Document:

Document

IRHYTHM TECHNOLOGIES, INC.
EXECUTIVE CHANGE IN CONTROL AND SEVERANCE POLICY
(Adopted on August 1, 2019; Effective as of September 1, 2019)

This Executive Change in Control and Severance Policy (the “Policy”) is designed to provide certain protections to a select group of key employees of iRhythm Technologies, Inc. (“iRhythm” or the “Company”) or any of its subsidiaries if their employment is involuntarily terminated under the circumstances described in this Policy. The Policy is designed to be an “employee welfare benefit plan” (as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), and this document is both the formal plan document and the required summary plan description for the Policy.
1.Eligible Employee: An individual is only eligible for protection under this Policy if he or she is an Eligible Employee and complies with its terms. An “Eligible Employee” is an employee of the Company or any subsidiary of the Company who has (i) been designated by the Compensation Committee of the Board (the “Compensation Committee”) as eligible to participate in the Policy, whether individually or by position or category of position and (ii) executed a participation agreement in the form attached hereto as Exhibit A (a “Participation Agreement”).
2.Policy Benefits: An Eligible Employee will be eligible to receive the payments and benefits under this Policy upon his or her Qualified Termination. All benefits under this Policy will be subject to the Eligible Employee’s compliance with the Release Requirement and any timing modifications required to avoid adverse taxation under Section 409A.
3.Salary Severance.
a.On a Non-CIC Qualified Termination, an Eligible Employee will be eligible to receive continuing payments of severance pay at a rate equal to the Eligible Employee’s Base Salary for the number of months set forth below, with payment commencing on the first Company payroll date following the effective date of the Release (subject to any delay as provided in Section 10), less applicable withholdings.
i.Tier 1: Eighteen (18) months.
ii.Tier 2: Twelve (12) months.
iii.Tier 3: Six (6) months.
b.On a CIC Qualified Termination, an Eligible Employee will be eligible to receive a lumpsum payment equal to the number of months of annualized Base Salary as set forth below, payable on the first Company payroll date following the effective date of the Release (subject to any delay as provided in Section 10), less applicable withholdings.
i.Tier 1: Twenty-four (24) months.
ii.Tier 2: Fifteen (15) months.
iii.Tier 3: Nine (9) months.

4.COBRA Benefit.
a.On a Non-CIC Qualified Termination, if an Eligible Employee makes a valid election under COBRA to continue his or her health coverage, the Company will pay the cost of such continuation coverage for the Eligible Employee and any of the Eligible Employee’s eligible dependents that were covered under the Company’s health care plans immediately prior to the date of his or her eligible termination until the earliest of (i) the end of the period following the Non-CIC Qualified Termination set forth below, (ii) the date upon which the Eligible Employee and/or the Eligible Employee’s eligible dependents become covered under similar plans or (iii) the date upon which the Eligible Employee ceases to be eligible for coverage under COBRA (such payments, the “Non-CIC COBRA Premiums”). However, if the Company determines in its sole discretion that it cannot pay the COBRA Non-CIC Premiums without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to the Eligible Employee a taxable lump-sum payment equal to the total amount of the COBRA premiums that the Executive would be required to pay to continue his or her group health coverage in effect on the date of his or her Qualified Termination (which amount will be based on the premium rates applicable for the first month of COBRA coverage for the Eligible Employee and any of eligible dependents of the Eligible Employee) for the period of time set forth below following the Qualified Termination (the “Non-CIC COBRA Replacement Payment”), payable on the first Company payroll date following the effective date of the Release (subject to any delay as provided in Section 10). The Non-CIC COBRA Replacement Payment (if any) will be made regardless of whether the Eligible Employee elects COBRA continuation coverage. For the avoidance of doubt, the Non-CIC COBRA Replacement Payment may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings. Notwithstanding anything to the contrary under this Policy, if at any time the Company determines in its sole discretion that it cannot provide the Non-CIC COBRA Premiums or the Non-CIC COBRA Replacement Payment without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Eligible Employee will not receive any further Non-CIC COBRA Premiums or the Non-CIC COBRA Replacement Payment.
i.Tier 1: Eighteen (18) months.
ii.Tier 2: Twelve (12) months.
iii.Tier 3: Six (6) months.
b.On CIC Qualified Termination if an Eligible Employee makes a valid election under COBRA to continue his or her health coverage, the Company will pay the cost of such continuation coverage for the Eligible Employee and any of the Eligible Employee’s eligible dependents that were covered under the Company’s health care plans immediately prior to the date of his or her eligible termination until the earliest of (i) the end of the period following the CIC Qualified Termination set forth below, (ii) the date upon which the Eligible Employee and/or the Eligible Employee’s eligible dependents become covered under similar plans or (iii) the date upon which the Eligible Employee ceases to be eligible for coverage under COBRA (the “CIC COBRA Premiums”, and together with the Non- CIC COBRA Premiums, the “COBRA Premiums”). However, if the Company determines in its sole discretion that it cannot pay the CIC COBRA Premiums without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to the Eligible Employee a taxable lump-sum payment equal to the total amount of the COBRA 
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premiums that the Eligible Employee would be required to pay to continue his or her group health coverage in effect on the date of his or her Qualified Termination (which amount will be based on the premium rates applicable for the first month of COBRA coverage for the Eligible Employee and any of eligible dependents of the Eligible Employee) for the period of time set forth below following the Qualified Termination (the “CIC COBRA Replacement Payment”, and together with a Non-CIC COBRA Replacement Payment, a “COBRA Replacement Payment”), payable on the first Company payroll date following the effective date of the Release (subject to any delay as provided in Section 10). The CIC COBRA Replacement Payment (if any) will be made regardless of whether the Eligible Employee elects COBRA continuation coverage. For the avoidance of doubt, the CIC COBRA Replacement Payment may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings. Notwithstanding anything to the contrary under this Policy, if at any time the Company determines in its sole discretion that it cannot provide the CIC COBRA Premiums or the CIC COBRA Replacement Payment without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Eligible Employee will not receive any further CIC COBRA Premiums or the CIC COBRA Replacement Payment.

