Document:

Exhibit 10.25

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of April 18, 2019, is by and among Summit Wireless Technologies,
Inc., a Delaware corporation with headquarters located at 6840 Via Del Oro, Suite 280, San Jose, CA 95119 (the “Company”),
and the investors listed on the Purchaser Schedule attached hereto (each, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A.           The
Company and the Purchasers desire to enter into this transaction to purchase the Preferred Shares and Warrants (each as defined
below) as set forth herein.

 

B.           The
Company will sell and issue such Preferred Shares, Conversion Shares (as defined below) and Warrants to the Purchasers in reliance
upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506(b) of Regulation D (“Regulation D”) as promulgated by the United States Securities
and Exchange Commission (the “SEC” or the “Commission”) under the Securities Act.

 

C.           The
Company has authorized a new series of preferred stock of the Company designated as its Series A Senior Convertible Preferred
Stock, par value $0.0001 per share, the terms of which are set forth in the certificate of designations for such series of preferred
stock (the “Certificate of Designations”) in the form attached hereto as Exhibit A (together
with any shares of preferred stock issued in replacement thereof in accordance with the terms thereof, the “Series A
Preferred Stock”), which Series A Preferred Stock shall be convertible into shares of Common Stock (as defined herein)
(such shares of Common Stock issuable pursuant to the terms of the Certificate of Designations, including, without limitation,
upon conversion or otherwise, collectively, the “Conversion Shares”), in accordance with the terms of the Certificate
of Designations.

 

D.           Each
Purchaser wishes to purchase, and the Company wishes to sell at multiple closings, upon the terms stated in this Agreement, (i)
the aggregate number of Series A Preferred Stock set forth opposite such Purchaser’s name in column (2) on the Purchaser
Schedule (which aggregate amount for all Purchasers shall be 5,000,000 shares of Series A Preferred Stock and shall collectively
be referred to herein as the “Preferred Shares”) and (ii) the aggregate number of common stock purchase warrants
in the form attached hereto as Exhibit B (the “Warrants”) set forth opposite such Purchaser’s
name in column (3) on the Purchaser Schedule (as exercised, collectively, the “Warrant Shares”).

 

E.           The
Preferred Shares, the Conversion Shares, the Warrants and the Warrant Shares are collectively referred to herein as the “Securities”.

 

    	 		 

     

    

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each Purchaser (severally and not jointly) hereby agree as follows:

 

		1.	PURCHASE AND SALE OF PREFERRED SHARES AND WARRANTS.

 

(a)          Purchase.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 below, the Purchasers agree to purchase (i)
up to an aggregate of $1,250,000 in Stated Value (as defined in the Certificate of Designations) of Preferred Shares (the “Aggregate
Stated Value”), and (ii) with respect to each Tranche (as defined below), Warrants to purchase up to an aggregate of
such number of shares of Common Stock determined by dividing the Stated Value of the Preferred Shares for such Tranche by the
closing price of the Common Stock quoted on the Trading Market (as defined in the Certificate of Designations) on the Trading
Day (as defined in the Certificate of Designations) prior to the Closing (as defined below) of such Tranche, multiplied by fifty
percent (50%), and which Warrants shall each be exercisable for shares of Common Stock at an exercise price equal to the closing
price of the Common Stock on such Trading Day plus $0.02. Each Purchaser, severally, but not jointly, agrees to purchase from
the Company (i) the number of Preferred Shares set forth opposite such Purchaser’s name in column (2) on the Purchaser Schedule
and (ii) Warrants to acquire that number of Warrant Shares as set forth opposite such Purchaser’s name in column (3) on
the Purchaser Schedule. The purchase of the Aggregate Stated Value of the Preferred Shares and Warrants will occur in at most
twelve (12) tranches (each a “Tranche,” and collectively, the “Tranches”), with the aggregate
Stated Value of the first Tranche to equal no less than $250,000 for the number of Preferred Shares as set forth opposite each
Purchaser’s name in column (2) of the Purchaser Schedule and the number of Warrants as set forth opposite each Purchaser’s
name in column (3) of the Purchaser Schedule being closed on substantially concurrent with the execution and delivery of this
Agreement by the parties hereto (the “First Closing”). The aggregate Stated Value of each additional Tranche
shall be equal to no less than $125,000 and no more than $250,000 for the number of Preferred Shares and Warrants as set forth
opposite Purchaser’s name in columns (2) and (3), respectively, of the Purchaser Schedule (each, an “Additional
Closing”, and collectively with the First Closing, a “Closing”); provided, that the Company, in its
sole discretion, shall have the right to permit an investor or investors to purchase Preferred Shares with an aggregate Stated
Value of less than $125,000 in connection with any Additional Closing. The date and time of the First Closing (the “First
Closing Date”) shall be 10:00 a.m., New York time, on the first (1st) Trading Day on which the conditions to such Closing
pursuant to Sections 6(a) and (c) are satisfied or waived in writing as provided elsewhere herein, or such earlier date as is
mutually agreed to by the Company and the Purchaser. The date and time of each Additional Closing (each, an “Additional
Closing Date”, and together with the First Closing Date, a “Closing Date”) shall be 10:00 a.m., New
York time, on the first (1st) Trading Day on which the conditions to such Closing pursuant to Section 6 are satisfied or waived
in writing as provided elsewhere herein, or such earlier date as is mutually agreed to by the Company and the holders of a majority
of the Preferred Shares. So long as the Company is not in violation of any provision of or in default under the Certificate of
Designations, the Company shall give the Purchasers no less than ten (10) days’ notice prior to each Additional Closing
that the Company intends to conduct an Additional Closing.

