Document:

vkin_ex104.htm

EXHIBIT 10.4
  
 GUARANTY
  
 1. Guaranty. For value received, and as an inducement to the extension of credit to CAMBER ENERGY, INC., a Nevada corporation (the “Borrower”), located at 1415 Louisiana Street, Suite 3500, Houston, Texas, 77002, VIKING ENERGY GROUP, INC., a Nevada corporation (“Guarantor”) located at 15915 Katy Freeway, Ste. 450, Houston, Texas 77094, hereby absolutely, irrevocably and unconditionally guarantees to _________________________, __________________________ (“Lender”), the full and punctual payment when due (whether by acceleration or otherwise), of the indebtedness of Borrower to Lender evidenced by: (1) that certain Promissory Note dated December 11, 2020, and payable to Lender in the original principal amount of SIX MILLION AND NO/100 DOLLARS ($6,000,000.00)(the “First Note”); and (2) that certain Promissory Note dated December 22, 2020, and payable to Lender in the original principal amount of TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00) (the “Second Note”, collectively with the First Note, the “Notes”). This Guaranty shall not fail or be ineffective or invalid or be considered too indefinite or contingent because the amount of the Guaranteed Debt may fluctuate from time to time or for any other reason. 
  
 2. Definitions. As used herein, the following terms shall have the meanings set forth below: 
  
 (a) The term “Guaranteed Debt” shall mean the debt evidenced by the Notes. 
  
 (d) The term “Obligations” shall mean all obligations and indebtedness of Borrower above guaranteed by Guarantor, and shall include (i) interest and other obligations accruing or arising after (a) commencement of any case under any bankruptcy or similar laws by or against Borrower or (b) the obligations and indebtedness of Borrower above guaranteed shall cease to exist by operation of law or for any other reason, and (ii) reasonable attorneys’ fees and expenses and other reasonable fees and expenses incurred by Lender in enforcing the terms of the Notes or any documents, instruments or agreements securing payment thereof, or collecting any of the Obligations.
  
 3. Term. The obligations of Guarantor as to the Obligations shall continue in full force and effect against Guarantor for the unpaid balance guaranteed hereby until same is fully and finally paid; whereupon, subject to the provisions of Section 11 hereof which shall expressly survive termination of this Guaranty, this Guaranty shall terminate automatically without further action.  
  
 4. Primary Liability of Guarantor. This is a guaranty of payment, not of collection, and Guarantor acknowledges that Lender is not required, as a condition to establishing Guarantor's liability hereunder, to proceed against any person or entity (including Borrower) or against any security or collateral to which Lender is entitled to look for payment or performance of the Obligations. Guarantor agrees that neither bankruptcy, insolvency, insanity, death, minority, other disability, cessation of existence or dissolution of Borrower, any party acting for or on behalf of Borrower in connection with the Obligations or any other guarantor now or hereafter existing or occurring; nor any allegation of usury, failure of consideration, or forgery, whether or not known to Lender (even though rendering all or any part of the Obligations void or unenforceable or uncollectible as against Borrower or any other guarantor) shall in any manner impair, affect, or release the liability of Guarantor hereunder, and Guarantor shall be and remain fully liable hereunder. 
   
 	 
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 5. Waiver of Subrogation. Until such time as the Obligations are paid in full, Guarantor hereby irrevocably waives any claim or other rights which it may acquire against Borrower that arise from Guarantor’s obligations under this Guaranty or any other document, instrument or agreement executed in connection herewith.  
  
 6. Waiver of Suretyship Rights. By signing this Guaranty, Guarantor WAIVES each and every right to which it may be entitled by virtue of any suretyship law, including any rights it may have pursuant to Rule 31 of the Texas Rules of Civil Procedure, §17.001 of the Texas Civil Practice and Remedies Code, as same may be amended from time to time.  
  
 7. Additional Waivers. Guarantor hereby waives (a) notice of acceptance hereof; (b) grace, demand, presentment, and protest with respect to the Obligations or to any instrument, agreement or document evidencing or creating same; (c) notice of or as to grace, demand, presentment and protest; (d) notice of and/or any right to consent or object to the assignment of any interest in the Obligations, the creation, advancement, accrual, renewal, increase, extension or rearrangement of the Obligations and the amendment and/or modification of any of the instruments, agreements and documents executed in connection with the Obligations; (e) notice of intent to accelerate, and/or notice of acceleration of, the Obligations; (f) filing of suit and diligence in collection or enforcement of the Obligations; and (g) any other notice regarding the Obligations.
   
 8. Release of Collateral, Parties Liable, etc. Guarantor agrees that Lender may at any time, and from time to time, at Lender's discretion and with or without notice or consideration to or consent from any party: (a) allow substitution or withdrawal of any collateral or other security for the Obligations; (b) sell, exchange, release, subordinate its lien on, surrender, realize upon or otherwise deal with in any manner and in any order any property at any time pledged or mortgaged to secure or securing the Obligations or any liabilities incurred directly or indirectly hereunder or any offset against any of said liabilities; (c) release any party liable on the Obligations including Borrower or any guarantor; (d) extend, renew or rearrange all or any part of the Obligations at any time and from time to time, whether or not for a term or terms in excess of the original term thereof; (e) modify or amend any of the instruments, agreements, or documents executed in connection with the Obligations; or (f) exercise or refrain from exercising any rights against Borrower or others, or otherwise act or refrain from acting. Any of such actions may be taken without impairing or diminishing the obligations of Guarantor hereunder. The liability of Guarantor shall not be impaired or reduced by any failure, refusal, or neglect to collect the Obligations, or by loss or subordination of any other collateral or guaranty, or by the existence of any indebtedness of Borrower to Lender other than the Obligations. In addition, the liability of Guarantor shall not be impaired or reduced by the taking of any other security or guaranty for the Obligations in addition to the security or guaranties presently existing. 
  
 9. Limit of Liability. Notwithstanding any provision hereof to the contrary, Guarantor shall be liable under the Guaranty only for amounts aggregating up to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of any state law. 
  
 10. Solvency; No Fraudulent Transfer; Availability of Information to Guarantor. As of the date of this Guaranty, Guarantor (i) is solvent with assets of a value that exceeds the amounts of his or its liabilities, (ii) is able to meet his or its debts as they mature, and (iii) in his or its reasonable opinion, has adequate capital to conduct the businesses in which he or it is engaged. The value of the consideration received and to be received by Guarantor in connection with the Obligations is reasonably worth at least as much as the liabilities and obligations of Guarantor incurred or arising under this Guaranty and all related papers and arrangements. Guarantor (a) has had full and complete access to the underlying documents and instruments relating to the Obligations and all other documents and instruments executed by Borrower or any other person in connection therewith, (b) has reviewed them and is fully aware of the meaning and effect of their contents, (c) is fully informed of all circumstances which bear upon the risks of executing this Guaranty and which a diligent inquiry would reveal, and (d) has determined that his or its liabilities and obligations hereunder may reasonably be expected to substantially benefit Guarantor directly or indirectly. Guarantor has adequate means to obtain from Borrower on a continuing basis information concerning Borrower's financial condition, and is not depending on Lender to provide such information, now or in the future. Guarantor agrees that Lender shall not have any obligation to advise or notify Guarantor or to provide Guarantor with any data or information. 
  
 	 
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 11. Application of Payments; Reinstatement of Guaranty. Lender may apply any payments received from any source against that portion of the Obligations (principal, interest, court costs, attorneys’ fees or other) in such priority and fashion as Lender may deem appropriate. Guarantor agrees that, if at any time all or any part of any payment previously applied by a Lender to the Obligations is or must be returned by any Lender or is recovered from any Lender for any reason (including the order of any bankruptcy court), this Guaranty shall automatically be reinstated to the same effect as if the prior application had not been made. Guarantor hereby agrees to indemnify Lender and its respective agents against, and to save and hold them harmless from, any required return by any of them, or recovery from any of them, of any such payment because of its being deemed preferential under applicable bankruptcy, receivership or insolvency laws, or for any other reason. The provisions of this Section 11 shall survive any termination or release of this Guaranty.
   
 12. Venue; Attorneys’ Fees. If it becomes necessary to enforce this Guaranty by legal action, Guarantor hereby WAIVES the right to be sued in the county or state of Guarantor’s principal place of business or chief executive office or in the state of its domicile, and agrees to submit to the jurisdiction and venue of the appropriate federal, state or other governmental court in Houston, Harris County, Texas. Guarantor unconditionally agrees to pay all reasonable collection expenses including court costs and reasonable attorneys' fees if enforcement hereof is placed in the hands of an attorney, including, but expressly not limited to, enforcement by suit or through bankruptcy or any judicial proceedings.  
  
 13. Cumulative Rights. All rights of Lender hereunder or otherwise arising under any documents executed in connection with or as security for the Obligations are separate and cumulative and may be pursued separately, successively or concurrently, or not pursued, without affecting or limiting any other right of Lender and without affecting or impairing the liability of Guarantor. 
  
 14. Applicable Law. This Guaranty shall be governed by and construed in accordance with the laws of the United States of America and the State of Texas, and is intended to be performed in accordance with and as permitted by such laws. Wherever possible each provision of this Guaranty shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Guaranty or application thereof shall be prohibited by or be invalid under such law, such provision or application as the case may be shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or other applications or the remaining provisions of this Guaranty. 
  
 	 
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 15. Assigns. This Guaranty is intended for and shall inure to the benefit of Lender and its respective successors and assigns. 
   
 16. Notices. Any notice or demand to Guarantor in connection herewith may be given and shall conclusively be deemed to have been given and received three (3) days after deposit thereof in writing, in the U.S. mail, postage prepaid, certified mail, return receipt requested, and addressed to Guarantor at the address of Guarantor then appearing on the records of Agent; but actual notice or demand, however given or received, shall always be effective. 
   