i.Tier 1: Twenty-four (24) months
ii.Tier 2: Fifteen (15) months.
iii.Tier 3: Nine (9) months
5.Equity Benefits: On a CIC-Qualified Termination, acceleration of vesting as to all then-unvested shares or rights subject to all equity awards which have been granted to the Eligible Employee. In the case of an equity award with performance-based vesting, unless otherwise specified in the applicable equity award agreement governing such award, all performance goals and other vesting criteria will be deemed achieved at target. For the avoidance of doubt, in the event of the Eligible Employee’s Non-CIC Qualified Termination, any unvested portion of the Eligible Employee’s then-outstanding equity awards will remain outstanding until the earlier of (x) three (3) months following the Qualified Termination (the “Closing Deadline”) or (y) the occurrence of a Change in Control, solely so that any benefits due on a Non-CIC Qualified Termination can be provided if a Change in Control occurs within the three (3) month period following the Qualified Termination (provided that in no event will the Executive’s stock options or similar equity awards remain outstanding beyond the equity award’s maximum term to expiration). If no Change in Control occurs within the three (3) month period following a Qualified Termination, any unvested portion of the Eligible Employee’s equity awards automatically and permanently will be forfeited on the three (3) month anniversary following the date of the Qualified Termination without having vested.
6.Bonus Severance. On a CIC-Qualified Termination, an Eligible Employee will be eligible to receive a lump-sum payment equal to a percentage of the Eligible Employee’s target bonus as in effect for the fiscal year in which the Qualified Termination occurs, as set forth below, payable on the first Company payroll date following the effective date of the Release (subject to any delay as provided in Section 10), less applicable withholdings.
i.Tier 1: One hundred and fifty percent (150%).
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ii.Tier 2: One hundred percent (100%).
iii.Tier 3: Seventy-five percent (75%).
7.Non-Duplication of Payment or Benefits: If (i) an Eligible Employee’s Qualified Termination occurs during the Pre-Closing Period that qualifies him or her for Salary Severance and COBRA Benefits payable on a Non-CIC Qualified Termination under this Policy and (ii) a Change in Control occurs by the Closing Deadline that qualifies him or her for the Salary Severance and COBRA Benefits payable on a CIC Qualified Termination under this Policy, then (i) the Eligible Employee will cease receiving any further payments or benefits under this Policy in connection with his or her Non-CIC Qualified Termination and (ii) the Salary Severance and COBRA Premiums (or the COBRA Replacement Payment) otherwise payable to the Eligible Employee on a CIC Qualified Termination under this Policy each will be offset by the corresponding payments or benefits already paid to the Eligible Employee under this Policy upon a Non-CIC Qualified Termination.
8.Death of Eligible Employee: If the Eligible Employee dies before all payments or benefits he or she is entitled to receive under this Policy have been paid, then (i) the COBRA Premiums to the Eligible Employee will immediately cease (and the COBRA Replacement Payment will not be paid to the Eligible Employee) and (ii) any such unpaid Salary Severance, Bonus Severance or Equity Benefits will be paid to his or her designated beneficiary, if living, or otherwise to his or her personal representative in a lump-sum payment as soon as possible following his or her death.
9.Release: The Eligible Employee’s receipt of any severance payments or benefits upon his or Qualified Termination under this Policy is subject to the Eligible Employee signing and not revoking the Company’s then-standard separation agreement and release of claims (which may include an agreement not to disparage the Company, non-solicit provisions, and other standard terms and conditions) (the “Release” and such requirement, the “Release Requirement”), which must become effective and irrevocable no later than the sixtieth (60th) day following the Eligible Employee’s Qualified Termination (the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline, the Eligible Employee will forfeit any right to severance payments or benefits under this Policy. In no event will severance payments or benefits under the Policy be paid or provided until the Release actually becomes effective and irrevocable. Notwithstanding any other payment schedule set forth in this Policy, none of the severance payments and benefits payable upon such Eligible Employee’s Qualified Termination under this Policy will be paid or otherwise provided prior to the sixtieth (60th) day following the Eligible Employee’s Qualified Termination. Except to the extent that payments are delayed under the paragraph below entitled “Section 409A,” on the first regular payroll pay day following the sixtieth (60th) day following the Eligible Employee’s Qualified Termination, the Company will pay or provide the Eligible Employee the severance payments and benefits that the Eligible Employee would otherwise have received under this Policy on or prior to such date, with the balance of such severance payments and benefits being paid or provided as originally scheduled.
10.Section 409A:
a.For purposes of this Policy, no payment will be made to an Eligible Employee upon termination of his or her employment unless such termination constitutes a “separation from service” within the meaning of Code Section 409A and Section 1.409A-l(h) of the regulations promulgated thereunder.
b.To the extent any payments to which an Eligible Employee becomes entitled under this
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Policy, or any agreement or plan referenced herein, in connection with his or her separation from service from the Company constitute deferred compensation subject to Section 409A of the Code (the “Deferred Payments ”), such payments will be paid on, or in the case of installments, will not commence, until the sixtieth (60th) day following the Eligible Employee’s separation from service, or if later, such time as required by Section 10.c. Except as required by 10.c., any installment payments that would have been made to an Eligible Employee during the sixty (60) day period immediately following such Eligible Employee’s separation from service but for the preceding sentence will be paid to Eligible Employee on or around the sixtieth (60th) day following Eligible Employee’s separation from service and the remaining payments will be made as provided herein.
c.If an Eligible Employee is deemed at the time of such separation from service to be a “specified employee” under Code Section 409A, then any Deferred Payment(s) shall not be made or commence until the earliest of (i) the expiration of the six (6) month period measured from the date of his or her “separation from service” (as such term is at the time defined in Treasury Regulations under Code Section 409A) with the Company or (ii) the date of his or her death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to the Eligible Employee, including (without limitation) the additional twenty percent (20%) tax for which the Eligible Employee would otherwise be liable under Code Section 409A(a)(l)(B) in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to the Eligible Employee or his or her beneficiary in one lump sum.
d.The Company reserves the right to amend the Policy as it deems necessary or advisable, in its sole discretion and without the consent of any Eligible Employee or any other individual, to comply with any provision required to avoid the imposition of the additional tax imposed under Code Section 409A or to otherwise avoid income recognition under Code Section 409A prior to the actual payment of any benefits or imposition of any additional tax. Each payment and benefit payable hereunder is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. In no event will the Company reimburse an Eligible Employee for any taxes that may be imposed on the Eligible Employee as a result of Section 409A.
11. Parachute Payments:
a. Reduction of Severance Benefits. Notwithstanding anything set forth herein to the contrary, if any payment or benefit that an Eligible Employee would receive from the Company or any other party whether in connection with the provisions herein or otherwise (the “Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Best Results Amount. The “Best Results Amount” will be either (x) the full amount of such Payment or (y) such lesser amount as would result in no portion of the Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employment taxes, income taxes and the Excise Tax, results in the Eligible Employee’s receipt, on an after-tax basis, of the greater amount notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting parachute payments is necessary so that the Payment equals the Best Results Amount, reduction will occur in the following order: reduction of cash 
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payments; cancellation of awards granted “contingent on a change in ownership or control” (within the meaning of Code Section 280G); cancellation of accelerated vesting of stock awards; and reduction of employee benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting will be cancelled in the reverse order of the date of grant of the Eligible Employee’s equity awards.
b. Determination of Excise Tax Liability. The Company will select a professional services firm to make all of the determinations required to be made under these paragraphs relating to parachute payments. The Company will request that firm provide detailed supporting calculations both to the Company and the Eligible Employee prior to the date on which the event that triggers the Payment occurs if administratively feasible, or subsequent to such date if events occur that result in parachute payments to the Eligible Employee at that time. For purposes of making the calculations required under these paragraphs relating to parachute payments, the firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith determinations concerning the application of the Code. The Company and the Eligible Employee will furnish to the firm such information and documents as the firm may reasonably request in order to make a determination under these paragraphs relating to parachute payments. The Company will bear all costs the firm may reasonably incur in connection with any calculations contemplated by these paragraphs relating to parachute payments. Any such determination by the firm will be binding upon the Company and the Eligible Employee, and the Company will have no liability to the Eligible Employee for the determinations of the firm.
12.Administration: The Policy will be administered by the Compensation Committee or its delegate (in each case, an “Administrator”). The Administrator will have full discretion to administer and interpret the Policy. Any decision made or other action taken by the Administrator with respect to the Policy and any interpretation by the Administrator of any term or condition of the Policy, or any related document, will be conclusive and binding on all persons and be given the maximum possible deference allowed by law. The Administrator is the “plan administrator” of the Policy for purposes of ERISA and will be subject to the fiduciary standards of ERISA when acting in such capacity.
13.Exclusive Benefits: This Policy is intended to be the only agreement between the Eligible Employee and the Company regarding any change in control or severance payments or benefits to be paid to the Eligible Employee on account of a termination of employment whether unrelated to, concurrent with, or following, a Change in Control. Accordingly, by executing a Participation Agreement, an Eligible Employee hereby forfeits and waives any rights to any severance or change in control benefits set forth in any employment agreement, offer letter, and/or equity award agreement, except as set forth in this Policy.
14.Tax Obligations: All payments and benefits under this Policy will be paid less applicable withholding taxes. The Company is authorized to withhold from any payments or benefits all federal, state, local and/or foreign taxes required to be withheld therefrom and any other required payroll deductions. The Company will not pay any Eligible Employee’s taxes arising from or relating to any payments or benefits under this Policy. The Eligible Employee will be solely responsible for the payment of all personal tax liability that is incurred as a result of the payments and benefits received under this Policy, and the Eligible Employee will not be reimbursed by the Company for any such payments.
15.Amendment or Termination: The Board or the Compensation Committee may amend or terminate the Policy at any time without advance notice to any Eligible Employee or other 
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individual and without regard to the effect of the amendment or termination on any Eligible Employee or on any other individual, except that any amendment or termination of the Policy that would reduce the benefits provided hereunder or impair an Eligible Employee’s eligibility under the Policy will not be effective with respect to such Eligible Employee without such Eligible Employee’s prior written consent. Any action in amending or terminating the Policy will be taken in a non-fiduciary capacity.
16.Claims Procedure: Any Eligible Employee who believes he or she is entitled to any payment under the Policy may submit a claim in writing to the Administrator. If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Policy on which the denial is based. The notice will also describe any additional information needed to support the claim and the Policy’s procedures for appealing the denial. The denial notice will be provided within ninety (90) days after the claim is received. If special circumstances require an extension of time (up to ninety (90) days), written notice of the extension will be given within the initial ninety (90) day period. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the Administrator expects to render its decision on the claim.
17.Appeal Procedure: If the claimant’s claim is denied, the claimant (or his or her authorized representative) may apply in writing to the Administrator for a review of the decision denying the claim. Review must be requested within sixty (60) days following the date the claimant received the written notice of their claim denial or else the claimant loses the right to review. The claimant (or representative) then has the right to review and obtain copies of all documents and other information relevant to the claim, upon request and at no charge, and to submit issues and comments in writing. The Administrator will provide written notice of the decision on review within sixty (60) days after it receives a review request. If additional time (up to sixty (60) days) is needed to review the request, the claimant (or representative) will be given written notice of the reason for the delay. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the Administrator expects to render its decision. If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Policy on which the denial is based. The notice will also include a statement that the claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents and other information relevant to the claim and a statement regarding the claimant’s right to bring an action under Section 502(a) of ERISA.
18.Successors: Any successor to the Company of all or substantially all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or other transaction) will assume the obligations under the Policy and agree expressly to perform the obligations under the Policy in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under the Policy, the term “Company” will include any successor to the Company’s business and/or assets which becomes bound by the terms of the Policy by operation of law, or otherwise.
19.Applicable Law: The provisions of the Policy will be construed, administered, and enforced in accordance with ERISA and, to the extent applicable, the internal substantive laws of the state of California (but not its conflict of laws provisions).
20.Definitions: The following terms will have the following meanings for purposes of this Policy:
a.“Affiliate” means the Company and any other parent or subsidiary corporation of the Company, as such terms are defined in Section 424(e) and (1) of the Code.
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b.“Base Salary” means the Eligible Employee’s annual base salary as in effect immediately prior to his or her Qualified Termination (or if the Qualified Termination is due to Good Reason based on a material reduction in base salary under Section 20.m.(i), then the Eligible Employee’s annual base salary in effect immediately prior to such reduction).
c.“Board” means the Board of Directors of the Company.
d.“Bonus Severance” means the severance payments set forth in Section 6.
e.“Cause” means: (i) Eligible Employee’s conviction of, or plea of guilty or nolo contendre to, a felony or a crime involving moral turpitude; (ii) Eligible Employee’s admission or conviction of, or plea of guilty or nolo contendre to, an intentional act of fraud, embezzlement or theft in connection with Eligible Employee’s duties or in the course of employment with the Company or an Affiliate; (iii) Eligible Employee’s intentional wrongful damage to property of the Company or an Affiliate; (iv) Eligible Employee’s intentional unauthorized or wrongful use or disclosure of secret processes or of proprietary or confidential information of the Company or an Affiliate (or any other party to whom Eligible Employee owes an obligation of nonuse or nondisclosure as a result of Eligible Employee’s employment relationship with the Company or an Affiliate), including but not limited to trade secrets and customer lists; (iv) Eligible Employee’s violation of any agreement not to compete with the Company or an Affiliate or to solicit either its customers or employees on behalf of competitors while remaining employed with the Company or an Affiliate; (v) Eligible Employee’s intentional violation of any policy or policies regarding ethical conduct; (vi) an act of dishonesty made by Eligible Employee in connection with Eligible Employee’s responsibilities as an employee which materially harms the Company or an Affiliate, or (vii) Eligible Employee’s intentional or continued failure to perform Eligible Employee’s duties with the Company or an Affiliate, as determined in good faith by the Company or an Affiliate after being provided with notice of such failure, such notice specifying in reasonable detail the tasks which must be accomplished and a timeline for the accomplishment to avoid termination for Cause, and an opportunity to cure within thirty (30) days of receipt of such notice.
f.“Change in Control” means the occurrence of any of the following events:
i.A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company, will not be considered a Change in Control; or
ii.Any action or event occurring within an one year period, as a result of which less than a majority of the members of the Board are Incumbent Directors. “Incumbent Directors” will mean members of the Board who either (A) are members of the Board as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of a majority of the Incumbent
Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of members of the Board); or
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iii.A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section 409A.
Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
g.“Change in Control Period” means the period beginning three (3) months prior to a Change in Control and ending twelve (12) months following a Change in Control.
h.“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
i.“COBRA Benefit” means the COBRA premium payments and COBRA Replacement Payments set forth in Sections 4.a. and 4.b.
j.“Code” means the Internal Revenue Code of 1986, as amended.
k.“Disability” means that the Eligible Employee has been unable to perform Eligible Employee’s Company duties as the result of Eligible Employee’s incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement or 180 days in any consecutive twelve (12) month period, is determined to be total and permanent by a physician selected by the Company or its insurers and 
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acceptable to Eligible Employee or Eligible Employee’s legal representative (such agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Company of its intention to terminate the Eligible Employee’s employment. In the event that the Eligible Employee resumes the performance of substantially all of Eligible Employee’s duties hereunder before the termination of Eligible Employee’s employment becomes effective, the notice of intent to terminate will automatically be deemed to have been revoked.
l.“Equity Benefits” means the equity award acceleration benefits set forth in Section 5.
m.“Good Reason” means Eligible Employee’s resignation within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the following, without Eligible Employee’s express written consent: (i) a material reduction by the Company of Eligible Employee’s base salary in effect immediately prior to such reduction; (ii) a material reduction of Eligible Employee’s duties or responsibilities relative to Eligible Employee’s duties or responsibilities in effect immediately prior to such reduction; or (iii) Eligible Employee’s relocation at the Company’s direction to a facility or location more than fifty (50) miles from Eligible Employee’s then present location of providing services. Eligible Employee’s resignation will not be deemed to be for Good Reason unless Eligible Employee has first provided the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date the Company receives such notice, and such condition has not been cured during such period.
n.“Qualified Termination” means a termination of the Eligible Employee’s employment either (i) by the Company without Cause (excluding by reason of the Eligible Employee’s death or Disability) or (ii) by the Executive for Good Reason, in either case, during the Change in Control Period (a “CIC Qualified Termination”) or outside of the Change in Control Period (a “Non-CIC Qualified Termination”).
o.“Salary Severance” means the severance payments set forth in Sections 3.a. and 3.b.
p.“Tier” means the tier of severance benefits an Eligible Employee is entitled to receive under the Policy, depending on the rank of the Eligible Employee on the date the right to severance benefits under the Policy is triggered through a Qualified Termination, as set forth below.
i.“Tier 1” applies to the Company’s Chief Executive Officer.
ii.“Tier 2” applies to the Company’s Chief Financial Officer, Chief People Officer and all Executive Vice Presidents.
iii.“Tier 3” applies to the Company’s Vice Presidents.

