Document:

EXHIBIT 10.16

 

ENTERA
BIO LTD.

2017 EQUITY INCENTIVE PLAN

 

Section 1.
Purpose. The purpose of the Entera Bio Ltd. 2017 Equity Incentive Plan (the “Plan”) is to motivate and
reward those employees, directors, consultants and advisors of Entera Bio Ltd. (the “Company”) and its Affiliates
to perform at the highest level and to further the best interests of the Company and its shareholders. Capitalized terms not otherwise
defined herein are defined in ‎Section 21.

 

Section 2.
Eligibility. 

 

(a)          Any employee, Non-Employee Director, consultant or other advisor of the Company or any subsidiary shall be eligible to
be selected to receive an Award under the Plan.

 

(b)          Holders of equity compensation awards granted by a company acquired by the Company (or whose business is acquired by the
Company) or with which the Company combines are eligible for grants of Replacement Awards under the Plan.

 

Section 3.
Administration. 

 

(a)          The Plan shall be administered by the Board, provided that the Board may delegate authority to administer the Plan, as
allowed under Applicable Law and the Articles of Association of the Company, to the Committee (the Board and the Committee shall
be referred to herein as the “Administrator” as applicable) . The Committee shall be appointed by the Board
and shall consist of not less than two directors of the Board. The Board may designate one or more directors as a subcommittee
who may act for the Committee if necessary to satisfy the requirements of this Section. The Board may issue rules and regulations
for administration of the Plan.

 

(b)          Subject to the terms of the Plan and Applicable Law, the Administrator shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards (including Replacement Awards) to be granted to each Participant under
the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters
are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award; (v) determine
whether, to what extent and under what circumstances Awards may be settled or exercised in cash, Shares, other Awards, other property,
net settlement (including broker-assisted cashless exercise) or any combination thereof, or canceled, forfeited or suspended,
and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended (including as the result
of any change to the scope of engagement of a Participant on previously granted Awards) ; (vi) determine whether, to what
extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award
under the Plan shall be deferred either

 

     

     

    

automatically
or at the election of the holder thereof or of the Administrator; (vii) interpret and administer the Plan and any instrument or
agreement relating to, or Award made under, the Plan; (viii) establish, amend, suspend or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; (ix) authorize conversion or substitution
under the Plan of any or all Awards or Shares and to cancel or suspend Awards, as necessary, provided that, if such action is
not specifically allowed under the terms of this Plan, any material harm to the interests of the Participants shall be subject
to consent from the Participants;; (ix) authorize any person to execute on behalf of the Company any instrument required to effectuate
the grant of an Award previously granted by the Board; and (x) make any other determination and take any other action that the
Administrator deems necessary or desirable for the administration of the Plan.

 

(c)          All decisions of the Administrator shall be final, conclusive and binding upon all parties, including the Company, its
shareholders and Participants and any Beneficiaries thereof.

 

Section 4.
Shares Available for Awards. 

 

(a)          Subject
to adjustment as provided in ‎Section 4(c), the maximum number of Shares available for issuance under the Plan shall not
exceed  12% of the Company’s issued and outstanding share capital Shares; provided that, starting on January
1, 2019, on January 1 of each year, the total number of Shares available for issuance under the Plan will be increased by
an amount equal to the lesser of (i) 5% of the Company’s outstanding Shares on December 31 of the immediately
preceding year or (ii) such number of Shares as determined by the Board in its discretion. Shares underlying Replacement
Awards and Shares remaining available for grant under a plan of an acquired company or of a company with which the
Company combines, appropriately adjusted to reflect the acquisition or combination transaction, shall not reduce the number
of Shares remaining available for grant hereunder.

 

(b)          Any Shares subject to an Award or to an equity-based award granted under a prior plan of the Company (other than a Replacement
Award and any Award granted out of the authorized shares of an acquired plan), that expires, is canceled, forfeited or otherwise
terminates without the delivery of such Shares, including any Shares subject to such Award or award to the extent that such Award
or award is settled without the issuance of Shares, shall again be, or shall become, available for issuance under the Plan. Any
Shares surrendered or withheld in payment of any grant, acquisition or exercise price of such Award or award or taxes related
to such Award or award shall not become available for issuance under the Plan.

 

(c)          In the event that, as a result of any dividend or other distribution (whether in the form of cash, Shares or other securities),
recapitalization, share split, reverse share split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase
or exchange of Shares or other securities of the Company, issuance of

 

 

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warrants
or other rights to acquire Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions
of securities of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in Applicable
Law, regulations or accounting principles, an adjustment is necessary in order to prevent dilution or enlargement of the benefits
or potential benefits intended to be made available under the Plan, then the Administrator shall, subject to ‎Section 18,
adjust equitably any or all of:

 

(i)       
the number and type of Shares (or other securities) which thereafter may be made the subject of Awards, including the aggregate
and individual limits specified in ‎Section 4(a);

 

(ii)       the number and type of Shares (or other securities) subject to outstanding Awards; and

 

(iii)      the grant, acquisition, exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment
to the holder of an outstanding Award;

 

provided, however, that
the number of Shares subject to any Award denominated in Shares shall always be a whole number (and to the extent required by
law or tax regulations, fractional Shares shall be rounded down).

 

(d)          Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or Shares
acquired by the Company.

 

Section 5.
Options. The Administrator is authorized to grant Options to Participants with the following terms and conditions and with
such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Administrator shall
determine.

 

(a)          The exercise price per Share under an Option shall be determined by the Administrator; provided, however,
that, except in the case of Replacement Awards, such exercise price shall not be less than the Fair Market Value of a Share on
the date of grant of such Option.

 

(b)          The term of each Option shall be fixed by the Administrator but shall not exceed 10 years from the date of grant of such
Option.

 

(c)          The Administrator shall determine the time or times at which an Option may be exercised in whole or in part.

 

(d)          The Administrator shall determine the methods by which, and the forms in which payment of the exercise price with respect
thereto may be made or deemed to have been made, including cash, Shares, other Awards, other property, net settlement (including
broker-assisted cashless exercise) or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant
exercise price.

 

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Section 6.
Share Appreciation Rights. The Administrator is authorized to grant SARs to Participants with the following terms and conditions
and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Administrator
shall determine.

 

(a)          SARs may be granted under the Plan to Participants either alone (“freestanding”) or in addition to other Awards
granted under the Plan (“tandem”).

 

(b)          The exercise price per Share under a SAR shall be determined by the Administrator; provided, however, that, except
in the case of Replacement Awards, such exercise price shall not be less than the Fair Market Value of a Share on the date of
grant of such SAR (or if granted in connection with an Option, on the grant date of such Option).

 

(c)          The term of each SAR shall be fixed by the Administrator but shall not exceed 10 years from the date of grant of such SAR.

 

(d)          The Administrator shall determine the time or times at which a SAR may be exercised or settled in whole or in part.

 

(e)          Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of Shares subject to
the SAR multiplied by the excess, if any, of the Fair Market Value of one Share on the exercise date over the exercise price of
such SAR. The Company shall pay such excess in cash, in Shares valued at Fair Market Value, or any combination thereof, as determined
by the Administrator.

 

Section 7.
Restricted Shares and RSUs. The Administrator is authorized to grant Awards of Restricted Shares and RSUs to Participants
with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the
provisions of the Plan, as the Administrator shall determine.

 

(a)          The applicable Award Document shall specify the vesting schedule and, with respect to RSUs, the delivery schedule (which
may include deferred delivery later than the vesting date) and whether the Award of Restricted Shares or RSUs is entitled to dividends
or dividend equivalents, voting rights or any other rights.

 

(b)          Restricted Shares and RSUs shall be subject to such restrictions as the Administrator may impose (including any limitation
on the right to vote a Restricted Share or the right to receive any dividend, dividend equivalent or other right), which restrictions
may lapse separately or in combination at such time or times, in such installments or otherwise, as the Administrator may deem
appropriate. Without limiting the generality of the foregoing, if the Award relates to Shares on which dividends are declared
during the period that the Award is outstanding, the Award shall not provide for the payment of such dividend (or a dividend equivalent)
to the Participant prior to the time at which such Award, or applicable portion thereof, becomes nonforfeitable, unless otherwise
provided in the applicable Award Document.

 

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(c)          Restricted Shares granted under the Plan may be evidenced in such manner as the Administrator may deem appropriate, including
book-entry registration or issuance of a share certificate or certificates. In the event that any share certificate is issued
in respect Restricted Shares granted under the Plan, such certificate shall be registered in the name of the Participant and shall
bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Share.

 

(d)          The Administrator may determine the form or forms (including cash, Shares, other Awards, other property or any combination
thereof) in which payment of the amount owing upon settlement of any RSU Award may be made.

 

Section 8.
Performance Awards. The Administrator is authorized to grant Performance Awards to Participants with the following terms
and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan,
as the Administrator shall determine.

 

(a)          Performance Awards may be denominated as a cash amount, a number of Shares or a combination thereof and are Awards which
may be earned upon achievement or satisfaction of performance conditions specified by the Administrator. In addition, the Administrator
may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the
Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified
by the Administrator. The Administrator may use such business criteria and other measures of performance as it may deem appropriate
in establishing any performance conditions. Subject to the terms of the Plan, the performance goals to be achieved during any
Performance Period, the length of any Performance Period, the amount of any Performance Award granted and the amount of any payment
or transfer to be made pursuant to any Performance Award shall be determined by the Administrator. If the Performance Award relates
to Shares on which dividends are declared during the Performance Period, the Performance Award shall not provide for the payment
of such dividend (or dividend equivalent) to the Participant prior to the time at which such Performance Award, or the applicable
portion thereof, is earned.

 

(b)          Performance criteria may be measured on an absolute (e.g., plan or budget) or relative basis, and may be established
on a corporate-wide basis or with respect to one or more business units, divisions, subsidiaries or business segments. Relative
performance may be measured against a group of peer companies, a financial market index or other acceptable objective and quantifiable
indices. If the Administrator determines that a change in the business, operations, corporate structure or capital structure of
the Company, or the manner in which the Company conducts its business, or other events or circumstances render the performance
objectives unsuitable, the Administrator may modify the minimum acceptable level of achievement, in whole or in part, as the Administrator
deems appropriate and equitable. Performance objectives shall be adjusted for material items not originally contemplated in establishing
the performance target for items resulting from discontinued operations, extraordinary gains and losses, the effect of changes
in accounting standards or principles, acquisitions or divestitures,

 

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changes
in tax rules or regulations, capital transactions, restructuring, nonrecurring gains or losses or unusual items. Performance measures
may vary from Performance Award to Performance Award, and from Participant to Participant, and may be established on a stand-alone
basis, in tandem or in the alternative. The Administrator shall have the power to impose such other restrictions on Awards subject
to this ‎Section 8(b) as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements of any Applicable
Law, stock market or exchange rules and regulations or accounting or tax rules and regulations.

 

(c)          Settlement of Performance Awards; Other Terms. Settlement of Performance Awards shall be in cash, Shares, other
Awards, other property, net settlement or any combination thereof, as determined in the discretion of the Administrator. Performance
Awards will be settled only after the end of the relevant Performance Period. The Administrator may, in its discretion, increase
or reduce the amount of a settlement otherwise to be made in connection with a Performance Award.

 

Section 9.
Other Share-Based Awards. The Administrator is authorized, subject to limitations under Applicable Law, to grant to Participants
such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or
related to, Shares or factors that may influence the value of Shares, including convertible or exchangeable debt securities, other
rights convertible or exchangeable into Shares, acquisition rights for Shares, Awards with value and payment contingent upon performance
of the Company or business units thereof or any other factors designated by the Administrator. The Administrator shall determine
the terms and conditions of such Awards.