 

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(b)          Purchase
Price. The aggregate purchase price for the Preferred Shares and the Warrants to be purchased by each of the Purchasers at
each Closing shall be the amount set forth opposite each such Purchaser’s name in column (4) on the Purchaser Schedule (the
“Purchase Price”).

 

(c)          Deliveries.
On or prior to each Closing Date, (i) each of the Purchasers shall pay the applicable Purchase Price to the Company, via wire transfer
or a certified check, immediately available funds equal to the such Purchaser’s applicable Purchase Price, less, in the case
of any applicable Purchaser, any applicable amounts withheld pursuant to Section 4(j), (ii) Company shall (A) deliver to such Purchaser
a certificate representing such aggregate number of Preferred Shares as is set forth opposite such Purchaser’s name in column
(2) of the Purchaser Schedule, (B) deliver to such Purchaser an executed Warrant, and (C) deliver to each of the Purchasers the
other documents, instruments and certificates set forth in Section 6 duly executed on behalf of the Company; and (iii) the Company
shall deliver to Alexander Capital, L.P. (the “Placement Agent”) the applicable Placement Agent Fee (as defined
in Section 4(j)(ix)) and a Warrant (the “Agent Warrant”) to purchase up to eight percent (8%) of the aggregate
number of shares of Common Stock issuable to such Purchasers on such Closing Date upon conversion of the Preferred Shares issued
to such Purchasers at a price per share of the Common Stock on such Closing Date, which Agent Warrant shall have the same terms
as the Warrants issued to such Purchasers, except that the exercise price of such Agent Warrant shall be 110% of the lessor of
(a) the price at which the Preferred Shares are issued on such Closing Date or (b) the exercise price of the Warrants issued to
such Purchasers on the Closing Date.

 

		2.	PURCHASER’S REPRESENTATIONS AND WARRANTIES.

 

Each Purchaser, severally
and not jointly with respect to only itself, represents and warrants to the Company with respect to only itself that:

 

(a)          Organization;
Validity; Enforcement. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder. This Agreement has been duly and validly authorized, executed and
delivered on behalf of such Purchaser and constitutes the legal, valid and binding obligations of such Purchaser enforceable against
such Purchaser in accordance with its terms, except as such enforceability may be limited by general principles of equity or to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies.

 

(b)          No
Conflicts. The execution, delivery and performance by such Purchaser of this Agreement and the consummation by such Purchaser
of the transactions contemplated hereby as well as all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder or thereunder, including the Certificate of Designations and
the Warrants (collectively, the “Transaction Documents”), will not (i) result in a violation of the organizational
documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which such Purchaser is a party or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws) applicable to such Purchaser, except, in the case of clauses (ii)
and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

  

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(c)          Short
Sale. Such Purchaser represents and warrants to the Company that at no time prior to the date of this Agreement has any Restricted
Person (as defined herein) engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale”
(as such term is defined in Rule 200 of Regulation SHO of the 1934 Act (as defined herein)) of the Common Stock or (ii) hedging
transaction, which establishes a Net Short Position (as defined herein) with respect to the Common Stock.

 

(d)          Investment
Purpose. Such Purchaser is acquiring the Securities as principal for its own account and not with a view to or for distributing
or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has
no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other individual or corporation, partnership, trust, incorporated
or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision
thereof) or other entity of any kind (“Persons”) to distribute or regarding the distribution of such Securities
in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting any Purchaser’s
right to sell the Securities at any time pursuant to any registration statement registering the resale thereof or otherwise in
compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary
course of its business.

 

(e)          Accredited
Investor Status. Such Purchaser is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation
D promulgated under the Securities Act.

  

(f)           Information.
Such Purchaser understands that its investment in the Securities involves a high degree of risk. Such Purchaser (i) is able to
bear the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Securities
and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial
condition and business of the Company and others matters related to an investment in the Securities. Neither such inquiries nor
any other due diligence investigations conducted by such Purchaser or its representatives shall modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in Section 3 below. Such Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition
of the Securities.

 

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(g)          Transfer
or Sale. Such Purchaser understands that (i) the Securities may not be offered for sale, sold, assigned or transferred unless
(A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Securities to be sold, assigned or transferred
without such registration; (ii) any sale of the Securities made in reliance on Rule 144 under the Securities Act may be made only
in accordance with the terms of Rule 144 under the Securities Act and further, if Rule 144 under the Securities Act is not applicable,
any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC thereunder.

 

(h)          Affiliate Status.
Each Purchaser listed on Schedule 3(ss) attached hereto acknowledges that as of the date hereof, such Purchaser is the holder
of approximately the number of issued and outstanding shares of Common Stock listed on such Schedule and is deemed to be a “beneficial
owner” (as defined for purposes of Rule 13d-3 of the 1934 Act) of greater than 10% of such shares of Common Stock, excluding
any Securities issued to such Purchaser pursuant to this Agreement. Each such Purchaser further acknowledges that as a result of
such holdings of Common Stock, the Company presumes such Purchaser to be an “affiliate” of the Company for purposes
of Rule 144 and that the resale of Common Stock and the Securities by such Purchaser may be restricted as a result of such “affiliate”
status.