21.  Additional Information:
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	Plan Name:	iRhythm Technologies, Inc. Executive Change in Control and Severance Policy
		
	Plan Sponsor:	iRhythm Technologies, Inc.
		699 8th Street, Suite 600
		San Francisco, California
		
	Identification Numbers:	[___]
		
	Plan Year:	Company’s Fiscal Year
		
	Plan Administrator:	iRhythm Technologies, Inc.
		Attention: Administrator of the iRhythm Technologies,

		Inc. Executive Change in Control and Severance Policy
		699 8th Street, Suite 600
		San Francisco, California
		
	Agent for Service of Legal Process:	 iRhythm Technologies, Inc.

		Attention: Denise Andresen

		699 8th Street, Suite 600
		San Francisco, California
		
		
		Service of process may also be made upon the Plan Administrator.
		
	Type of Plan	Severance Plan/Employee Welfare Benefit Plan
		
	Plan Costs	The cost of the Policy is paid by the Company.

22. Statement of ERISA Rights:
Eligible Employees have certain rights and protections under ERISA:
They may examine (without charge) all Policy documents, including any amendments and copies of all documents filed with the U.S. Department of Labor, such as the Policy’s annual report (Internal Revenue Service Form 5500). These documents are available for review in the Company’s Human Resources Department.
They may obtain copies of all Policy documents and other Policy information upon written request to the Plan Administrator. A reasonable charge may be made for such copies.
In addition to creating rights for Eligible Employees, ERISA imposes duties upon the people who are responsible for the operation of the Policy. The people who operate the Policy (called “fiduciaries”) 
11

have a duty to do so prudently and in the interests of Eligible Employees. No one, including the Company or any other person, may fire or otherwise discriminate against an Eligible Employee in any way to prevent them from obtaining a benefit under the Policy or exercising rights under ERISA. If an Eligible Employee’s claim for a severance benefit is denied, in whole or in part, they must receive a written explanation of the reason for the denial. An Eligible Employee has the right to have the denial of their claim reviewed. (The claim review procedure is explained above.)

Under ERISA, there are steps Eligible Employees can take to enforce the above rights. For instance, if an Eligible Employee requests materials and does not receive them within thirty (30) days, they may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and to pay the Eligible Employee up to $110 a day until they receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If an Eligible Employee has a claim which is denied or ignored, in whole or in part, he or she may file suit in a state or federal court. If it should happen that an Eligible Employee is discriminated against for asserting their rights, he or she may seek assistance from the U.S. Department of Labor, or may file suit in a federal court.
In any case, the court will decide who will pay court costs and legal fees. If the Eligible Employee is successful, the court may order the person sued to pay these costs and fees. If the Eligible Employee loses, the court may order the Eligible Employee to pay these costs and fees, for example, if it finds that the claim is frivolous.
If an Eligible Employee has any questions regarding the Policy, please contact the Plan Administrator. If an Eligible Employee has any questions about this statement or about their rights under ERISA, they may contact the nearest area office of the Employee Benefits Security Administration (formerly the Pension and Welfare Benefits Administration), U.S. Department of Labor, listed in the telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. An Eligible Employee may also obtain certain publications about their rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
12

EXHIBIT A
Executive Change in Control and Severance Policy
Participation Agreement
This Participation Agreement (“Agreement”) is made and entered into by and between [NAME] on the one hand, and iRhythm Technologies, Inc. (the “Company”) on the other.
You have been designated as eligible to participate in the Company’s Executive Change in Control and Severance Policy (the “Policy”), a copy of which is attached hereto, pursuant to which you are eligible to receive the applicable Salary Severance, COBRA Benefit, Bonus Severance, and Equity Benefits set forth in the Policy upon a Qualified Termination, subject to the terms and conditions of the Policy. Capitalized terms used but not defined in this Agreement have the meanings given to them in the Policy.
[FOR TIER 1 ONLY: Notwithstanding any other provision in the Policy or any applicable equity compensation plan and/or individual stock option agreement, if you become eligible to receive Equity Benefits under the Policy (including satisfying the Release Requirement), your stock options granted on September 27, 2012 and June 13, 2013 (the “Original Options”) that remain vested and outstanding on your Qualified Termination Date will remain exercisable until the eighteen (18) month anniversary of your Qualified Termination Date; provided, however, that the post-termination exercise period for either Original Option will not extend beyond the earlier of its original maximum term or the tenth (10th) anniversary of the original date of grant.]
You agree that the Policy and the Agreement constitute the entire agreement of the parties hereto and supersede in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties, and will specifically supersede any severance and/or change in control provisions of any offer letter, employment agreement, or equity award agreement entered into between you and the Company.
This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
By its signature below, each of the parties signifies its acceptance of the terms of the Policy, in the case of the Company by its duly authorized officer effective as of the last date set forth below.
IRHYTHM TECHNOLOGIES, INC. ELIGIBLE EMPLOYEE
By:  Signature:
Date:
Date:Exhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

This SHARE EXCHANGE
AGREEMENT (hereinafter referred to as “this Agreement”) dated as of August 6, 2020, by and among AS Capital, Inc.,
a Nevada corporation (“ASIN” or the “Company”), HanJiao International Holding Limited, a private limited
corporation incorporated under the laws of British Virgin Islands (“HIHL”), and each of the undersigned parties (each,
an “Investor,” and collectively, the “Investors”).

 

W I T N E S S E T H:

 

WHEREAS, HIHL provides
healthcare products and services targeted to the elderly and middle-aged populations through its online to offline platforms;

 

WHEREAS, ASIN desires
to acquire from the Investors, one hundred (100) shares of the issued and outstanding ordinary shares of HIHL (“HIHL Ordinary
Stock”), in consideration of up to EIGHTY SIX MILLION (86,000,000) shares of ASIN’s common stock, par value $0.0001
(“Common Stock”), at a value of $0.46 per share of Common Stock (the “Exchange”), on the terms and conditions
set forth below;

 

WHEREAS, the parties
herein desire the Exchange to be a tax-free exchange under the Internal Revenue Code.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual representations, warranties and agreements set forth herein, the parties hereto
agree as follows:

 

 

ARTICLE I

Definitions

 

In addition to terms
defined elsewhere in this Agreement, the following terms when used in this Agreement shall have the meanings indicated below:

 

“Affiliate” shall mean
with respect to a specified Person, any other Person which, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with such Person, and without limiting the generality of the foregoing, includes,
with respect to a Person (a) any other Person which beneficially owns or holds ten percent (10%) or more of any class of voting
securities or other securities convertible into voting securities of such Person or beneficially owns or holds ten percent (10%)
or more of any other equity interests in such Person, (b) any other Person with respect to which such Person beneficially owns
or holds ten percent (10%) or more of any class of voting securities or other securities convertible into voting securities of
such Person, or owns or holds ten percent (10%) or more of the equity interests of the other Person, and (c) any director or senior
officer of such Person. For purposes of this definition, the term “control” (including, with correlative meanings,
the terms “controlled by” and “under common control with”), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities or by contract or otherwise.

 

“Agreement” shall mean
this Share Exchange Agreement together with all exhibits and schedules referred to herein, which exhibits and schedules are incorporated
herein and made a part hereof.

 

“Closing” shall have
the meaning set forth in Section 2.2.

 

“Closing Date” shall
mean the date that the Closing takes place.

 

 

 

 

    	 	1	 

     

    

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

 

“Commission or SEC”
shall mean the United States Securities and Exchange Commission.

 

“Commission Reports”
shall mean the Forms 10-K, 10-Q, 8-K, and other Commission filings required by the Securities Exchange Act of 1934, as amended,
and Securities Act of 1933, as amended, which have been filed by the Company with the Commission as at the date of this Agreement.

 

“Company” shall have
the meaning set forth in the recitals.

 

“Company Common Stock”
shall mean the common stock of the Company at par value of USD $0.0001 per share.

 

“Confidential Information”
means any information concerning the businesses and affairs of HIHL or the Company that is not already generally available to the
public.

 

“Consideration” shall
mean the consideration of Number of Shares (86,000,000) shares of the Company’s Common Stock, par value $0.0001 to be issued
by the Company to the Investors for the acquisition by the Company of one hundred (100) shares of the HIHL Ordinary Stock (representing
approximately 100% of the total issued and outstanding shares of the HIHL Ordinary Stock).

 

“Effective Time” shall have the meaning set
forth in Section 2.3.

 

“Environmental Laws” shall mean (i) the common
law, and (ii) any and all federal, state and local statutes, regulations, rules, orders, ordinances or permits of any governmental
authority which pertain to health, the environment, wildlife and natural resources in effect in any and all jurisdictions in which
the applicable company conducts business.