 

Section 10.
Minimum Vesting. Notwithstanding any provisions of this Plan to the contrary and except as provided in this ‎Section
10 or pursuant to ‎Section 11, Awards (other than Replacement Awards) shall not vest in full prior to the one-year
anniversary of the applicable grant date; provided, however, that no more than five percent (5%) of the Shares available
for issuance under the Plan may be granted subject to Awards with such other vesting requirements, if any, as the Administrator
may establish in its sole discretion (which number of Shares shall not include any Shares subject to Awards granted pursuant to
‎Section 8).

 

Section 11.
Effect of Termination of Service, Change in Control or Structural Change on Awards.

 

(a)          The Administrator may provide, by rule or regulation or in any Award Document, or may determine in any individual case,
the circumstances in which, and the extent to which, an Award may be exercised, settled, vested, paid or forfeited in the event
of a Participant’s Termination of Service prior to the vesting, exercise or settlement of such Award or the end of a Performance
Period.

 

(b)          In the event of a Change in Control, to the extent not inconsistent with the provisions of ‎Section 11(a) above or
the applicable Award Document, the Committee, in its sole discretion, and on such terms and conditions as it deems

 

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appropriate,
either by the terms of the Award or by action taken prior to the occurrence of such Change in Control, may take any one or more
of the following actions whenever the Committee determines that such action is appropriate or desirable in order to prevent the
dilution or enlargement of the benefits intended to be made available under the Plan or to facilitate the Change in Control transaction:

 

(i)         Awards
may be continued in effect or converted into an award or right with respect to shares of the successor or surviving corporation
(or a parent or subsidiary thereof) (in the case of Options and SARs awarded to a Participant to whom ‎Section 18 applies,
in a manner that complies with Sections 424 and 409A of the Code) in accordance with the terms of such Change of Control;

 

(ii)        Awards may immediately vest and settle and, in the case of Options and SARs, become fully exercisable;

 

(iii)       Unvested Awards may be cancelled for no consideration;

 

(iv)       Awards may be terminated or cancelled in exchange for a cash payment (and, for the avoidance of doubt, if as of the date
of the Change in Control, the Board determines that no amount would have been realized upon the exercise of the Award or other
realization of the Participant’s rights, then the Award may be cancelled by the Company without payment of consideration);
and

 

(v)        Awards may be assumed, exchanged, replaced or continued by the successor or surviving corporation (or a parent or subsidiary
thereof) with cash, securities, rights or other property to be paid or issued, as the case may be, by the successor or surviving
corporation (or a parent or subsidiary thereof).

 

For purposes
of subsections (i) and (ii) above, no Option, SAR, Restricted Share or RSU shall be treated as “continued or converted”
on a basis consistent with the requirements of subsection (i) or (ii), as applicable, unless the shares underlying such award
after such continuation or conversion consists of securities of a class that is widely held and publicly traded on a U.S. national
securities exchange.

 

Under any
of subsections (i) through (iv) above, appropriate adjustments will be made with respect to the number and type of securities
(or other consideration) of the successor or surviving corporation (or a parent or subsidiary thereof), subject to any replacement
awards, the terms and conditions of the replacement awards (including, without limitation, any applicable performance targets
or criteria with respect thereto) and the grant, exercise or purchase price per share for the replacement awards.

 

(c)         Adjustment Due to a Structural Change. In the event of a Structural Change, Awards shall be exchanged or converted
into awards to acquire shares of the Company (if it is the surviving corporation) or the successor company in

 

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accordance
with the applicable exchange ratio, and the Exercise Price and quantity of shares underlying the Awards shall be adjusted in accordance
with the terms of the Structural Change. The adjustments required shall be determined in good faith solely by the Board in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available in respect of the Awards,
and shall be subject to the receipt of any approval required, including any tax ruling, if necessary.

 

Section 12.
General Provisions Applicable to Awards.

 

(a)         Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by Applicable
Law.

 

(b)         Awards may, in the discretion of the Administrator, be granted either alone or in addition to or in tandem with any other
Award or any award granted under any other plan of the Company. Awards granted in addition to or in tandem with other Awards,
or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same time
as or at a different time from the grant of such other Awards or awards.

 

(c)         Subject to the terms of the Plan and ‎Section 18, payments or transfers to be made by the Company upon the grant, exercise
or settlement of an Award may be made in the form of cash, Shares, other Awards, other property, net settlement or any combination
thereof, as determined by the Administrator in its discretion, and may be made in a single payment or transfer, in installments
or on a deferred basis, in each case in accordance with rules and procedures established by the Administrator. Such rules and
procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the
grant or crediting of dividend equivalents in respect of installment or deferred payments.

 

(d)         Except as may be permitted by the Board or as specifically provided in an Award Document, (i) no Award and no right
under any Award shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or pursuant to
‎Section 12(e) and (ii) during a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable
only by the Participant or, if permissible under Applicable Law, by the Participant’s guardian or legal representative.
The provisions of this ‎Section 12(d) shall not apply to any Award that has been fully exercised or settled, as the case may
be, and shall not preclude forfeiture of an Award in accordance with the terms thereof.

 

(e)         A Participant may designate a Beneficiary or change a previous Beneficiary designation at such times prescribed by the
Board by using forms and following procedures approved or accepted by the Board for that purpose.

 

(f)          All certificates for Shares and/or other securities delivered under the Plan pursuant to any Award or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan or
the rules, regulations and other requirements of the Securities and Exchange

 

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Commission,
any stock market or exchange upon which such Shares or other securities are then quoted, traded or listed, and any applicable
securities laws, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference
to such restrictions.

 

(g)         Without limiting the generality of ‎Section 12(h), the Administrator may impose restrictions on any Award with respect
to noncompetition, confidentiality and other restrictive covenants, or requirements to comply with minimum share ownership requirements,
as it deems necessary or appropriate in its sole discretion.

 

(h)         The Administrator may specify in an Award Document that the Participant’s rights, payments and benefits with respect
to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events,
in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include a Termination of
Service with or without Cause (and, in the case of any Cause that is resulting from an indictment or other non-final determination,
the Administrator may provide for such Award to be held in escrow or abeyance until a final resolution of the matters related
to such event occurs, at which time the Award shall either be reduced, cancelled or forfeited (as provided in such Award Document)
or remain in effect, depending on the outcome), violation of material policies, breach of noncompetition, confidentiality or other
restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business
or reputation of the Company and/or its Affiliates.

 

(i)          Rights, payments and benefits under any Award shall be subject to repayment to or recoupment (“clawback”) by
the Company in accordance with such policies and procedures as the Committee or Board may adopt from time to time, including policies
and procedures to implement Applicable Law, stock market or exchange rules and regulations or accounting or tax rules and regulations.

 

Section 13.
Amendments and Termination.

 

(a)         Except to the extent prohibited by Applicable Law and unless otherwise expressly provided in an Award Document or in the
Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided,
however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder
approval, if such approval is required by Applicable Law or the rules of the stock market or exchange, if any, on which the Shares
are principally quoted or traded or (ii) the consent of the affected Participant, if such action would materially adversely
affect the rights of such Participant under any outstanding Award, except to the extent any such amendment, alteration, suspension,
discontinuance or termination is made to cause the Plan to comply with Applicable Law, stock market or exchange rules and regulations
or accounting or tax rules and regulations, or to impose any recoupment provisions on any Awards in accordance with ‎Section
12(i). Notwithstanding anything to the contrary in the Plan, the Board may amend the Plan in such manner as may be necessary to
enable the Plan to

 

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achieve
its stated purposes in any jurisdiction in a tax-efficient manner and in compliance with local laws, rules and regulations.

 

(b)         The Board may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate
any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or Beneficiary
of an Award; provided, however, that, subject to ‎Section 4(c) and ‎Section 11(b), no such action shall materially
adversely affect the rights of any affected Participant or holder or Beneficiary under any Award theretofore granted under the
Plan, except to the extent any such action is made to cause the Plan to comply with Applicable Law, stock market or exchange rules
and regulations or accounting or tax rules and regulations, or to impose any recoupment provisions on any Awards in accordance
with ‎Section 12(i); provided further that, except as provided in ‎Section 4(c), the Board shall not without the
approval of the Company’s shareholders (a) lower the exercise price per Share of an Option or SAR after it is granted
or take any other action that would be treated as a repricing of such Award under the rules of the principal stock market or exchange
on which the Company’s Shares are quoted or traded, or (b) cancel an Option or SAR when the exercise price per Share
exceeds the Fair Market Value in exchange for cash or another Award (other than in connection with a Change in Control).

 

(c)         Except as provided in ‎Section 8(b), the Administrator shall be authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of events (including the events described in ‎Section 4(c)) affecting
the Company, or the financial statements of the Company, or of changes in Applicable Law, stock market or exchange rules and regulations
or accounting or tax rules and regulations, whenever the Administrator determines that such adjustments are appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(d)         The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner
and to the extent it shall deem desirable to carry the Plan into effect.

 

Section 14.
Prohibition on Option and SAR Repricing. Except as provided in ‎Section 4(c), the Board may not, without prior approval
of the Company’s shareholders, seek to effect any re-pricing of any previously granted “underwater” Option or
SAR by: (i) amending or modifying the terms of the Option or SAR to lower the exercise price; (ii) cancelling the underwater
Option or SAR and granting either (A) replacement Options or SARs having a lower exercise price or (B) Restricted Share,
RSU, Performance Award or Other Share-Based Award in exchange; or (iii) cancelling or repurchasing the underwater Options
or SARs for cash or other securities. An Option or SAR will be deemed to be “underwater” at any time when the Fair
Market Value of the Shares covered by such Award is less than the exercise price of the Award.

 

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Section 15.
Miscellaneous. 

 

(a)         No employee, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no obligation
for uniformity of treatment of employees, Participants or holders or Beneficiaries of Awards under the Plan. The terms and conditions
of Awards need not be the same with respect to each recipient. Any Award granted under the Plan shall be a one-time Award that
does not constitute a promise of future grants. The Company, in its sole discretion, maintains the right to make available future
grants under the Plan.

 

(b)         The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue
to provide services to, the Company or any Affiliate. Further, the Company or the applicable Affiliate may at any time dismiss
a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any
Award Document or in any other agreement binding the parties. The receipt of any Award under the Plan is not intended to confer
any rights on the receiving Participant except as set forth in the applicable Award Document.

 

(c)         Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

 

(d)         Any taxes recognized by a Participant in respect of his or her Awards and/or Shares, including, but not limited to, in
respect of the grant of an Award, and/or the vesting, exercise or settlement of the Award, and/or the sale of Shares underlying
an Award, shall be borne solely by such Participant and his or her heirs or transferees. Except as provided in ‎Section 15(e)
below, neither the Company nor any of its Affiliates shall be required to bear the aforementioned taxes, directly or indirectly,
nor shall they be required to gross up such tax in the Participants’ salaries or remuneration.

 

(e)         The Company shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award
or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other Awards, other
property, net settlement or any combination thereof) of applicable withholding taxes due in respect of an Award, its exercise
or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing
for elective payment of such amounts in cash or Shares by the Participant) as may be necessary in the opinion of the Company to
satisfy all obligations for the payment of such taxes. Without limiting the foregoing, the Administrator, in its sole discretion
and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding
obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold
otherwise deliverable cash or Shares having a fair market value not in excess of the maximum statutory amount required to be withheld,
or (iii) delivering to the Company already-owned Shares having a fair market value not in excess of the maximum statutory
amount

 

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required
to be withheld. The fair market value of the Shares to be withheld or delivered will be determined as of the date that the taxes
are required to be withheld.

 

(f)          For avoidance of doubt, it is clarified that the tax treatment of any Award granted under this Plan is not guaranteed and
although Awards may be granted under a certain tax route, they may become subject to a different tax route in the future.