 17. No Waiver of Right of Remedies. No failure or delay by Lender in exercising any right, power, or privilege given by any provision of this Agreement shall operate as a waiver of the provision. Additionally, no single or partial exercise of any right, power, or privilege shall preclude any other or further exercise of that or any other right, power, or privilege.
  
  
 SIGNATURE PAGE FOLLOWS
  
 	 
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 IN WITNESS WHEREOF, THIS GUARANTY HAS BEEN EXECUTED effective as of December 22, 2020.
  
 	 	GUARANTOR:  
 Viking Energy Group, Inc.
	
	 	 	 	 
		By:		
	  
	  
	James A. Doris, President & CEO	 

   
 	 
	 Page 5 of 5Exhibit 10.1

 

SHARE
EXCHANGE AGREEMENT

 

This
SHARE EXCHANGE AGREEMENT (this “Agreement”), dated as of December 21, 2020, is by and among KBS Fashion Group
Limited, a corporation organized under the laws of the Marshall Islands (the “Parent”), Flower Crown Holding,
a corporation organized under the laws of the Cayman Islands (the “Company”), and the shareholders of the Company
(each a “Shareholder” and collectively the “Shareholders”). Each of the parties to this Agreement
is individually referred to herein as a “Party” and collectively as the “Parties.”

 

BACKGROUND

 

The
Company has 50,000 ordinary shares, US$0.001 par value per share (the “Company Shares”) outstanding, all of
which are held by the Shareholders. The Shareholders have agreed to transfer the Company Shares in exchange for an aggregate of
259,130 newly issued common stock, par value $0.0001 per share, of the Parent (the “Parent Stock”) which are to be
issued on a pro rata basis to the Shareholders.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency is hereby acknowledged, the Parties hereto intending
to be legally bound hereby agree as follows:

 

AGREEMENT

 

ARTICLE
I

 

Exchange of Shares

 

SECTION
1.01.(a) Exchange by the Shareholders. At the Closing (as defined in Section 1.02), the Shareholders shall sell, transfer,
convey, assign and deliver to the Parent all of the issued and outstanding Company Shares free and clear of all Liens in exchange
for an aggregate of shares of Parent Stock (the “Parent Shares”), as set forth on Exhibit A, attached
hereto.

 

SECTION
1.02.Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement (the
“Transactions”) shall take place at such location to be determined by the Company and Parent, commencing upon
the satisfaction or waiver of all conditions and obligations of the Parties to consummate the Transactions contemplated hereby
(other than conditions and obligations with respect to the actions that the respective Parties will take at Closing) or such other
date and time as the Parties may mutually determine (the “Closing Date”).

 

ARTICLE
II

 

Representations and Warranties of the Shareholders

 

Each
Shareholder individually, hereby represents and warrants to the Parent as of the date hereof and the Closing Date, as follows:

 

SECTION
2.01.Good Title. The Shareholder is the record and beneficial owner, and has good and marketable title to, its Company
Shares, with the right and authority to sell and deliver such Company Shares to Parent as provided herein. There are no proxies,
voting rights, shareholders’ agreements or other agreements or understandings, to which such Shareholder is a party or by
which such Shareholder is bound, with respect to the voting or transfer of any of such Shareholder’s Company Shares other
than this Agreement. Upon registering of the Parent as the new owner of such Company Shares in the register of members of the
Company, the Parent will receive good title to such Company Shares, free and clear of all liens, security interests, pledges,
equities and claims of any kind, voting trusts, shareholder agreements and other encumbrances (collectively, “Liens”).

 

     

     

    

 

SECTION
2.02.Power and Authority. The Shareholder has all requisite power, authority and legal right and capacity to execute
and deliver this Agreement and each agreement, certificate, and instrument in connection with or pursuant to this Agreement (collectively,
the “Ancillary Documents”) to which it is party, to perform such Shareholder’s obligations hereunder
and thereunder and to consummate the Transactions contemplated hereby and thereby. All acts required to be taken by the Shareholder
to enter into this Agreement and each Ancillary Document and to carry out the Transactions have been properly taken. Each of this
Agreement and Ancillary Documents constitutes a legal, valid and binding obligation of the Shareholder, enforceable against such
Shareholder in accordance with the terms hereof and thereof.

 

SECTION
2.03.No Conflicts. The execution and delivery of this Agreement and each Ancillary Document to which it is party, or
otherwise bound, by the Shareholder and the performance by the Shareholder of its obligations hereunder and thereunder in accordance
with the terms hereof and thereof: (i) will not require the consent of any third party or any federal, state, local or foreign
government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality,
domestic or foreign (“Governmental Entity”) under any statutes, laws, ordinances, rules, regulations, orders,
writs, injunctions, judgments, or decrees (collectively, “Laws”); (ii) will not violate any Laws applicable
to such Shareholder; and (iii) will not violate or breach any contractual obligation to which such Shareholder is a party or the
Shareholder or its properties, or assets are otherwise bound.

 

SECTION
2.04.No Finder’s Fee. The Shareholder has not created any obligation for any finder’s, investment banker’s
or broker’s fee in connection with the Transactions that the Company or the Parent will be responsible for.

 

SECTION
2.05.Purchase Entirely for Own Account. The Parent Shares proposed to be acquired by the Shareholder hereunder will
be acquired for investment for his own account, and not with a view to the resale or distribution of any part thereof, and the
Shareholder has no present intention of selling or otherwise distributing the Parent Shares, except in compliance with applicable
securities laws.

 

SECTION
2.06.Available Information. The Shareholder has such knowledge and experience in financial and business matters that
it is capable of evaluating the merits and risks of an investment in the Parent.

 

SECTION
2.07.Non-Registration. The Shareholder understands that the Parent Shares have not been registered under the Securities
Act of 1933, as amended (the “Securities Act”) and, if issued in accordance with the provisions of this Agreement,
will be issued by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of the Shareholder’s representations as expressed
herein.

 

SECTION
2.08.Restricted Securities. The Shareholder understands that the Parent Shares characterized as “restricted securities”
under the Securities Act inasmuch as this Agreement contemplates that, if acquired by the Shareholder pursuant hereto, the Parent
Shares would be acquired in a transaction not involving a public offering. The Shareholder further acknowledges that if the Parent
Shares are issued to the Shareholder in accordance with the provisions of this Agreement, such Parent Shares may not be resold
without registration under the Securities Act or the existence of an exemption therefrom. The Shareholder represents that it is
familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed
thereby and by the Securities Act.

 

    2

     

    

 

SECTION
2.09.Legends. It is understood that the Parent Shares will bear the following legend or another legend that is similar
to the following:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.

 

and
any legend required by the “blue sky” laws of any state to the extent such laws are applicable to the securities represented
by the certificate so legended.

 

SECTION
2.10.Shareholder Status and General Solicitation. If such Shareholder is a U.S. Person (as such term is defined in
Rule 902(k) of Regulation S), at the time such Shareholder was offered the Parent Shares, it was, and at the date hereof it is,
an “accredited investor” as defined in Rule 501(a) under the Securities Act. If such Shareholder is not a U.S. Person,
such Shareholder (i) acknowledges that the certificate(s) representing or evidencing the Parent Shares contain a customary restrictive
legend restricting the offer, sale or transfer of any Parent Shares except in accordance with the provisions of Regulation S,
pursuant to registration under the Securities Act, or pursuant to an available exemption from registration, (ii) agrees that all
offers and sales by such Shareholder of Parent Shares shall be made pursuant to an effective registration statement under the
Securities Act or pursuant to an exemption from, or a transaction not subject to the registration requirements of, the Securities
Act, (iii) represents that the offer to purchase the Parent Shares was made to such Shareholder outside of the United States,
and such Shareholder was, at the time of the offer and will be, at the time of the sale and is now, outside the United States,
(iv) has not engaged in or directed any unsolicited offers to purchase Parent Shares in the United States, (v) is neither a U.S.
Person nor a Distributor (as such terms are defined in Rule 902(k) and 902(d), respectively, of Regulation S), (vi) has purchased
the Parent Shares for its own account and not for the account or benefit of any U.S. Person, (vii) is the sole beneficial owner
of the Parent Shares specified on signature pages hereto opposite its name and has not pre-arranged any sale with an investor
in the United States, and (ix) is familiar with and understands the terms and conditions and requirements contained in Regulation
S, specifically, without limitation, each Shareholder understands that the statutory basis for the exemption claimed for the sale
of the Parent Shares would not be present if the sale, although in technical compliance with Regulation S, is part of a plan or
scheme to evade the registration provisions of the Securities Act. In addition, the Investor is not purchasing the Parent Shares
as a result of any advertisement, article, notice or other communication regarding the Parent Shares published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation
or general advertisement. Such Shareholder has completed and executed the Regulation S Representation Letter attached as Exhibit
B to this Agreement.

 

SECTION
2.11Shareholder Acknowledgment. Each of the Shareholders acknowledges that he or she has read the representations and
warranties of the Company set forth in Article III herein and such representations and warranties are, to the best of his or her
knowledge, true and correct as of the date hereof.

