversely affect any rights under the Notes of any holder
of Notes; or (iii) modify any of the provisions of, or impair the right of any holder of Notes under, this Section 16.

 

17. TRANSFER.
This Note and any Ordinary Shares issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder
without the consent of the Company, subject only to the provisions of Section 2(g) of the Securities Purchase Agreement.

 

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18. REISSUANCE OF
THIS NOTE.

 

(a) Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section 18(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred,
a new Note (in accordance with Section 18(d)) to the Holder representing the outstanding Principal not being transferred. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following
conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal
stated on the face of this Note.

 

(b) Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice
as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company
in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note (in accordance with Section 18(d)) representing the outstanding Principal.

 

(c) Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 18(d) and in principal amounts of at least $1,000) representing
in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d) Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 18(a) or Section 18(c), the Principal designated by the Holder which,
when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions
as this Note, and (v) shall represent accrued and unpaid Interest and Make-Whole Amount and Late Charges on the Principal, Interest
and Make-Whole Amount of this Note, from the Issuance Date.

 

19. REMEDIES, CHARACTERIZATIONS,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative and in addition to
all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual
and consequential damages for any failure by the Company to comply with the terms of this Note. No failure on the part of the Holder
to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise by the Holder of any right, power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy. In addition, the exercise of any right or remedy of the Holder at law or equity or under this
Note or any of the documents shall not be deemed to be an election of Holder’s rights or remedies under such documents or
at law or equity. The Company covenants to the Holder that there shall be no characterization concerning this instrument other
than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and
the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein,
be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.
The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition
to all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive or other equitable
relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting
a bond or other security. The Company shall provide all information and documentation to the Holder that is requested by the Holder
to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Note (including, without limitation,
compliance with Section 7).

 

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20. PAYMENT OF COLLECTION,
ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected
or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce
the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings
affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred
by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or
other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly acknowledges and
agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price paid for this Note
was less than the original Principal amount hereof.

 

21. CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed
against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed
to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Note
instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references are to sections
of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have
the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing
by the Holder.

 

22. FAILURE OR INDULGENCE
NOT WAIVER. No failure or delay on the part of the Holder 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. No waiver shall be effective unless it is in writing and signed by
an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 22 shall permit
any waiver of any provision of Section 3(d).

 

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23. DISPUTE RESOLUTION.

 

(a) Submission
to Dispute Resolution.

 

(i) In the
case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, an Installment Conversion Price, an
Event Market Price, an Alternate Conversion Price, a Black Scholes Consideration Value, a VWAP or a fair market value or the arithmetic
calculation of a Conversion Rate, the Restricted Principal, or the applicable Redemption Price (as the case may be) (including,
without limitation, a dispute relating to the determination of any of the foregoing), the Company or the Holder (as the case may
be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the Company, within two (2) Business
Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder at any time after the Holder
learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute
relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, such Installment Conversion Price, such Event
Market Price, such Alternate Conversion Price, such Black Scholes Consideration Value, such VWAP or such fair market value, or
the arithmetic calculation of such Conversion Rate, the Restricted Principal or such applicable Redemption Price (as the case may
be), at any time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as
the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select
an independent, reputable investment bank to resolve such dispute.

 

(ii) The Holder
and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance
with the first sentence of this Section 23 and (B) written documentation supporting its position with respect to such dispute,
in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date
on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred
to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment
bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation
that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by
both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled
to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other
than the Required Dispute Documentation).

 

(iii) The Company
and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and the Holder
of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees and expenses
of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute shall
be final and binding upon all parties absent manifest error.

 

(b) Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 23 constitutes an agreement to arbitrate between the Company
and the Holder (and constitutes an arbitration agreement) under § 7501, et seq. of the New York Civil Practice Law and Rules
(“CPLR”) and that the Holder is authorized to apply for an order to compel arbitration pursuant to CPLR §
7503(a) in order to compel compliance with this Section 23, (ii) a dispute relating to a Conversion Price includes, without limitation,
disputes as to (A) whether an issuance or sale or deemed issuance or sale of Ordinary Shares occurred under Section 7(a), (B) the
consideration per share at which an issuance or deemed issuance of Ordinary Shares occurred, (C) whether any issuance or sale or
deemed issuance or sale of Ordinary Shares was an issuance or sale or deemed issuance or sale of Excluded Securities, (D) whether
an agreement, instrument, security or the like constitutes and Option or Convertible Security and (E) whether a Dilutive Issuance
occurred, (iii) the terms of this Note and each other applicable Transaction Document shall serve as the basis for the selected
investment bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized)
to make all findings, determinations and the like that such investment bank determines are required to be made by such investment
bank in connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings,
determinations and the like to the terms of this Note and any other applicable Transaction Documents, (iv) the Holder (and only
the Holder), in its sole discretion, shall have the right to submit any dispute described in this Section 23 to any state or federal
court sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 23 and
(v) nothing in this Section 23 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including,
without limitation, with respect to any matters described in this Section 23).

 

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24. NOTICES; CURRENCY;
PAYMENTS.

 

(a) Notices.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefore. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment
of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the Ordinary Shares, (B) with respect to any grant, issuances, or sales of any Options, Convertible Securities
or rights to purchase shares, warrants, securities or other property to holders of Ordinary Shares or (C) for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall
be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

(b) Currency.
All dollar amounts referred to in this Note are in United States Dollars (“U.S. Dollars”), and all amounts owing
under this Note shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the
U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate”
means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Note, the U.S. Dollar exchange
rate as published in the Wall Street Journal on the relevant date of calculation (it being understood and agreed that where an
amount is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period
of time).

 

(c) Payments.
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, unless otherwise expressly set forth
herein, such payment shall be made in lawful money of the United States of America by a certified check drawn on the account of
the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing
(which address, in the case of each of the Buyers, shall initially be as set forth on the Schedule of Buyers attached to the Securities
Purchase Agreement), provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available
funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions.
Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall
instead be due on the next succeeding day which is a Business Day. Any amount of Principal or other amounts due under the Transaction
Documents which is not paid when due (except to the extent such amount is simultaneously accruing Interest at the Default Rate
hereunder) shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount
at the rate of eighteen percent (18%) per annum from the date such amount was due until the same is paid in full (“Late
Charge”).

 

25. CANCELLATION.
After all Principal, accrued Interest and Make-Whole Amount, Late Charges and other amounts at any time owed on this Note have
been satisfied in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation
and shall not be reissued.

 

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26. WAIVER OF NOTICE.
To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all other demands
and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase
Agreement.