 

(g)         If any provision of the Plan or any Award Document is or becomes or is deemed to be invalid, illegal or unenforceable in
any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the
Administrator, such provision shall be construed or deemed amended to conform to Applicable Laws, or if it cannot be so construed
or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award
Document, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such
Award Document shall remain in full force and effect.

 

(h)         Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive
payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor
of the Company.

 

(i)          No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Board shall determine whether
cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any
rights thereto shall be canceled, terminated or otherwise eliminated.

 

(j)          Awards may be granted to Participants who are non-Israeli nationals or employed or providing services outside Israel, or
both, on such terms and conditions different from those applicable to Awards to Participants who are employed or providing services
in Israel as may, in the judgment of the Board, be necessary or desirable to recognize differences in local law, tax policy or
custom. The Board also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation
with respect to tax equalization for Participants on assignments outside their home country.

 

Section
16. Effective Date of the Plan. The Plan is effective upon the listing
of the Shares on the NASDAQ Capital Market.

 

Section
17. Term of the Plan. No Award shall be granted under the Plan after the earliest to occur of (i) the
ten-year anniversary of the Effective Date; provided that to the extent permitted by the listing rules of any stock
exchanges on which the Company is listed, such  ten-year term may be extended
indefinitely so long as the maximum number of Shares available for issuance under the Plan have not been issued,
(ii) the maximum number of Shares available for issuance under the Plan have been issued or (iii) the Board
terminates the Plan in accordance with ‎Section 13(a). However, unless otherwise expressly provided in the Plan or in an
applicable Award Document, any Award theretofore granted may extend

 

    12 

     

    

beyond
such date, and the authority of the Board to amend, alter, adjust, suspend, discontinue or terminate any such Award, or to waive
any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

 

Section 18.
Section 409A of the Code. With respect to Awards subject to Section 409A of the Code, the Plan is intended to
comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Award Document shall be
interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly.
If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the
provision, term or condition will be interpreted and deemed amended so as to avoid this conflict. If an amount payable under an
Award as a result of the Participant’s Termination of Service (other than due to death) occurring while the Participant
is a “specified employee” under Section 409A of the Code constitutes a deferral of compensation subject to Section 409A
of the Code, then payment of such amount shall not occur until six months and one day after the date of the Participant’s
Termination of Service, except as permitted under Section 409A of the Code. If the Award includes a “series of installment
payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Participant’s
right to the series of installment payments shall be treated as a right to a series of separate payments and not as a right to
a single payment, and if the Award includes “dividend equivalents” (within the meaning of Section 1.409A-3(e)
of the Treasury Regulations), the Participant’s right to the dividend equivalents shall be treated separately from the right
to other amounts under the Award. Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan or
any Award Document is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes,
penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A
of the Code.

 

Section 19.
Data Protection. By participating in the Plan, the Participant consents to the holding and processing of personal information
provided by the Participant to the Company or any Affiliate, trustee or third party service provider, for all purposes relating
to the operation of the Plan. These include, but are not limited to:

 

(i)       administering
and maintaining Participant records;

 

(ii)       providing
information to the Company, Affiliates, trustees of any employee benefit trust, registrars, brokers or third party administrators
of the Plan;

 

(iii)       providing
information to future purchasers or merger partners of the Company or any Affiliate, or the business in which the Participant
works; and

 

(iv)       transferring
information about the Participant to any country or territory that may not provide the same protection for the information as
the Participant’s home country.

 

    13 

     

    

Section 20.
Governing Law. The Plan and each Award Document shall be governed by the laws of the State of Israel. The Company, its Affiliates
and each Participant (by acceptance of an Award) irrevocably submit, in respect of any suit, action or proceeding related to the
implementation or enforcement of the Plan, to the exclusive jurisdiction of the competent courts in Tel-Aviv-Jaffe.

 

Section 21.
Definitions. As used in the Plan, the following terms shall have the meanings set forth below:

 

(a)          “Affiliate” means (i) any entity that, directly or indirectly, is controlled by the Company, (ii) any
entity in which the Company, directly or indirectly, has a significant equity interest, in each case as determined by the Committee
and (iii) any other entity which the Committee determines should be treated as an “Affiliate.”

 

(b)          “Applicable Law” means the legal requirements applicable to the administration of equity incentive plans,
any applicable laws, rules and regulations of any country or jurisdiction where Awards are granted under the Plan or in which
Participants pay are subject to taxation, as such laws, rules, regulations and requirements shall be in place from time to time,
and any applicable stock exchange rules or regulations.

 

(c)          “Award” means any Option, SAR, Restricted Share, RSU, Performance Award or Other Share-Based Award granted
under the Plan.

 

(d)          “Award Document” means any agreement, contract or other instrument or document, which may be in electronic
format, evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant.

 

(e)          “Beneficiary” means a person entitled to receive payments or other benefits or exercise rights that
are available under the Plan in the event of the Participant’s death. If no such person is named by a Participant, or if
no Beneficiary designated by the Participant is eligible to receive payments or other benefits or exercise rights that are available
under the Plan at the Participant’s death, such Participant’s Beneficiary shall be such Participant’s estate.

 

(f)           “Board” means the board of directors of the Company.

 

(g)          “Cause” means, with respect to any Participant, “cause” as defined in such Participant’s
employment agreement with the Company, if any, or if not so defined, except as otherwise provided in such Participant’s
Award Document, such Participant’s:

 

(i)       indictment
for any crime (A) constituting a felony, or (B) that has, or could reasonably be expected to result in, an adverse impact
on the performance of a Participant’s duties to the Company or any of its subsidiaries, or otherwise has, or could reasonably
be expected to result in, an adverse impact to the business or reputation of the Company or any of its subsidiaries;

 

    14 

     

    

(ii)
       having been the subject of any order, judicial or administrative, obtained or issued
by the Securities and Exchange Commission for any securities violation involving fraud, including, for example, any such order
consented to by the Participant in which findings of facts or any legal conclusions establishing liability are neither admitted
nor denied;

 

(iii)       conduct,
in connection with his or her employment or service, which is not taken in good faith and has, or could reasonably be expected
to result in, material injury to the business or reputation of the Company or any of its subsidiaries;

 

(iv)       willful
violation of the Company’s code of conduct or other material policies set forth in the manuals or statements of policy of
the Company or any of its subsidiaries;

 

(v)       willful
neglect in the performance of a Participant’s duties for the Company or any of its subsidiaries or willful or repeated failure
or refusal to perform such duties;

 

(vi)       material
breach of any applicable employment agreement or other agreement with the Company; or

 

(vii)       conduct,
in connection with his or her employment or service.

 

The
occurrence of any such event described in clauses (ii) through (v) that is susceptible to cure or remedy shall not constitute
Cause if such Participant cures or remedies such event within 30 (thirty) days after the Company provides notice to such Participant.

 

(h)          “Change in Control” means the occurrence of any one or more of the following events:

 

(i)       a
direct or indirect change in ownership or control of the Company effected through one transaction or a series of related transactions
within a 12-month period, whereby any Person other than the Company, directly or indirectly acquires or maintains beneficial ownership
of securities of the Company constituting more than 50% of the total combined voting power of the Company’s equity securities
outstanding immediately after such acquisition;

 

(ii)      at
any time during a period of 12 consecutive months, individuals who at the beginning of such period constituted the Board cease
for any reason to constitute a majority of members of the Board; provided, however, that any new member of the Board whose
election or nomination for election was approved by a vote of at least a majority of the directors then still in office who either
were directors at the beginning of such period or whose election or nomination for election was so approved, shall be considered
as though such individual were a member of the Board at the beginning of the period, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result

 

    15 

     

    

of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board;

 

(iii)     the
consummation of a merger or consolidation of the Company or any of its subsidiaries with any other corporation or entity, other
than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such
merger or consolidation continuing to represent (either by remaining outstanding or being converted into voting securities of
the surviving entity or, if applicable, the ultimate parent thereof) at least 50% of the combined voting power and total fair
market value of the securities of the Company or such surviving entity or parent outstanding immediately after such merger or
consolidation; or

 

(iv)     the
consummation of any sale, lease, exchange or other transfer to any Person (other than an Affiliate of the Company), in one transaction
or a series of related transactions within a 12-month period, of all or substantially all of the assets of the Company and its
subsidiaries.

 

Notwithstanding
the foregoing or any provision of any Award Document to the contrary, for any Award to which ‎Section 18 applies that provides
for accelerated distribution on a Change in Control of amounts that constitute “deferred compensation” (as defined
in Section 409A of the Code), if the event that constitutes such Change in Control does not also constitute a change in the
ownership or effective control of the Company, or in the ownership of a substantial portion of the Company’s assets (in
either case, as defined in Section 409A of the Code), such amount shall not be distributed on such Change in Control but
instead shall vest as of the date of such Change in Control and shall be paid on the scheduled payment date specified in the applicable
Award Document, except to the extent that earlier distribution would not result in the Participant who holds such Award incurring
any additional tax, penalty, interest or other expense under Section 409A of the Code.

 

(a)         
 “Code” means the United States Internal Revenue Code of 1986, as amended from time to time, and the
rules, regulations and guidance thereunder. Any reference to a provision in the Code shall include any successor provision thereto.

 

(b)          “Committee” means the Compensation Committee of the Board or such other committee as may be designated
by the Board.

 

(c)          “Exchange Act” means the United States Securities Exchange Act of 1934, as amended from time to time,
and the rules, regulations and guidance thereunder. Any reference to a provision in the Exchange Act shall include any successor
provision thereto.

 

(d)          “Fair Market Value” means (i) with respect to a Share, the closing price of a Share on the date
in question (or, if there is no reported sale on such

 

    16 

     

    

date,
on the last preceding date on which any reported sale occurred) on the principal stock market or exchange on which the Shares
are quoted or traded, or if Shares are not so quoted or traded, the fair market value of a Share as determined by the Board, and
(ii) with respect to any property other than Shares, the fair market value of such property determined by such methods or
procedures as shall be established from time to time by the Board.

 

(e)          “Non-Employee Director” means a member of the Board who is not an employee of the Company or an Affiliate.

 

(f)            “Option” means an option representing the right to acquire Shares from the Company, granted in accordance
with the provisions of ‎Section 5.

 

(g)          “Other Share-Based Award” means an Award granted in accordance with the provisions of ‎Section 9.

 

(h)          “Participant” means the recipient of an Award granted under the Plan.

 

(i)           “Performance Award” means an Award granted in accordance with the provisions of ‎Section 8.

 

(j)           “Performance Period” means the period established by the Administrator at the time any Performance Award
is granted or at any time thereafter during which any performance goals specified by the Administrator with respect to such Award
are measured.

 

(k)          ''Person'' means a natural person or a partnership, company, association, cooperative, mutual insurance society,
foundation or any other body which operates externally as an independent unit or organisation.

 

(l)           “Replacement Award” means an Award granted in assumption of, or in substitution for, an outstanding
award previously granted by a company or business acquired by the Company or with which the Company, directly or indirectly, combines.

 

(m)         “Restricted Share” means any Share granted in accordance with the provisions of ‎Section 7.

 

(n)          “RSU” means a contractual right granted in accordance with the provisions of ‎Section 7 that is
denominated in Shares. Each RSU represents a right to receive the value of one Share. Awards of RSUs may include the right to
receive dividend equivalents.

 

(o)          “SAR” means any right granted in accordance with the provisions of ‎Section 6 to receive upon exercise
by a Participant or settlement the excess of (i) the Fair Market Value of one Share on the date of exercise or settlement
over (ii) the exercise price of the right on the date of grant, or if granted in connection with an Option, on the date of
grant of the Option.