 

    3

     

    

 

ARTICLE
III

 

Representations and Warranties of the Company

 

The
Company represents and warrants to the Parent, except as set forth in the disclosure schedules provided in connection herewith
(the “Company Disclosure Schedules”) as of the date hereof (only if such applicable entity is then existing)
and the Closing Date, as follows:

 

SECTION
3.01.Organization, Standing and Power, Company VIE. At the Closing, the ownership and control structure of the subsidiaries
of the Company (the “Subsidiaries”) and the consolidated variable interest entity of the Company shall be as
shown on Section 3.01 of the Company Disclosure Schedules. As of the Closing, pursuant to certain contractual agreements
(the “VIE Agreements”), the Company, and/or the Company’s directly or indirectly wholly-owned Subsidiaries,
shall have effective financial control over, and shall be the primary financial beneficiaries of, Jin Xuan Hai Nan Tourism Limited,
a company formed under the laws of China (the “Company VIE”), which in turn wholly owns Flower Crown (Hainan)
Cross-border E-commerce Co., Ltd. and Beijing Heyang International Travel Service Co., Ltd. (collectively, the “VIE Subsidiaries”),
each a company formed under the laws of China. Each VIE Agreement constitutes a valid and legally binding obligation of the parties
thereto, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws of general applicability affecting creditors’ rights or by equitable principles
relating to enforceability. Each VIE Agreement is in full force and effect and none of the parties thereto is in breach or default
in the performance of any of the terms or provisions of such VIE Agreement. None of the parties to any of the VIE Agreements has
sent or received any communication regarding termination of, or intention not to renew, any of the VIE Agreements, and, to the
best knowledge of the Company, no such termination or non-renewal has been threatened by any of the parties thereto. The Company,
each of the Subsidiaries, the Company VIE and each VIE Subsidiary is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has full corporate power
and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it
to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted, other than such
franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate, has not had and
would not reasonably be expected to have a material adverse effect on the Company, a material adverse effect on the ability of
the Company to perform its obligations under this Agreement or on the ability of the Company to consummate the Transactions (a
“Company Material Adverse Effect”). Each of the Company, the Subsidiaries, the Company VIE and the VIE Subsidiaries
is duly qualified to do business in each jurisdiction where the nature of its business or its ownership or leasing of its properties
make such qualification necessary, except where the failure to so qualify would not reasonably be expected to have a Company Material
Adverse Effect. The Company has delivered to the Parent true and complete copies of the Memorandum and Articles of Association
of the Company, each as amended to the date of this Agreement (as so amended, the “Company Charter Documents”).
Apart from the entities listed in Section 3.01 of the Company Disclosure Schedules, at the Closing the Company has no direct
or indirect subsidiaries or any company over which it has direct or indirect effective control. As of the Closing, the Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary, the Company VIE and each VIE Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.
At the Closing, the consolidated financial results of the Company VIE shall be eligible for proper consolidation into the consolidated
financial statements of the Company in accordance with International Financial Reporting Standards (“IFRS”).

 

    4

     

    

 

SECTION
3.02.Capital Structure. The authorized share capital of the Company consists of Fifty Thousand (50,000) Company Shares,
all of which are issued and outstanding and held by the Shareholders. No shares or other voting securities of the Company are
issued, reserved for issuance or outstanding. All outstanding Company Shares are duly authorized, validly issued, fully paid and
non-assessable and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive
right, subscription right or any similar right under any provision of the applicable corporate laws of its state of incorporation,
the Company Charter Documents or any Contract (as defined in Section 3.04) to which the Company is a party or otherwise bound.
There are no bonds, debentures, notes or other indebtedness of the Company having the right to vote (or convertible into, or exchangeable
for, securities having the right to vote) on any matters on which holders of Company Shares may vote (“Voting Company
Debt”). As of the date of this Agreement, there are no options, warrants, rights, convertible or exchangeable securities,
“phantom” stock rights, stock appreciation rights, stock-based performance units, commitments, Contracts, arrangements
or undertakings of any kind to which the Company is a party or by which the Company is bound (i) obligating the Company to issue,
deliver or sell, or cause to be issued, delivered or sold, additional shares or other equity interests in, or any security convertible
or exercisable for or exchangeable into any shares or capital stock or other equity interest in, the Company or any Voting Company
Debt, (ii) obligating the Company to issue, grant, extend or enter into any such option, warrant, call, right, security, commitment,
Contract, arrangement or undertaking or (iii) that give any person the right to receive any economic benefit or right similar
to or derived from the economic benefits and rights occurring to holders of the shares or capital stock of the Company.

 

SECTION
3.03.Authority; Execution and Delivery; Enforceability. The Company has all requisite corporate power and authority
to execute and deliver this Agreement and the Ancillary Documents to which it is party and to consummate the Transactions. The
execution and delivery by the Company of this Agreement and the Ancillary Documents to which it is party and the consummation
by the Company of the Transactions shall, prior to the Closing, have been duly authorized and approved by the Board of Directors
of the Company and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement, the Ancillary
Documents to which it is party and the Transactions. When executed and delivered, this Agreement and the Ancillary Documents to
which it is party will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with their terms, subject to bankruptcy, insolvency and similar laws of general applicability as to which the Company is subject.

 

SECTION
3.04.No Conflicts; Consents.

 

(a) The
execution and delivery by the Company of this Agreement and the Ancillary Documents to which it is party does not, and the consummation
of the Transactions and compliance with the terms hereof and thereof will not, (i) conflict with, or result in any violation of
any provision of the Company Charter Documents or certificate or articles of incorporation, bylaws or other organizational or
charter documents of each of the Subsidiaries, the Company VIE and the VIE Subsidiaries, (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon
any of the properties or assets of the Company or any Subsidiary, the Company VIE or the VIE Subsidiary or give to others any
rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice,
lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding (a “Contract”) to which the Company or any Subsidiary, the Company VIE or
the VIE Subsidiary is a party or by which any property or asset of the Company or any Subsidiary, the Company VIE or the VIE Subsidiary
is bound or affected, or (iii) subject to the filings and other matters referred to in Section 3.04(b), any material judgment,
order or decree (“Judgment”) or material Law applicable to the Company or its properties or assets, other than,
in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Company Material Adverse Effect.

 

    5

     

    

 

(b) Except
for required filings with the Securities and Exchange Commission (the “SEC”) and applicable “Blue Sky”
or state securities commissions, no material consent, approval, license, permit, order or authorization (“Consent”)
of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or made by
or with respect to the Company in connection with the execution, delivery and performance of this Agreement or the consummation
of the Transactions.

 

SECTION
3.05.Taxes.

 

(a) The
Company, any Subsidiary, the Company VIE and the VIE Subsidiary each has timely filed, or has caused to be timely filed on its
behalf, all Tax Returns required to be filed by it, and all such Tax Returns are true, complete and accurate, except to the extent
any failure to file or any inaccuracies in any filed Tax Returns, individually or in the aggregate, have not had and would not
reasonably be expected to have a Company Material Adverse Effect. All Taxes shown to be due on such Tax Returns, or otherwise
owed, have been timely paid, except to the extent that any failure to pay, individually or in the aggregate, has not had and would
not reasonably be expected to have a Company Material Adverse Effect. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company, any Subsidiary, the Company VIE or the
VIE Subsidiary know of no basis for any such claim.

 

(b) If
applicable, the Company and its Subsidiaries, the Company VIE and the VIE Subsidiaries have established an adequate reserve reflected
on the Company’s consolidated financial statements for all Taxes payable by the Company (in addition to any reserve for
deferred Taxes to reflect timing differences between book and Tax items) for all Taxable periods and portions thereof through
the date of such financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed against
the Company. any Subsidiary, the Company VIE or the VIE Subsidiary, and no requests for waivers of the time to assess any such
Taxes are pending, except to the extent any such deficiency or request for waiver, individually or in the aggregate, has not had
and would not reasonably be expected to have a Company Material Adverse Effect.

 

(c) For
purposes of this Agreement:

 

“Taxes”
includes all forms of taxation, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed
by a local, municipal, governmental, state, foreign, federal or other Governmental Entity, or in connection with any agreement
with respect to Taxes, including all interest, penalties and additions imposed with respect to such amounts.

 

“Tax
Return” means all federal, state, local, provincial and foreign Tax returns, declarations, statements, reports, schedules,
forms and information returns and any amended Tax return relating to Taxes.

 

SECTION
3.06.Benefit Plans. The Company does not have or maintain any collective bargaining agreement or any bonus, pension,
profit sharing, deferred compensation, incentive compensation, share ownership, share purchase, share option, phantom stock, retirement,
vacation, severance, disability, death benefit, hospitalization, medical or other plan, arrangement or understanding (whether
or not legally binding) providing benefits to any current or former employee, officer or director of the Company (collectively,
“Company Benefit Plans”). As of the date of this Agreement there are no severance or termination agreements
or arrangements between the Company and any current or former employee, officer or director of the Company, nor does the Company
have any general severance plan or policy.

 

    6

     

    

 

SECTION
3.07.Litigation. There is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding
such as a deposition) or investigation pending or threatened in writing against or affecting the Company, any Subsidiary, the
Company VIE, any VIE Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative
agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility (“Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Parent Stock
or (ii) could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result
in a Company Material Adverse Effect. Neither the Company, any Subsidiary, the Company VIE, any VIE Subsidiary nor any director
or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim or violation of
or liability under federal or state securities laws or a claim of breach of fiduciary duty.

 

SECTION
3.08.Compliance with Applicable Laws. Each of the Company, its Subsidiaries, the Company VIE and VIE Subsidiaries is
in compliance with all applicable Laws, including those relating to occupational health and safety and the environment, except
for instances of noncompliance that, individually and in the aggregate, have not had and would not reasonably be expected to have
a Company Material Adverse Effect. This Section 3.08 does not relate to matters with respect to Taxes, which are the subject of
Section 3.05.

 

SECTION
3.09.Brokers; Schedule of Fees and Expenses. Except for those brokers as to which the Company and Parent shall be solely
responsible, no broker, investment banker, financial advisor or other person is entitled to any broker’s, finder’s,
financial advisor’s or other similar fee or commission in connection with the Transactions based upon arrangements made
by or on behalf of the Company.