 

“Exchange” shall have the meaning set forth
in the recitals.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

“Exchange Documents” shall have the meaning
set forth in Section 3.2.

 

“Financial Statements”
shall mean HIHL’s balance sheets, statement of operations, changes in stockholders’ equity and cash flow as of and
for the fiscal years ended December 31, 2019 and 2018, and the six months ended June 30, 2020. Financial statements for the years
ended December 31, 2019 and 2018, shall be audited by an auditor acceptable to ASIN in its discretion.

 

“GAAP” shall mean United States generally
accepted accounting principles.

 

“HIHL” shall mean Hanjiao International Holding
Limited (Company No.:1985147), a private limited company incorporated under the laws of British Virgin Island having its registered
office at Vistra Corporate Services Centre, Wickhams Cay II,Road Town, Tortola, VG1110, British Virgin Islands

 

“HIHL Certificates”
shall have the meaning set forth in Section 2.4.

 

 

 

 

    	 	2	 

     

    

 

“HIHL Ordinary Stock”
shall mean the ordinary stock of HIHL.

 

“Guaranty” shall mean,
as to any Person, all liabilities or obligations of such Person, with respect to any indebtedness or other obligations of any other
Person, which have been guaranteed, directly or indirectly, in any manner by such Person, through an agreement, contingent or otherwise,
to purchase such indebtedness or obligation, or to purchase or sell property or services, primarily for the purpose of enabling
the debtor to make payment of such indebtedness or obligation or to guarantee the payment to the owner of such indebtedness or
obligation against loss, or to supply funds to or in any manner invest in the debtor.

 

“Investor Representative”
shall have the meaning set forth in Section 2.6.

 

“Investors” shall have
the meaning set forth in the recitals.

 

“Investments” shall
mean, with respect to any Person, all advances, loans or extensions of credit to any other Person (except for extensions of credit
to customers in the ordinary course of business), all purchases or commitments to purchase any stock, bonds, notes, debentures
or other securities of any other Person, and any other investment in any other Person, including partnerships or joint ventures
(whether by capital contribution or otherwise) or other similar arrangement (whether written or oral) with any Person, including,
but not limited to, arrangements in which (i) the first Person shares profits and losses of the other Person, (ii) any such other
Person has the right to obligate or bind the first Person to any third party, or (iii) the first Person may be wholly or partially
liable for the debts or obligations of such partnership, joint venture or other entity.

 

“Knowledge” shall mean,
in the case of any Person who is an individual, knowledge that a reasonable individual under similar circumstances would have after
such reasonable investigation and inquiry as such reasonable individual would under such similar circumstances make, and in the
case of a Person other than an individual, the knowledge that a senior officer, director or manager of such Person, or any other
Person having responsibility for the particular subject matter at issue of such Person, would have after such reasonable investigation
and inquiry as such senior officer, director, manager or responsible Person would under such similar circumstances make.

 

“Law” and “Laws”
shall mean any federal, state, local or foreign statute, law, ordinance, regulation, rule, code, order or other requirement or
rule of law.

 

“Liabilities” shall
mean any direct or indirect indebtedness, liability, claim, loss, damage, deficiency, obligation or responsibility, fixed or unfixed,
choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise, including, without
limitation, liabilities on account of taxes, other governmental charges or Litigation, whether or not of a kind required by GAAP
or International Financial Reporting Standards, as applicable, to be set forth on a financial statement.

 

“Litigation” shall mean any actions, suits,
investigations, claims or proceedings.

 

“Material Adverse Effect”
shall mean any event or condition of any character which has had or could reasonably be expected to have a material adverse effect
on the condition (financial or otherwise), results of operations, assets, liabilities, properties, or business of the Company or
HIHL, as applicable.

 

“Person” shall mean
any natural person, corporation, unincorporated organization, partnership, association, limited liability company, joint stock
company, joint venture, trust or government, or any agency or political subdivision of any government or any other entity.

 

 

 

 

    	 	3	 

     

    

 

“Securities Act” shall mean the Securities
Act of 1933, as amended.

 

“Sold HIHL Stock” shall
have the meaning set forth in Section 2.4.

 

“Subsidiary” of any
Person shall mean any Person, whether or not capitalized, in which such Person owns, directly or indirectly, an equity interest
of more than fifty percent (50%), or which may effectively be controlled, directly or indirectly, by such Person.

 

“Tax” and “Taxes”
shall mean (i) all income, excise, gross receipts, ad valorem, sales, use, employment, franchise, profits, gains, property, transfer,
payroll, withholding, severance, occupation, social security, unemployment compensation, alternative minimum, value added, intangibles
or other taxes, fees, stamp taxes, duties, charges, levies or assessments of any kind whatsoever (whether payable directly or by
withholding), together with any interest and any penalties, fines, additions to tax or additional amounts imposed by any governmental
or regulatory authority with respect thereto, (ii) any liability for the payment of any amounts of the type described in (i) as
a result of being a member of a consolidated, combined, unitary or aggregate group for any Taxable period, and (iii) any liability
for the payment of any amounts of the type described in (i) or (ii) as a result of being a transferee or successor to any person
or as a result of any express or implied obligation to indemnify any other Person.

 

“Tax Returns” shall
mean returns, declarations, reports, claims for refund, information returns or other documents (including any related or supporting
schedules, statements or information) filed or required to be filed in connection with the determination, assessment or collection
of any Taxes of any party or the administration of any laws, regulations or administrative requirements relating to any Taxes.

 

“Termination Date” shall
have the meaning set forth in Section 6.6.

 

The words “hereof”, “herein”
and “hereunder” and the words of similar import shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. The terms defined in the singular shall have a comparable meaning when used in the plural and vice
versa.

 

 

ARTICLE
II

Transactions; Terms of Share Exchange;
Manner of Exchange

 

2.1       Exchange
of Shares. Subject to the terms and conditions of this Agreement, at the Effective Time (as defined below):

 

(a)                
At the direction of the Investor Representative, the Company shall issue to the Investors up to an aggregate of 86,000,000
shares of Company Common Stock in accordance with Section 2.4 hereof;

 

(b)               
Each Investor shall deliver to the Company the original HIHL Certificates evidencing the Sold HIHL Stock and all appropriately
executed transfer documents in favor of the Company, in order to effectively transfer to the Company the right, title and interest
in and to the Sold HIHL Stock;

 

(c)                
the Exchange shall be consummated pursuant to the terms of this Agreement, which has been approved and adopted by the Boards
of Directors of the Company; and

 

(d)               
 the Securities issued by the Company in connection with this Share Exchange Agreement are issued pursuant to the exemption
from registration contained in Regulation S of the Securities Act of 1933.

 

 

 

 

    	 	4	 

     

    

 

2.2       Time
and Place of Closing. The closing of the transactions contemplated hereby (the “Closing”) will take place at 10:00
A.M. on the date following the satisfaction or waiver of all conditions to the obligations of the parties to consummate the transactions
contemplated hereby as set forth in Article VI (other than conditions with respect to actions the respective parties will take
at the Closing itself) (the “Closing Date”). The Closing shall be held at the principal office of the Company, or at
such other location or time as may be mutually agreed upon by the parties. The parties agree to take all necessary and prompt actions
so as to complete the Closing on or before December 31, 2020, or at such other date as may be agreed to by the parties in writing.

 

2.3       Effective
Time. The Exchange and other transactions contemplated by this Agreement shall become effective on the Closing Date (the “Effective
Time”).

 

2.4      Exchange
of Shares. At the Closing, the Investors shall surrender all the share certificates or records which represent in the aggregate
of one hundred (100) shares of the HIHL Ordinary Stock (representing up to 100% of the total issued and outstanding shares of HIHL
Ordinary Stock) (collectively, the “Sold HIHL Stock”) immediately prior to the Closing Date (the “HIHL Certificates”),
and the respective Investors shall, subject to the provisions of Section 5.2 hereof, at the Effective Time receive in exchange
therefor that number of shares of the Company Common Stock at an exchange ratio of One HIHL Ordinary Stock for 8,600 shares of
the Company Common Stock, all as more fully set forth on Exhibit A, attached hereto and incorporated herein..

 

2.5       Legend
On Securities. Each certificate for the shares of the Company Common Stock to be issued to any of the Investors as part of
the Consideration shall bear substantially the following legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “US SECURITIES ACT”), OR THE SECURITY
LAWS OF ANY STATE OF THE UNITED STATES. THEY MAY NOT BE SOLD, OFFERRED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS,
OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM STATE SECURITIES LAWS. HEDGING TRANSACTION INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN COMPLAINCE WITH THE U.S. SECURITIES ACT”.

 

2.6       Investor
Representative. The Investors hereby designate Ms. Tian Xiangyang to serve as the investor representative (the “Investor
Representative”). The Investors agree that: (i) the instructions of the Investor Representative to the Company and the acts
or omissions of the Investor Representative shall be conclusively deemed to be the instructions, acts or omissions of all of the
Investors, and that the Company shall be entitled to rely on such instructions, acts or omissions as if such instructions, actions
or omissions were received from or performed or omitted to be performed by all of the Investors; and (ii) all notice and items
delivered to the Investor Representative shall be conclusively deemed delivered to all of the Investors.

 

 

ARTICLE III

Representations and Warranties of the Company 

 

In order to induce
the Investors to enter into this Agreement and to consummate the transactions contemplated hereby, the Company makes the representations
and warranties set forth below to HIHL and the Investors.

 

3.1       Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. The Company
has all requisite corporate power and authority to carry on its business as presently conducted. The Company is duly qualified
to transact business and is in good standing as a foreign corporation in all jurisdictions where the ownership or leasing of its
properties or the conduct of its business requires such qualification except where the failure to so qualify would not have a Material
Adverse Effect on the Company.

 

 

 

 

    	 	5	 

     

    

 

3.2       Authorization;
Enforceability. The execution, delivery and performance of this Agreement by the Company and all other agreements to be executed,
delivered and performed by the Company pursuant to this Agreement (collectively, the “Exchange Documents”) and the
consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate
or individual action on the part of the Company. This Agreement and the Exchange Documents have been duly executed and delivered
by the Company, and constitute the legal, valid and binding obligation of the Company, assuming the due authorization, execution
and delivery of this Agreement by the Investors, enforceable in accordance with their respective terms, except to the extent that
their enforcement is limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting the enforcement of
creditors’ rights generally and by general principles of equity.