 

    17 

     

    

(p)          “Shares”
means ordinary shares of the Company. 2

 

(q)          “Structural Change” means any re-domestication of the Company, share flip, creation of a holding company
for the Company which will hold substantially all of the Shares of the Company or any other transaction involving the Company
in which the Shares of the Company outstanding immediately prior to such transaction continue to represent, or are converted into
or exchanged for shares that represent, immediately following such transaction, at least a majority, by voting power, of the share
capital of the surviving, acquiring or resulting corporation;

 

(r)           “Termination of Service” means:

 

(i)       in
the case of a Participant who is an employee of the Company or an Affiliate, cessation of the employment relationship such that
the Participant is no longer an employee of the Company or Subsidiary;

 

(ii)      in
the case of a Participant who is a director of the Board, the date that the Participant ceases to be a member of the Board for
any reason; or

 

(iii)     in
the case of a Participant who is a consultant or other advisor, the effective date of the cessation of the performance of services
for the Company or an Subsidiary;

 

provided,
however, that in the case of an employee, the transfer of employment from the Company to an Affiliate, from an Affiliate to
the Company, from one Affiliate to another Affiliate or, unless the Administrator determines otherwise, the cessation of employee
status but the continuation of the performance of services for the Company or an Affiliate as a member of the Board or a consultant
or other advisor shall not be deemed a cessation of service that would constitute a Termination of Service; and provided further,
that a Termination of Service will be deemed to occur for a Participant employed by an Affiliate when an Affiliate ceases to be
an Affiliate, unless such Participant’s employment continues with the Company or another Affiliate.

 

 

    18 

     

    

ENTERA
BIO LTD.

 

2017
EQUITY INCENTIVE PLAN

 

ISRAELI
SUB PLAN

 

		1.	GENERAL

 

		1.1	This sub-plan (the “Sub-plan”)
shall apply only to Participants who are residents of the State of Israel upon the date of grant of the Award, as defined below
in Section 2, or who are deemed Israeli tax residents (collectively, “Israeli Participants”). The provisions
specified hereunder shall form an integral part of the Entera Bio Ltd. 2017 Equity Incentive Plan (hereinafter the “Plan”).

 

		1.2	This
                                         Sub-plan is adopted pursuant to Sections ‎Section 3(a) and ‎Section 13(a) of
                                         the Plan and is to be read as a continuation of the Plan and modifies Awards granted
                                         to Israeli Participants only to the extent necessary to comply with the requirements
                                         set by the Israeli law in general, and in particular, with the provisions of the Israeli
                                         Income Tax Ordinance [New Version] 1961, as may be amended or replaced from time to time.
                                         This Sub-plan does not add to or modify the Plan in respect of any other category of
                                         Participants.

 

		1.3	The
                                         Plan and this Sub-plan are complimentary to each other and shall be deemed as one. In
                                         the event of any conflict, whether explicit or implied, between the provisions of this
                                         Sub-plan and the Plan, the provisions set out in the Sub-plan shall prevail.

 

		1.4	Any
                                         capitalized term not specifically defined in this Sub-plan shall be construed according
                                         to the interpretation given to it in the Plan.

 

		1.5	This
                                         Sub-plan does not apply to any Award which is settled in cash.

 

		2.	DEFINITIONS

 

		2.1	“102
                                         Award” means any Award, provided it is settled in Shares, granted to an Approved
                                         Israeli Participant pursuant to Section 102 of the Ordinance.

 

		2.2	“Approved Israeli Participant”
                                         means an Israeli Participant who is an employee, director or an officer of the Company
                                         or any an Israeli resident Affiliate, excluding any Controlling Share Holder of the Company.

 

		2.3	“Capital Gain
Award” or “CGA” means a Trustee 102 Award elected and designated by the Company to qualify under the capital
gain tax treatment in accordance with the provisions of Section 102(b)(2) and Section 102(b)(3) of the Ordinance.

 

    19 

     

    

		2.4	“Controlling Share Holder”
                                         shall have the meaning ascribed to it in Section 32(9) of the Ordinance.

 

		2.5	“ITA” means the
                                         Israeli Tax Authority.

 

		2.6	“Israeli
                                         Award Agreement”means the Award Agreement between the Company and an Israeli
                                         Participant that sets out the terms and conditions of an Award.

 

		2.7	“Non-Trustee 102 Award”
                                         means a 102 Award granted pursuant to Section 102(c) of the Ordinance and not held in
                                         trust by a Trustee.

 

		2.8	“Ordinary
                                         Income Award” or “OIA” means a Trustee 102 Award elected and designated
                                         by the Company to qualify under the ordinary income tax treatment in accordance with
                                         the provisions of Section 102(b)(1) of the Ordinance.

 

		2.9	“Ordinance”
                                         means the Israeli Income Tax Ordinance [New Version] – 1961, as now in effect
                                         or as hereafter amended.

 

		2.10	“Section
                                         102” means Section 102 of the Ordinance and any regulations, rules, orders
                                         or procedures promulgated thereunder as now in effect or as hereafter amended.

 

		2.11	“Tax”
                                         means any applicable tax and other compulsory payments such as social security and health
                                         tax contributions under any Applicable Law.

 

		2.12	“Trustee”
                                         means any person or entity appointed by the Company or the Subsidiary to serve as a trustee
                                         and approved by the ITA, all in accordance with the provisions of Section 102(a) of the
                                         Ordinance, as may be replaced from time to time.

 

		2.13	“Trustee
                                         102 Award” means a 102 Award granted to an Approved Israeli Participant pursuant
                                         to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of
                                         an Approved Israeli Participant.

 

		2.14	“Unapproved
                                         Israeli Participant” means an Israeli Participant who is not an Approved Israeli
                                         Participant, including a consultant or a Controlling Share Holder of the Company.

 

		3.	ISSUANCE OF AWARDS

 

		3.1	The
                                         persons eligible for participation in the Plan as Israeli Participants shall include
                                         Approved Israeli Participants and Unapproved Israeli Participants, provided, however,
                                         that only Approved Israeli Participants may be granted 102 Awards.

 

    20 

     

    

		3.2	The
                                         Company may designate Awards granted to Approved Israeli Participants pursuant to Section
                                         102 as Trustee 102 Awards or Non-Trustee 102 Awards.

 

		3.3	The
                                         grant of Trustee 102 Awards shall be made under this Sub-plan and shall not be made until
                                         30 days from the date the Plan has been submitted for approval by the ITA and shall be
                                         conditioned upon the approval of the Plan and this Sub-plan by the ITA.

 

		3.4	Trustee
                                         102 Awards may either be classified as Capital Gain Awards (CGAs) or Ordinary Income
                                         Awards (OIAs).

 

		3.5	No
                                         Trustee 102 Award may be granted under this Sub-plan to any Approved Israeli Participant,
                                         unless and until the Company has filed with the ITA its election regarding the type of
                                         Trustee 102 Awards, whether CGAs or OIAs, that will be granted under the Plan and this
                                         Sub-plan (the “Election”). Such Election shall become effective beginning
                                         the first date of grant of a Trustee 102 Award under this Sub-plan and shall remain in
                                         effect at least until the end of the year following the year during which the Company
                                         first granted Trustee 102 Awards. The Election shall obligate the Company to grant only
                                         the type of Trustee 102 Award it has elected, and shall apply to all Israeli Participants
                                         who are granted Trustee 102 Awards during the period indicated herein, all in accordance
                                         with the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, the
                                         Election shall not prevent the Company from granting Non-Trustee 102 Awards simultaneously.

 

		3.6	All
                                         Trustee 102 Awards must be held in trust by, or subject to the approval of the ITA, under
                                         the control or supervision of a Trustee, as described in Section 4 below.

 

		3.7	The
                                         designation of Non-Trustee 102 Awards and Trustee 102 Awards shall be subject to the
                                         terms and conditions set forth in Section 102.

 

		3.8	Awards
                                         granted to Unapproved Israeli Participants shall be subject to tax according to the provisions
                                         of the Ordinance and shall not be subject to the Trustee arrangement detailed herein.

 

		4.	TRUSTEE

 

		4.1	Trustee
                                         102 Awards which shall be granted under this Sub-plan and/or any Shares allocated or
                                         issued upon grant, vesting or exercise of a Trustee 102 Award and/or other Shares received
                                         following any realization of rights under the Plan, shall be allocated or issued to the
                                         Trustee or controlled by the Trustee, for the benefit of the Approved Israeli Participants,
                                         in accordance with the provisions of Section 102. In the event that the requirements
                                         for Trustee 102 Awards are not met, the Trustee 102 Awards may be regarded as Non-Trustee
                                         102 Awards or as Awards which are not subject to Section 102, all in accordance with
                                         the provisions of Section 102.

 

    21 

     

    

		4.2	With
                                         respect to any Trustee 102 Award, subject to the provisions of Section 102, an Approved
                                         Israeli Participant shall not sell or release from trust any Shares received upon the
                                         grant, vesting or exercise of a Trustee 102 Award and/or any Shares received following
                                         any realization of rights, including, without limitation, stock dividends, under the
                                         Plan at least until the lapse of the period of time required under Section 102 or any
                                         shorter period of time determined by the ITA (the “Holding Period”).
                                         Notwithstanding the above, if any such sale or release occurs during the Holding Period,
                                         the sanctions under Section 102 shall apply to and shall be borne by such Approved Israeli
                                         Participant.

 

		4.3	Notwithstanding
                                         anything to the contrary, the Trustee shall not release or sell any Shares allocated
                                         or issued upon grant, vesting or exercise of a Trustee 102 Award unless the Company,
                                         its Israeli Subsidiary and the Trustee are satisfied that the full amounts of Tax due
                                         have been paid or will be paid.

 

		4.4	Upon
                                         receipt of any Trustee 102 Award, the Approved Israeli Participant will consent to the
                                         grant of the Award under Section 102 and undertake to comply with the terms of Section
                                         102 and the trust arrangement between the Company and the Trustee.

 

		5.	THE AWARDS

 

The terms and conditions upon
which the Awards shall be issued and exercised or vest, shall be specified in the Israeli Award Agreement to be executed pursuant
to the Plan and to this Sub-plan. Each Israeli Award Agreement shall state, inter alia, the number of Shares to which the
Award relates, the type of Award granted thereunder (i.e., a CGA, OIA or Non-Trustee 102 Award or any Award granted to
Unapproved Israeli Participant), and any applicable vesting provisions and exercise price that may be payable. For the avoidance
of doubt it is clarified that there is no obligation for uniformity of treatment of Israeli Participants and that the terms and
conditions of Awards need not be the same with respect to each Israeli Participant (whether or not such Israeli Participants are
similarly situated).

 

    22 

     

    

		6.	EXERCISE AND VESTING OF
AWARDS

 

The
grant, vesting and exercise of Awards granted to Israeli Participants shall be subject to the terms and conditions and, with respect
to exercise, the method, as may be determined by the Company (including the provisions of the Plan) and, when applicable, by the
Trustee, in accordance with the requirements of Section 102. 

 

		7.	ASSIGNABILITY,
                                         DESIGNATION AND SALE OF AWARDS

 

		7.1.	Notwithstanding
                                         any other provision of the Plan (including sections 5(e) and 6(a)(iv) of the Plan), no
                                         Award or any right with respect thereto, or purchasable hereunder, whether fully paid
                                         or not, shall be assignable, transferable or given as collateral, or any right with respect
                                         to any Award given to any third party whatsoever, and during the lifetime of the Israeli
                                         Participant, each and all of such Israeli Participant’s rights with respect to
                                         an Award shall belong only to the Israeli Participant. Any such action made directly
                                         or indirectly, for an immediate or future validation, shall be void.