 

SECTION
3.10.Contracts. Except as disclosed in Section 3.10 of the Company Disclosure Schedules, there are no Contracts
that are material to the business, properties, assets, condition (financial or otherwise), results of operations or prospects
of the Company and its subsidiaries and affiliates taken as a whole. None of the Company, its Subsidiaries, the Company VIE and
the VIE Subsidiaries is in violation of or in default under (nor does there exist any condition which upon the passage of time
or the giving of notice would cause such a violation of or default under) any Contract to which it is a party or by which it or
any of its properties or assets is bound, except for violations or defaults that would not, individually or in the aggregate,
reasonably be expected to result in a Company Material Adverse Effect.

 

SECTION
3.11.Title to Properties. The Company does not own any real property. The Company, the Subsidiaries, the Company VIE
and the VIE Subsidiaries have sufficient title to, or valid leasehold interests in, all of their properties and assets used in
the conduct of their businesses all of which are set forth in Section 3.11 of the Company Disclosure Schedule. All such assets
and properties, other than assets and properties in which the Company the Subsidiaries, the Company VIE and the VIE Subsidiaries
have leasehold interests, are free and clear of all Liens other than those Liens that, in the aggregate, do not and will not materially
interfere with the ability of the Company to conduct business as currently conducted.

 

SECTION
3.12.Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any
of the employees of the Company, any Subsidiary, the Company VIE or any VIE Subsidiary, which could reasonably be expected to
result in a Company Material Adverse Effect. None of the Company’s or its Subsidiaries’, Company VIEs’ or VIE
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such
subsidiary, and neither the Company nor any of its Subsidiaries, the Company VIE or the VIE Subsidiaries is a party to a collective
bargaining agreement, and the Company and its Subsidiaries, the Company VIE and VIE Subsidiaries believe that their relationships
with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, the Company
VIE or any VIE Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries, Company VIE or VIE Subsidiaries to any liability with respect to any of the foregoing matters. The
Company and its Subsidiaries, the Company VIE and the VIE Subsidiaries are in compliance with all U.S. federal, state, local and
foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and
hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect.

 

    7

     

    

 

SECTION
3.13.Insurance. The Company or any of its Subsidiaries, the Company VIE or the VIE Subsidiaries does not hold any insurance
policy.

 

SECTION
3.14.Transactions With Affiliates and Employees. Except as set forth in Section 3.14 of the Company Disclosure Schedule,
none of the officers or directors of the Company, any Subsidiary, the Company VIE or any VIE Subsidiary and, to the knowledge
of the Company, none of the employees of the Company, any Subsidiary, the Company VIE or any VIE Subsidiary is presently a party
to any transaction with the Company, any Subsidiary, the Company VIE or any VIE Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner.

 

SECTION
3.15.Application of Takeover Protections. The Company has taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company’s charter documents or the laws of its state of incorporation that is
or could become applicable to the Shareholders as a result of the Shareholders and the Company fulfilling their obligations or
exercising their rights under this Agreement, including, without limitation, the issuance of the Parent Stock and the Shareholders’
ownership of the Parent Stock.

 

SECTION
3.16.No Additional Agreements. The Company or any Subsidiary, the Company VIE or any VIE Subsidiary does not have any
agreement or understanding with any Shareholder with respect to the Transactions other than as specified in this Agreement.

 

SECTION
3.17.Investment Company. The Company is not, and is not an affiliate of, and immediately following the Closing will
not have become, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

SECTION
3.18.Disclosure. The Company confirms that neither it nor any person acting on its behalf has provided the Shareholders
or their respective agents or counsel with any information that the Company believes constitutes material, non-public information,
except insofar as the existence and terms of the proposed transactions hereunder may constitute such information and except for
information that will be disclosed by the Parent under a report on Form 6-K filed after the Closing. The Company understands and
confirms that the Parent will rely on the foregoing representations and covenants in effecting transactions in securities of the
Parent. All disclosures and information provided to the Parent regarding the Company, any Subsidiary, the Company VIE or any VIE
Subsidiary, their respective businesses and the Transactions, furnished by or on behalf of the Company (including but not limited
to, the Company’s representations and warranties set forth in this Agreement, any consolidated financial statements of the
Company and/or any Subsidiary, the Company VIE or any VIE Subsidiary) are true and correct and do not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The financial projections of the Company VIE and/or the VIE Subsidiaries
furnished by the Company are based on the honest and informed judgment of the Company VIE’s management and are reasonable
and accurate to the best of their knowledge and belief.

 

    8

     

    

 

SECTION
3.19.Absence of Certain Changes or Events. Except in connection with the Transactions and as disclosed in Section 3.19
of the Company Disclosure Schedule, since inception, the Company has conducted its business only in the ordinary course, and during
such period there has not been:

 

(a) any
change in the assets, liabilities, financial condition or operating results of the Company, except changes in the ordinary course
of business that have not caused, in the aggregate, a Company Material Adverse Effect;

 

(b) any
damage, destruction or loss, whether or not covered by insurance, that would have a Company Material Adverse Effect;

 

(c) any
waiver or compromise by the Company of a valuable right or of a material debt owed to it;

 

(d) any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and the satisfaction or discharge of which would not have a Company Material Adverse Effect;

 

(e) any
material change to a material Contract by which the Company or any of its assets is bound or subject;

 

(f) any
mortgage, pledge, transfer of a security interest in, or lien, created by the Company, with respect to any of its material properties
or assets, except liens for taxes not yet due or payable and liens that arise in the ordinary course of business and does not
materially impair the Company’s ownership or use of such property or assets;

 

(g) any
loans or guarantees made by the Company to or for the benefit of its employees, officers or directors, or any members of their
immediate families, other than travel advances and other advances made in the ordinary course of its business;

 

(h) any
alteration of the Company’s method of accounting or the identity of its auditors;

 

(i) any
declaration or payment of dividend or distribution of cash or other property to the Shareholders or any purchase, redemption or
agreements to purchase or redeem any Company Shares;

 

(j) any
issuance of equity securities to any officer, director or affiliate; or

 

(k) any
arrangement or commitment by the Company to do any of the things described in this Section.

 

    9

     

    

 

SECTION
3.20.Foreign Corrupt Practices. Neither the Company, nor, to the Company’s knowledge, any director, officer,
agent, employee or other person acting on behalf of the Company has, in the course of its actions for, or on behalf of, the Company
(i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

SECTION
3.21Compliance. Neither the Company nor any Subsidiary, the Company VIE or the VIE Subsidiary: (i) is in default under
or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result
in a default by the Company or any subsidiary under), nor has the Company or any subsidiary received written notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived),
(ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or
has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product
quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result
in a Company Material Adverse Effect.

 

SECTION
3.22Regulatory Permits. The Company, its Subsidiaries, the Company VIE and the VIE Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct
their respective businesses as described in Section 3.22 of the Company Disclosure Schedule, except where the failure to possess
such permits could not reasonably be expected to result in a Company Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary, the Company VIE or the VIE Subsidiary has received any written notice of proceedings
relating to the revocation or modification of any Material Permit.

 

SECTION
3.23Intellectual Property. The Company has, or has rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses and which the failure to so have
could have a Company Material Adverse Effect (collectively, the “Intellectual Property Rights”). All Intellectual
Property Rights are set forth in Section 3.23 of the Company Disclosure Schedule. None of, and neither the Company nor any Subsidiary,
the Company VIE or the VIE Subsidiary has received a written notice that any of, the Intellectual Property Rights has expired,
terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this
Agreement. Neither the Company nor any Subsidiary, the Company VIE or the VIE Subsidiary has received a written notice of a claim
or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any person, except
as could not have or reasonably be expected to not have a Company Material Adverse Effect. All such Intellectual Property Rights
are enforceable and there is no existing infringement by another person of any of the Intellectual Property Rights. The Company,
its Subsidiaries, the Company VIE and the VIE Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

 

SECTION
3.24Office of Foreign Assets Control. Neither the Company nor any of its Subsidiaries, the Company VIE or the VIE Subsidiaries
nor, to the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company is currently subject
to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

    10

     

    

 

SECTION
3.25U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended.

 

SECTION
3.26Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or affiliates is subject to the Bank
Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal
Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or affiliates owns
or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or
twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal
Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or
policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

SECTION
3.27Money Laundering. The operations of the Company, its Subsidiaries, the Company VIE and the VIE Subsidiaries are
and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules
and regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by
or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary, the Company
VIE or the VIE Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary,
the Company VIE or the VIE Subsidiary, threatened

 

SECTION
3.28Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, (i) the fair saleable
value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s
existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets
do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including
its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated
and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to
be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. The Company Disclosure Schedules set forth as of the date hereof all outstanding
secured and unsecured indebtedness of the Company, any Subsidiary, the Company VIE, or the VIE Subsidiary or for which the Company
or any Subsidiary or the Company VIE, or the VIE Subsidiary has commitments. Neither the Company nor any Subsidiary, the Company
VIE, or the VIE Subsidiary is in default with respect to any indebtedness.

 

SECTION
3.29Accounts. Section 3.29 of the Company Disclosure Schedules sets forth a true, complete and correct list of the
checking accounts, deposit accounts, safe deposit boxes, and brokerage, commodity and similar accounts of the Company, its Subsidiaries,
the Company VIE and the VIE Subsidiaries, including the account number and name, the deposited amount, the name of each depositary
or financial institution and the address where such account is located and the authorized signatories thereto. None of the deposited
cash shall be used to acquire the Purchased Parent Shares.

 

    11

     

    

 

SECTION
3.30The Company has delivered to the Parent the unaudited consolidated financial statements of the Company VIE, including
the balance sheet as of July 31, 2020, and the cash flow statement and the operations and comprehensives income (loss) statement
for the six months ended July 31, 2020 and 2019 (the “Financial Statements”). To the best knowledge of the
Company, the Financial Statements fairly present the financial condition and the results of operations in all material aspects
as at the date of and for the period referred to in such financial statements, all in accordance with U.S. GAAP.