  

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth
in the Disclosure Schedules attached hereto, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation
or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules (but
in no event shall qualify any indemnity obligation of the Company hereunder), the Company (which for purposes of this Section 3
means the Company and all of its Subsidiaries (as defined below)) represents and warrants to each of the Purchasers that on the
Closing Date:

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company (the “Subsidiaries”) are set forth in the SEC Reports
(as defined below). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary
free and clear of any Liens (as defined below), and all of the issued and outstanding shares of capital stock of each Subsidiary
are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)          Organization,
Etc. The Company and each of the Subsidiaries is duly organized, validly existing and in good standing under the laws of the
state of their respective organization and are duly qualified and in good standing or has applied for qualification as a foreign
corporation authorized to do business in each jurisdiction where, because of the nature of its activities or properties, such qualification
is required except where the failure to be so qualified would not reasonably be expected to result in: (i) a material adverse effect
on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii)
a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

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(c)          Authorization;
No Conflict. The execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby by the Company, including, without limitation, the issuance of the Securities and the reservation for issuance
and issuance of the Conversion Shares issuable under the Certificate of Designations with respect to the Preferred Shares, and
the reservation for issuance and issuance of the Warrant Shares upon exercise of the Warrants (i) are within the Company’s
corporate powers, (ii) have been duly authorized by all necessary action by or on behalf of the Company (and/or its stockholders
to the extent required by law), (iii) do not and shall not contravene or conflict with any provision of, or require any consents
under (1) any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities
laws and regulations and the rules and regulations of the Nasdaq Capital Market (or any successor entity) (the “Principal
Market”)) applicable to the Company, (2) the Company’s organizational documents (including, without limitation,
any certificates of designation contained therein); and/or (3) any agreement binding upon the Company or any of the Company’s
properties except as would not reasonably be expected to have a Material Adverse Effect, (iv) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries
is a party, and (v) do not result in, or require, the creation or imposition of any Lien (as defined below) on any of the Company’s
properties or revenues pursuant to any law, rule, regulation or ordinance or otherwise, except, in the case of clause (ii) or (iii)
above, to the extent such violations that could not reasonably be expected to have a Material Adverse Effect. The Company has received
all necessary and/or required governmental, regulatory and other approvals and consents (if any shall be required). The Certificate
of Designations in the form attached hereto as Exhibit A has been filed with the Secretary of State of the State of Delaware
and is in full force and effect, enforceable against the Company in accordance with its terms and has not been amended.

 

(d)          Issuance
of Securities. The issuance of the Preferred Shares is duly authorized and, upon issuance in accordance with the terms of the
Transaction Documents, shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages,
defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances
(collectively “Liens”) with respect to the issuance thereof, and shall vest in the Purchasers full and sole
title and power to the Preferred Shares purchased hereby by the Purchasers, free and clear of restrictions on transfer other than
those imposed by the federal securities laws. The issuance of the Conversion Shares is duly authorized, and upon issuance in accordance
with the Certificate of Designations, the Conversion Shares when issued will be validly issued, fully paid and non-assessable and
free from all preemptive or similar rights, taxes or Liens with respect to the issue thereof, with the holders being entitled to
all rights accorded to a holder of Common Stock. The issuance of the Warrants and the Warrant Shares is duly authorized, and upon
issuance of such securities in accordance with terms of the Transaction Documents or the Warrants, respectively, the Warrants and
Warrant Shares when issued will each be validly issued, fully paid and non-assessable and free from all preemptive or similar rights,
taxes or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common
Stock. As of each Closing, the Company shall have reserved from its duly authorized capital stock not less than 100% of the sum
of the maximum number of (A) Conversion Shares issuable pursuant to the terms of the Certificate of Designations, including, without
limitation, upon conversion or otherwise (assuming for such purpose that (x) such Preferred Shares are convertible at the initial
Conversion Price (as defined in the Certificate of Designations), (y) dividends on the Preferred Shares shall accrue through the
twelve month anniversary of the Closing Date and will be converted in shares of Common Stock at a dividend conversion price equal
to the initial Conversion Price and (z) any such conversion shall not take into account any limitations on the conversion of the
Preferred Shares set forth in the Certificate of Designations); and (B) Warrant Shares issuable pursuant to the terms of the Warrants
(assuming for such purpose that (x) such Warrants are exercisable at the initial Exercise Price (as defined in the Warrant) (y)
any such exercise shall not take into account any limitations on the exercise of the Warrants set forth in the Warrant) (the “Required
Reserve Amount”). “Common Stock” means (i) the Company’s shares of common stock, $0.0001 par
value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting
from a reclassification of such common stock.

 

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(e)          Validity
and Binding Nature. The Transaction Documents to which the Company is a party are the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization and other similar laws of general application affecting the rights and remedies of creditors
and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

(f)           Title
to Assets. The Company has good and marketable title to all assets owned by Company. Any real property and facilities held
under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by
the Company or any of its Subsidiaries.

 

(g)          Placement
Agent. Except for the Placement Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent or other
agent in connection with the offer or sale of the Securities.

 

(h)           No
Violations of Laws. The Company is not in violation of any law, ordinance, rule, regulation, judgment, decree or order of any
federal, state or local governmental body or court and/or regulatory or self-regulatory body which could have a Material Adverse
Effect.