 

		7.2	As
                                         long as Awards or Shares issued or purchased hereunder are held by the Trustee on behalf
                                         of the Israeli Participant, all rights of the Israeli Participant over the Shares cannot
                                         be transferred, assigned, pledged or mortgaged, other than by will or laws of descent
                                         and distribution.

 

		8.	INTEGRATION
                                         OF SECTION 102 AND TAX ASSESSING OFFICER’S APPROVAL

 

		8.1.	With
                                         regard to Trustee 102 Awards, the provisions of the Plan and/or the Sub-plan and/or the
                                         Israeli Award Agreement shall be subject to the provisions of Section 102 and any approval
                                         issued by the ITA and the said provisions shall be deemed an integral part of the Plan,
                                         the Sub-plan and the Israeli Award Agreement.

 

		8.2.	Any
                                         provision of Section 102 and/or said approval issued by the ITA which must be complied
                                         with in order to receive and/or to maintain any tax Award pursuant to Section 102, which
                                         is not expressly specified in the Plan, the Sub-plan or the Israeli Award Agreement,
                                         shall be considered binding upon the Company, any Israeli Subsidiary and the Israeli
                                         Participants.

 

		9.	TAX
                                         CONSEQUENCES

 

		9.1	Any
                                         tax consequences arising from the grant, exercise, vesting or sale of any Award, from
                                         the payment for or sale of Shares covered thereby or from any other event or act (of
                                         the Company, and/or its Subsidiaries, and the Trustee or the Israeli Participant), hereunder,
                                         shall be borne solely by the Israeli Participant. The Company and/or its Subsidiaries,
                                         and/or the Trustee shall withhold Tax according to the requirements under the applicable
                                         laws, rules, and regulations, including

 

    23 

     

    

withholding
taxes at source. Furthermore, the Israeli Participant agrees to indemnify the Company and/or its Subsidiaries and/or the Trustee
and hold them harmless against and from any and all liability for any such Tax or interest or penalty thereon, including without
limitation, liabilities relating to the necessity to withhold, or to have withheld, any such Tax from any payment made to the
Israeli Participant.

 

		9.2	The
                                         Company and/or, when applicable, the Trustee shall not be required to release any Award
                                         or Shares to an Israeli Participant until all required Tax payments have been fully made.

 

		9.3	Approved
                                         Awards that do not comply with the requirements of Section 102 shall be considered Non-Approved
                                         102 Awards or Awards subject to tax under Section 3(i) or 2 of the Ordinance.

 

		9.4	With
                                         respect to Non-Trustee 102 Awards, if the Israeli Participant ceases to be employed by
                                         the Company or any Subsidiary, or otherwise if so requested by the Company or the Subsidiary,
                                         the Israeli Participant shall extend to the Company and/or the Subsidiary a security
                                         or guarantee for the payment of Tax due at the time of sale of Shares, in accordance
                                         with the provisions of Section 102.

 

		9.5	For
                                         avoidance of doubt, it is clarified that the tax treatment of any Award granted under
                                         this Sub-plan is not guaranteed and, although Awards may be granted under a certain tax
                                         route, they may become subject to a different tax route in the future.

 

		10.	ONE
                                         TIME AWARD

 

The Awards and underlying Shares
are extraordinary, one-time awards granted to the Participants, and are not and shall not be deemed a salary component for any
purpose whatsoever, including in connection with calculating severance compensation under Applicable Law, nor shall receipt of
an award entitle a Participant to any future Awards.

 

    24Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE
AGREEMENT (the “Agreement”) is dated as of November 20, 2017, by and between Recon Technology, Ltd, a Cayman
Islands corporation, (the “Company”), and Yongquan Bi, a citizen of People’s Republic of China (the
“Buyer” and, together with the Company, the “Parties” and each, a “Party”).

 

WHEREAS:

 

A.       The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by (i) Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and (ii) (a) Rule 506 of Regulation
D (“Regulation D”) and (b) Rule 903 of Regulation S (“Regulation S”), both as promulgated
by the U.S. Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.       The
Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, 3,000,000 ordinary
shares of the Company, par value $0.0185 per share (the “Ordinary Shares”), which will constitute approximately
20.28 percent (20.28%) of all of the Company’s outstanding Ordinary Shares at the time of the Closing on a fully diluted
basis (the “Shares”).

 

C.       The
Parties intend for all of the promises and obligations discussed herein to be subject to and contingent upon compliance with NASDAQ
Stock Market Rules, and neither party intends for any issuance to occur in the absence of such compliance.

 

D.       The
board of directors of the Buyer has (i) approved the execution, delivery and performance by the Buyer of this Agreement and
consummation of the transactions contemplated hereby and (ii) declared it advisable for the Buyer to enter into this Agreement.

 

E.       The
board of directors of the Company (the “Board of Directors”), acting upon the unanimous recommendation of a
special committee of independent directors of the Board of Directors, has (i) determined that it is in the best interest of the
Company and its shareholders, and declared it advisable, to enter into this Agreement, and (ii) approved the execution, delivery
and performance by the Company of this Agreement and consummation of the transactions contemplated hereby.

 

NOW, THEREFORE,
the Company and the Buyer hereby agree as follows:

 

1.                 
PURCHASE AND SALE OF SHARES.

 

(a)              
Sale of Shares. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the
Company shall issue and allot to the Buyer, and the Buyer agrees to subscribe from the Company, on the Closing Date (as defined
below), the Shares (the “Closing”).

 

    	 	 	 

     

    

 

(b)              
Closing. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., Eastern Standard
Time, within five (5) days after the later of the (i) receipt of payment in full for the Shares by the Company and (ii) the satisfaction
(or waiver) of the conditions to the Closing set forth in Sections 5 and 6 below, or any such other time and date as is mutually
agreed to by the Company and the Buyer, at the offices of the Company at Recon Technology, Ltd, Room 1902, Building C, King Long
International Mansion, No. 9 Fulin Road, Beijing, 100107, People’s Republic of China. In the event the Closing Date has not
occurred on or before January 20, 2018, this Agreement will terminate automatically and be of no further effect unless otherwise
extended by agreement of the parties; provided, however, that if the only failure for the closing to occur is the Buyer’s
failure to pay the second installment (as described in Section 1(d) hereof), then the Closing shall occur as to such Shares for
which payment has been made.

 

(c)              
Purchase Price. The purchase price for the Shares to be purchased by Buyer at the Closing shall be approximately
equal to US$1.60 per Share, with the aggregate purchase price equal to US$4,800,000 (the “Purchase Price”).

 

(d)              
Form of Payment. On or prior to the Closing Date, the Buyer shall make payment in full for the Purchase Price of
the Shares to be issued and allotted to the Buyer at Closing, by wire transfer of immediately available funds in accordance with
the Company’s written wire instructions, which written instructions shall be delivered by the Company to the Buyer no later
than three (3) days prior to the anticipated Closing Date. The Purchase Price shall be made in two installments: (i) the first
installment of US$2,400,000 shall be made on the date hereof; and (2) the second installment of US$2,400,000 shall be made on or
before January 20, 2018.

 

(e)              
Closing Deliverables. On the Closing Date, the Company shall deliver, or cause to be delivered, to the Buyer the
following closing deliverables:

 

(i)               
a share certificate in customary form in respect of the 3,000,000 duly authorized and validly issued Shares to be issued
and allotted to the Buyer at the Closing; and

 

(ii)             
a copy of the register of members of the Company, as certified by the registered agent of the Company and updated to reflect
the subscription by the Buyer of the Shares as provided herein.

 

2.                 
BUYER’S REPRESENTATIONS AND WARRANTIES. The Buyer represents and warrants to the Company, as of the date hereof
and as of the Closing, that:

 

(a)              
No Sale or Distribution. The Buyer is acquiring the Shares for its own account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933
Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any person to distribute any
of the Shares.

 

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

 

    	 	2	 

     

    

 

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

 

(d)              
Information. The Buyer has been furnished with all materials relating to the business, finances and operations of
the Company and materials relating to the offer and sale of the Shares that have been reasonably requested by the Buyer. The Buyer
has been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations
conducted by the Buyer or its representatives shall modify, amend or affect such Buyer’s right to rely on the Company’s
representations and warranties contained herein. The Buyer understands that its investment in the Shares involves a high degree
of risk and is able to afford a complete loss of such investment. The Buyer has sought such accounting, legal and tax advice as
it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares.

 

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

 

(f)               
Transfer or Resale. The Buyer understands that (i) the Shares have not been and are not being registered under the
1933 Act, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder or (B) the
Buyer shall have delivered to the Company an opinion of counsel, in a form reasonably acceptable to the Company, to the effect
that such Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration;
(ii) neither the Company nor any other person is under any obligation to register the Shares under the 1933 Act or any state securities
laws or to comply with the terms and conditions of any exemption thereunder; and (iii) the Buyer has agreed that, in addition to
restrictions on resale that apply under Rule 144, Buyer will not be permitted to sell or transfer the Shares for two (2) years
following the Closing Date.

 

(g)              
Lock-Up. The Buyer will not register, offer, sell, contract to sell or grant any Shares or any securities convertible
into or exercisable or exchangeable for the Shares or any warrants to purchase the Shares (including, without limitation, securities
of the Company which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of
the Securities and Exchange Commission and securities which may be issued upon the exercise of a stock option or warrant) for a
period of two (2) years following the Closing Date.

 

(h)              
Legends. The Buyer understands that the stock certificates for the Shares, unless and until registered, shall bear
a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock
certificates):

 

    	 	3	 

     

    

 

“THE SECURITIES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ‘SECURITIES ACT’), OR
THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
(A) AT ALL BEFORE JANUARY 20, 2020 OR (B) AFTER JANUARY 20, 2020, EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM
REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT
REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”

 

The legend set forth above shall be removed
and the Company shall issue a certificate without such legend to the holder of the Shares upon which it is stamped, if, unless
otherwise required by state securities laws, (i) such Shares are registered for resale under the 1933 Act or (ii) in connection
with a sale, assignment or other transfer, such holder provides the Company with a legal opinion reasonably acceptable to the Company,
to the effect that such sale, assignment or transfer of the Shares may be made without registration under the applicable requirements
of the 1933 Act.

 

(i)                
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Buyer and shall constitute the legal, valid and binding obligations of the Buyer enforceable against the Buyer in accordance with
its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.

 

(j)                
No Conflicts. The execution, delivery and performance by the Buyer of this Agreement and the consummation by the
Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of the Buyer,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to the Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have material impact
upon the ability of the Buyer to perform its obligations hereunder.  

 

    	 	4	 

     

    

 

(k)              
Residency. The Buyer is a citizen of People’s Republic of China (“China”). The offer and
sale of the Shares has been made in an offshore transaction and did not involve any directed selling efforts in the United States.
The term “offshore transaction” shall have the meaning assigned to it by Regulation S.

 

(l)                
Certain Trading Activities. Other than with respect to the transactions contemplated herein, since the time that
the Buyer was first contacted by the Company or any other person regarding the investment in the Company set forth herein, neither
the Buyer nor any Affiliate (as defined in Rule 12b-2 of the SEC Rules promulgated under the 1934 Act) of the Buyer which (x) had
knowledge of the transactions contemplated hereby, (y) has or shares discretion relating to the Buyer’s investments or trading
or information concerning the Buyer’s investments and (z) is subject to the Buyer’s review or input concerning such
Affiliate’s investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor
has any person acting on behalf of or pursuant to any understanding with such Buyer or Trading Affiliate, (i) effected or agreed
to effect any purchase or sale of the Shares, (ii) taken, directly or indirectly, any action designed to cause or to result, or
that could reasonably be expected to cause or result, in the stabilization or manipulation of the price of any security of the
Company, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase or sell any securities
of the Company.