 

ARTICLE
IV

 

Representations
and Warranties of the Parent

 

The
Parent represents and warrants as follows to the Shareholders and the Company as of the date hereof and the Closing Date, that,
except as set forth in the reports, schedules, forms, statements and other documents filed by the Parent with the SEC and publicly
available prior to the date of the Agreement (the “Parent SEC Documents”) or specifically referenced on a disclosure
schedule (the “Parent Disclosure Schedules”):

 

SECTION
4.01.Organization, Standing and Power. The Parent is duly organized, validly existing and in good standing under the
laws of the Marshall Islands and has full corporate power and authority and possesses all governmental franchises, licenses, permits,
authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its
businesses as presently conducted, other than such franchises, licenses, permits, authorizations and approvals the lack of which,
individually or in the aggregate, has not had and would not reasonably be expected to have a material adverse effect on the Parent,
a material adverse effect on the ability of the Parent to perform its obligations under this Agreement or on the ability of the
Parent to consummate the Transactions (a “Parent Material Adverse Effect”). The Parent is duly qualified to
do business in each jurisdiction where the nature of its business or their ownership or leasing of its properties make such qualification
necessary and where the failure to so qualify would reasonably be expected to have a Parent Material Adverse Effect. The Parent
has delivered to the Company true and complete copies of the articles of incorporation of the Parent, as amended to the date of
this Agreement (as so amended, the “Parent Charter”), and the Bylaws of the Parent, as amended to the date
of this Agreement (as so amended, the “Parent Bylaws”).

 

SECTION
4.02.Subsidiaries; Equity Interests. Except as set forth in the Parent SEC Documents, the Parent does not own, directly
or indirectly, any capital stock, membership interest, partnership interest, joint venture interest or other equity interest in
any person.

 

    12

     

    

 

SECTION
4.03.Capital Structure. The authorized capital stock of the Parent consists of One Hundred Fifty Million (150,000,000)
shares of common stock, par value US$ 0.0001 per share and Five Million (5,000,000) shares of preferred stock with a par value
of US $0.0001. Except as set forth in the Parent SEC Documents, no other shares of capital stock or other voting securities of
the Parent were issued, reserved for issuance or outstanding. All outstanding shares of the capital stock of the Parent are, and
all such shares that may be issued prior to the date hereof will be when issued, duly authorized, validly issued, fully paid and
non-assessable and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive
right, subscription right or any similar right under any provision of the laws of the Marshall Islands, the Parent Charter, the
Parent Bylaws or any Contract to which the Parent is a party or otherwise bound. Except as set forth in the SEC Documents, there
are no bonds, debentures, notes or other indebtedness of the Parent having the right to vote (or convertible into, or exchangeable
for, securities having the right to vote) on any matters on which holders of Parent Stock may vote (“Voting Parent Debt”).
Except in connection with the Transactions or as described in the SEC Documents, as of the date of this Agreement, there are no
options, warrants, rights, convertible or exchangeable securities, “phantom” stock rights, stock appreciation rights,
stock-based performance units, commitments, Contracts, arrangements or undertakings of any kind to which the Parent is a party
or by which it is bound (i) obligating the Parent to issue, deliver or sell, or cause to be issued, delivered or sold, additional
shares of capital stock or other equity interests in, or any security convertible or exercisable for or exchangeable into any
capital stock of or other equity interest in, the Parent or any Voting Parent Debt, (ii) obligating the Parent to issue, grant,
extend or enter into any such option, warrant, call, right, security, commitment, Contract, arrangement or undertaking or (iii)
that give any person the right to receive any economic benefit or right similar to or derived from the economic benefits and rights
occurring to holders of the capital stock of the Parent. As of the date of this Agreement, there are no outstanding contractual
obligations of the Parent to repurchase, redeem or otherwise acquire any shares of capital stock of the Parent. Other than as
set forth in the SEC Documents, the Parent is not a party to any agreement granting any security holder of the Parent the right
to cause the Parent to register shares of the capital stock or other securities of the Parent held by such security holder under
the Securities Act. The stockholder list provided to the Company is a current stockholder list generated by its stock transfer
agent, and such list accurately reflects all of the issued and outstanding shares of the Parent Stock as at the Closing.

 

SECTION
4.04.Authority; Execution and Delivery; Enforceability. The execution and delivery by the Parent of this Agreement
and the consummation by the Parent of the Transactions have been duly authorized and approved by the Board of Directors of the
Parent and no other corporate proceedings on the part of the Parent are necessary to authorize this Agreement and the Transactions.
This Agreement constitutes a legal, valid and binding obligation of the Parent, enforceable against the Parent in accordance with
the terms hereof.

 

SECTION
4.05.No Conflicts; Consents.

 

(a) The
execution and delivery by the Parent of this Agreement, does not, and the consummation of Transactions and compliance with the
terms hereof and thereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material
benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any person under, or result in
the creation of any Lien upon any of the properties or assets of the Parent under, any provision of (i) the Parent Charter or
Parent Bylaws, (ii) any material Contract to which the Parent is a party or by which any of its properties or assets is bound
or (iii) subject to the filings and other matters referred to in Section 4.05(b), any material Judgment or material Law applicable
to the Parent or its properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually
or in the aggregate, have not had and would not reasonably be expected to have a Parent Material Adverse Effect.

 

(b) No
Consent of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or
made by or with respect to the Parent in connection with the execution, delivery and performance of this Agreement or the consummation
of the Transactions, other than the (A) filing with the SEC of a report on Form 6-K disclosing the Transactions contemplated hereby,
including all required exhibits thereto; (B) filings under state “blue sky” laws, as each may be required in connection
with this Agreement and the Transactions; and (C) the listing of the Parent Shares with The NASDAQ Capital Market pursuant to
a Listing of Additional Shares Notification with The NASDAQ Stock Market LLC (“NASDAQ Listing Approval”).

 

    13

     

    

 

SECTION
4.06.SEC Documents; Undisclosed Liabilities.

 

(a) The
Parent has filed all Parent SEC Documents for the prior two years, pursuant to Sections 13 and 15 of the Exchange Act, as applicable.

 

(b) As
of its respective filing date, each Parent SEC Document complied in all material respects with the requirements of the Exchange
Act and the rules and regulations of the SEC promulgated thereunder applicable to such Parent SEC Document, and did not contain
any untrue statement of a material fact or omit 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. Except to the extent that
information contained in any Parent SEC Document has been revised or superseded by a later filed Parent SEC Document, none of
the Parent SEC Documents contains any untrue statement of a material fact or omits to state any 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.
The financial statements of the Parent included in the Parent SEC Documents comply as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance
with the International Financial Reporting Standards (“IFRS”) (except, in the case of unaudited statements, as permitted
by the rules and regulations of the SEC) applied on a consistent basis during the periods involved (except as may be indicated
in the notes thereto) and fairly present the financial position of Parent as of the dates thereof and the results of its operations
and cash flows for the periods shown (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

(c) Except
as set forth in the Parent SEC Documents, the Parent has no liabilities or obligations of any nature (whether accrued, absolute,
contingent or otherwise) required by IFRS to be set forth on a balance sheet of the Parent or in the notes thereto. The Parent
SEC Documents sets forth all financial and contractual obligations and liabilities (including any obligations to issue capital
stock or other securities of the Parent) due after the date hereof.

 

SECTION
4.07.Information Supplied. None of the information supplied or to be supplied by the Parent for inclusion or incorporation
by reference in any Parent SEC Document or report contains any untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they are made, not misleading.

 

SECTION
4.08.Absence of Certain Changes or Events. Except as disclosed in the filed Parent SEC Documents, from the date of
the most recent audited financial statements included in the filed Parent SEC Documents to the date of this Agreement, the Parent
has conducted its business only in the ordinary course, and during such period there has not been:

 

(a) any
change in the assets, liabilities, financial condition or operating results of the Parent from that reflected in the Parent SEC
Documents, except changes in the ordinary course of business that have not caused, in the aggregate, a Parent Material Adverse
Effect;

 

(b) any
damage, destruction or loss, whether or not covered by insurance, that would have a Parent Material Adverse Effect;

 

(c) any
waiver or compromise by the Parent of a valuable right or of a material debt owed to it;

 

(d) any
satisfaction or discharge of any Lien, claim, or encumbrance or payment of any obligation by the Parent, except in the ordinary
course of business and the satisfaction or discharge of which would not have a Parent Material Adverse Effect;

 

    14

     

    

 

(e) any
material change to a material Contract by which the Parent or any of its assets is bound or subject;

 

(f) any
material change in any compensation arrangement or agreement with any employee, officer, director or stockholder;

 

(g) any
resignation or termination of employment of any officer of the Parent;

 

(h) any
mortgage, pledge, transfer of a security interest in, or Lien, created by the Parent, with respect to any of its material properties
or assets, except liens for taxes not yet due or payable and liens that arise in the ordinary course of business and do not materially
impair the Parent’s ownership or use of such property or assets;

 

(i) any
loans or guarantees made by the Parent to or for the benefit of its employees, officers or directors, or any members of their
immediate families, other than travel advances and other advances made in the ordinary course of its business;

 

(j) any
declaration, setting aside or payment or other distribution in respect of any of the Parent’s capital stock, or any direct
or indirect redemption, purchase, or other acquisition of any of such stock by the Parent;

 

(k) any
alteration of the Parent’s method of accounting or the identity of its auditors;

 

(l) any
issuance of equity securities to any officer, director or affiliate, except pursuant to existing Parent stock option plans; or

 

(m) any
arrangement or commitment by the Parent to do any of the things described in this Section 4.08.

 

SECTION
4.09.Taxes.