 

27. GOVERNING LAW.
This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York. Except as otherwise required by Section 23 above,
the Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New
York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. The Company hereby appoints Joan Wu, Esq. of Hunter
Taubman Fischer & Li LLC, as its agent for service of process in New York. Nothing contained herein (i) shall be deemed or
operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to
collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed to limit,
any provision of Section 23. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY. The choice of the laws of the State of New York as the governing law of this Note is a valid choice of law and would
be recognized and given effect to in any action brought before a court of competent jurisdiction in the British Virgin Islands,
except for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal laws or (iii)
the application of which would be inconsistent with public policy, as such term is interpreted under the laws of the British Virgin
Islands. The choice of laws of the State of New York as the governing law of this Note will be honored by competent courts in the
People’s Republic of China, subject to compliance with relevant People’s Republic of China civil procedural requirements.
The Company or any of their respective properties, assets or revenues does not have any right of immunity under British Virgin
Islands, the People’s Republic of China or New York law, from any legal action, suit or proceeding, from the giving of any
relief in any such legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any British Virgin
Islands and the People’s Republic of China, New York or United States federal court, from service of process, attachment
upon or prior to judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal process
or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with this Note; and, to the extent that the Company, or
any of its properties, assets or revenues may have or may hereafter become entitled to any such right of immunity in any such court
in which proceedings may at any time be commenced, the Company hereby waives such right to the extent permitted by law and hereby
consents to such relief and enforcement as provided in this Note and the other Transaction Documents.

 

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28. JUDGMENT CURRENCY.

 

(a) If for
the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary to convert
into any other currency (such other currency being hereinafter in this Section 28 referred to as the “Judgment Currency”)
an amount due in U.S. dollars under this Note, the conversion shall be made at the Exchange Rate prevailing on the Trading Day
immediately preceding:

 

(i) the
date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction
that will give effect to such conversion being made on such date: or

 

(ii) the
date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as
of which such conversion is made pursuant to this Section 28(a)(ii) being hereinafter referred to as the “Judgment Conversion
Date”).

 

(b) If in
the case of any proceeding in the court of any jurisdiction referred to in Section 28(a)(ii) above, there is a change in the Exchange
Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall
pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange
Rate prevailing on the date of payment, will produce the amount of US dollars which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

 

(c) Any amount
due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained
for any other amounts due under or in respect of this Note.

 

29. SEVERABILITY.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

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30. MAXIMUM PAYMENTS.
Without limiting Section 9(d) of the Securities Purchase Agreement, 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 the Company to the Holder and thus refunded to the Company.

 

31. CERTAIN DEFINITIONS.
For purposes of this Note, the following terms shall have the following meanings:

 

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

 

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

 

(c) “Adjustment
Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance
or sale (or deemed issuance or sale in accordance with Section 7) of Ordinary Shares (other than rights of the type described in
Section 6(a) hereof) that could result in a decrease in the net consideration received by the Company in connection with, or with
respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar rights).

 

(d) “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the shares having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(e) “Alternate
Conversion Price” means, with respect to any Alternate Conversion that price which shall be the lowest of (i) the applicable
Conversion Price as in effect on the applicable Conversion Date of the applicable Alternate Conversion, (ii) 80% of the VWAP of
the Ordinary Shares as of the Trading Day immediately preceding the delivery or deemed delivery of the applicable Conversion Notice,
(iii) 80% of the VWAP of the Ordinary Shares as of the Trading Day of the delivery or deemed delivery of the applicable Conversion
Notice and (iv) 80% of the price computed as the quotient of (I) the sum of the VWAP of the Ordinary Shares for each of the two
(2) Trading Days with the lowest VWAP of the Ordinary Shares during the fifteen (15) consecutive Trading Day period ending and
including the Trading Day immediately preceding the delivery or deemed delivery of the applicable Conversion Notice, divided by
(II) two (2) (such period, the “Alternate Conversion Measuring Period”). All such determinations to be appropriately
adjusted for any share dividend, share split, share combination, reclassification or similar transaction that proportionately decreases
or increases the Ordinary Shares during such Alternate Conversion Measuring Period.

 

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(f) “Approved
Stock Plan” means any employee benefit plan which has been approved by the board of directors of the Company prior to
or subsequent to the Subscription Date pursuant to which Ordinary Shares and standard options to purchase Ordinary Shares may be
issued to any employee, officer or director for services provided to the Company in their capacity as such.

 

(g) “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Ordinary Shares would or could be
aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity,
the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(h) “Available
Cash” means, with respect to any date of determination, an amount equal to the aggregate amount of the Cash of the Company
and its Subsidiaries (excluding for this purpose cash held in restricted accounts or otherwise unavailable for unrestricted use
by the Company or any of its Subsidiaries for any reason) as of such date of determination held in bank accounts of financial banking
institutions in the United States of America.

 

(i) “Black
Scholes Consideration Value” means the value of the applicable Option, Convertible Security or Adjustment Right (as the
case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Ordinary Shares on the
Trading Day immediately preceding the public announcement of the execution of definitive documents with respect to the issuance
of such Option, Convertible Security or Adjustment Right (as the case may be), (ii) a risk-free interest rate corresponding to
the U.S. Treasury rate for a period equal to the remaining term of such Option, Convertible Security or Adjustment Right (as the
case may be) as of the date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be), (iii) a
zero cost of borrow and (iv) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the “HVT”
function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the
date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be).

 

(j) “Bloomberg”
means Bloomberg, L.P.

 

(k) “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

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(l) “Cash”
of the Company and its Subsidiaries on any date shall be determined from such Persons’ books maintained in accordance with
GAAP, and means, without duplication, the cash, cash equivalents and Eligible Marketable Securities accrued by the Company and
its wholly owned Subsidiaries on a consolidated basis on such date.

 

(m) “Change
of Control” means any Fundamental Transaction other than (i) any merger of the Company or any of its, direct or indirect,
wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification
of the Ordinary Shares in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization
or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities
and, directly or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities
with the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation)
of such entity or entities) after such reorganization, recapitalization or reclassification, or (iii) pursuant to a migratory merger
effected solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its Subsidiaries.

 

(n) “Change
of Control Redemption Premium” means 115%.

 

(o) “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved in accordance with the procedures in Section 23. All such determinations shall be appropriately
adjusted for any share splits, share dividends, share combinations, recapitalizations or other similar transactions during such
period.

 

(p) “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement, which date is the date the Company initially
issued Notes pursuant to the terms of the Securities Purchase Agreement.

 

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(q) “Ordinary
Shares” means (i) the Company’s ordinary shares, $0.001 par value per share, and (ii) any share capital into which
such ordinary shares shall have been changed or any share capital resulting from a reclassification of such ordinary shares.

 

(r) “Consolidated
Capital Expenditures” means, for any period, any cash payments to any Person by the Company or any of its Subsidiaries,
in the aggregate, for property, plant and equipment during such period, reported in accordance with GAAP.