 

(m)            
No Consideration. The Buyer has not paid any consideration, directly or indirectly, to any officer, director or employee
of the Company or any Subsidiary (as defined in Section 3(a) hereof).

 

3.                 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Buyer, as of the date hereof
and as of the Closing, that:

 

(a)              
Organization and Qualification. The Company and its “Subsidiaries” (which for purposes of this
Agreement includes any joint venture or any entity in which the Company, directly or indirectly, owns any of the capital stock
or holds an equity, contractual or other interest) are entities duly organized and validly existing and, to the extent legally
applicable, in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization
to own their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly
qualified as a foreign entity to do business and, to the extent legally applicable, is in good standing in every jurisdiction in
which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the
extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect.
As used in this Agreement, “Material Adverse Effect” means any material adverse effect on the business, properties,
assets, operations, results of operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries,
individually or taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments to be entered
into in connection herewith, or on the authority or ability of such party or Subsidiaries to perform its obligations under this
Agreement.

 

    	 	5	 

     

    

 

(b)              
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform
its obligations under this Agreement and to issue and allot the Shares to the Buyer in accordance with the terms hereof. The execution
and delivery of the Agreement by the Company and the consummation by the Company of the transactions contemplated hereby, including,
without limitation, the reservation for issuance and the issuance of the Shares, have been duly authorized by the Company’s
Board of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its shareholders
other than notification of the NASDAQ Capital Market (the “Principal Market”), which consent to the transactions
contemplated hereby has been received by the Company as of the date hereof. This Agreement has been duly executed and delivered
by the Company, and constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

(c)              
No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby will not, unless such conflict or default could not reasonably be expected to result
in a Material Adverse Effect, (i) result in a violation of the Company’s Memorandum or Articles of Association (the “Organizational
Documents”) or any certificate of designations or other constituent documents of the Company or any of its Subsidiaries,
any capital stock of the Company or any similar governing documents of its Subsidiaries, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any
of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
foreign, federal and state securities laws and regulations and the rules and regulations of the Principal Market and applicable
laws of China) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of
its Subsidiaries is bound or affected.

 

(d)              
Consents. Neither the Company nor any of its Subsidiaries is required to obtain any consent, authorization or order
of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any
other person in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement in accordance
with the terms hereof, except for the following consents, authorizations, orders, filings and registrations (none of which is required
to be filed or obtained before the Closing): (i) the filing of such forms with the Principal Market as may be required regarding
the issuance of the Shares to the Buyer, which shall be done pursuant to the rules of the Principal Market; and (ii) the filing
with the SEC of Form D. The Company and its Subsidiaries are unaware of any facts or circumstances that might prevent the Company
from obtaining any of the application or filings pursuant to the preceding sentence.

 

(e)              
Acknowledgment Regarding Buyer’s Purchase of Shares. The Company acknowledges and agrees that the Buyer is
acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby and that, immediately prior to issuance, and that the Buyer is not, and none of the Buyer's affiliates, directors, officers,
employees or representatives is (i) an officer or director of the Company, (ii) an “affiliate” of the Company or any
of its Subsidiaries (as defined in Rule 144) or (iii) to the knowledge of the Company, a “beneficial owner” of more
than 10% of the ordinary shares of the Company (as defined in Rule 13d-3 of the SEC Rules promulgated under the Securities Exchange
Act of 1934, as amended (the “1934 Act”)).

 

    	 	6	 

     

    

 

(f)               
No General Solicitation. Neither the Company, nor any of its Subsidiaries or affiliates, nor any person acting on
its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D)
in connection with the offer or sale of the Shares.

 

(g)              
No Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on
their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would require registration of any of the Shares under the 1933 Act or cause this offering of the Shares
to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable shareholder approval provisions,
including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the
securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates or any person acting
on their behalf will take any action or steps referred to in the preceding sentence that would require registration of any of the
Shares under the 1933 Act or cause the offering of the Shares to be integrated with other offerings.

 

(h)              
Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists of 100,000,000
Ordinary Shares. As of the date hereof, 11,787,849 Ordinary Shares are issued and outstanding, 900,000 shares are reserved for
issuance pursuant to the Company’s stock option and purchase plans, 170,000 shares are reserved for issuance pursuant to
the Company’s outstanding warrants, and no other shares are reserved for issuance pursuant to securities exercisable or exchangeable
for, or convertible into, Shares. All of such outstanding shares have been, or upon issuance will be, duly authorized, validly
issued and are fully paid and nonassessable, and issued in compliance with federal and state securities laws and free and clear
of all liens, claims and encumbrances. The Company has furnished to the Buyer true, correct and complete copies of the Company’s
Organizational Documents and the equivalent organizational documents of each of the Company’s Subsidiaries, each as amended
and as in effect on the date hereof, and the terms of all securities convertible into, or exercisable or exchangeable for, Shares
and the material rights of the holders thereof in respect thereto. None of the Company or any of its Subsidiaries is in violation
or breach of any of its organizational documents. The Shares when issued and allotted to the Buyer in accordance with the terms
of this Agreement will be duly and validly issued, and issued in compliance with federal and state securities laws and free of
all liens, claims and encumbrances.

 

(i)                
Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization
or manipulation of the price of any security of the Company, (ii) paid or agreed to pay to any person any compensation for soliciting
another to purchase any other securities of the Company.

 

    	 	7	 

     

    

 

(j)                
No Consideration. The Company is not aware of any consideration being paid by any Buyer, directly or indirectly,
to any officer, director or employee of the Company or any Subsidiary.

 

(k)              
Subsidiaries. The Company does not own, or have any interest in any shares or have an ownership interest in any entity
other than as disclosed in its Public Filings. The share capital of each Subsidiary of the Company are duly authorized, validly
issued, fully paid and nonassessable, and is issued in compliance with any applicable securities laws and free and clear of all
liens, claims and encumbrances.

 

(l)                
Financial Statements. The Company has timely filed or furnished, as applicable, all reports, schedules, forms, statements
and other documents required to be filed or furnished by it with the SEC pursuant to the 1933 Act or the 1934 Act (all of the foregoing
documents, together with all exhibits included therein and financial statements, notes, and schedules thereto and documents incorporated
by reference therein, the “Public Filings”). Except to the extent subsequently amended, the Public Filings,
as of the date they were filed or furnished, complied in all material respects with the requirements of the 1933 Act or the 1934
Act, as the case may be, and the rules and regulations of the SEC promulgated thereunder, as applicable, and none of the Public
Filings at such time contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
There are no outstanding or resolved comments received from the SEC or its staff. The financial statements of the Company included
in the Public Filings (the “Financial Statements”) have been prepared in accordance with U.S. GAAP applied on
a consistent basis throughout the period involved. The Financial Statements are based on the books and records of the Company,
and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared
and the results of the operations of the Company for the periods indicated. The Company maintains a standard system of accounting
established and administered in accordance with U.S. GAAP.

 

(m)            
Undisclosed Liabilities. The Company has no liabilities, obligations or commitments of any nature whatsoever, asserted
or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (“Liabilities”),
except (a) those which are adequately reflected or reserved against in the financial statements filed in the Company’s annual
report filed on Form 20-F with the SEC on September 28, 2017, and (b) those which have been incurred in the ordinary course of
business consistent with past practice since the date of the aforementioned financial statements.

 

(n)              
No Bankruptcy or Insolvency. Company has not: (a) filed any voluntary or had involuntarily filed against it in any
court or with any governmental body, a petition in bankruptcy or insolvency or seeking to effect any plan or other arrangement
with creditors, or seeking the appointment of a receiver; (b) had a receiver, conservator or liquidating agent or similar person
appointed for all or a substantial portion of its assets, suffered the attachment or other judicial seizure of all, or substantially
all of its assets; (c) given notice to any person or governmental body of insolvency; or (d) made an assignment for the benefit
of its creditors or taken any other similar action for the protection or benefit of its creditors. Company is solvent and will
not be rendered insolvent by the performance of its obligations under this Agreement.

 

    	 	8	 

     

    

 

(o)              
Taxes. Each of the Company and its Subsidiaries has timely filed all returns (as hereinafter defined) required to
be filed with taxing authorities prior to the date hereof or has duly obtained extensions of time for the filing thereof, and all
such returns are true, complete and accurate. Each of the Company and its Subsidiaries has paid all taxes (as hereinafter defined)
shown as due on such returns that were filed and has paid all taxes imposed on or assessed against the Company or any of its Subsidiaries.
The provisions for taxes payable, if any, shown on the financial statements filed with or in the Public Filings are sufficient
for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated
financial statements. The Company and each of its Subsidiaries (i) have made available to Buyer true, correct and complete copies
of all agreements or documents relating to tax holidays or tax incentives, as in effect as of the date hereof, and (ii) are in
compliance with all requirements for any applicable tax holidays or tax incentives. Except as disclosed in writing to the Buyer,
(i) no issues have been raised by any taxing authority and there is not currently pending any audit, examination, investigation
or other proceeding in connection with any taxes of the Company or its Subsidiaries, (ii) neither the Company nor any of its Subsidiaries
has received written notice in a jurisdiction where it does not file returns that it is or may be subject to taxation by that jurisdiction,
(iii) no waivers of statutes of limitations with respect to any returns or collection of taxes and no extensions of time with respect
to any tax assessments or deficiencies have been given by or requested from the Company or its Subsidiaries, (iv) there are no
liens for taxes upon the assets of the Company or any of its Subsidiaries (other than liens for taxes not yet due and payable or
for taxes that are being contested in good faith and for which adequate reserves have been established), (v) neither the Company
nor any of its Subsidiaries is a party to any tax allocation, sharing or indemnity agreement (other than any tax indemnification
provisions in commercial agreements or agreements that are not primarily related to taxes and any agreements between or among any
of the Company and its Subsidiaries) and (vi) the Company and each of its Subsidiaries are in compliance with all applicable laws
relating to transfer pricing, including the execution and maintenance of contemporaneous documentation substantiating the transfer
pricing practices and methodology of the Company and its Subsidiaries. The term “taxes” means all federal, state, local,
foreign, and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease,
service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits,
customs, duties or other taxes, fees, assessments, or charges of any kind, whether computed on a separate, consolidated, unitary,
combined or any other basis, and any interest, penalties, fines, or additional amounts attributable to, imposed upon or with respect
to any of the foregoing. The term “returns” means all returns (including information returns), declarations, reports,
statements, and other documents required to be filed in respect to taxes, including any amendments thereof or attachments or supplements
thereto.

 

(p)              
Absence of Certain Changes, Events and Conditions. Since the date of the financial statements filed in the Company’s
annual report filed on Form 20-F with the SEC on September 28, 2017, and other than in the ordinary course of business consistent
with past practice, there has not been, with respect to the Company, any:

 

(i)                
event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect (as defined in Section 3(i));

 

    	 	9	 

     

    

 

(ii)             
amendment of the articles or memorandum of association of the Company;

 

(iii)           
split, combination or reclassification of any shares of its capital stock;

 

(iv)            
issuance, sale or other disposition of any of its capital stock, or grant of any options, warrants or other rights to purchase
or obtain (including upon conversion, exchange or exercise) any of its capital stock other than as disclosed to the Buyer;

 

(v)              
declaration or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase
or acquisition of its capital stock;

 

(vi)            
material change in any method of accounting or accounting practice of the Company, except as required by U.S. GAAP or as
disclosed in the notes to the Financial Statements;

 

(vii)         
incurrence, assumption or guarantee of any indebtedness for borrowed money except unsecured current obligations and liabilities
incurred in the ordinary course of business consistent with past practice;

 

(viii)       
capital investment in, or any loan to, any other person;

 

(ix)            
imposition of any encumbrance upon any of the Company properties, capital stock or assets, tangible or intangible;

 

(x)              
loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders or current or
former directors, officers and employees;

 

(xi)            
entry into an IP Contract; or

 

(xii)         
contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

(q)              
Material Contracts. The Company’s Public Filings fully disclose the Company’s entry into or termination
of any material definitive agreements to which the Company is a party (each, a “Material Contract”). The term
“Material Contract” shall mean an agreement that provides for obligations that are material to and enforceable
against the Company, or rights that are material to the Company and enforceable by the Company against one or more other parties
to the agreement, in each case whether or not subject to conditions. Each Material Contract is valid and binding on the Company
and the counterparties to such Material Contract, in each case in accordance with its terms, and is in full force and effect. None
of the Company or, to the Company’s knowledge, any other party thereto is in breach of or default under (or is alleged to
be in breach of or default under) in any material respect, or has provided or received any notice of any intention to terminate,
any Material Contract. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event
of default under any Material Contract or result in a termination thereof or would cause or permit the acceleration or other changes
of any right or obligation or the loss of any benefit thereunder.