 

(a) The
Parent has timely filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it, and all such
Tax Returns are true, complete and accurate, except to the extent any failure to file, any delinquency in filing or any inaccuracies
in any filed Tax Returns, individually or in the aggregate, have not had and would not reasonably be expected to have a Parent
Material Adverse Effect. All Taxes shown to be due on such Tax Returns, or otherwise owed, has been timely paid, except to the
extent that any failure to pay, individually or in the aggregate, has not had and would not reasonably be expected to have a Parent
Material Adverse Effect.

 

(b) The
most recent financial statements contained in the Parent SEC Documents reflect an adequate reserve for all Taxes payable by the
Parent (in addition to any reserve for deferred Taxes to reflect timing differences between book and Tax items) for all Taxable
periods and portions thereof through the date of such financial statements. No deficiency with respect to any Taxes has been proposed,
asserted or assessed against the Parent, and no requests for waivers of the time to assess any such Taxes are pending, except
to the extent any such deficiency or request for waiver, individually or in the aggregate, has not had and would not reasonably
be expected to have a Parent Material Adverse Effect.

 

(c) There
are no Liens for Taxes (other than for current Taxes not yet due and payable) on the assets of the Parent. The Parent is not bound
by any agreement with respect to Taxes.

 

    15

     

    

 

SECTION
4.10.Absence of Changes in Benefit Plans. From the date of the most recent audited financial statements included in
the Parent SEC Documents to the date of this Agreement, there has not been any adoption or amendment in any material respect by
Parent of any collective bargaining agreement or any bonus, pension, profit sharing, deferred compensation, incentive compensation,
stock ownership, stock purchase, stock option, phantom stock, retirement, vacation, severance, disability, death benefit, hospitalization,
medical or other plan, arrangement or understanding (whether or not legally binding) providing benefits to any current or former
employee, officer or director of Parent (collectively, “Parent Benefit Plans”). Except as set forth in the
Parent SEC Documents, as of the date of this Agreement there are not any employment, consulting, indemnification, severance or
termination agreements or arrangements between the Parent and any current or former employee, officer or director of the Parent,
nor does the Parent have any general severance plan or policy.

 

SECTION
4.11.ERISA Compliance; Excess Parachute Payments. The Parent does not, and since its inception never has, maintained,
or contributed to any “employee pension benefit plans” (as defined in Section 3(2) of ERISA), “employee welfare
benefit plans” (as defined in Section 3(1) of ERISA) or any other Parent Benefit Plan for the benefit of any current or
former employees, consultants, officers or directors of Parent.

 

SECTION
4.12.Litigation. Except as disclosed in the Parent SEC Documents, there is no Action which (i) adversely affects or
challenges the legality, validity or enforceability of any of this Agreement or the Parent Stock or (ii) could, if there were
an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a Parent Material Adverse
Effect. Neither the Parent nor any director or officer thereof (in his or her capacity as such), is or has been the subject of
any Action involving a claim or violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty.

 

SECTION
4.13.Compliance with Applicable Laws. Except as disclosed in the Parent SEC Documents, the Parent is in compliance
with all applicable Laws, including those relating to occupational health and safety, the environment, export controls, trade
sanctions and embargoes, except for instances of noncompliance that, individually and in the aggregate, have not had and would
not reasonably be expected to have a Parent Material Adverse Effect. Except as set forth in the Parent SEC Documents, the Parent
has not received any written communication during the past two years from a Governmental Entity that alleges that the Parent is
not in compliance in any material respect with any applicable Law. the Parent is in compliance with all effective requirements
of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder, that are applicable to it, except where
such noncompliance could not have or reasonably be expected to result in a Parent Material Adverse Effect.

 

SECTION
4.14.Contracts. Except as disclosed in the Parent SEC Documents, there are no Contracts that are material to the business,
properties, assets, condition (financial or otherwise), results of operations or prospects of the Parent taken as a whole. The
Parent is not in violation of or in default under (nor does there exist any condition which upon the passage of time or the giving
of notice would cause such a violation of or default under) any Contract to which it is a party or by which it or any of its properties
or assets is bound, except for violations or defaults that would not, individually or in the aggregate, reasonably be expected
to result in a Parent Material Adverse Effect.

 

SECTION
4.15.Title to Properties. Except as disclosed in the Parent SEC Documents, the Parent has good title to, or valid leasehold
interests in, all of its properties and assets used in the conduct of its businesses. All such assets and properties, other than
assets and properties in which the Parent has leasehold interests, are free and clear of all Liens and except for Liens that,
in the aggregate, do not and will not materially interfere with the ability of the Parent to conduct business as currently conducted.
The Parent has complied in all material respects with the terms of all material leases to which it is a party and under which
it is in occupancy, and all such leases are in full force and effect. The Parent enjoys peaceful and undisturbed possession under
all such material leases.

 

    16

     

    

 

SECTION
4.16.Intellectual Property. The Parent owns, or is validly licensed or otherwise has the right to use, all Intellectual
Property Rights which are material to the conduct of the business of the Parent taken as a whole. No claims are pending or, to
the knowledge of the Parent, threatened that the Parent is infringing or otherwise adversely affecting the rights of any person
with regard to any Intellectual Property Right. To the knowledge of the Parent, no person is infringing the rights of the Parent
with respect to any Intellectual Property Right.

 

SECTION
4.17.Labor Matters. There are no collective bargaining or other labor union agreements to which the Parent is a party
or by which it is bound. No material labor dispute exists or, to the knowledge of the Parent, is imminent with respect to any
of the employees of the Parent.

 

SECTION
4.18.Transactions With Affiliates and Employees. Except as set forth in the Parent SEC Documents, none of the officers
or directors of the Parent and, to the knowledge of the Parent, none of the employees of the Parent is presently a party to any
material transaction with the Parent or any subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge
of the Parent, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner.

 

SECTION
4.19.Application of Takeover Protections. The Parent has taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Parent’s charter documents or the laws of its state of incorporation that is or
could become applicable to the Shareholders as a result of the Shareholders and the Parent fulfilling their obligations or exercising
their rights under this Agreement, including, without limitation, the issuance of the Parent Stock and the Shareholders’
ownership of the Parent Stock.

 

SECTION
4.20.No Additional Agreements. The Parent does not have any agreement or understanding with the Shareholders with respect
to the Transactions other than as specified in this Agreement.

 

SECTION
4.21.Investment Company. The Parent is not, and is not an affiliate of, and immediately following the Closing will
not have become, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

SECTION
4.22.Disclosure. The Parent confirms that neither it nor any person acting on its behalf has provided any Shareholder
or its respective agents or counsel with any information that the Parent believes constitutes material, non-public information
except insofar as the existence and terms of the proposed transactions hereunder may constitute such information and except for
information that will be disclosed by the Parent under a report on Form 6-K filed after the Closing. All disclosure provided to
the Shareholders regarding the Parent, its business and the transactions contemplated hereby, furnished by or on behalf of the
Parent (including the Parent’s representations and warranties set forth in this Agreement) are true and correct and do not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not misleading.

 

    17

     

    

 

SECTION
4.23.Certain Registration Matters. Except as specified in the Parent SEC Documents or on the Parent Disclosure Schedules,
the Parent has not granted or agreed to grant to any person any rights (including “piggy-back” registration rights)
to have any securities of the Parent registered with the SEC or any other governmental authority that have not been satisfied.

 

SECTION
4.24.Listing and Maintenance Requirements. The Parent is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with the listing and maintenance requirements for continued listing of the Parent Stock on
the trading market on which the shares of Parent Common Stock are currently listed or quoted. Subject to NASDAQ Listing Approval,
the issuance and sale of the Parent Shares under this Agreement does not contravene the rules and regulations of the trading market
on which the Parent Stock are currently listed or quoted.

 

SECTION
4.25.Parent Stock. Upon issue to the Shareholders, the Parent Shares will be duly and validly issued, fully paid and
non-assessable common shares in the capital of the Parent.

 

ARTICLE
V

 

Deliveries

 

SECTION
5.01.Deliveries of the Shareholders.

 

(a) Concurrently
herewith each of the Shareholders is delivering to the Parent this Agreement executed by such Shareholder.

 

(b) At
or prior to the Closing, each of the Shareholders shall deliver to the Parent:

 

		(i)	duly
                                         executed share transfer powers for transfer by the Shareholder of its Company Shares
                                         to the Parent (which Agreement shall constitute a limited power of attorney in the Parent
                                         or any officer thereof to effectuate any Share transfers as may be required under applicable
                                         law, including, without limitation, recording such transfer in the share registry maintained
                                         by the Company for such purpose);

 

		(ii)	if
                                         applicable, the Regulation S Representation Letter completed and executed by the Shareholder.

 

SECTION
5.02.Deliveries of the Parent.

 

(a) Concurrently
herewith, the Parent is delivering to the Shareholders and to the Company, a copy of this Agreement executed by the Parent; and

 

(b) Promptly
following the Closing, the Parent shall deliver to the Shareholders, certificates representing the Parent Shares issued to the
Shareholders set forth on Exhibit A, or in the alternative, book entry account statements prepared the Parent’s transfer
agency reflecting the Shareholders’ ownership of the Parent Shares as set forth on Exhibit A.

 

    18

     

    

 

SECTION
5.03.Deliveries of the Company.

 

(a) Concurrently
herewith, the Company is delivering to the Parent this Agreement executed by the Company.