 

(s) “Consolidated
Lease Expense” means, for any period, any lease payments to any Person by the Company or any of its Subsidiaries, in
the aggregate, related to any capital leases and equipment leases made in such period (other than such payments included in Consolidated
Capital Expenditures), recorded in accordance with GAAP.

 

(t) “Consolidated
Net Operating Cash” means, for any period, the net Cash provided by (used in) the business of the Company and its Subsidiaries,
as determined on a consolidated basis in accordance with GAAP.

 

(u) “Convertible
Securities” means any shares or other security (other than Options) that is at any time and under any circumstances,
directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any Ordinary Shares.

 

(v) “Current
Subsidiary” means any Person in which the Company on the Subscription Date, directly or indirectly, (i) owns any of the
outstanding share capital or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of
the business, operations or administration of such Person, and all of the foregoing, collectively, “Current Subsidiaries”.

 

(w) “Eligible
Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market
or the Principal Market.

 

(x) “Eligible
Marketable Securities” as of any date means marketable securities which would be reflected on a consolidated balance
sheet of the Company and its Subsidiaries prepared as of such date in accordance with GAAP, and which are permitted under the Company’s
investment policies as in effect on the Issuance Date or approved thereafter by the Company’s Board of Directors.

 

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(y) “Equity
Conditions” means, with respect to a given date of determination: (i) on each day during the period beginning thirty
calendar days prior to such applicable date of determination and ending on and including such applicable date of determination
(the “Equity Conditions Measuring Period”), either (x) one or more Registration Statements filed pursuant to the Registration
Rights Agreement shall be effective and the prospectus contained therein shall be available on such applicable date of determination
(with, for the avoidance of doubt, any Ordinary Shares previously sold pursuant to such prospectus deemed unavailable) for the
resale of all Ordinary Shares to be issued in connection with the event requiring this determination (or issuable upon conversion
of the Conversion Amount being redeemed or amount of Restricted Principal subject to an Investor Prepayment, as applicable, in
the event requiring this determination at the Alternate Conversion Price then in effect (without regard to any limitations on conversion
set forth herein)) (each, a “Required Minimum Securities Amount”), in each case, in accordance with the terms
of the Registration Rights Agreement and there shall not have been during such period any Grace Periods (as defined in the Registration
Rights Agreement) or (y) all Registrable Securities shall be eligible for sale pursuant to Rule 144 (as defined in the Securities
Purchase Agreement) without the need for registration under any applicable federal or state securities laws (in each case, disregarding
any limitation on conversion of the Notes, other issuance of securities with respect to the Notes and exercise of the Warrants)
and no Current Information Failure (as defined in the Registration Rights Agreement) exists or is continuing; (ii) on each day
during Equity Conditions Measuring Period, the Ordinary Shares (including all Registrable Securities) is listed or designated for
quotation (as applicable) on an Eligible Market and shall not have been suspended from trading on an Eligible Market (other than
suspensions of not more than two (2) days and occurring prior to the applicable date of determination due to business announcements
by the Company) nor shall delisting or suspension by an Eligible Market have been threatened (with a highly possible prospect of
delisting occurring after giving effect to all applicable notice, appeal, compliance and hearing periods) or reasonably likely
to occur or pending as evidenced by delisting decision by the hearing panel of such Eligible Market; (iii) during the Equity Conditions
Measuring Period, the Company shall have delivered all Ordinary Shares issuable upon conversion of this Note on a timely basis
as set forth in Section 3 hereof and all other shares required to be delivered by the Company on a timely basis as set forth in
the other Transaction Documents; (iv) any Ordinary Shares to be issued in connection with the event requiring determination (or
issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination) may be issued in full
without violating Section 3(d) hereof; (v) any Ordinary Shares to be issued in connection with the event requiring determination
(or issuable upon conversion of the Conversion Amount being redeemed or amount of Restricted Principal subject to an Investor Prepayment,
as applicable in the event requiring this determination at the Conversion Price then in effect (without regard to any limitations
on conversion set forth herein)) may be issued in full without violating the rules or regulations of the Eligible Market on which
the Ordinary Shares is then listed or designated for quotation (as applicable); (vi) on each day during the Equity Conditions Measuring
Period, no public announcement of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been
abandoned, terminated or consummated; (vii) the Company shall have no knowledge of any fact that would reasonably be expected to
cause (1) any Registration Statement required to be filed pursuant to the Registration Rights Agreement to not be effective or
the prospectus contained therein to not be available for the resale of the applicable Required Minimum Securities Amount of Registrable
Securities in accordance with the terms of the Registration Rights Agreement or (2) any Registrable Securities to not be eligible
for sale pursuant to Rule 144 without the need for registration under any applicable federal or state securities laws (in each
case, disregarding any limitation on conversion of the Notes, other issuance of securities with respect to the Notes and exercise
of the Warrants) and no Current Information Failure exists or is continuing; (viii) the Holder shall not be in (and no other holder
of Notes shall be in) possession of any material, non-public information provided to any of them by the Company, any of its Subsidiaries
or any of their respective affiliates, employees, officers, representatives or agents; (ix) on each day during the Equity Conditions
Measuring Period, the Company otherwise shall have been in compliance with each, and shall not have breached any representation
or warranty in any material respect (other than representations or warranties subject to material adverse effect or materiality,
which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, including, without
limitation, the Company shall not have failed to timely make any payment pursuant to any Transaction Document; (x) on each Trading
Day during the Equity Conditions Measuring Period, there shall not have occurred any Volume Failure or Price Failure as of such
applicable date of determination; (xi) on the applicable date of determination (A) no Authorized Share Failure shall exist or be
continuing and the applicable Required Minimum Securities Amount of Ordinary Shares are available under the certificate of incorporation
of the Company and reserved by the Company to be issued pursuant to the Notes and (B) all Ordinary Shares to be issued in connection
with the event requiring this determination (or issuable upon conversion of the Conversion Amount being redeemed or amount of Restricted
Principal subject to an Investor Prepayment, as applicable, in the event requiring this determination at the Conversion Price then
in effect (without regard to any limitations on conversion set forth herein)) may be issued in full without resulting in an Authorized
Share Failure; (xii) on each day during the Equity Conditions Measuring Period, there shall not have occurred and there shall not
exist an Event of Default or an event that with the passage of time or giving of notice would constitute an Event of Default; (xiii)
no bone fide dispute shall exist, by and among any of any holder of Notes or Warrants, the Company, the Principal Market (or such
applicable Eligible Market in which the Ordinary Shares of the Company is then principally trading) and/or FINRA with respect to
any term or provision of any Note or any other Transaction Document and (xiv) the Ordinary Shares issuable pursuant the event requiring
the satisfaction of the Equity Conditions (or issuable upon conversion of the Conversion Amount being redeemed or amount of Restricted
Principal subject to an Investor Prepayment, as applicable, in the event requiring this determination at the Conversion Price then
in effect (without regard to any limitations on conversion set forth herein)) are duly authorized and listed and eligible for trading
without restriction on an Eligible Market.