 

    	 	10	 

     

    

 

(r)               
Property. The Company and each Subsidiary owns or leases all such properties as are necessary to the conduct of its
business as presently operated and as proposed to be operated. The Company and the Subsidiaries have good and marketable title
to all real property and good and marketable title to all personal property owned by them, in each case free and clear of all liens,
claims and encumbrances, except such as disclosed in the Company’s Public Filings or such as do not (individually or in the
aggregate) materially affect the value of such property and do not interfere with the use made or proposed to be made of such property
by the Company or any of the Subsidiaries. Any real property and buildings held under lease or sublease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material to, and do
not interfere with, the use made and proposed to be made of such property and buildings by the Company and the Subsidiaries. Neither
the Company nor any Subsidiary has received any written notice of any claim adverse to its ownership of any real or personal property
or of any claim against the continued possession of any real property, whether owned or held under lease or sublease by the Company
or any Subsidiary.

 

(s)               
Intellectual Property.

 

(i)                
The Company and each of its Subsidiaries own or have the valid right to use, free and clear of all encumbrances, all of
the following to the extent owned, used, held for use in, or necessary for the conduct of the business of the Company and its Subsidiaries
as currently conducted and as contemplated to be conducted: (1) inventions, whether or not patentable, reduced to practice or made
the subject of one or more pending patent applications, (2) national and multinational statutory invention registrations, patents
and patent applications (including all reissues, divisions, continuations, continuations-in-part, extensions and reexaminations
thereof) registered or applied for in China, the United States of America and all other nations throughout the world, including
all improvements to the inventions disclosed in each such registration, patent or patent application ((1) and (2) together, “Patents”),
(3) trademarks, service marks, trade dress, logos, domain names, trade names and corporate names and other similar designations
of source or origin, (whether or not registered) in China, the United States and all other nations throughout the world, including
all variations, derivations, combinations, registrations and applications for registration of the foregoing and all goodwill associated
therewith, (4) copyrights (whether or not registered) and registrations and applications for registration thereof in China, the
United States and all other nations throughout the world, including all derivative works, moral rights, renewals, extensions, reversions
or restorations associated with such copyrights, now or hereafter provided by law, regardless of the medium of fixation or means
of expression, (5) computer software (including source code, object code, firmware, operating systems and specifications), (6)
trade secrets and, whether or not confidential, business information (including pricing and cost information, business and marketing
plans and customer and supplier lists) and know-how (including manufacturing and production processes and techniques and research
and development information), (7) industrial designs (whether or not registered), (8) databases and data collections, (9) copies
and tangible embodiments of any of the foregoing, in whatever form or medium, (10) all rights to obtain and rights to apply for
patents, and to register trademarks and copyrights, (11) all rights in all of the foregoing provided by treaties, conventions and
common law and (12) all rights to sue or recover and retain damages and costs and attorneys’ fees for past, present and future
infringement or misappropriation of any of the foregoing (collectively, “Intellectual Property”). Either the
Company or one of its Subsidiaries is the sole and exclusive beneficial and, with respect to applications and registrations, record
owner of any Intellectual Property purported to be owned by the Company or one of its Subsidiaries and material to the conduct
of the business of the Company and its Subsidiaries, all such Intellectual Property is subsisting, valid, and enforceable, and
all such Intellectual Property is sufficient for the conduct of the business as currently conducted and as contemplated to be conducted.

 

    	 	11	 

     

    

 

(ii)             
Other than as disclosed in the Company’s Public Filings, neither the Company nor any of its Subsidiaries is party
to any contract pursuant to which the Company or any of its Subsidiaries (1) is granted or obtains or agrees to obtain any right
to use any Intellectual Property that is material to the business of the Company and its Subsidiaries (other than standard form
contracts granting rights to use readily available shrink wrap or click wrap software, (2) is restricted in its right to use or
register any Intellectual Property that is material to the business of the Company and its Subsidiaries, or (3) permits or agree
to permit any other person to use, enforce, or register any Intellectual Property that is material to the business of the Company
and its Subsidiaries including any license agreements, coexistence agreements, and covenants not to sue (each of the foregoing,
an “IP Contract”). There are no orders, writs, injunctions, or decrees to which the Company or any of its Subsidiaries
is subject with respect to any Intellectual Property that is material to the business of the Company and its Subsidiaries.

 

(iii)           
Other than as disclosed in the Company’s Public Filings, to the knowledge of the Company the conduct of the business
of the Company and its Subsidiaries (including the products and services of the Company and its Subsidiaries) as currently conducted,
and the conduct of such business as conducted in the past three (3) years (or longer time period to the extent there is any current
liability therefore), does not infringe, misappropriate, or otherwise violate, and has not infringed, misappropriated, or otherwise
violated, any person’s Intellectual Property rights. There has been no such claim asserted or threatened (including in the
form of demands or offers or invitations to obtain a license) in the past three (3) years (or longer time period to the extent
there is any current liability therefore) against the Company or any of its Subsidiaries, or, to the knowledge of the Company,
any other person. To the knowledge of the Company, there are no facts, circumstances, or conditions that could reasonably be expected
to form the basis for a claim of infringement, misappropriation, or other violation of Intellectual Property rights against the
Company or any of its Subsidiaries.

 

    	 	12	 

     

    

 

(iv)            
Other than as disclosed in the Company’s Public Filings and to the knowledge of the Company, no person is materially
infringing, misappropriating, or otherwise violating any Intellectual Property owned, used, or held for use by the Company or any
of its Subsidiaries in the conduct of the business of the Company and its Subsidiaries, and no such claims have been asserted or
threatened against any person by the Company.

 

(v)              
Other than as disclosed in the Company’s Public Filings, there has been no claim asserted or threatened challenging
the scope, validity, or enforceability of any applications or registrations for material Patents owned by the Company or any of
its Subsidiaries, and, to the knowledge of the Company, there are no facts, circumstances, or conditions that could reasonably
be expected to form the basis for such a claim. The Company has not granted any person any right to control the prosecution or
registration of any Intellectual Property owned by the Company or any of its Subsidiaries or to commence, defend, or otherwise
control any claim with respect to such Intellectual Property.

 

(vi)            
The Company takes reasonable measures to protect the confidentiality of material trade secrets, including requiring all
persons having access thereto to execute written non-disclosure agreements. To the knowledge of the Company, there has not been
any disclosure of any material trade secret of the Company (including any such information of any other person disclosed in confidence
to the Company) to any person in a manner that has resulted or is likely to result in the loss of trade secret or other rights
in and to such information. Each current and former employee and officer of the Company and its Subsidiaries has executed a proprietary
information and inventions agreement, and no current or former employee or officer of the Company or its Subsidiaries has excluded
works or inventions from his or her assignment of inventions pursuant to such employee’s or officer’s proprietary information
and inventions agreement.

 

(vii)         
To the knowledge of the Company as of the date hereof, the Company is in compliance with applicable law, as well as its
own policies, relating to privacy, data protection, and the collection and use of personal information collected, used, or held
for use by the Company, and as of the date hereof no claims are pending or threatened in writing against the Company alleging a
violation of any person’s privacy or personal information.

 

(t)                
Legal Proceedings; Governmental Orders. There are no actions pending or, to the Company’s knowledge, threatened
(a) against or by the Company or any of its Subsidiaries affecting any of their respective properties or assets; or (b) against
or by the Company or any of its Subsidiaries that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated
by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such action.
There are no outstanding governmental orders and no unsatisfied judgments, penalties or awards against or affecting the Company
or any of its properties or assets.

 

    	 	13	 

     

    

 

(u)              
Compliance With Laws; Permits. The Company and each of its Subsidiaries has complied, and is now complying, with
all laws applicable to it or its business, properties or assets. All permits required for the Company or its Subsidiaries to conduct
their businesses have been obtained by it and are valid and in full force and effect. All fees and charges with respect to such
permits as of the date hereof have been paid in full. No event has occurred that, with or without notice or lapse of time or both,
would reasonably be expected to result in the revocation, suspension, lapse or limitation of any permit described herein.

 

(v)              
Labor; Employee Benefit Matters. The Company has disclosed in its Public Filings all pension, benefit, retirement,
compensation, employment, consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity,
stock or stock-based, change in control, retention, severance, vacation, paid time off, welfare, fringe-benefit and other similar
agreement, plan, policy, program or arrangement (and any amendments thereto), in each case whether or not reduced to writing and
whether funded or unfunded, which is or has been maintained, sponsored, contributed to, or required to be contributed to by the
Company for the benefit of any current or former employee, officer, director, retiree, independent contractor or consultant of
the Company or any spouse or dependent of such individual, or under which the Company has or may have any liability, contingent
or otherwise (each, a “Benefit Plan”). None of the Company or any of its Subsidiaries is a party to any collective
bargaining, trade union or works council agreement or other labor union contract applicable to persons employed by them, and there
are no organizational campaigns, petitions or other unionization activities seeking recognition of a collective bargaining unit
relating to any employee. None of the Company or any of its Subsidiaries is in material violation of any law pertaining to employment
and employment practices, including all laws respecting terms and conditions of employment, wages, hours, overtime payment, employment
discrimination, worker classification (including the proper classification of workers as independent contractors, consultants,
dispatch labor, outsourced workers, and classification under alternative working hours systems), immigration, work authorization,
occupational health and safety, workers’ compensation, the payment of social security and other employment taxes, disability
rights or benefits, plant closures and layoffs, labor relations, employee leave issues and unemployment insurance. Each of the
Company and its Subsidiaries has, in a timely manner, (i) withheld and paid to the appropriate governmental authority all amounts
required by applicable laws to be withheld from any employee, including the withholding and payment of all individual income taxes
and contributions to social security and housing fund accounts payable by such employee (if any); (ii) paid in full to the appropriate
governmental authority all amounts required by applicable laws to be paid, including the payment of all contributions to social
security and housing fund accounts payable by any of the Company or its Subsidiaries; and (iii) paid in full to each employee all
amounts payable by virtue of applicable employment laws and terms of employment applicable to such employee, including all wages,
overtime payments, bonuses, benefits, severance payments and all compensation due to such employee. To the Company’s knowledge,
no employee or contractor of any of the Company or its Subsidiaries is in any material respect in violation of any term of any
employment agreement, consulting agreement, restrictive covenant, common law nondisclosure obligation, fiduciary duty, or other
obligation to any such entity. No current employee or contractor of any of the Company or its Subsidiaries is entitled to any payment
(including without limitation any severance payment, change of control payment or other bonus payment) tied to the announcement
or consummation of the transactions contemplated by this Agreement.

 

    	 	14	 

     

    

 

(w)            
Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.