 

3.3       No
Violation or Conflict. To the Knowledge of the Company, the execution, delivery and performance of this Agreement and the Exchange
Documents by the Company, and the consummation by the Company of the transactions contemplated hereby and thereby: (a) do not violate
or conflict with any provision of law or regulation (whether federal, state or local) of the United States of America, or any writ,
order or decree of any court or governmental or regulatory authority, or any provision of the Company’s Articles of Incorporation
or Bylaws; and (b) do not and will not, with or without the passage of time or the giving of notice, result in the breach of, or
constitute a default (or an event that with notice or lapse of time or both would become a default), cause the acceleration of
performance, give to others any right of termination, amendment, acceleration or cancellation of or require any consent under,
or result in the creation of any lien, charge or encumbrance upon any property or assets of the Company pursuant to any instrument
or agreement to which the Company is a party or by which the Company or its properties may be bound or affected, other than instruments
or agreements as to which consent shall have been obtained at or prior to the Closing.

 

3.4       Consents
of Governmental Authorities and Others. To the Knowledge of the Company, other than in connection with the provisions of the
Exchange Act, and the Securities Act, no consent, approval, order or authorization of, or registration, declaration, qualification
or filing with any federal, state or local governmental or regulatory authority, or any other Person, is required to be made by
the Company in connection with the execution, delivery or performance of this Agreement by the Company or the consummation by the
Company of the transactions contemplated hereby, excluding the execution, delivery and performance of this Agreement by the Investors.

 

3.5       Conduct
of Business. Since December 31, 2018, the Company has conducted its business in the ordinary and usual course consistent with
past practices and there has not occurred any Material Adverse Effect on the Company. Except as disclosed in the Commission Reports,
the Company has not (a) amended its Articles of Incorporation or Bylaws; (b) issued, sold or authorized for issuance or sale, shares
of any class of its securities (including, but not limited to, by way of stock split or dividend) or any subscriptions, options,
warrants, rights or convertible securities or entered into any agreements or commitments of any character obligating it to issue
or sell any such securities; (c) redeemed, purchased or otherwise acquired, directly or indirectly, any shares of its capital stock
or any option, warrant or other right to purchase or acquire any such capital stock; (d) suffered any damage, destruction or loss,
whether or not covered by insurance, which has had or could reasonably be expected to have a Material Adverse Effect; granted or
made any mortgage or pledge or subjected itself or any of its properties or assets to any lien, charge or encumbrance of any kind;
(f) made or committed to make any capital expenditures in excess of USD100,000; (g) become subject to any guaranty; (h) granted
any increase in the compensation payable or to become payable to directors, officers or employees (including, without limitation,
any such increase pursuant to any severance package, bonus, pension, profit-sharing or other plan or commitment); (i) entered into
any agreement which would be a material agreement, or amended or terminated any existing material agreement; (j) to the Knowledge
of the Company, been named as a party in any Litigation, or become the focus of any investigation by any government or regulatory
agency or authority; (k) declared or paid any dividend or other distribution with respect to its capital stock; or (l) to the Knowledge
of the Company, experienced any other event or condition of any character which has had, or could reasonably be expected to have,
a Material Adverse Effect on the Company.

 

 

 

 

    	 	6	 

     

    

 

3.6       Litigation.
There is no Litigation pending or, to the Knowledge of the Company, threatened before any court or by or before any governmental
or regulatory authority or arbitrator, (a) affecting the Company (as plaintiff or defendant) or (b) against the Company relating
to the Company Common Stock or the transactions contemplated by this Agreement.

 

3.7       Brokers.
The Company has not employed any broker or finder, nor has it nor will it incur, directly or indirectly, any broker’s, finder’s,
investment banking or similar fees, commissions or expenses in connection with the transactions contemplated by this Agreement
or the Exchange Documents.

 

3.8       Compliance.
To the Knowledge of the Company, the Company is in compliance with all federal, state, local and foreign laws, ordinances, regulations,
judgments, rulings, orders and other requirements applicable to the Company and its assets and properties. To the Knowledge of
the Company, the Company is not subject to any judicial, governmental or administrative inquiry, investigation, order, judgment
or decree.

 

3.9       Charter,
Bylaws and Corporate Records. The Commission Reports contain true, correct and complete copies of (a) the Amended and Restated
Articles of Incorporation of the Company, as amended and in effect on the date hereof, (b) the Bylaws of the Company, as amended
and in effect on the date hereof.

 

3.10      Subsidiaries.
The Company has no Subsidiaries.

 

3.11      Capitalization.
As of the date of this Agreement, the authorized capital stock of the Company consists of 100,000,000 shares of common stock, USD
$0.0001 par value per share, and 10,000,000 shares of preferred stock, par value $0.0001 of the date of this Agreement, the following
securities are authorized and outstanding:

 

	Class	Authorized	Issued and Outstanding
	Common	100,000,000	11,201,030
	Blank Check Preferred	10,000,000	-
	Series A Preferred	1,000	1,000
	Series B Preferred	3,000,000	0
	Series C Preferred Stock	1,000,000	0

 

All shares of outstanding
Company Common Stock have been duly authorized, are validly issued and outstanding, and are fully paid and non-assessable.

 

3.12      Rights,
Warrants, Options. Except as set forth in the Commission Reports, there are no outstanding (a) securities or instruments convertible
into or exercisable for any of the capital stock or other equity interests of the Company; (b) options, warrants, subscriptions,
puts, calls, or other rights to acquire capital stock or other equity interests of the Company; or (c) commitments, agreements
or understandings of any kind, including employee benefit arrangements, relating to the issuance or repurchase by the Company of
any capital stock or other equity interests of the Company, or any instruments convertible or exercisable for any such securities
or any options, warrants or rights to acquire such securities.

 

 

 

 

    	 	7	 

     

    

 

3.13       Commission
Filings and Financial Statements. To the Company’s Knowledge, all of the Commission Reports required to be filed by the
Company have been filed with the Commission for the periods indicated in the definition of Commission Reports, and as of the date
filed, each of the Commission Reports were true, accurate and complete in all material respects and did not omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading. The financial statements included
in the Commission Reports of the Company: (a) have been prepared in accordance with the books of account and records of the Company;
(b) fairly present, and are true, correct and complete statements in all material respects of the Company’s financial condition
and the results of its operations at the dates and for the periods specified in those statements; and (c) have been prepared in
accordance with US GAAP consistently applied with prior periods.

 

3.14       Absence
of Undisclosed Liabilities. Other than as disclosed by the Commission Reports and the financial statements of the Company included
in the Commission Reports, the Company does not have any Liabilities. The Company has no Knowledge of any circumstances, conditions,
events or arrangements which may hereafter give rise to any Liabilities of the Company.

 

3.15       Real
Property. The Company does not own any fee simple interest in real property. The Company does not lease, sublease, or have
any other contractual interest in any real property.

 

3.16       Benefit
Plans and Agreements. Except as disclosed in the Commission Reports, the Company is not a party to any Benefit Plan (as defined
in Section 4.17) or employment agreement under which the Company currently has an obligation to provide benefits to any current
or former employee, officer, director, consultant or advisor of the Company.

 

3.17       Material
Agreements. Except as disclosed in the Commission Reports, the Company has no other material written and oral contracts or
agreements including without limitation any: (i) contract resulting in a commitment or potential commitment for expenditure or
other obligation or potential obligation, or which provides for the receipt or potential receipt, involving in excess of One Hundred
Thousand Dollars (USD100,000.00) in any instance, or series of related contracts that in the aggregate give rise to rights or obligations
exceeding such amount; (ii) indenture, mortgage, promissory note, loan agreement, guarantee or other agreement or commitment for
the borrowing or lending of money or encumbrance of assets involving more than One Hundred Thousand Dollars (USD100,000.00) in
each instance; (iii) agreement which restricts the Company from engaging in any line of business or from competing with any other
Person; or (iv) any other contract, agreement, instrument, arrangement or commitment that is material to the condition (financial
or otherwise), results of operation, assets, properties, liabilities, or business of the Company (collectively, and together with
the employment agreements, Employee Benefit Plans and all other agreements required to be disclosed on any schedule to this Agreement,
the “Material Company Agreements”).

 

3.18       Disclosure.
No representation or warranty of the Company contained in this Agreement, and no statement, report, or certificate furnished by
or on behalf of the Company to Investor pursuant hereto or in connection with the transactions contemplated hereby, contains any
untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein
or therein not misleading or omits to state a material fact necessary in order to provide Investor with full and proper information
as to the business, financial condition, assets, liabilities, and results of operation of the Company and the value of the properties
or the ownership of the Company.

 

 

ARTICLE IV

Representations and Warranties of the Investors

 

In order to induce
the Company to enter into this Agreement and to consummate the transactions contemplated hereby, HIHL and each Investor hereby
severally and not jointly makes the representations and warranties set forth below to the Company. The parties agree that except
for the representations and warranties set forth in Sections 4.2, 4.6, 4.9 and 4.20, each representation made by the Investors
in this Article IV is made to the best Knowledge of such Investor.

 

 

 

 

    	 	8	 

     

    

 

4.1       Organization.
HIHL is a private limited company duly organized, validly existing and in good standing under the laws of British Virgin Island.
HIHL has all requisite corporate power and authority to carry on its business as presently conducted. HIHL is duly qualified to
transact business in British Virgin Island and is in good standing as a foreign corporation in all jurisdictions where the ownership
or leasing of its properties or the conduct of its business requires such qualification except where the failure to so qualify
would not have a Material Adverse Effect on HIHL.

 

4.2       Authorization;
Enforceability. HIHL and each Investor have the capacity to execute, deliver and perform this Agreement. This Agreement and
all other documents executed and delivered by HIHL and Investor pursuant to this Agreement have been duly executed and delivered
and constitute the legal, valid and binding obligations of HIHL and Investor, as applicable, assuming the due authorization, execution
and delivery of this Agreement by the Company, enforceable in accordance with their respective terms, except to the extent that
their enforcement is limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting the enforcement of
creditors’ rights generally and by general principals of equity.

 

4.3       No
Violation or Conflict. The execution, delivery and performance of this Agreement and the other documents contemplated hereby
by HIHL and Investor, and the consummation by Investor of the transactions contemplated hereby: (a) do not violate or conflict
with any provision of law or regulation of Malaysia, or any writ, order or decree of any court or governmental or regulatory authority,
or any provision of HIHL’s memorandum and articles of association; and (b) do not and will not, with or without the passage
of time or the giving of notice, result in the breach of, or constitute a default (or an event that with notice or lapse of time
or both would become a default), cause the acceleration of performance, give to others any right of termination, amendment, acceleration
or cancellation of or require any consent under, or result in the creation of any lien, charge or encumbrance upon any property
or assets of HIHL pursuant to any instrument or agreement to which HIHL is a party or by which HIHL or its properties may be bound
or affected, other than instruments or agreements as to which consent shall have been obtained at or prior to the Closing.