 

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(z) “Equity
Conditions Failure” means, as applicable, that with respect to any date of determination, any day during the period commencing
five (5) Trading Days prior to such date of determination, the Equity Conditions have not been satisfied (or waived in writing
by the Holder).

 

(aa) “Event
Market Price” means, with respect to any Stock Combination Event Date, the quotient determined by dividing (x) the sum
of the VWAP of the Ordinary Shares for each of the five (5) Trading Days with the lowest VWAP of the Ordinary Shares during the
fifteen (15) consecutive Trading Day period ending and including the Trading Day immediately preceding the sixteenth (16th) Trading
Day after such Stock Combination Event Date, divided by (y) five (5).

 

(bb) “Excluded
Securities” means (i) Ordinary Shares or standard options to purchase Ordinary Shares issued to directors, officers employees,
or advisors of the Company for services rendered to the Company in their capacity as such pursuant to an Approved Stock Plan (as
defined above), provided that (A) all such issuances (taking into account the Ordinary Shares issuable upon exercise of such options)
after the Subscription Date pursuant to this clause (i) do not, in the aggregate, exceed more than 10% of the Ordinary Shares issued
and outstanding immediately prior to the Subscription Date and (B) the exercise price of any such options is not lowered, none
of such options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such
options are otherwise materially changed in any manner that adversely affects any of the Buyers; (ii) Ordinary Shares issued upon
the conversion or exercise of Convertible Securities (other than standard options to purchase Ordinary Shares issued pursuant to
an Approved Stock Plan that are covered by clause (i) above) issued prior to the Subscription Date, provided that the conversion
price of any such Convertible Securities (other than standard options to purchase Ordinary Shares issued pursuant to an Approved
Stock Plan that are covered by clause (i) above) is not lowered, none of such Convertible Securities (other than standard options
to purchase Ordinary Shares issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are amended to increase
the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard
options to purchase Ordinary Shares issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise
materially changed in any manner that adversely affects any of the Buyers; (iii) the Ordinary Shares issuable upon conversion of
the Notes or otherwise pursuant to the terms of the Notes; provided, that the terms of the Notes are not amended, modified or changed
on or after the Subscription Date (other than antidilution adjustments pursuant to the terms thereof in effect as of the Subscription
Date), (iv) the Ordinary Shares issuable upon exercise of the Warrants; provided, that the terms of the Warrants are not amended,
modified or changed on or after the Subscription Date (other than antidilution adjustments pursuant to the terms thereof in effect
as of the Subscription Date) and (v) any Ordinary Share issued or issuable in connection with any bona fide strategic or commercial
alliances, acquisitions, mergers, licensing arrangements, and strategic partnerships, provided, that (x) the primary purpose of
such issuance is not to raise capital as reasonably determined, and (y) the purchaser or acquirer or recipient of the securities
in such issuance solely consists of either (A) the actual participants in such strategic or commercial alliance, strategic or commercial
licensing arrangement or strategic or commercial partnership, (B) the actual owners of such assets or securities acquired in such
acquisition or merger or (C) the stockholders, partners, employees, consultants, officers, directors or members of the foregoing
Persons, in each case, which is, itself or through its subsidiaries, an operating company or an owner of an asset, in a business
synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment
of funds, and (z) the number or amount of securities issued to such Persons by the Company shall not be disproportionate to each
such Person’s actual participation in (or fair market value of the contribution to) such strategic or commercial alliance
or strategic or commercial partnership or ownership of such assets or securities to be acquired by the Company, as applicable.

 

    - 41 -

     

    

 

(cc) “Fiscal
Quarter” means each of the fiscal quarters adopted by the Company for financial reporting purposes that correspond to
the Company’s fiscal year as of the date hereof that ends on March 31.

 

(dd) “Fiscal
Year” means the fiscal year adopted by the Company for financial reporting purposes as of the date hereof that ends on
March 31.

 

(ee) “Free
Cash Flow” means, with respect to any given Fiscal Quarter, the difference of (i) Consolidated Net Operating Cash, less
(ii) the sum of (x) Consolidated Capital Expenditures, and (y) Consolidated Lease Expense, in each case, measured as of the last
day in such Fiscal Quarter. Free Cash Flow shall be adjusted to the extent that any portion of (x) or (y) is already captured in
Consolidated Net Operating Cash. Payments, to the extent captured in (x) or (y) that would otherwise be partially or fully deducted
in deriving Consolidated Net Operating Cash, shall be added back to derive Free Cash Flow, and receipts, to the extent captured
in (x) or (y) that would otherwise be partially or fully included in deriving Consolidated Net Operating Cash, shall be deducted
to derive Free Cash Flow. In addition, Consolidated Capital Expenditures shall be exclusive of any payments or receipts derived
from (y). Notwithstanding anything to the contrary in this Note, it is the intent of the Company and the Holder that no amounts
will be double counted in the calculation of Free Cash Flow, such that any amounts already captured in any clause (or definition
of any defined term in any clause) of the foregoing definition of Free Cash Flow above shall not be counted more than once in such
clause (including in any definition of any defined term in such clause) or counted in any other clause of Free Cash Flow (including
in any other definition of any defined term referenced therein).

 

(ff) “Fundamental
Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or
otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving
corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of
the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation
S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be
subject to or have its Ordinary Shares be subject to or party to one or more Subject Entities making, a purchase, tender or exchange
offer that is accepted by the holders of at least either (x) 50% of the outstanding Ordinary Shares, (y) 50% of the outstanding
Ordinary Shares calculated as if any Ordinary Shares held by all Subject Entities making or party to, or Affiliated with any Subject
Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of Ordinary Shares
such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such purchase, tender
or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the
outstanding Ordinary Shares, or (iv) consummate a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all
such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding Ordinary Shares, (y)
at least 50% of the outstanding Ordinary Shares calculated as if any Ordinary Shares held by all the Subject Entities making or
party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or other business combination
were not outstanding; or (z) such number of Ordinary Shares such that the Subject Entities become collectively the beneficial owners
(as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding Ordinary Shares, or (v) reorganize, recapitalize
or reclassify its Ordinary Shares, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates
or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate
to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether
through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding Ordinary Shares,
merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization,
recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Ordinary Shares, (y) at least 50% of the aggregate ordinary voting power represented
by issued and outstanding Ordinary Shares not held by all such Subject Entities as of the date of this Note calculated as if any
Ordinary Shares held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power
represented by issued and outstanding Ordinary Shares or other equity securities of the Company sufficient to allow such Subject
Entities to effect a statutory short form merger or other transaction requiring other shareholders of the Company to surrender
their Ordinary Shares without approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction
structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be
construed and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary
to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment
of such instrument or transaction.