  

(i)            Burdensome
Obligations. The Company is not a party to any indenture, agreement, lease, contract, deed or other instrument, or subject
to any partnership restrictions or has any knowledge of anything which could have a Material Adverse Effect.

 

(j)            Taxes.
All federal, and material state and local tax returns required to be filed by the Company have been filed with the appropriate
governmental agencies and all taxes due and payable by the Company have been timely paid.

 

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(k)          Employee
Benefit Plans. The term “Plan” means an “employee pension benefit plan” (as defined in Section
3 of Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”)) which is or has
been established or maintained, or to which contributions are or have been made, by the Company. Each Plan and/or employee benefit
plan (as defined in Section 3(3) of ERISA), if any, maintained by the Company complies in all material respects with all applicable
requirements of law and regulations and all payments and contributions required to be made with respect to such plans have been
timely made.

 

(l)           Federal
Laws and Regulations. The Company is not (i) an “investment company” or a company “controlled”, whether
directly or indirectly, by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended;
or (ii) engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System).

 

(m)         Fiscal
Year. The fiscal year of the Company ends on December 31 of each year.

 

(n)          Reserved.

 

(o)          Officers
and Ownership. As of the date hereof, the Persons set forth in the SEC Reports (i) hold the respective office or offices or
position or positions (including director positions if a director) in the Company and (ii) except as may be updated by a subsequent
filing of Form 4 or 5, own the percentage of each and every class of issued and outstanding capital stock, other ownership interests
and/or securities of the Company and the voting power over said capital stock, other ownership interests and/or securities of the
Company.

 

(p)          Rule
506(d) Bad Actor Disqualification Representations and Covenants.

 

(i)          No
Disqualification Events. Neither the Company, nor any of its predecessors, affiliates, any manager, executive officer, other
officer of the Company participating in the offering, any beneficial owner (as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “1934 Act”)) of 20% or more of the Company’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity as of the date of this Agreement and on the Closing Date (each, a “Company
Covered Person” and, together, the “Company Covered Persons”) is subject to any of the “Bad
Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine (A) the identity of each person that is a Company Covered Person; and (B) whether any Company Covered Person
is subject to a Disqualification Event. The Company will comply with its disclosure obligations under Rule 506(e).

 

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(ii)         Other
Covered Persons. The Company is not aware of any person (other than any Company Covered Person) who has been or will be paid
(directly or indirectly) remuneration in connection with the purchase and sale of the Securities who is subject to a Disqualification
Event (each, an “Other Covered Person”).

 

(iii)        Reasonable
Notification Procedures. With respect to each Company Covered Person, the Company has established procedures reasonably designed
to ensure that the Company receives notice from each such Company Covered Person of (A) any Disqualification Event relating to
that Company Covered Person, and (B) any event that would, with the passage of time, become a Disqualification Event relating to
that Company Covered Person, in each case occurring up to and including the Closing Date.

 

(iv)        Notice
of Disqualification Events. The Company will notify the Purchasers immediately in writing upon becoming aware of (A) any Disqualification
Event relating to any Company Covered Person and (B) any event that would, with the passage of time, become a Disqualification
Event relating to any Company Covered Person and/or Other Covered Person.

 

(q)          Accuracy
of Information, Etc. No statement or information contained in this Agreement, the SEC Reports, any other Transaction Document
or any other document, certificate or statement furnished to the Purchasers by or on behalf of the Company in writing for use in
connection with the transactions contemplated by this Agreement and/or the other Transaction Documents contained, as of the date
such statement, information, document or certificate was made or furnished, as the case may be, any untrue statement of a material
fact or omitted to state a material fact necessary to make the statements contained herein or therein, taken as a whole, not materially
misleading. There is no fact known to the Company that could have a Material Adverse Effect that has not been expressly disclosed
herein, in the other Transaction Documents, or in any other documents, certificates and statements furnished to the Purchasers
for use in connection with the transactions contemplated hereby and by the other Transaction Documents.

 

(r)          Solvency.
Immediately prior to, and immediately following the Closing Date, after giving effect to the incurrence of all Indebtedness (as
defined below) and all other obligations being incurred by the Company pursuant hereto and the other Transaction Documents and
the use of the Purchase Price as provided elsewhere herein, the Company is, and will be able to, pay its obligations in the ordinary
course as they come due. Notwithstanding the foregoing, as disclosed in the SEC Reports and the Company’s consolidated financial
statements and notes accompanying such SEC Reports, the Company has received a “going concern” qualification from its
independent registered public accounting firm, which has determined that the Company’s ability to continue as a going concern
is uncertain based on certain factors disclosed in such SEC Reports, financial statements and notes.

 

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(s)          Affiliate
Transactions. Other than as disclosed in the SEC Reports and other respect to the transactions contemplated by this Agreement
and the other Transaction Documents, the Company has not purchased, acquired or leased any property from, or sold, transferred
or leased any property to, or entered into any other transaction with (i) any affiliate of the Company, (ii) any officer, director,
manager, stockholder or member of the Company or any affiliate of any thereof, or (iii) any member of the immediate family of any
of the foregoing, except on terms comparable to the terms that would prevail in an arms-length transaction between unaffiliated
third parties. The audit committee of the Company’s board of directors has determined that the transactions contemplated
by this Agreement and the other Transaction Documents and the terms thereof are comparable to the transactions and terms that would
prevail in a similar arms-length transaction between unaffiliated third parties.