 

(b) At
or prior to the Closing, the Company shall deliver to the Parent:

 

		(i)	a
                                         certificate from the Company, signed by its Secretary or Assistant Secretary certifying
                                         that the attached copies of the Company’s Charter Documents, certificate or articles
                                         of incorporation, bylaws or other organizational or charter documents of each Subsidiary,
                                         the Company VIE and the VIE Subsidiaries and resolutions of the Board of Directors of
                                         the Company approving this Agreement and the Transactions, are all true, complete and
                                         correct and remain in full force and effect;

 

		(ii)	legal
                                         opinion of PRC counsel of the Company addressed to the Parent as of the Closing Date
                                         in form and substance reasonably satisfactory to the Parent; and

 

		(iii)	A
                                         shareholder list, certified by the Company’s Chief Executive Officer.

 

ARTICLE
VI

 

Conditions to Closing

 

SECTION
6.01.Shareholders and Company Conditions Precedent. The obligations of the Shareholders and the Company to enter into
and complete the Closing is subject, at the option of the Shareholders and the Company, to the fulfillment on or prior to the
Closing Date of the following conditions.

 

(a) Representations
and Covenants. The representations and warranties of the Parent contained in this Agreement shall be true in all material
respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date. The Parent
shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be
performed or complied with by the Parent on or prior to the Closing Date. The Parent shall have delivered to the Shareholders
and the Company, a certificate, dated the Closing Date, to the foregoing effect.

 

(b) Litigation.
No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek
damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of the
Company or the Shareholders, a materially adverse effect on the assets, properties, business, operations or condition (financial
or otherwise) of the Parent.

 

(c) No
Material Adverse Change. There shall not have been any occurrence, event, incident, action, failure to act, or transaction
since December 31, 2019 which has had or is reasonably likely to cause a Parent Material Adverse Effect.

 

    19

     

    

 

(d) Post-Closing
Capitalization. At, and immediately after, the Closing, the authorized capitalization, and the number of issued and outstanding
shares of Parent Stock, on a fully-diluted basis, shall be as described in the Parent SEC Documents.

 

(e) SEC
Reports. The Parent shall have filed all reports and other documents required to be filed by Parent under the U.S. federal
securities laws through the Closing Date.

 

(f) NASDAQ
Listing. The Parent shall have maintained its status as a Company whose common stock is listed on The NASDAQ Capital Market
and Parent shall not have received any notice that any reason shall exist as to why such status shall not continue immediately
following the Closing.

 

(g) Deliveries.
The deliveries specified in Section 5.02 shall have been made by the Parent.

 

(h) No
Suspensions of Trading in Parent Stock; Listing. Trading in the Parent Stock shall not have been suspended by the SEC or any
trading market (except for any suspensions of trading of not more than one trading day solely to permit dissemination of material
information regarding the Parent) at any time since the date of execution of this Agreement, and the Parent Stock shall have been
at all times since such date listed for trading on a trading market.

 

(i) Semi-Annual
Report. The Parent shall have filed a report on Form 6-K with the SEC disclosing its unaudited financial statements for the
6 months ended June 30, 2020.

 

(j) Satisfactory
Completion of Due Diligence. The Company and the Shareholders shall have completed their legal, accounting and business due
diligence of the Parent and the results thereof shall be satisfactory to the Company and the Shareholders in their sole and absolute
discretion.

 

SECTION
6.02.Parent Conditions Precedent. The obligations of the Parent to enter into and complete the Closing are subject,
at the option of the Parent, to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of
which may be waived by the Parent in writing.

 

(a) Representations
and Covenants. The representations and warranties of the Shareholders and the Company contained in this Agreement shall be
true in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing
Date. The Shareholders and the Company shall have performed and complied in all material respects with all covenants and agreements
required by this Agreement to be performed or complied with by the Shareholders and the Company on or prior to the Closing Date.
The Company shall have delivered to the Parent a certificate, dated the Closing Date, to the foregoing effect.

 

(b) Litigation.
No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek
damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of the
Parent, a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise) of the
Company.

 

(c) No
Material Adverse Change. There shall not have been any occurrence, event, incident, action, failure to act, or transaction
since the date hereof which has had or is reasonably likely to cause a Company Material Adverse Effect.

 

    20

     

    

 

(d) Deliveries.
The deliveries specified in Section 5.01 and Section 5.03 shall have been made by the Shareholders and the Company, respectively.

 

(e) Post-Closing
Capitalization. At, and immediately after, the Closing, the authorized capitalization, and the number of issued and outstanding
shares of the Company, on a fully-diluted basis, shall be described in the Company Disclosure Schedule.

 

(f) Satisfactory
Completion of Due Diligence. The Parent shall have completed its legal, accounting and business due diligence of the Company
and the results thereof shall be satisfactory to the Parent in its sole and absolute discretion.

 

(g) NASDAQ
Listing Approval. Review of the Listing of Additional Shares Notification to The NASDAQ Stock Market LLC shall have been completed
with regard to the Parent Stock.

 

ARTICLE
VII

 

Covenants

 

SECTION
7.01.Public Announcements. The Parent and the Company will consult with each other before issuing, and provide each
other the opportunity to review and comment upon, any press releases or other public statements with respect to the Agreement
and the Transactions and shall not issue any such press release or make any such public statement prior to such consultation,
except as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national
securities exchanges.

 

SECTION
7.02.Fees and Expenses. All fees and expenses incurred in connection with this Agreement shall be paid by the Party
incurring such fees or expenses, whether or not this Agreement is consummated.

 

SECTION
7.03.Continued Efforts. Each Party shall use commercially reasonable efforts to (a) take all action reasonably necessary
to consummate the Transactions, and (b) take such steps and do such acts as may be necessary to keep all of its representations
and warranties true and correct as of the Closing Date with the same effect as if the same had been made, and this Agreement had
been dated, as of the Closing Date.

 

SECTION
7.04.Exclusivity. Each of the Parent and the Company shall not (and shall not cause or permit any of their affiliates
to) engage in any discussions or negotiations with any person or take any action that would be inconsistent with the Transactions
and that has the effect of avoiding the Closing contemplated hereby. Each of the Parent and the Company shall notify each other
immediately if any person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing.

 

SECTION
7.05.Filing of 6-K and Press Release. The Parent shall file, promptly after the date hereof, a report on Form 6-K with
the SEC disclosing the terms of this Agreement and other requisite disclosure regarding the Transactions.

 

SECTION
7.06.Access. Each Party shall permit representatives of any other Party to have full access to all premises, properties,
personnel, books, records (including Tax records), contracts, and documents of or pertaining to such Party.

 

    21

     

    

 

SECTION
7.07.Preservation of Business. From the date of this Agreement until the Closing Date, the Company shall operate only
in the ordinary and usual course of business consistent with their respective past practices, and shall use reasonable commercial
efforts to (a) preserve intact their respective business organizations, (b) preserve the good will and advantageous relationships
with customers, suppliers, independent contractors, employees and other persons material to the operation of their respective
businesses, and (c) not permit any action or omission that would cause any of their respective representations or warranties contained
herein to become inaccurate or any of their respective covenants to be breached in any material respect.

 

SECTION
7.08.Company Financial Statements. The Company shall, not later than 60 days prior to the due date of the Parent’s
next annual report on Form 20-F, deliver to the Parent its consolidated balance sheets, statements of operations, statements of
cash flows, and statements of stockholders’ equity for the prior three (3) fiscal years prepared in accordance with IFRS.

 

SECTION
7.09.Appointment of New CEO and Board Members. Concurrently with the Closing, the Parent shall take all corporate action
necessary to: (i) appoint Ms. Sun Lei as the Parent’s new Chief Executive Officer; and (ii) appoint Ms. Sun Lei as a new
member of the Board of Directors of the Parent; and (iii) appoint Li Hui Dan as a new member and Co-chairman of the Board of Directors
of the Parent.

 

ARTICLE
VIII

 

Miscellaneous

 

SECTION
8.01.Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in writing
and shall be deemed given upon receipt by the Parties at the following addresses (or at such other address for a Party as shall
be specified by like notice):

 

If
to the Parent, to:

 

KBS
Fashion Group Limited

Xin
Fengge Building

Yupu
Industrial Park

Shishi
City, Fujian Province 362700

People’s
Republic of China

Attn:
Keyan Yan, Chief Executive Officer

 

With
a copy to (which shall not constitute notice):

 

The
Crone Law Group P.C. 

500
Fifth Ave, Suite 938

New
York, NY 10110

Attn:
Joe Laxague, Esq.

Email:
jlaxague@cronelawgroup.com

 

    22

     

    

 

If
to the Company, to:

 

Flower
Crown Holding

Floor
5, Baofu Building,

Lingbin
Road No 96,

Nankai
District, Tianjin, China.

 

If
to the Shareholders at the addresses set forth in Exhibit A hereto.

 

SECTION
8.02.Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except
in a written instrument signed by the Company, Parent and the Shareholders. No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any Party to exercise
any right hereunder in any manner impair the exercise of any such right.

 

SECTION
8.03.Termination. This Agreement may be terminated prior to Closing:

 

(a) by
written agreement of the Company and the Parent;

 

(b) by
either the Parent or the Company if a material breach of any provision of this Agreement has been committed by another Party and
such breach has not been waived or rectified within thirty (30) days after the breach; or

 

(c) by
the Company or the Parent upon written notice to the other, with a copy to each of the Shareholders, if the Closing shall not
have taken place by December 31, 2020; provided, that the right to terminate this Agreement under this Section shall not be available
to any party whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure
of the Closing to occur on or before such time.

 

SECTION
8.04.Replacement of Securities. If any certificate or instrument evidencing any Parent Stock is mutilated, lost, stolen
or destroyed, the Parent shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefore, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Parent of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance
of such replacement Parent Stock. If a replacement certificate or instrument evidencing any Parent Stock is requested due to a
mutilation thereof, the Parent may require delivery of such mutilated certificate or instrument as a condition precedent to any
issuance of a replacement.

 

SECTION
8.05.Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, the Shareholders, Parent and the Company will be entitled to specific performance under this Agreement. The Parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described
in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense
that a remedy at law would be adequate.