 

    - 42 -

     

    

 

(gg) “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(hh) “Group”
means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(ii) “Holder
Pro Rata Amount” means a fraction (i) the numerator of which is the original Principal amount of this Note on the Closing
Date and (ii) the denominator of which is the aggregate original principal amount of all Notes issued to the initial purchasers
pursuant to the Securities Purchase Agreement on the Closing Date.

 

(jj) “Indebtedness”
shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(kk) “Installment
Amount” means the sum of (A) (i) with respect to any Installment Date other than the Maturity Date, the lesser of (x)
the quotient of (I) the Principal amount outstanding under this Note as of the initial Installment Date, divided by (II) the number
of Installment Dates occurring hereunder (as determined as of the initial Installment Date assuming no Deferrals, Accelerations,
redemptions or conversions hereunder prior to the Maturity Date) and (y) the Principal amount then outstanding under this Note
as of such Installment Date, and (ii) with respect to the Installment Date that is the Maturity Date, the Principal amount then
outstanding under this Note as of such Installment Date (in each case, as any such Installment Amount may be reduced pursuant to
the terms of this Note, whether upon conversion, redemption or Deferral), (B) any Deferral Amount deferred pursuant to Section
8(d) and included in such Installment Amount in accordance therewith, (C) any Acceleration Amount accelerated pursuant to Section
8(e) and included in such Installment Amount in accordance therewith and (D) in each case of clauses (A) through (C) above, the
sum of any accrued and unpaid Interest and Make-Whole Amount with respect thereto as of such Installment Date under this Note,
if any, and accrued and unpaid Late Charges, if any, under this Note as of such Installment Date. In the event the Holder shall
sell or otherwise transfer any portion of this Note, the transferee shall be allocated a pro rata portion of the each unpaid Installment
Amount hereunder.

 

    - 43 -

     

    

 

(ll) “Installment
Conversion Price” means, with respect to a particular date of determination, the lowest of (i) the Conversion Price then
in effect, (ii) 88.5% of the VWAP of the Ordinary Shares as of the Trading Day immediately preceding the applicable Installment
Date and (iii) 88.5% of the quotient of (A) the sum of the VWAP of the Ordinary Shares for each of the two (2) Trading Days (or,
with respect to any Alternate Installment Measuring Period Election (as defined below), if less, the number of Trading Days in
the applicable Alternate Installment Measuring Period (as defined below)) with the lowest VWAP of the Ordinary Shares during the
applicable Installment Measuring Period, divided by (B) two (2) (or, with respect to any Alternate Installment Measuring Period
Election, if less, the number of Trading Days in the applicable Alternate Installment Measuring Period). All such determinations
to be appropriately adjusted for any share split, share dividend, share combination or other similar transaction during any such
measuring period.

 

(mm) “Installment
Date” means (i) June 28, 2019, (ii) each three week anniversary of the previous Installment Date (assuming, solely for
the purpose of this definition, that such previous Installment Date occurred immediately following a Standard Installment Measuring
Period and without regard to any Alternate Installment Measuring Period Election for such previous Installment Date) for any Standard
Installment Measuring Period (or, if applicable, the Trading Day immediately following the last Trading Day in such applicable
Alternate Installment Measuring Period) until the Maturity Date (each, an “Interim Installment Date”), and (iii)
the Maturity Date.

 

(nn) “Installment
Measuring Period” means, with respect to any given Installment Date, the ten (10) Trading Day period (the “Standard
Installment Measuring Period”) ending, and including, the Trading Day immediately prior to such Installment Date; provided,
that with respect to any given Interim Installment Date, if the Holder delivers a written notice to the Company on or after the
initial Trading Day in such Standard Installment Measuring Period electing to shorten such Standard Installment Measuring Period
to one or more Trading Days (each, an “Alternate Installment Measuring Period Election”), such Standard Installment
Measuring Period shall be shortened to such lesser period (not less than one (1) Trading Day) as set forth in such written notice
(each, a “Alternate Installment Measuring Period”).

 

    - 44 -

     

    

 

(oo) “Interest
Date” means, with respect to any given calendar month, (x) if prior to the initial Installment Date or after the Maturity
Date, the first Trading Day of such calendar month or (y) if on or after the initial Installment Date, but on or prior to the Maturity
Date, such Installment Date, if any, in such calendar month.

 

(pp) “Interest
Rate” means eight percent (8%) per annum, as may be adjusted from time to time in accordance with Section 1(a).

 

(qq) “Investor
Note” means that certain promissory note of the Holder issued to the Company at the Closing Date, pursuant to the Securities
Purchase Agreement, with an aggregate principal amount outstanding equal to the Restricted Principal outstanding hereunder and
secured by a cash amount set forth in a bank account of the Holder (or its affiliates) at least equal to the Restricted Principal
outstanding hereunder.

 

(rr) “Investor
Notes” means those certain promissory notes of the holders of Series B Notes (including the Investor Note) issued to
the Company at the Closing Date, pursuant to the Securities Purchase Agreement.

 

(ss) “Investor
Prepayment” means any Prepayment (as defined in the Investor Note) of the Investor Note.

 

(tt) “Make-Whole
Amount” means, as to any Conversion Amount on any Conversion Date, and as to any redemption hereunder, the amount of
any Interest that, but for such conversion or redemption hereunder, would have accrued with respect to the Conversion Amount being
converted or redeemed under this Note at the Interest Rate for the period from the applicable Conversion Date or redemption date,
as the case may be, through the Maturity Date. The Company hereby acknowledges and agrees that the Make-Whole Amount is intended
by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity
as a result of a conversion or redemption of this Note prior to the Maturity Date and not as a penalty. Notwithstanding anything
herein to the contrary, no Make-Whole Amount shall be payable hereunder with respect to any portion of Restricted Principal hereunder
after the cancellation thereof pursuant to Netting under this Note, the Investor Note and/or the Master Netting Agreement, as applicable.

 

(uu) “Maturity
Date” shall mean October 2, 2020; provided, however, the Maturity Date may be extended at the option of the Holder (i)
in the event that, and for so long as, an Event of Default shall have occurred and be continuing or any event shall have occurred
and be continuing that with the passage of time and the failure to cure would result in an Event of Default or (ii) through the
date that is twenty (20) Business Days after the consummation of a Fundamental Transaction in the event that a Fundamental Transaction
is publicly announced or a Change of Control Notice is delivered prior to the Maturity Date, provided further that if a Holder
elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion Amount would be limited pursuant to
Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the
conversion of this Note.