 

(t)          Intellectual
Property. The Company has, or has rights to use, all patents, patent applications, trademarks, trademark applications, service
marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights as
described in the SEC Reports as necessary or required for use in connection with its business and which the failure to so have
could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and the Company
has not received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been
abandoned, or is expected to expire or terminate or be abandoned. The Company has not received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have
a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company has taken reasonable security
measures to protect the secrecy, confidentiality and value of all of its intellectual property, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. All Intellectual Property Rights
of the Company are set forth in the SEC Reports.

 

(u)          Reserved.

  

(v)         USA
Patriot Act. The Company is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended, and
each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended)
and any other enabling legislation or executive order relating thereto, and (ii) the USA Patriot Act (Title III of Pub. L. 107-56,
signed into law on October 26, 2001) (the “Act”). No part of the proceeds of the offer and sale of the Securities
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct
business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

(w)          Foreign
Asset Control Laws. The Company is not a Person named on a list published by Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”) or a Person with whom dealings are prohibited under any OFAC regulations.

 

    	 	10	 

     

    

 

(x)          Indebtedness;
Liens, Etc. The Company has no Indebtedness nor any Liens. For the purposes of this Agreement, “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; and (z) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized
in accordance with GAAP (as defined below). Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(y)          Reserved.

 

(z)          Reserved.

  

(aa)         Offering.
The offer and sale of the Securities, as contemplated by this Agreement, are exempt from the registration requirements of the Securities
Act, and the qualification or registration requirements of state securities laws or other applicable “blue sky” laws.
Neither the Company nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such
exemptions.

 

(bb)        Capitalization
and Voting Rights. The authorized capital stock of the Company and all securities of the Company issued and outstanding are
set forth in the SEC Reports as of the dates reflected therein. All of the outstanding shares of Common Stock and other securities
of the Company have been duly authorized and validly issued, and are fully paid and nonassessable. Except as set forth in the SEC
Reports and other than as contemplated by this Agreement, there are no agreements or arrangements under which the Company is obligated
to register the sale of any of the Company’s securities under the Securities Act. Except as set forth in the SEC Reports,
no shares of Common Stock and/or other securities of the Company are entitled to preemptive rights and there are no outstanding
debt securities and no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue
additional shares of the capital stock and/or other securities of the Company or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable or exercisable
for, any shares of capital stock of the Company other than those issued or granted in the ordinary course of business pursuant
to the Company’s equity incentive and/or compensatory plans or arrangements. Except for customary transfer restrictions contained
in agreements entered into by the Company to sell restricted securities and/or as set forth in the SEC Reports, the Company is
not a party to, and it has no knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock
and/or other securities of the Company. Except as set forth in the SEC Reports, the offer and sale of all capital stock, convertible,
exercisable or exchangeable securities, rights, warrants, options and/or any other securities of the Company when any such securities
of the Company were issued complied with all applicable federal and state securities laws, and no current and/or prior holder of
any securities of the Company has any right of rescission or damages or any “put” or similar right with respect thereto
that would have a Material Adverse Effect. Except as set forth in the SEC Reports, there are no securities or instruments of the
Company containing anti-dilution or similar provisions that will be triggered by the issuance and/or sale of the Securities and/or
the consummation of the transactions described herein or in any of the other Transaction Documents.

 

    	 	11	 

     

    

 

(cc)        SEC
Reports. The Company is subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act and the Company is current
in its filing obligations under the 1934 Act, including, without limitation, its filings of Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K (collectively, the “SEC Reports”). The SEC Reports, at
the time filed with the SEC, did not contain any untrue statement of a material fact or omit to state any fact necessary to make
any statement therein not misleading. All financial statements included in the SEC Reports (the “Financial Statements”)
have been prepared, if so required, in accordance with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods indicated and with each other, except that unaudited Financial Statements
may not contain all footnotes required by GAAP. The Financial Statements fairly present, in all material respects, the financial
condition and operating results of the Company as of the dates, and for the periods, indicated therein, subject in the case of
unaudited Financial Statements to normal year-end audit adjustments.

 

(dd)        Sarbanes-Oxley
Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective
as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as
of the date hereof.

 

(ee)         Arbitration,
Absence of Litigation. Other than as disclosed in the SEC Reports, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the
Company, threatened against or affecting the Company, the Common Stock or any of the Company’s officers or directors or 5%
or greater stockholders in their capacities as such which would have a Material Adverse Effect. Without limitation of the foregoing,
there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving
the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. The
SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company
under the Securities Act or the 1934 Act.

 

(ff)         Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited Financial Statements included
in the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed with the SEC prior to the date hereof: (i)
there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company’s Financial Statements pursuant to GAAP or disclosed in the SEC Reports pursuant to SEC rules and/or regulations,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to any officer, director or affiliate, except pursuant
to existing Company equity incentive plans. The Company does not have pending before the Commission any request for confidential
treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact,
circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the
Company or its business, properties, operations, assets or financial condition that would be required to be disclosed by the Company
under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at
least one (1) Trading Day prior to the date that this representation is made.

 

    	 	12	 

     

    

 

(gg)        Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any Purchaser or its respective agents or counsel
with any information that constitutes material, non-public information. The Company understands that the Purchasers may rely on
the Transaction Documents, the information included therein, including, but not limited to, the foregoing representation, and the
SEC Reports in purchasing the Securities. All of the disclosure furnished by or on behalf of the Company to the Purchasers in the
Transaction Documents and/or in the SEC Reports regarding, among other matters relating to the Company, its business and the transactions
contemplated in the Transaction Documents, is true and correct in all material respects as of the date made and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that the Purchasers
do not and have not made any representations or warranties with respect to the transactions contemplated in the Transaction Documents
other than those specifically set forth in Section 2 hereof.