 

4.4        Consents
of Governmental Authorities and Others. No consent, approval or authorization of, or registration, qualification or filing
with governmental or regulatory authority, or any other Person, is required to be made by HIHL or Investor in connection with the
execution, delivery or performance of this Agreement by HIHL or Investor, as applicable, or the consummation by HIHL or Investor
of the transactions contemplated hereby, excluding the execution, delivery and performance of this Agreement by the Company.

 

4.5        Litigation.
There is no Litigation pending or threatened before any court or by or before any governmental or regulatory authority or arbitrator
(a) affecting HIHL (as plaintiff or defendant) or (b) against HIHL relating to HIHL Ordinary Stock or the transactions contemplated
by this Agreement.

 

4.6       Brokers.
None of HIHL nor Investor has employed any broker or finder, and has not incurred and will not incur, directly or indirectly, any
broker’s, finder’s, investment banking or similar fees, commissions or expenses in connection with the transactions
contemplated by this Agreement or the Exchange Documents.

 

4.7       Compliance.
HIHL is in compliance with all ordinances, regulations, judgments, rulings, orders and other requirements imposed by the government
of the Malaysia applicable to HIHL and its assets and properties, except where such noncompliance would not have a Material Adverse
Effect on HIHL. To the Knowledge of HIHL and Investor, it is not subject to any judicial, governmental or administrative inquiry,
investigation, order, judgment or decree.

 

4.8       Charter,
Bylaws and Corporate Records. The Company has been provided with true, correct and complete copies of (a) the memorandum and
articles of association of HIHL, as amended and in effect on the date hereof and (b) the minute book of HIHL (containing all corporate
proceedings from the date of incorporation). Such minute book contains accurate records of all meetings and other corporate actions
of the board of directors, committees of the board of directors, incorporators and shareholders of HIHL from the date of its incorporation
to the date hereof which were memorialized in writing.

 

 

 

 

    	 	9	 

     

    

 

4.9       Capitalization.
HIHL has authorized 50,000 shares of HIHL Ordinary Stock, of which one hundred (100) shares are issued and outstanding. The issued
and outstanding shares of HIHL Ordinary Stock constitute one hundred percent (100%) of the issued and outstanding capital stock
of HIHL. All of the outstanding shares of HIHL Ordinary Stock have been duly authorized, are validly issued and outstanding, and
are fully paid and non-assessable. There are no dividends which have accrued or been declared but are unpaid on the capital stock
of HIHL.

 

4.10       Subsidiaries.
HIHL has the following Subsidiaries and Variable Interest Entity:

 

LuJi Technology International
Holding Limited

Inooka Holding Limited

Beijing Hongtao Management
Consulting Company Limited

Beijing Luji Technology
Company Limited

Guoyi Investment Fund
Management (Beijing) Company Limited

 

4.11       Rights,
Warrants, Options. There are no outstanding: (a) securities or instruments convertible into or exercisable for any of the capital
stock or other equity interests of HIHL; (b) options, warrants, subscriptions or other rights to acquire capital stock or other
equity interests of HIHL; or (c) commitments, agreements or understandings of any kind, including employee benefit arrangements,
relating to the issuance or repurchase by HIHL of any capital stock or other equity interests of HIHL, or any instruments convertible
or exercisable for any such securities or any options, warrants or rights to acquire such securities.

 

4.12       Conduct
of Business. Except as set forth below, since December 31, 2018, HIHL has conducted its business in the ordinary and usual
course consistent with past practices and there has not occurred any Material Adverse Effect in the condition (financial or otherwise),
results of operations, properties, assets, liabilities, or business of HIHL. Since December 31, 2018, HIHL has not (a) amended
its memorandum and articles of association; (b) issued, sold or authorized for issuance or sale, shares of any class of its securities
(including, but not limited to, by way of stock split or dividend) or any subscriptions, options, warrants, rights or convertible
securities or entered into any agreements or commitments of any character obligating it to issue or sell any such securities; (c)
redeemed, purchased or otherwise acquired, directly or indirectly, any shares of its capital stock or any option, warrant or other
right to purchase or acquire any such capital stock; (d) suffered any damage, destruction or loss, whether or not covered by insurance,
which has had or could reasonably be expected to have a Material Adverse Effect on any of its properties, assets, or business;
granted or made any mortgage or pledge or subjected itself or any of its properties or assets to any lien, charge or encumbrance
of any kind; (f) made or committed to make any capital expenditures in excess of USD100,000; (g) become subject to any guaranty;
(h) granted any increase in the compensation payable or to become payable to directors, officers or employees (including, without
limitation, any such increase pursuant to any severance package, bonus, pension, profit-sharing or other plan or commitment); (i)
entered into any agreement which would be a material agreement, or amended or terminated any existing material agreement; (j) been
named as a party in any Litigation, or become the focus of any investigation by any government or regulatory agency or authority;
(k) declared or paid any dividend or other distribution with respect to its capital stock; or (l) experienced any other event or
condition of any character which has had, or could reasonably be expected to have, a Material Adverse Effect on HIHL.

 

 4.13       Taxes.

 

(a)                
all Taxes payable by HIHL (if any) have been fully and timely paid or are fully provided for;

 

(b)               
neither HIHL nor any Person on behalf of or with respect to HIHL has executed or filed any agreements or waivers extending
any statute of limitations on or extending the period for the assessment or collection of any Tax. No power of attorney on behalf
of HIHL with respect to any Tax matter is currently in force;

 

 

 

 

    	 	10	 

     

    

 

(c)                
HIHL is not a party to any Tax-sharing agreement or similar arrangement with any other party (whether or not written), and
HIHL has not assumed any Tax obligations of, or with respect to any transaction relating to, any other Person, or agreed to indemnify
any other Person with respect to any Tax;

 

(d)               
no Tax Return concerning or relating to HIHL or its operations has ever been audited by a government or taxing authority,
nor is any such audit in process or pending, and HIHL has not been notified of any request for such an audit or other examination.
To the Knowledge of Investor, no claim has been made by a taxing authority in a jurisdiction where Tax Returns concerning or relating
to HIHL or its operations have not been filed, that it is or may be subject to taxation by that jurisdiction;

 

(e)                
HIHL has never been included in any consolidated, combined, or unitary Tax Return; and

 

(f)                
HIHL has complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes, and
has duly and timely withheld from employee salaries, wages and other compensation, and has paid over to the appropriate taxing
authorities, all amounts required to be so withheld and paid over for all periods under all applicable laws.

 

4.14       Environmental
Matters. (a) No real property used by HIHL presently or in the past has been used to manufacture, treat, store, or dispose
of any hazardous substance and such property is free of all such substances such that the condition of the property is in compliance
with applicable Environmental Laws; (b) HIHL is in compliance with all Environmental Laws applicable to HIHL or its business as
a result of any hazardous substance utilized by HIHL in its business or otherwise placed at any of the facilities owned, leased
or operated by HIHL, or in which HIHL has a contractual interest; (c) HIHL has not received any complaint, notice, order, or citation
of any actual, threatened or alleged noncompliance by HIHL with any Environmental Laws; and (d) there is no Litigation pending
or threatened against HIHL with respect to any violation or alleged violation of the Environmental Laws, and there is no reasonable
basis for the institution of any such Litigation.

 

4.15       Financial
Statements. The Financial Statements shall: (a) have been prepared in accordance with the books of account and records of
HIHL; (b) fairly present, and are true, correct and complete statements in all material respects of HIHL’s financial condition
and the results of its operations at the dates and for the periods specified in those statements; and (c) have been prepared in
accordance with International Financial Reporting Standards consistently applied with prior periods.

 

4.16       Absence
of Undisclosed Liabilities. Other than as disclosed in the Financial Statements, HIHL does not have any Liabilities. None of
HIHL nor Investor has any Knowledge of any circumstances, conditions, events or arrangements which may hereafter give rise to any
Liabilities of HIHL.

 

4.17       Employment
Agreements; Employee Benefit Plans and Employee Payments. HIHL is not a party to any bonus, pension, profit sharing, deferred
compensation, incentive compensation, stock ownership, stock purchase, phantom stock, retirement, vacation, severance, disability,
death benefit, hospitalization, medical or other plan, arrangement or understanding (whether or not legally binding) under which
HIHL currently has an obligation to provide benefits to any current or former employee, officer, director, consultant or advisor
of HIHL (collectively, “Benefit Plans”).

 

4.18       Assets
& Liabilities. HIHL has good, clear and marketable title to all the tangible properties and tangible assets reflected in
the Financial Statements as being owned by HIHL or acquired after the date thereof which are, individually or in the aggregate,
material to HIHL’s business (except properties sold or otherwise disposed of since the date thereof in the ordinary course
of business), free and clear of all material liens.

 

 

 

 

    	 	11	 

     

    

 

4.19       Disclosure.
No representation or warranty of HIHL or Investor contained in this Agreement, and no statement, report, or certificate furnished
by or on behalf of Investor to the Company pursuant hereto or in connection with the transactions contemplated hereby, contains
any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein
or therein not misleading or omits to state a material fact necessary in order to provide the Company with full and proper information
as to the business, financial condition, assets, liabilities, or results of operation of HIHL and the value of the properties or
the ownership of HIHL.