 

    - 45 -

     

    

 

(vv) “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Subscription Date, directly
or indirectly, (i) owns or acquires any of the outstanding share capital or holds any equity or similar interest of such Person
or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing,
collectively, “New Subsidiaries”.

 

(ww) “Options”
means any rights, warrants or options to subscribe for or purchase Ordinary Shares or Convertible Securities.

 

(xx) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(yy) “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note and the Other Notes, (ii) Indebtedness set forth on Schedule
3(s) to the Securities Purchase Agreement, as in effect as of the Subscription Date and (iii) Indebtedness secured by Permitted
Liens or unsecured but as described in clauses (iv) and (v) of the definition of Permitted Liens.

 

(zz) “Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the ordinary course of business
with respect to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings,
(iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price
of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B)
existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment, in either case, with respect to Indebtedness in an aggregate amount
not to exceed $100,000, (v) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured
by Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited
to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced
does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom
duties in connection with the importation of goods, and (vii) Liens arising from judgments, decrees or attachments in circumstances
not constituting an Event of Default under Section 4(a)(xii).

 

    - 46 -

     

    

 

(aaa) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(bbb) “Price
Failure” means, with respect to a particular date of determination, the VWAP of the Ordinary Shares on any Two (2) Trading
Days during the thirty (30) Trading Day period ending on the Trading Day immediately preceding such date of determination fails
to exceed $2.14 (as adjusted for any share splits, share dividends, share combinations, recapitalizations or other similar transactions
occurring after the Subscription Date). All such determinations to be appropriately adjusted for any share splits, share dividends,
share combinations, recapitalizations or other similar transactions during any such measuring period.

 

(ccc) “Principal
Market” means the Nasdaq Capital Market.

 

(ddd) “Redemption
Notices” means, collectively, the Event of Default Redemption Notices, the Installment Notices with respect to any Installment
Redemption and the Change of Control Redemption Notices, and each of the foregoing, individually, a “Redemption Notice.”

 

(eee) “Redemption
Date” means, as applicable, the Event of Default Redemption Date and the Change of Control Redemption Date.

 

(fff) “Redemption
Premium” means 115%.

 

(ggg) “Redemption
Prices” means, collectively, Event of Default Redemption Prices, the Change of Control Redemption Prices, and the Installment
Redemption Prices, and each of the foregoing, individually, a “Redemption Price.”

 

(hhh) “Registration
Rights Agreement” means that certain registration rights agreement, dated as of the Closing Date, by and among the Company
and the initial holders of the Notes relating to, among other things, the registration of the resale of the Ordinary Shares issuable
upon conversion of the Notes or otherwise pursuant to the terms of the Notes and exercise of the Warrants, as may be amended from
time to time.

 

(iii) “Restricted
Principal” means, initially $2,500,000, subject to reduction as provided herein, including, without limitation, pursuant
to Investor Prepayments, Maturity Netting or Investor Netting Rights.

 

(jjj) “SEC”
means the United States Securities and Exchange Commission or the successor thereto.

 

(kkk) “Securities
Purchase Agreement” means that certain securities purchase agreement, dated as of the Subscription Date, by and among
the Company and the initial holders of the Notes pursuant to which the Company issued the Notes, as may be amended from time to
time.

 

(lll) “Series
A Notes” shall have the meaning as set forth in the Securities Purchase Agreement.

 

    - 47 -

     

    

 

(mmm) “Series
B Notes” shall have the meaning set forth as set forth in the Securities Purchase Agreement.

 

(nnn) “Subscription
Date” means April 16, 2019.

 

(ooo) “Subsidiaries”
means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing,
individually, a “Subsidiary.”

 

(ppp) “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(qqq) “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(rrr) “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Ordinary Shares,
any day on which the Ordinary Shares is traded on the Principal Market, or, if the Principal Market is not the principal trading
market for the Ordinary Shares, then on the principal securities exchange or securities market on which the Ordinary Shares is
then traded, provided that “Trading Day” shall not include any day on which the Ordinary Shares is scheduled to trade
on such exchange or market for less than 4.5 hours or any day that the Ordinary Shares is suspended from trading during the final
hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading
on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated
as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price determinations relating to
the Ordinary Shares, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(sss) “Unrestricted
Principal” means any Principal outstanding under this Note that is not Restricted Principal outstanding under this Note.

 

(ttt) “Volume
Failure” means, with respect to a particular date of determination, the aggregate daily dollar trading volume (as reported
on Bloomberg) of the Ordinary Shares on the Principal Market on any Trading Days during the thirty (30) Trading Day period ending
on the Trading Day immediately preceding such date of determination (such period, the “Volume Failure Measuring Period”),
is less than $1,500,000 (as adjusted for any share splits, share dividends, share combinations, recapitalizations or other similar
transactions occurring after the Subscription Date). All such determinations to be appropriately adjusted for any share splits,
share dividends, share combinations, recapitalizations or other similar transactions during such Volume Failure Measuring Period.

 

    - 48 -

     

    

 

(uuu) “VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or,
if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded), during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m.,
New York time, as reported by Bloomberg through its “VAP” function (set to 09:30 start time and 16:00 end time) or,
if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the
electronic bulletin board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New
York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg
for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such
security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot
be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the
fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon
the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 23. All
such determinations shall be appropriately adjusted for any share dividend, share split, share combination, recapitalization or
other similar transaction during such period.

 

(vvv) “Warrants”
has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all warrants issued in exchange therefor
or replacement thereof.

 

32. DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries, the Company shall within one (1) Business Day of such receipt or prior to (or simultaneous with) such
delivery, as applicable, publicly disclose such material, non-public information on a Report of Foreign Private Issuer on Form
6-K or otherwise. In the event that the Company believes that a notice contains material, non-public information relating to the
Company or any of its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with delivery of such notice,
and in the absence of any such indication, the Holder shall be allowed to presume that all matters relating to such notice do not
constitute material, non-public information relating to the Company or any of its Subsidiaries. If the Company or any of its Subsidiaries
provides material non-public information to the Holder that is not simultaneously filed in a Report of Foreign Private Issuer on
Form 6-K and the Holder has not agreed to receive such material non-public information, the Company hereby covenants and agrees
that the Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries or any of their respective officers,
directors, employees, affiliates or agents with respect to, or a duty to any of the foregoing not to trade on the basis of, such
material non-public information. . Nothing contained in this Section 32 shall limit any obligations of the Company, or any rights
of the Holder, under Section 4(i) of the Securities Purchase Agreement.

 

[signature page follows]

 

    - 49 -

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the Issuance Date set out above.

  

	 	CHINA SXT PHARMACEUTICALS, INC.
	 	 	 