 

(hh)        No
Integrated Offering. Assuming the accuracy of the representations and warranties set forth in Section 2, neither the Company,
nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of
any security or solicited any offers to buy any security, under circumstances that would cause the issuance and/or sale of the
Securities to be integrated with prior offerings of securities by the Company for purposes of (i) the Securities Act that would
require the registration of any such Securities and/or any other securities of the Company under the Securities Act, or (ii) any
stockholder-approval provisions of any Eligible Market (as defined below).

 

(ii)          Bankruptcy
Status; Indebtedness. The Company has no current intention or expectation to file for reorganization or liquidation under the
bankruptcy or reorganization laws of any jurisdiction within one (1) year from the applicable representation date. All outstanding
material secured and unsecured Indebtedness of the Company, or for which the Company has commitments, is set forth in the SEC Reports.

 

(jj)          Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of,
any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company.

 

    	 	13	 

     

    

 

(kk)         No
Filings, Consents, Approvals, Etc. No direct or indirect consent, approval, authorization or similar item is required to be
obtained by the Company to enter into this Agreement and/or the other Transaction Documents to which it is a party and to perform
or undertake any of the transactions contemplated pursuant to this Agreement and/or any of the other Transaction Documents to which
it is a party, other than (i) the filings required pursuant to Section 4(l) of this Agreement, (ii) the notice and/or application(s)
to the Principal Market for the issuance and sale of the Securities and the listing of the Underlying Shares for trading thereon
in the time and manner required thereby, (iii) the filing of Form D with the Commission and such filings as are required to be
made under applicable state securities laws and (ii) Stockholder Approval (as defined in the Certificate of Designations).

 

(ll)          Listing
of Securities. All Underlying Securities (as defined below) have been approved, if so required, for listing or quotation on
the Principal Market, subject only to notice of issuance, and the Company has submitted an additional listing application with
the Principal Market with respect to the Underlying Securities.

 

(mm)       Dilutive
Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion of the Preferred
Shares, and the number of Warrant Shares issuable upon exercise of the Warrants, pursuant to the respective terms thereof, will
increase in certain circumstances. The Company further acknowledges that its obligations to issue Conversion Shares upon conversion
of the Preferred Shares and its obligation to issue the Warrant Shares upon exercise of the Warrants in accordance with this Agreement,
the Certificate of Designations and the Warrant, as applicable, are, in each case, absolute and unconditional regardless of the
dilutive effect that any such issuances may have on the percentage ownership interests of other stockholders of the Company.

  

(nn)        Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provisions under the Company’s certificate of incorporation, as amended,
or the laws of the jurisdiction of its formation that are or could become applicable to the Purchasers as a result of the transactions
contemplated by this Agreement and/or the other Transaction Documents, including, without limitation, the Company’s issuance
of the Securities and the Purchasers’ ownership of the Securities. The Company has not adopted a stockholder rights plan
or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company. 

 

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

 

    	 	14	 

     

    

 

(pp)        DTC
Eligible. The Common Stock is DTC (as defined below) eligible and DTC has not placed a “freeze” or a “chill”
on the Common Stock and the Company has no reason to believe that DTC has any intention to make the Common Stock not DTC eligible,
or place a “freeze” or “chill” on the Common Stock.

 

(qq)        No
Delisting from Principal Market. The Common Stock is eligible for quotation on the Principal Market and the Company has no
reason to believe that the Principal Market has any intention of delisting the Common Stock from the Principal Market.

 

(rr)         No
General Solicitation. Neither the Company, nor any of its affiliates, nor, to the knowledge of the Company, any Person acting
on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated
under the Securities Act) in connection with the offer or sale of the Securities.

  

(ss)         Acknowledgment
Regarding each Purchaser’s Purchase of Securities. The Company acknowledges and agrees that each Purchaser is acting
solely in the capacity of an arm’s length purchaser with respect to the other Transaction Documents and the transactions
contemplated hereby and thereby and that other than as listed on Schedule 3(ss), such Purchaser is not (i) an officer or
director of the Company (ii) an affiliate of the Company or (iii) to the knowledge of the Company, a “beneficial owner”
of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges
that each Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect
to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by such Purchaser or any
of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to such Purchaser’s purchase of the Securities. The Company further represents to each Purchaser that
the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives.

 

(tt)         Reserved.

 

(uu)       Off-Balance
Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or
other off-balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed
or that otherwise would be reasonably likely to have a Material Adverse Effect.

 

(vv)       Subsidiary
Rights. The Company has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends
and distributions on, all capital securities of its Subsidiaries as owned by the Company or any Subsidiary.

 

    	 	15	 

     

    

 

(ww)      Internal
Accounting and Disclosure Controls. Other than as disclosed in the SEC Reports, the Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of Financial Statements in
conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is
permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for
assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken
with respect to any difference. Other than as disclosed in the SEC Reports, the Company maintains disclosure controls and procedures
(as such term is defined in Rule 13a-15 under the 1934 Act) that are effective in ensuring that information required to be disclosed
by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within
the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to
ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated
and communicated to the Company’s management, including its principal executive officer or officers and its principal financial
officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Other than as disclosed in the SEC
Reports, during the twelve months prior to the Closing Date, the Company has not received any notice or correspondence from any
accountant relating to any material weakness in any part of the system of internal accounting controls of the Company.