 

(x)              
Related Party Transactions. Except as disclosed in the Company’s Public Filings, there are no business relationships
or related party transactions involving the Company or any other person required to be described in the Public Filings that have
not been described as required.

 

(y)              
Securities Sold Pursuant to this Agreement. The Shares have been duly authorized for issuance and sale and, when
issued and paid for, will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject
to personal liability by reason of being such holders; the Shares are not and will not be subject to the preemptive rights of any
holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required
to be taken for the authorization, issuance and sale of the Securities has been duly and validly taken.

 

(z)              
Internal Controls. Except as described in Public Filings, the Company has at all times maintained and agrees to maintain
books and records that accurately reflect its assets and transactions in reasonable detail, and a system of internal accounting
controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements
in accordance with U.S. GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing
assets at reasonable intervals and appropriate action is taken with respect to any differences. Neither the Board of Directors
nor the audit committee has been informed, nor is any director of the Company aware, of: (i) any significant deficiencies and material
weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect
the Company’s ability to record, process, summarize and report financial information; or (ii) any fraud, whether or not material,
that involves management or other employees who have a significant role in the Company’s internal control over financial
reporting.

 

(aa)           
Conduct of Business. Except as described in Public Filings, the Company has all requisite corporate power and authority,
and has all necessary authorizations, approvals, orders, licenses, certificates and permits of and from all governmental regulatory
officials and bodies that it needs as of the date hereof to conduct its business purpose as described in Public Filings, except
where any failures to possess the same, singularly or in the aggregate, would have a Material Adverse Effect. The disclosures in
Public Filings concerning the effects of federal, state, local and foreign regulation on the Company’s business purpose as
currently contemplated are correct in all material respects.

 

    	 	15	 

     

    

 

4.                 
COVENANTS.

 

(a)              
Best Efforts. Each party shall use its best efforts to timely satisfy each of the conditions to be satisfied by it
as provided in Sections 5 and 6 of this Agreement.

 

(b)              
Form D. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D. The
Company shall also take such action as the Company and the Buyer shall reasonably determine is necessary in order to obtain an
exemption for or to qualify the Shares for sale to the Buyer at the Closing pursuant to this Agreement under applicable securities
laws of the United States (or to obtain an exemption from such qualification). The Company shall make all filings and reports relating
to the offer and sale of the Shares required under applicable securities laws of the United States following the Closing Date.

 

(c)              
Conduct of Business Prior to the Closing. From the date hereof until the Closing, except as otherwise provided in
this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed), Company shall
(x) conduct its business in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts
to maintain and preserve intact its current organization, business and franchise and to preserve the rights, franchises, goodwill
and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the
Company and shall not, in addition to any other action that does not fall within the Company’s ordinary course of business
consistent with past practice, undertake any of the actions enumerated under Section 3(p). Without limiting the foregoing, the
Company shall not (i) except as necessary within the Company’s ordinary course of business consistent with past practice,
grant or acquire, agree to grant to or acquire from any person, or dispose of or permit to lapse any rights to any material Intellectual
Property, or disclose or agree to disclose to any person, any material trade secret, (ii) compromise, settle or agree to settle,
or consent to judgment in, any one or more actions or institute any action concerning any material Intellectual Property, or (iii)
cause any current employee or contractor of any of the Company or its Subsidiaries to be entitled to any payment (including without
limitation any severance payment, change of control payment or other bonus payment) tied to the announcement or consummation of
the transactions contemplated by this Agreement.

 

(d)              
Access to Information. From the date hereof until the Closing, the Company shall (a) afford Buyer and its representatives
full and free access to and the right to inspect all of the corporate books and records and other documents and data related to
the Company; (b) furnish Buyer and its representatives with such financial, operating and other data and information related to
the Company as Buyer or any of its representatives may reasonably request; and (c) cooperate with Buyer and its representatives
in their investigation of the Company. Any investigation pursuant to this Section 4(d) shall be conducted in such manner as not
to interfere unreasonably with the conduct of the business of the Company.

 

(e)              
Notice of Certain Events. From the date hereof until the Closing, each party shall promptly notify the other party
in writing of:

 

    	 	16	 

     

    

 

(i)                
any fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect or materially delay the consummation of the transactions
contemplated by this Agreement, or (B) has resulted in, or could reasonably be expected to result in, any representation or warranty
made by such party hereunder not being true and correct;

 

(ii)             
any notice or other communication from any governmental authority in connection with the transactions contemplated by this
Agreement; and

 

(iii)           
any actions commenced or, to such party’s knowledge, threatened against, relating to or involving or otherwise affecting
the Company or Buyer that, if pending, would have been required to have been disclosed under applicable laws or that relates to
the consummation of the transactions contemplated by this Agreement.

 

(f)               
Public Announcements. Unless otherwise required by applicable law or NASDAQ stock exchange requirements (based upon
the reasonable advice of counsel), no party to this Agreement shall make any public announcements in respect of this Agreement
or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other
party (which consent shall not be unreasonably withheld or delayed), and the parties shall use commercially reasonable efforts
to cooperate as to the timing and contents of any such announcement.

 

(g)              
Continuity of Company’s Business and Management. The parties intend that, following completion of the sale
of Shares to the Buyer, the Company will continue to operate as currently operated. The parties further agree that the primary
business of the Company will continue for a period of at least five (5) years following Closing unless the conduct of such business
shall become illegal or shall be determined by the Board of Directors to be not in the best interest of the shareholders.

 

(h)              
Dilutive Issuances. From the date of the Agreement through the Closing Date, the Company shall not, and shall cause
its Subsidiaries not to, directly or indirectly, issue, offer, sell, grant any option or right to purchase, or otherwise dispose
of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security
or any equity-linked or related security (including, without limitation, any “equity security” (as that term is defined
under Rule 405 promulgated under the 1933 Act), any convertible securities, any debt, preferred shares or any purchase rights),
or accelerate the vesting thereof (except to the extent required under the terms of the award agreement applicable thereto). If
the Company or any of its Subsidiaries shall have issued, offered, sold, or granted any of the foregoing, the number of Shares
to be received by the Buyer at the Closing shall be equitably adjusted such that as of the Closing the Buyer shall own the same
percentage of all outstanding equity interests in the Company and its Subsidiaries as if such dilutive issuance has never occurred.
Notwithstanding the foregoing, this Section 4(i) shall not prohibit the issuance of shares upon exercise of outstanding options
under such plans in the ordinary course of business consistent with past practice; provided, however, that the Company shall not
accelerate the vesting of any Company stock option or Company restricted stock except to the extent required under the terms of
the award agreement applicable thereto.

 

    	 	17	 

     

    

 

5.                 
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL. The obligation of the Company hereunder to issue and allot
the Shares to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time
in its sole discretion by providing the Buyer with prior written notice thereof:

 

(i)                
Such Buyer shall have delivered to the Company (a) the Agreement, executed by such individuals as are authorized to act
on behalf of the Buyer; and (b) such closing certificates as may be reasonably required by the Company in connection with the Closing.

 

(ii)             
Such Buyer shall have delivered to the Company the Purchase Price for the Shares being purchased by such Buyer at the Closing
by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii)           
The representations and warranties of such Buyer shall be true and correct in all material respects (except for those representations
and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct as of such specified date), and such Buyer shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by such Buyer at or prior to the Closing Date.

 

6.                 
CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE. The obligation of the Buyer hereunder to purchase the Shares
at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that
these conditions are for the Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing
the Company with prior written notice thereof:

 

(i)                
The representations and warranties of the Company shall be true and correct in all material respects (except for those representations
and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct as of such specified date) and the Company shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Company at or prior to the Closing Date.

 

    	 	18	 

     

    

 

(ii)             
The Shares (i) shall be designated for quotation or listed on the Principal Market and (ii) shall not have been suspended,
as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market.

 

(iii)           
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for
the sale of the Shares.

 

(iv)            
The Company shall have delivered the following to the Buyer: (a) closing deliverables set forth in Section 1(e); (b) the
Agreement, executed by such individuals as are authorized to act on behalf of the Company; and (c) such certificates and other
instruments as may be reasonably required by the Buyer in connection with the Closing.

 

(v)              
No event has occurred with regard to the Company or its Subsidiaries that would have or be reasonably expected to have a
Material Adverse Effect on the business of the Company or such Subsidiaries.

 

7.                 
MISCELLANEOUS.

 

(a)              
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the laws of the Cayman Islands, without giving effect to any choice of law or conflict of
law provision or rule (whether of Cayman Islands or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the Cayman Islands. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of Richmond, Virginia 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.

 

(b)              
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; 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.

 

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

 

(d)              
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

    	 	19	 

     

    

 

(e)              
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
contain the entire understanding of the parties with respect to the matters covered herein and, except as specifically set forth
herein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
No provision of this Agreement may be amended other than by an instrument in writing signed by the parties hereto. No provision
hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought.

 

(f)               
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept
on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Recon Technology, Ltd

Room 1902, Building C, King Long International Mansion

No. 9 Fulin Road

Beijing, 100107

People’s Republic of China

Attention:     Shenping Yin, Chief Executive Officer

 

Copy (for informational purposes only) to:

 

Kaufman & Canoles, P.C.

Two James Center, 14th Floor

1021 East Cary Street

Richmond, Virginia 23219

Telephone:(804) 771-5700

Facsimile:(804) 771-5777

Attention:     Anthony W. Basch, Esq.

 

If to the Buyer, to such address and/or
facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to the
Company five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of
such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided
by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

Any document shall be
deemed to have been duly served if marked for the attention of the agent for service of process at its address (as set forth in
this Section 7(f)) or such other address in the United States as may be notified to the party wishing to serve the document and
delivered in accordance with the notice provisions set forth in this Section 7(f).

 

    	 	20	 

     

    

 

(g)              
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns.

 

(h)              
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

(i)                
Survival. The representations and warranties of the Buyer and the Company contained in Sections 2 and 3 shall survive
for two (2) years following the Closing and the agreements and covenants set forth in Sections 4 shall survive until the Closing
(unless the provision specifically contemplates performance subsequent to the Closing). Notwithstanding anything in this Agreement
to the contrary, for the sole purpose of determining the amount of any liability hereunder, the representations and warranties
contained in Article 3 shall be deemed to have been made without being qualified by “materiality” or “Material
Adverse Effect” or similar qualifications, and for the sole purpose of determining whether any misrepresentation or breach
of representations or warranties have occurred, any qualification contained in such representation or warranty relating to “materiality”
or “Material Adverse Effect” shall be construed to mean an amount in excess of US$50,000. Without limiting the foregoing,
if the Company’s actions or the actions of anyone acting on the Company’s behalf prior to Closing result in the assessment
of fines, penalties, or disgorgement of profits against the Buyer or its Affiliates or representatives for violation of applicable
laws, the Company hereby agrees to indemnify the Buyer and its Affiliates and representatives for same, as well as any costs or
fees incurred in investigating, remediating, responding to government inquiries or investigations, or defending against legal claims
relating to such actions.

 

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

 

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

 

[Share Purchase Agreement Signature Pages
Follow]

 

 

    	 	21	 

     

    

 

[Share Purchase Agreement
Signature Page - Company]

 

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

 

	 	COMPANY:
	 	 
	 	Recon Technology, Ltd
	 	 	 
	 	 	 
	 	By:	
        /s/ Shenping Yin

	 	Name:	Shenping Yin
	 	Its:	Chief Executive Officer

 

 

    	 	22	 

     

    

 

[Share Purchase Agreement
Signature Page – Buyer]

 

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

 

	 	BUYER:
	 	 
	 	Yongquan Bi
	 	 	 
	 	By:	
        /s/ Yongquan Bi

 

    	 	23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}]]