	 	By:	    
	 	 	Name:                          
	 	 	Title:

 

    - 50 -

     

    

 

EXHIBIT
I

 

CHINA SXT PHARMACEUTICALS, INC.

CONVERSION NOTICE

 

Reference is made to
the Series B Senior Secured Convertible Note (the “Note”) issued to the undersigned by China SXT Pharmaceuticals,
Inc., a company organized under the laws of the British Virgin Islands (the “Company”). In accordance with and
pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated
below into Ordinary Shares, $0.001 par value per share (the “Ordinary Shares”), of the Company, as of the date
specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note.

 

	
         

        Date of Conversion:
	 
	 	 
	Aggregate Principal to be converted:	 
	 	 
	Aggregate accrued and unpaid Interest and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest to be converted:	 
	 	 
	Aggregate Make-Whole Amount (if any):	 
	 	 
	AGGREGATE CONVERSION AMOUNT

 TO BE CONVERTED:	 
	 	 
	Please confirm the following information:
	 
	Conversion Price:	 
	 	 
	
        ☐            If
        such Conversion Amount is being satisfied, in whole or in part, with previously delivered Pre-Delivery Shares, check here and specify
        the aggregate number of Pre-Delivery Shares to be applied:____________________

         

	 
	Number of Ordinary Shares to be issued (after application of Pre-Delivery Shares, if any)(the “Shares”):	 
	 	 
	Installment Amount(s) to be reduced (and corresponding Installment Date(s)) and amount of reduction:	 

 

    - 51 -

     

    

 

	
        ☐           Check here if all or any portion of
        the aggregate Principal being converted includes any Restricted Principal. Please specify the amount Restricted Principal being
        converted:__________________

         

        ☐           If this Conversion Notice is being
        delivered with respect to an Alternate Conversion, check here if Holder is electing to use the following Alternate Conversion Price:____________

         

        ☐
                   If this         Conversion Notice is being delivered with respect to an Acceleration, check here if Holder is electing to use
        _________ as the         Installment Conversion Price (as applicable) related to the following Installment
        Date:____________

         

        ☐           If the
        Installment Conversion Price being used in this Conversion Notice was calculated pursuant to an Alternate Installment Measuring
        Period ending on, and including:__________________

         

        Please issue the Ordinary Shares into which
        the Note is being converted to Holder, or for its benefit, as follows:

         

        ☐           Check
        here if requesting delivery as a certificate to the following name and to the following address:

	 
	Issue to:	 
	 	 
	 	 
	 	 
	☐            Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:
	 
	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 
	 	 	 	 	 	 	 

  

    - 52 -

     

    

 

	Date: _____________ __,	 
	
	 
	 	 
	Name of Registered Holder 	 

 

	By: 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	Tax ID:	 	 
	 	 	 	 
	 	Facsimile:	 	 
	 	 	 	 
	E-mail Address:	 

 

    - 53 -

     

    

 

Exhibit II

 

ACKNOWLEDGMENT

 

The Company hereby
(a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of Ordinary Shares [are][are not] eligible
to be resold by the Holder either (i) pursuant to Rule 144 (subject to the Holder’s execution and delivery to the Company
of a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs _________________
to issue the above indicated number of Ordinary Shares in accordance with the Transfer Agent Instructions dated _____________,
20__ from the Company and acknowledged and agreed to by ________________________.

 

 

	 	CHINA SXT PHARMACEUTICALS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT
NO. 1 TO

SECURITIES PURCHASE AGREEMENT

 

This
AMENDMENT NO. 1, dated as of May 2, 2019 (this “Amendment”), to the SECURITIES PURCHASE AGREEMENT (the “Securities
Purchase Agreement”), dated as of April 16, 2019, by and among China SXT Pharmaceuticals, Inc., a company organized
under the laws of the British Virgin Islands with offices located at 178 Taidong Rd North, Taizhou, Jiangsu, China (the “Company”),
and the investors signatory thereto (including, the undersigned investor (the “Investor”)). Unless otherwise
defined herein or the context otherwise requires, capitalized terms used herein and defined in the Securities Purchase Agreement
shall be used herein as therein defined.

 

A. The
Company and the Buyers entered into the Securities Purchase Agreement pursuant to which the Investor, as a Buyer, agreed to purchase
certain Notes and Warrants of the Company, upon the terms and subject to the conditions set forth therein.

 

B. As
of time this Amendment is being executed, the Closing has not yet occurred.

 

C. In
connection with certain discussions with, and comments by, the Principal Market, the Company desires to amend the Securities Purchase
Agreement as provided herein.

 

D. Concurrently
herewith, each other Buyer (each, an “Other Investor”) has received amendments in the form of this Amendment
(each, an “Other Amendment”, and together with this Amendment, the “Amendments”).

 

NOW,
THEREFORE, in consideration of the promises and the mutual representations, warranties, covenants and agreements set forth in
this Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

 

1.
   AMENDMENTS. Effective
as of the time the Company and the Investor shall have executed and delivered this Amendment and the Company and each of the Other
Investors shall have executed and delivered the Other Amendments (the “Amendment Time”), the following shall
occur:

 

(a) Securities
Purchase Agreement. As of the Amendment Time, the Securities Purchase Agreement is hereby amended as follows:

 

(i)
The definition of “Agreement” as defined in the Securities Purchase Agreement, is hereby amended to include this Amendment.
The definition of “Securities Purchase Agreement”, as defined by each other Transaction Document, is hereby amended
to include this Amendment.

 

     

     

    

 

(ii)
Recital G of the Securities Purchase Agreement is hereby amended and restated as follows:

 

G. Except
as may be otherwise limited hereby, the Notes will rank senior to all outstanding and future indebtedness of the Company, and
its Subsidiaries (as defined below) and each of Series B Notes will be secured by a first priority perfected security interest
in the corresponding Investor Note (as defined below) of such holder of Series B Notes (such portion of the Series B Notes with
respect thereto, together with any ancillary documents related to such security interest, collectively, the “Security
Documents”)

 

(iii)
The definition of “Conversion Shares” is hereby amended to include the Pre-Delivery Shares (as defined in the Notes).

 

(iv)   
The definition of “Transaction Documents” is hereby amended to remove the Pledge Agreement.

 

(v)
Section 4 of the Securities Purchase Agreement is hereby amended to add the following covenant:

 

(aa)Return
of Pre-Delivery Shares; Holding Period. Such Buyers hereby covenant and agree that, in accordance with the terms of the Note,
any outstanding Pre-Delivery Shares issued to the Holder (excluding all Pre-Delivery Conversion Shares (as defined in the Notes)
issued to the Holder (or its designee)) that remains outstanding following the repayment in full of all obligations outstanding
under the Notes issued to the Holder and the other Transaction Documents shall be returned to the Company for cancellation. For
the purposes of Rule 144, the Company acknowledges that the holding period of the Pre-Delivery Shares may be tacked onto the holding
period of Notes and shall, consequently, be deemed to have been issued as of the Closing Date for purposes of Rule 144 and the
Company agrees not to take a position contrary to this Section 4(aa).