 

(xx)         No
Additional Agreements. Except as set forth in the SEC Documents, the Company does not have any agreement or understanding with
any Purchaser with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction
Documents.

 

		4.	COVENANTS.

 

(a)          Reserved.

  

(b)          Reserved.

 

(c)          Reserved.

  

(d)          Reserved.

 

(e)          Blue
Sky. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary
in order to obtain an exemption for, or to, qualify the Securities for sale to the Purchasers at such Closing pursuant to this
Agreement under applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption
from such qualification), and shall provide evidence of any such action so taken to the Purchasers on or prior to the Closing Date.
Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings and reports
relating to the offer and sale of the Securities required under all applicable securities laws (including, without limitation,
all applicable federal securities laws and all applicable “blue sky” laws), and the Company shall comply with all applicable
federal, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to
the Purchasers.

 

    	 	16	 

     

    

 

(f)           Reporting
Status. Until the date on which no Preferred Shares are outstanding (the “Reporting Period”), the Company
shall timely file (or obtain an extension in respect thereof and file within such extension period) all reports required to be
filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports
under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require such reports or would otherwise
permit such termination.

 

(g)          Use
of Proceeds. The Company will use the proceeds from the sale of the Securities for working capital and general corporate purposes.

  

(h)          Financial
Information. The Company agrees to send the following to each of the Purchasers during the Reporting Period, unless filed with
the SEC through EDGAR and are available to the public through the EDGAR system, (i) within two (2) business days after the filing
thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any Current Reports on Form
8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to the Securities Act, (ii) on the same
day as the release thereof, facsimile copies of all press releases issued by the Company or any of its Subsidiaries and (iii) copies
of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with
the making available or giving thereof to the stockholders.

 

(i)            Listing.
The Company shall promptly (but in no event later than the Closing Date) secure the listing or designation for quotation (as the
case may be) of all of the Underlying Securities upon each national securities exchange and automated quotation system, if any,
upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance)
and shall use reasonable best efforts to maintain such listing or designation for quotation (as the case may be) of all Underlying
Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated
quotation system. The Company shall use reasonable best efforts to maintain the Common Stock’s listing or authorization for
quotation (as the case may be) on the OTC Bulletin Board, The NASDAQ Global Market, The NASDAQ Global Select Market, The NASDAQ
Capital Market, the New York Stock Exchange, NYSE Arca, the NYSE American, or the OTCQX Marketplace, the OTCQB Marketplace, the
OTCPink Marketplace or any other tier operated by OTC Markets Group Inc. (or any successor to any of the foregoing) (each, an “Eligible
Market”). Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to
result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4(i). “Underlying Securities” means the (i) Conversion
Shares, (ii) any capital stock of the Company issued or issuable with respect to the Conversion Shares or the Preferred Shares,
respectively, (iii) the Warrant Shares, and (iv) any capital stock of the Company issued or issuable with respect to the Warrant
Shares or the Warrants, respectively, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are
converted, exercised or exchanged and shares of capital stock of a successor entity into which the shares of Common Stock are converted,
exercised or exchanged, in each case, without regard to any limitations on conversion or exercise of the Preferred Shares and the
Warrants, respectively.

 

    	 	17	 

     

    

 

(j)            Fees.
The Company shall pay on the Closing Date all expenses incident to the performance of the obligations of the Company under this
Agreement, including, but not limited to: (i) all filing fees and communication expenses relating to the registration of the Securities
with the SEC; (ii) reserved; (iii) all fees and expenses relating to the listing of all such Common Stock underlying the Securities
on the Principal Market and such other stock exchanges as the Company determines, including with respect to any additional listing
application; (iv) all fees, expenses and disbursements relating to the registration or qualification of the Securities under the
“blue sky” securities laws of such states and other jurisdictions as the Company may reasonably designate; (v) all
fees, expenses and disbursements relating to the registration, qualification or exemption of the Securities under the securities
laws of such foreign jurisdictions as the Company may reasonably designate; (vi) the costs of all mailing and printing of the placement
documents (including, without limitation, this Agreement and any “blue sky” surveys), registration statements, prospectuses
and all amendments, supplements and exhibits thereto and as many preliminary and final prospectuses as the Company may reasonably
deem necessary; (vii) the costs of preparing, printing and delivering certificates representing the Securities; (viii) fees and
expenses of the Company’s Transfer Agent or DTC (as defined below); (ix) the fees of the Placement Agent, equal to 8% of
the Purchase Price paid by all Purchasers to the Company in connection with each Tranche (the “Placement Agent Fee”)
and the expenses of the Placement Agent, not to exceed $1,000 in the aggregate without the Company’s prior consent; (x) the
fees and expenses of the Company’s accountants; and (xi) the fees and expenses of the Company’s legal counsel and other
agents and representatives. Such fees may be withheld at the request of the Company from the Purchase Price at the Closing. Except
as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with
the sale of the Securities to the Purchasers.

 

(k)          Pledge
of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that
the Securities may be pledged by a Purchaser in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Purchaser affecting a pledge of Securities shall be required to provide the Company with any notice thereof or
otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document. The Company hereby agrees
to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by a Purchaser.