 

4.20       Further
Representations and Warranties. The Investors (by their respective signatures) further hereby represent and warrant to the
Company that:

 

a.                 
They understand
that the shares of the Company Common Stock (collectively, the “Securities”) to be issued to them pursuant to this
Agreement HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
AGENCIES AND NO REGISTRATION STATEMENT HAS BEEN FILED WITH ANY REGULATORY AGENCY;

 

b.                 
They are
not an underwriter and would be acquiring the Securities solely for investment for his or her own account and not with a view to,
or for, resale in connection with any distribution within the meaning of the federal securities act, the state securities acts
or any other applicable state securities acts;

 

c.                 
They are
not a person in the United States of America and at the time the buy order was originated, were outside the United States of America
and are not a citizen of the United States (a “U.S. person”) as that term is defined in Regulation S of the Securities
Act and was not formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities
Act;

 

d.                 
They understand
the speculative nature and risks of investments associated with the Company, and confirm that the acquisition of the Securities
would be suitable and consistent with their investment program and that their financial position enables him or her to bear the
risks of this investment;

 

e.                 
To the extent
that any federal, and/or state securities laws shall require, they hereby agree that any securities acquired pursuant to this Agreement
shall be without preference as to assets;

 

f.                 
The
certificate for shares of the Securities will contain a legend that transfer is prohibited except in accordance with the provisions
of Regulation S;

 

g.                 
They have
had the opportunity to ask questions of the Company and have received all information from the Company to the extent that the Company
possessed such information, necessary to evaluate the merits and risks of any investment in the Company. Further, they acknowledge
receipt of: (1) all material books, records and financial statements of the Company; (2) all material contracts and documents relating
to the proposed transaction; (3) all documents and reports filed with the Commission; and, (4) an opportunity to question the appropriate
executive officers or partners;

 

h.                 
They have satisfied
the suitability standards and securities laws imposed by the government of the respective country he or she resides;

 

i.                  
They have
adequate means of providing for their current needs and personal contingencies and have no need to sell the Securities acquired
in the foreseeable future (that is at the time of the investment, they can afford to hold the investment for an indefinite period
of time);

 

 

 

 

    	 	12	 

     

    

 

j.                 
They have
sufficient knowledge and experience in financial matters to evaluate the merits and risks of this investment and further, are capable
of reading and interpreting financial statements. Further, they are “sophisticated investors” as that term is defined
in applicable court cases and the rules, regulations and decisions of the United States Securities and Exchange Commission;

 

k.                 
The offer
and sale of the Securities referred to herein is being made outside the United States within the meaning of and in full compliance
with Regulation S;

 

l.                  
They are
not a U. S. person within the meaning of Regulation S and are not acquiring the Shares for the account or benefit of any U. S.
person;

 

m.                
They hereby agree
not to engage in any hedging transactions involving the securities described herein unless in compliance with the Securities Act
and Regulation S promulgated thereunder; and

 

n.                 
They agree to resell such Securities
only in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available
exemption from registration.

 

 

ARTICLE V

Additional Agreements

 

5.1       Survival
of the Representations and Warranties. The representations and warranties and covenants set forth in Article III and Article
IV of this Agreement shall survive the Closing until the expiration of twelve (12) months from the Closing Date. No claim for indemnity
with respect to breaches of representations and warranties may be brought by any party hereto, other than a claim for fraud or
intentional misrepresentation, after expiration of the applicable survival period therefore as set forth in this Section 5.1.

 

5.2       Investigation.
The representations, warranties, covenants and agreements set forth in this Agreement shall not be affected or diminished in any
way by any investigation (or failure to investigate) at any time by or on behalf of the party for whose benefit such representations,
warranties, covenants and agreements were made. All statements contained herein or in any schedule, certificate, exhibit, list
or other document required to be delivered pursuant hereto, shall be deemed to be representations and warranties for purposes of
this Agreement; provided, that any knowledge or materiality qualifications contained herein shall be applicable to such other documents.

 

5.3       General
Confidentiality. Each of the parties hereto will treat and hold as such all of the Confidential Information of the other party,
refrain from using any of the Confidential Information except in connection with this Agreement, and unless there is a closing
on the Exchange, deliver promptly to the owner of such Confidential Information or destroy, at the request and option of the owner
of the Confidential Information, all tangible embodiments (and all copies) of the Confidential Information which are in its possession.
In the event that any of the parties is requested or required (by oral question or request for information or documents in any
legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process) to disclose any Confidential Information,
that party will notify the affected party promptly of the request or requirement so that the affected party may seek an appropriate
protective order or waive compliance with the provisions of this Section 5.3. If, in the absence of a protective order or the receipt
of a waiver hereunder, any of the parties is, on the advice of counsel, compelled to disclose any Confidential Information to any
tribunal or else stand liable for contempt, that Party may disclose the Confidential Information to the tribunal; provided, however,
that the disclosing party shall use its commercially reasonable efforts to obtain, at the request of the affected party, an order
or other assurance that confidential treatment will be accorded to such portion of the Confidential Information required to be
disclosed as the affected party shall designate. The foregoing provisions shall not apply to any Confidential Information which
is generally available to the public immediately prior to the time of disclosure.

 

 

 

 

    	 	13	 

     

    

 

5.4       Tax
Treatment. Neither the Company nor Investors will knowingly take any action, written or otherwise, which would result in the
transactions contemplated by this Agreement not being accounted for as tax-free exchange under the Code.

 

5.5       General.
In case at any time after the Closing Date any further action is necessary to carry out the purposes of this Agreement, each of
the parties will take such further action (including the execution and delivery of such further instruments and documents) as the
other party reasonably may request, all at the sole cost and expense of the requesting party.

 

 

ARTICLE
VI

Closing; Deliveries; Conditions
Precedent

 

6.1       Closing;
Effective Date. All proceedings taken and all documents executed at the Closing shall be deemed to have been taken, delivered
and executed simultaneously, and no proceeding shall be deemed taken nor documents deemed executed or delivered until all have
been taken, delivered and executed.

 

6.2       Deliveries

 

 (a)               
At Closing, the Company shall deliver the following documents to the Investor Representative:

 

(i)                 
a certificate, dated the Closing Date, signed by the Secretary of the Company setting forth that: (i) authorizing resolutions
were adopted by all the directors of the Company approving the acquisition of the Sold HIHL Stock by the Company from the Investors
in consideration of 86,000,000 shares of the Company Common Stock in aggregate to the Investors and the Exchange under the terms
and conditions of this Agreement; and (ii) the Company’s transfer agent has been authorized to issue the shares of the Company
Common Stock to the Investors in accordance with Section 2.4 hereof (the aggregate of which represents the Consideration) and the
other documents contemplated hereby and the transactions contemplated hereby and thereby.

 

(ii)               
the certificate referred to in Section 6.3(d).

 

(b)               
At Closing, the Investor Representative and HIHL shall deliver the following documents to the Company:

 

(i)                 
A power of attorney executed by the Investors appointing the Investor Representative as attorney-in-fact to negotiate and
execute this Agreement and any amendments thereto on behalf of the Investors;

 

(ii)               
the HIHL Certificates or Records representing all of the Sold HIHL Stock (i.e. 100% of the issued and outstanding shares
of HIHL Ordinary Stock);

 

(iii)              
a certificate from a director or the company secretary of HIHL, as of a recent date, as to the good standing of HIHL and
certifying its Memorandum and Articles of Association;

 

(iv)              
certificates, dated the Closing Date, signed by the Chief Executive Officer of HIHL setting forth that authorizing resolutions
were adopted by HIHL’s Board of Directors approving the transfer of all the Sold HIHL Stock to the Company, this Agreement
and the other documents contemplated hereby and the transactions contemplated hereby and thereby;

 

(v)               
the Financial Statements; and

 

(vi)              
the certificates referred to in Section 6.4(d).

 

 

 

    	 	14	 

     

    

 

 

6.3       Conditions
Precedent to the Obligations of HIHL and the Investors. Each and every obligation to consummate the transactions described
in this Agreement and any and all liability of HIHL and the Investors to the Company shall be subject to the following conditions
precedent:

 

(a)                
Representations and Warranties True. Each of the representations and warranties of the Company contained herein or in any
certificate or other document delivered pursuant to this Agreement or in connection with the transactions contemplated hereby shall
be true and correct in all material respects as of the Closing Date with the same force and effect as though made on and as of
such date.

 

(b)               
Performance. The Company shall have performed and complied in all material respects with all of the agreements, covenants
and obligations required under this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

(c)                
No Material Adverse Change. Except as expressly permitted or contemplated by this Agreement, no event or condition shall
have occurred which has adversely affected or may adversely affect in any respect the condition (financial or otherwise) of the
Company between the date of execution of this Agreement and the Closing Date.

 

(d)               
The Company’s Certificate. The Company shall have delivered to Investor a certificate dated the Closing Date and signed
by a director of the Company, certifying that the conditions specified in Sections 6.3(a), (b) and (c) above have been fulfilled.

 

(e)                
Consents. The Company shall have obtained all authorizations, consents, waivers and approvals as may be required to consummate
the transactions contemplated by this Agreement.

 

6.4       Conditions
Precedent to the Obligations of the Company. Each and every obligation of the Company to consummate the transactions described
in this Agreement and any and all liability of the Company to HIHL and the Investors shall be subject to the fulfilment of the
following conditions precedent:

 

(a)                
Representations and Warranties True. Each of the representations and warranties of HIHL and the Investors contained herein
or in any certificate or other document delivered pursuant to this Agreement or in connection with the transactions contemplated
hereby shall be true and correct in all material respects as of the Closing Date with the same force and effect as though made
on and as of such date.

 

(b)               
Performance. HIHL and the Investors shall have performed and complied in all material respects with all of the agreements,
covenants and obligations required under this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

(c)                
No Material Adverse Change. Except as expressly permitted or contemplated by this Agreement, no event or condition shall
have occurred which has adversely affected or may adversely affect in any respect the condition (financial or otherwise) of HIHL
between the date of execution of this Agreement and the Closing Date.

 

(d)               
Investor’s Certificates. HIHL and the Investor Representative shall have delivered a certificate or Records addressed
to the Company, dated the Closing Date, certifying that the conditions specified in Sections 6.4(a), (b) and (c) above have been
fulfilled.

 

(e)                
Consents. HIHL and the Investors shall have obtained all authorizations, consents, waivers and approvals as may be required
to consummate the transactions contemplated by this Agreement, including but not limited to those with respect to any material
agreement of HIHL.

 

 

 

 

    	 	15	 

     

    

 

(f)                
Due Diligence Review. The Company shall have completed within thirty (30) days from the date of this Agreement of its due
diligence investigation of HIHL to its satisfaction.

 

(g)               
Financial Statements. HIHL shall have delivered to the Company the Financial Statements. The Financial Statements shall:
(a) have been prepared in accordance with the books of account and records of HIHL; (b) fairly present, and are true, correct and
complete statements in all material respects of HIHL’s financial condition and the results of its operations at the dates
and for the periods specified in those statements; and (c) have been prepared in accordance with US GAAP consistently applied with
prior periods.

 

6.5       Best
Efforts. Subject to the terms and conditions provided in this Agreement, each of the parties shall use their respective best
efforts in good faith to take or cause to be taken as promptly as practicable all reasonable actions that are within its power
to cause to be fulfilled those of the conditions precedent to its obligations or the obligations of the other parties to consummate
the transactions contemplated by this Agreement that are dependent upon its actions, including obtaining all necessary consents,
authorizations, orders, approvals and waivers.