 

(vi)   
Section 4(g) of the Securities Purchase Agreement is hereby amended by replacing $75,000 with $90,000.

 

(vii)
Section 4(i) of the Securities Purchase Agreement is hereby amended to delete “the form of Pledge Agreement,”.

 

(viii)
Section 7(a)(xvii) of the Securities Purchase Agreement is hereby amended and restated as “[Intentionally Omitted]”.

 

(ix)   
Section 7(a)(xviii) of the Securities Purchase Agreement is hereby amended and restated as “[Intentionally Omitted]”.

 

    2

     

    

 

(x)
Section 7(a)(xix) of the Securities Purchase Agreement is hereby amended and restated as follows

 

(xvii)
At or prior to the Closing Date, the Company shall deliver an aggregate of four million Pre-Delivery Shares to the Buyers (two
million Pre-Delivery Shares to each Buyer), registered in such name as each such Buyer shall direct, in certificated form bearing
only the following legend:

 

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. 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

 

(b)
  Form of Notes. As of the Amendment Time, (i) “Exhibit A-1”
of the Securities Purchase Agreement is hereby amended and restated in the form of Exhibit A-1 attached hereto (the “New
Form of Series A Note”) and (ii) “Exhibit A-2” of the Securities Purchase Agreement is hereby amended and
restated in the form of Exhibit A-2 attached hereto (the “New Form of Series B Note”).

 

(c)
 Maximum Percentage of Warrants. The Maximum Percentage (as defined in
each of the Warrants) is hereby amended from 4.99% to 9.99%.

 

2.
REPRESENTATIONS AND WARRANTIES

 

(a)
 Investor Bring Down. The Investor hereby makes the representations and
warranties as to itself only as set forth in Section 2 of the Securities Purchase Agreement (as amended hereby) as if such representations
and warranties were made as of the date hereof and set forth in their entirety in this Amendment.

 

(b)
Company Bring Down. The Company hereby makes the representations and warranties to the Investor as set forth in Section
3 of the Securities Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date
hereof and set forth in their entirety in this Amendment.

 

    3

     

    

 

3.
MISCELLANEOUS

 

(a)
Disclosure of Transactions and Other Material Information. The Company shall, on or before 9:30 a.m. (but in no event
prior to 9:15 a.m.), New York time, on the first Trading Day after the date of this Agreement, file a Report of Foreign Issuer
on Form 6-K/A, describing all the material terms of the transactions contemplated by this Amendment in the form required by the
1934 Act, attaching this Amendment and amending and restating Exhibit 2 of the Company’s Report of Foreign Issuer on Form
6-K, filed with the SEC on April 16, 2018 with the New Form of Series A Note and the New Form of Series B Note and deleting Exhibit
9 (including all attachments, the “6-K/A Filing”). From and after the 6-K/A Filing, the Company shall have
disclosed all material, non-public information (if any) delivered to the Investor by the Company or any of its Subsidiaries, or
any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Amendments
and the Transaction Documents. In addition, effective upon the filing of the 6-K/A Filing, the Company acknowledges and agrees
that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any
of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the
Investor or any of its affiliates, on the other hand, shall terminate.

 

(b)
 Acknowledgement; Reaffirmation of Obligations; Consent. The Company hereby
confirms and agrees that following the Amendment Time, except as set forth in Section 1 above, the Securities Purchase Agreement
is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects.

 

(c)
 General. The provisions of Section 9 of the Securities Purchase Agreement
are hereby incorporated by reference herein, mutatis mutandis.

 

(d) Counterparts. This Amendment 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; provided that a facsimile signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile
signature.

 

(e)
 Most Favored Nation. The Company hereby represents and warrants as of
the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Person with respect
to any consent, release, amendment, settlement or waiver relating to the terms, conditions and transactions contemplated hereby
(each a “Settlement Document”), is or will be more favorable to such Person than those of the Investor and
this Amendment. If, and whenever on or after the date hereof, the Company enters into a Settlement Document, then (i) the Company
shall provide notice thereof to the Investor immediately following the occurrence thereof and (ii) the terms and conditions of
this Amendment shall be, without any further action by the Investor or the Company, automatically amended and modified in an economically
and legally equivalent manner such that the Investor shall receive the benefit of the more favorable terms and/or conditions (as
the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the Investor
may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained
in this Amendment shall apply to the Investor as it was in effect immediately prior to such amendment or modification as if such
amendment or modification never occurred with respect to the Investor. The provisions of this Section 3(e) shall apply similarly
and equally to each Settlement Document.

 

    4

     

    

 

(f)
   Independent Nature of Investor’s Obligations and Rights. The
obligations of the Investor under this Amendment are several and not joint with the obligations of any Other Investor, and the
Investor shall not be responsible in any way for the performance of the obligations of any Other Investor under any Other Amendment.
Nothing contained herein or in any Other Amendment, and no action taken by the Investor pursuant hereto, shall be deemed to constitute
the Investor and Other Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Investor and Other Investors are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by this Amendment or any Other Amendment and the Company acknowledges that, to the best of its knowledge, the Investor
and the Other Investors are not acting in concert or as a group with respect to such obligations or the transactions contemplated
by this Amendment or any Other Amendment. The Company and the Investor confirm that the Investor has independently participated
in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Investor shall
be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Amendment,
and it shall not be necessary for any Other Investor to be joined as an additional party in any proceeding for such purpose.

 

[The
remainder of the page is intentionally left blank]

 

    5

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Amendment to the Securities
Purchase Agreement to be duly executed as of the date first written above.

 

	 	COMPANY:

	 	 	 
	 	CHINA SXT PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/
Feng Zhou

        

	 	 	Name:
    Feng Zhou
	 	 	Title:   Chief
    Executive Officer

 

    6

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Amendment to the Securities
Purchase Agreement to be duly executed as of the date first written above.

 

	 	INVESTOR:

	 	 	 
	 	Alto
    Opportunity Master Fund, 

SPC - Segregated Master Portfolio B
	 	 	 
	 	By:	/s/
                                         Waqas Khatri

        

	 	 	Name:
    Waqas Khatri
	 	 	Title:    Director

 

    7

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Amendment to the Securities
Purchase Agreement to be duly executed as of the date first written above.

 

	 	INVESTOR:

	 	 	 
	 	HUDSON
    BAY MASTER FUND LTD
	 	 	 
	 	By:	/s/
                                         George Antonopoulos

        

	 	 	Name:
    George Antonopoulos
	 	 	Title:   Authorized
    Signatory

 

 

8

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