 

    23

     

    

 

SECTION
8.06.Limitation of Liability. Notwithstanding anything herein to the contrary, each of the Parent and the Company acknowledge
and agree that the liability of the Shareholders arising directly or indirectly, under any transaction document of any and every
nature whatsoever shall be satisfied solely out of the assets of the Shareholders, and that no trustee, officer, other investment
vehicle or any other affiliate of the Shareholders or any investor, shareholder or holder of shares of beneficial interest of
the Shareholders shall be personally liable for any liabilities of the Shareholders.

 

SECTION
8.07.Interpretation. When a reference is made in this Agreement to a Section, such reference shall be to a Section
of this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

 

SECTION
8.08.Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule or Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the Transactions contemplated hereby is not affected in any manner
materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible in an acceptable manner to the end that Transactions contemplated hereby are fulfilled to the extent
possible.

 

SECTION
8.09.Counterparts; Facsimile Execution. This Agreement may be executed in one or more counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of
the Parties and delivered to the other Parties. Facsimile execution and delivery of this Agreement is legal, valid and binding
for all purposes.

 

SECTION
8.10.Entire Agreement; Third Party Beneficiaries. This Agreement, taken together with the Company Disclosure Schedule,
(a) constitutes the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the
Parties with respect to the Transactions and (b) are not intended to confer upon any person other than the Parties any rights
or remedies.

 

SECTION
8.11.Governing Law. This Agreement, the legal relations between the parties and any Action, whether contractual or
non-contractual, instituted by any party with respect to any matter arising between the parties, including but not limited to
matters arising under or in connection with this Agreement, such as the negotiation, execution, interpretation, coverage, scope,
performance, breach, termination, validity, or enforceability of this Agreement, shall be governed by and construed in accordance
with the internal laws of the State of New York without reference to principles of conflicts of laws. The parties hereto hereby
irrevocably submit to the exclusive jurisdiction of the courts of the United States or the State of New York located within New
York City, New York with respect to any matter arising between the parties, and hereby waive, and agree not to assert, as a defense
in any action, suit or proceeding for the interpretation or enforcement hereof or thereof, that it is not subject thereto or that
such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be
appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the parties hereto irrevocably
agree that all claims with respect to such action or proceeding shall be heard and determined in such a New York state or federal
court. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject
matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in any
manner as may be permitted by applicable Law, shall be valid and sufficient service thereof. With respect to any particular action,
suit or proceeding arising between the parties, including but not limited to matters arising under or in connection with this
Agreement, venue shall lie solely in any state or Federal court sitting in the City of New York.

 

    24

     

    

 

SECTION
8.12.Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned, in whole or in part, by operation of law or otherwise by any of the Parties without the prior written consent of
the other Parties. Any purported assignment without such consent shall be void. Subject to the preceding sentences, this Agreement
will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

 

 

[Signature
page follows]

 

    25

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Share Exchange Agreement as of the date first above written.

 

The
Parent:

 

	 	KBS FASHION GROUP LIMITED
	 	 	 
	 	By:	/s/
    Keyan Yan
	 	Name:	Keyan Yan
	 	Title:	Chief Executive Officer

  

The
Company:

 

	 	FLOWER CROWN HOLDING
	 	 	 
	 	By:	/s/ Sun
    Lei
	 	Name:	 Sun
    Lei
	 	Title:	Director

 

 

[Signature
Page to Share Exchange Agreement] 

 

    26

     

    

  

The
Shareholders:

 

Happy
Brilliance Limited

 

	By:	/s/
    Sun Lei	 

 

	Print
    Name:	Sun
    Lei	 

 

	Title:	Shareholder	 

 

 

Bronze
Chrome Limited

 

	By:	/s/
    ZHANG ZHIZHONG	 

 

	Print
    Name:	ZHANG
    ZHIZHONG	 

 

	Title:	Shareholder	 

 

 

Peace
Venus Limited

 

	By:	/s/
    LI JINPING	 

 

	Print
    Name:	LI
    JINPING	 

 

	Title:	Shareholder	 

 

 

Opus
Fame Limited

 

	By:	/s/
    LI HUIDAN	 

 

	Print
    Name:	LI
    HUIDAN	 

 

	Title:	Shareholder	 

 

 

Treasure
Root Limited

 

	By:	/s/
    WANG YUE 	 

 

	Print
    Name:	WANG
    YUE	 

 

	Title:	Shareholder	 

 

    27

     

    

 

Company
Disclosure Schedules

 

     

     

    

 

EXHIBIT
A

 

Shareholders
of FLOWER CROWN HOLDING (CAYMAN) LIMITED

 

	Name and Address
    of Shareholder	 	Tax
    ID 
 Number of 
 Shareholder 
 (if Applicable)	 	 	Number
    of 
 Company 
 Shares Being 
 Exchanged	 	 	Number
    of 
 Parent Shares 
 to be Received 
 by Shareholder	 
	Happy
    Brilliance Limited 
Sertus Chambers, P.O. Box 905 
Quastisky Building 
Road Town, Tortola 
British Virgin Islands	 	n/a	 	 	 	40,500	 	 	 	209,896	 
	Bronze
    Chrome Limited 
Sertus Chambers, P.O. Box 905 
Quastisky Building 
Road Town, Tortola 
British Virgin Islands	 	n/a	 	 	 	2,350	 	 	 	12,179	 
	Peace
    Venus Limited 
Sertus Chambers, P.O. Box 905 
Quastisky Building 
Road Town, Tortola 
British Virgin Islands	 	n/a	 	 	 	2,400	 	 	 	12,438	 
	Opus
    Fame Limited 
Sertus Chambers, P.O. Box 905 
Quastisky Building 
Road Town, Tortola 
British Virgin Islands	 	n/a	 	 	 	2,450	 	 	 	12,697	 
	Treasure
    Root Limited 
Sertus Chambers, P.O. Box 905 
Quastisky Building 
Road Town, Tortola 
British Virgin Islands	 	n/a	 	 	 	2,300	 	 	 	11,920	 
	Totals	 	 	 	 	 	50,000	 	 	 	259,130	 

 

    A-1

     

    

 

EXHIBIT
B

 

Regulation
S Representation Letter

 

Date:
December 9, 2020

 

 Re: Company Name: KBS Fashion Group Limited (the “Company”)

 

Number
of shares of common stock of the Company: __________ (collectively, the “Shares”)

 

Ladies
and Gentlemen:

 

Pursuant
to certain Share Exchange Agreement between the undersigned and the Company, dated as of December 9, 2020, 2020, the undersigned
hereby represents, warrants and covenants to the Company as follows:

 

	 	1.	The
    undersigned is not a “U.S. Person,” as such term is defined in Regulation S (“Regulation S”)
    promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

	 	2.	No
    offer or sale of the Shares was made to the undersigned in the United States.

 

	 	3.	The
    undersigned is not acquiring the Shares for the account or on behalf of any U.S. Person.

 

	 	4.	The
    undersigned has not made any prearrangement to transfer the Shares to a U.S. Person or to return the Shares to the United
    States securities markets (which includes short sales in the United States within the applicable “distribution compliance
    period,” as defined in Regulation S (hereinafter referred to as the “restricted period”) to be covered
    by delivery of the Company’s Shares) and is not acquiring the Shares as part of any plan or scheme to evade the registration
    requirements of the Securities Act.

 

	 	5.	All
    offers and sales of the Shares by the undersigned in the United States or to U.S. Persons or otherwise whether prior to the
    expiration or after the expiration of the applicable restricted period shall be made only pursuant to a registration of the
    Shares under the Securities Act or an exemption from registration, and in compliance with Regulation S.

 

	 	6.	The
    undersigned is not a “distributor,” as defined in Regulation S. However, if the undersigned should be deemed to
    be a distributor prior to reselling the Shares to a non-U.S. Person during the restricted period, the undersigned will send
    a notice to each new purchaser of Shares that such new purchaser is subject to the restrictions of Regulation S during the
    restricted period.

 

	 	7.	The
    undersigned is not an “underwriter” or “dealer” (as such terms are defined in the Securities Act),
    and the acquisition of the Shares by the undersigned is not a transaction (or part of a series of transactions) that is part
    of any plan or scheme to evade the registration provisions of the Securities Act.

 

	 	8.	The
    undersigned does not have a short position in any securities of the Company and will not have a short position in such securities
    at any time prior to the expiration of the restricted period.

 

    B-1

     

    

 

	 	9.	If
    at any time after the expiration of the restricted period, the undersigned wishes to transfer or attempts to transfer the
    Shares to a U.S. Person, the undersigned agrees to notify the Company if at such time it is an “affiliate” of
    the Company or is then acting as an “underwriter,” “dealer,” or “distributor” as to such
    securities (as such terms are defined in the Securities Act or the regulations promulgated thereunder, including but not limited
    to, Regulation S), or if such transfer is being made as part of a plan or scheme to evade the registration provisions of the
    Securities Act.

 

	 	10.	The
    undersigned acknowledges that the undersigned may only be able to resell the Shares pursuant to the provisions of Regulation
    S and otherwise pursuant to the Securities Act, and that it may not be possible for the undersigned to liquidate its investment
    in the Shares. The undersigned is prepared, therefore, to hold its, his or her Shares in the Company indefinitely.

 

	FOR INDIVIDUALS:	 	FOR ENTITIES:
	 	 	 
	 	 	 
	Print Name	 	Print Name
	 	 	 	 
	 	 	By:	 
	Signature	 	 	Signature of Authorized Signatory
	 	 	 	 
	 	 	 
	 	 	Printed Name of Authorized Signatory
	 	 	 
	 	 	 
	 	 	Print
    Title of Authorized Signatory

 

    B-2

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