 

6.6       Termination.
This Agreement and the transactions contemplated hereby may be terminated at any time prior to the occurrence of the Closing by
the mutual consent of the parties hereto; (b) by the Company, if the Closing has not occurred on or prior to September 30, 2020,
or such other date as may be agreed to by the parties hereto (such date of termination being referred to herein as the “Termination
Date”), provided the failure of the Closing to occur by such date is not the result of the failure of the party seeking to
terminate this Agreement to perform or fulfil any of its obligations hereunder; (c) by HIHL or any Investor solely with respect
to such Investor and HIHL Ordinary Stock held by such Investor at any time at or prior to Closing in such Investor’s sole
discretion if (i) any of the representations or warranties of the Company in this Agreement are not in all material respects true,
accurate and complete or if the Company breaches in any material respect any covenant contained in this Agreement, provided that
such misrepresentation or breach is not cured within fourteen (14) days after notice thereof, but in any event prior to the Termination
Date or (ii) any of the conditions precedent to the Company’s obligations to conduct the Closing have not been satisfied
by the date required thereof; or (d) by the Company at any time at or prior to Closing in its sole discretion if (i) any of the
representations or warranties of Investor in this Agreement are not in all material respects true, accurate and complete or if
Investor breaches in any material respect any covenant contained in this Agreement, provided that such misrepresentation or breach
is not cured within fourteen (14) days after notice thereof, but in any event prior to the Termination Date or (ii) any of the
conditions precedent to the obligation of HIHL and or the Investor to conduct the Closing have not been satisfied by the date required
thereof. If this Agreement is terminated pursuant to this Section 6.6, written notice thereof shall promptly be given by the party
electing such termination to the other party and, subject to the expiration of the cure periods provided in clauses (c) and (d)
above, if any, this Agreement shall terminate without further actions by the parties and no party shall have any further obligations
under this Agreement.

 

6.7       Shares
Issuance. Within Thirty (30) days after the Closing, the Company shall take all necessary steps to issue and deliver to the
Investor Representative the share certificates evidencing the Company Common Stock issuable in the names of the respective Investors
for the respective number of shares to which such Investors are entitled pursuant to Section 2.4 hereof.

 

 

ARTICLE
VII

Miscellaneous

 

7.1       Notices.
Any notice, demand, claim or other communication under this Agreement shall be in writing and delivered personally or sent by certified
mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses
as follows (or at such other addresses as shall be specified by the parties by like notice):

 

	If to the Company: 	AS CAPITAL, INC.
	 	Room 1206, 11th Floor, 301, 3-17
F, Building 5
	 	Block 1 Hangfeng Road
	 	Fengtai District, Beijing, China
	 	Attn: Secretary

	 	 
	If to HIHL or Investor:	To
the address set forth below HIHL or such Investor’s signature, as applicable

 

 

 

 

    	 	16	 

     

    

 

Such notice shall be deemed delivered upon
receipt against acknowledgment thereof if delivered personally, on the third business day following mailing if sent by certified
mail, upon transmission against confirmation if sent by facsimile and on the next business day if sent by overnight courier.

 

7.2       Entire
Agreement; Incorporation. This Agreement and the documents and instruments and other agreements among the parties hereto as
contemplated by or referred to herein contain every obligation and understanding between the parties relating to the subject matter
hereof and merges all prior discussions, negotiations, agreements and understandings, both written and oral, if any, between them,
and none of the parties shall be bound by any conditions, definitions, understandings, warranties or representations other than
as expressly provided or referred to herein. All schedules, exhibits and other documents and agreements executed and delivered
pursuant hereto are incorporated herein as if set forth in their entirety herein.

 

7.3       Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors,
heirs, personal representatives, legal representatives, and permitted assigns.

 

7.4       Assignment.
This Agreement may not be assigned by any party without the written prior consent of the other party. Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

 

7.5       Waiver
and Amendment. Any representation, warranty, covenant, term or condition of this Agreement which may legally be waived, may
be waived, or the time of performance thereof extended, at any time by the party hereto entitled to the benefit thereof, and any
term, condition or covenant hereof (including, without limitation, the period during which any condition is to be satisfied or
any obligation performed) may be amended by the parties thereto at any time. Any such waiver, extension or amendment shall be evidenced
by an instrument in writing executed on behalf of the party against whom such waiver, extension or amendment is sought to be charged.
No waiver by any party hereto, whether express or implied, of its rights under any provision of this Agreement shall constitute
a waiver of such party’s rights under such provisions at any other time or a waiver of such party’s rights under any
other provision of this Agreement. No failure by any party thereof to take any action against any breach of this Agreement or default
by another party shall constitute a waiver of the former party’s right to enforce any provision of this Agreement or to take
action against such breach or default or any subsequent breach or default by such other party.

 

7.6       No
Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon
or give any Person other than the parties hereto and their respective heirs, personal representatives, legal representatives, successors
and permitted assigns, any rights or remedies under or by reason of this Agreement, except as otherwise provided herein.

 

7.7       Severability.
In the event that any one or more of the provisions contained in this Agreement, or the application thereof, shall be declared
invalid, void or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force
and effect and the application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect
the intent of the parties hereto. The parties further agree to replace such invalid, void or unenforceable provision with a valid
and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid,
void or unenforceable provision.

 

7.8       Expenses.
Except as otherwise provided herein, each party agrees to pay, without right of reimbursement from the other party, the costs incurred
by it incident to the performance of its obligations under this Agreement and the consummation of the transactions contemplated
hereby, including, without limitation, costs incident to the preparation of this Agreement, and the fees and disbursements of counsel,
accountants and consultants employed by such party in connection herewith.

 

7.9       Headings.
The table of contents and the section and other headings contained in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of any provisions of this Agreement.

 

 

 

 

    	 	17	 

     

    

 

7.10       Other
Remedies; Injunctive Relief. Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party
will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and
the exercise by a party of any one remedy will not preclude the exercise of any other remedy. The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that subject to Section 7.13 hereof, the parties shall be entitled to
seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof
in any court in the state of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity.
In any action at law or suit in equity to enforce this Agreement or the rights of the parties hereunder, the prevailing party in
any such action or suit shall be entitled to receive a reasonable sum for its attorneys’ fees and all other reasonable costs
and expenses incurred in such action or suit.

 

7.11       Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. Facsimile signatures shall be deemed valid and binding.

 

7.12       Governing
Law. This Agreement has been entered into and shall be construed and enforced in accordance with the laws of the State of Nevada,
without reference to the choice of law principles thereof.

 

7.13       Jurisdiction
and Venue. This Agreement shall be subject to the jurisdiction of the courts of the State of Nevada. The parties to this Agreement
agree that any breach of any term or condition of this Agreement shall be deemed to be a breach occurring in the State of Nevada
by virtue of a failure to perform an act required to be performed in the State of Nevada and irrevocably and expressly agree to
submit to the jurisdiction of the courts of the State of Nevada for the purpose of resolving any disputes among the parties relating
to this Agreement or the transactions contemplated hereby. The parties irrevocably waive, to the fullest extent permitted by law,
any objection which they may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement, or any judgment entered by any court in respect hereof brought in the State of Nevada, and further irrevocably
waive any claim that any suit, action or proceeding brought in the State of Nevada has been brought in an inconvenient forum.

 

7.14       Participation
of Parties. The parties hereby agree that they have consulted their respective counsel during the negotiation and execution
of this Agreement and, therefore, waive the application of any law, regulation, holding, or rule of construction providing that
ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

 

7.15       Further
Assurances. The parties hereto shall deliver any and all other instruments or documents reasonably required to be delivered
pursuant to, or necessary or proper in order to give effect to, all of the terms and provisions of this Agreement including, without
limitation, all necessary stock powers and such other instruments of transfer as may be necessary or desirable to transfer full
and complete ownership of the Sold HIHL Stock to the Company or the issuance of the applicable Securities to the Investors for
the Consideration, as the case may be, free and clear of any liens or encumbrances.

 

7.16       Publicity.
No public announcement or other publicity concerning this Agreement or the transactions contemplated hereby shall be made without
the prior written consent of both the Company and HIHL as to form, content, timing and manner of distribution. Nothing contained
herein shall prevent any party from making any filing required by federal or state securities laws or stock exchange rules of the
United States of America.

 

7.17       No
Solicitation. None of HIHL, Investor nor the Company shall authorize or permit any of its officers, directors, agents, representatives,
managers, members, agents, or advisors to solicit, initiate or encourage or take any action to facilitate the submission of inquiries,
proposals or offers from any person relating to any matter concerning any merger, consolidation, business combination, recapitalization
or similar transaction involving HIHL or the Company, respectively, other than the transaction contemplated by this Agreement or
any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay
the Exchange or which would or could be expected to dilute the benefits to each of the parties of the transactions contemplated
hereby. Investor and the Company will immediately cease and cause to be terminated any existing activities, discussions and negotiations
with any parties conducted heretofore with respect to any of the foregoing.

 

 

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    	 	18	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have each executed and delivered this Agreement as of the day and year first above written.

 

AS
CAPITAL, INC.

 

 

 

By:
/s/ Xue Ran Gao                                                            

       Xue
Ran Gao, Chief Executive Officer and Director

 

 

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    	 	19	 

     

    

 

INVESTOR

 

 

 

/s/
Tian Xiangyang                                                              

Signature

 

Tian
Xiangyang                                                                   

Print Name

 

                              

No.
of HanJiao International Holding Limited’s Ordinary Shares

 

Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

INVESTOR

 

 

 

/s/
Liu
Zexian                                                                        

Signature

 

Liu
Zexian                                                                              

Print Name

 

                              

No.
of HanJiao International Holding Limited’s Ordinary Shares

 

Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

INVESTOR

 

 

 

/s/
Gao
Xuewei                                                                     

Signature

 

Gao
Xuewei                                                                           

Print Name

 

                              

No.
of HanJiao International Holding Limited’s Ordinary Shares

 

Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

INVESTOR

 

 

 

/s/
Li
Chunduo                                                                     

Signature

 

Li
Chunduo                                                                           

Print Name

 

                              

No.
of HanJiao International Holding Limited’s Ordinary Shares

 

Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

EXHIBIT A

 

INVESTORS

 

	Name	No. of HIHL Ordinary Stock	No. of Company Common Stock
	Tian Xiangyang, on behalf of Rhone Holding Limited	80	68,800,000
	Tian Zhihai, on behalf of Donau Holding Limited	5	4,300,000
	Liu Zexian, on behalf of Rhein Holding Limited	5	4,300,000
	Li Chunduo, on behalf of Mississippi Holding Limited	5	4,300,000
	Gao XueWei, on behalf of Missouri Holding Limited	5	4,300,000
	TOTAL	 	86,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	24

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