  

    	 	18	 

     

    

 

(l)            Disclosure
of Transactions and Other Material Information. The Company shall, within the time required under the 1934 Act, file a Current
Report on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents in the form
required by the 1934 Act and attaching all the material Transaction Documents (including, without limitation, this Agreement (including
all attachments, the “8-K Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed
all material, non-public information (if any) delivered to the Purchasers by the Company or any of its Subsidiaries, or any of
their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.
In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement with respect to the transactions contemplated under the Transaction Documents, whether
written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees
or agents, on the one hand, and a Purchaser or any of such Purchaser’s respective affiliates, on the other hand, shall terminate.
In the event of a breach of any of the foregoing covenants by the Company, any of its Subsidiaries, or any of its or their respective
officers, directors, employees and agents (as determined in the reasonable good faith judgment of such Purchaser), in addition
to any other remedy provided herein or in the Transaction Documents, such Purchaser shall have the right to make a public disclosure,
in the form of a press release, public advertisement or otherwise, of such material, non-public information, as applicable, without
the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees or
agents; provided such Purchaser shall have first provided written notice to the Company that it believes it has received information
that constitutes material, non-public information, the Company shall have at least 48 hours to publicly disclose such material,
non-public information prior to any such disclosure by such Purchaser or demonstrate to such Purchaser in writing why such information
does not constitute material, non-public information, and (assuming such Purchaser and Purchaser’s counsel disagree with
the Company’s determination) the Company shall have failed to publicly disclose such material, non-public information within
such time period. No Purchaser shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective
officers, directors, employees, stockholders or agents, for any such disclosure. To the extent that the Company delivers any material,
non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such
Purchaser shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public
information. Subject to the foregoing, neither the Company, its Subsidiaries nor any Purchaser shall issue any press releases or
any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled,
without the prior approval of any Purchaser, to make any press release or other public disclosure with respect to such transactions
(i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and
regulations (provided that in the case of clause (i) such Purchaser shall be consulted by the Company in connection with any such
press release or other public disclosure prior to its release).

 

(m)         Reserved.

  

(n)          Reservation
of Shares. So long as any of the Preferred Shares remain outstanding, the Company shall take all action necessary to at all
times have authorized, and reserved for the purpose of issuance with the Transfer Agent (as defined herein), shares of Common Stock
in an amount no less than the Required Reserve Amount. If at any time the number of shares of Common Stock authorized and reserved
for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary
to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders
to authorize additional shares to meet the Company’s obligations pursuant to the Transaction Documents, in the case of an
insufficient number of authorized shares, obtaining stockholder approval of an increase in such authorized number of shares, and
voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the
number of authorized shares is sufficient to meet the Required Reserved Amount. 

  

    	 	19	 

     

    

 

(o)          Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any Governmental Entity (as defined below), except where such violations would not reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect. “Governmental
Entity” means any (i) nation, state, county, city, town, village, district, or other political jurisdiction of any nature;
(ii) federal, state, local, municipal, foreign, or other government; (iii) governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (iv) multi-national
organization or body; or (v) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police,
regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise
owned or controlled by a government or a public international organization or any of the foregoing.

 

(p)         Reserved.

 

(q)         Reserved.

  

(r)          Passive
Foreign Investment Company. The Company shall conduct its business in such a manner as will ensure that the Company will not
be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the U.S. Internal Revenue Code
of 1986, as amended.

 

(s)         Reserved.

 

(t)          Reserved.

 

(u)         Reserved.

 

(v)         Reserved.

 

(w)        Reserved.

 

(x)         Conversion
and Exercise Procedures. The form of Notice of Conversion included in the Certificate of Designations sets forth the totality
of the procedures required of a Purchaser in order to convert the Preferred Shares. No legal opinion, other information or instructions
shall be required of any Purchaser to convert its Preferred Shares. The Company shall honor conversions of the Preferred Shares
and shall deliver the Conversion Shares in accordance with the terms, conditions and time periods set forth in the Certificate
of Designations. The form of Notice of Exercise included in the Warrants sets forth the totality of the procedures required of
a Purchaser in order to exercise the Warrants. No legal opinion, other information or instructions shall be required of any Purchaser
to exercise the Warrants. The Company shall honor exercises of Warrants and shall deliver the Warrant Shares in accordance with
the terms, conditions and time periods set forth in the Warrants.

 

    	 	20	 

     

    

 

(y)          No
Net Short Sales. From the date of this Agreement until such time as no Purchaser holds any Securities, no Purchaser, nor any
of its respective agents, representatives or affiliates nor any entity managed or controlled by such Purchaser (collectively, the
“Restricted Persons” and each of the foregoing is referred to herein as a “Restricted Person”)
shall maintain, in the aggregate, a Net Short Position.  For purposes hereof, a “Net Short Position” by
a Restricted Person means a position whereby such Restricted Person has executed one or more sales of Common Stock that is marked
as a short sale (but not including any sale marked “short exempt”) and that is executed at a time when such Restricted
Person does not have an equivalent offsetting long position in the Common Stock (or is deemed to have a long position hereunder
or otherwise in accordance with Regulation SHO under the 1934 Act); provided, further that no “short sale” shall be
deemed to exist as a result of any failure by the Company (or its agents) to deliver (i) Conversion Shares, upon conversion of
the Preferred Shares or (ii) Warrant Shares, upon exercise of the Warrants to any Restricted Person converting such Preferred Shares,
or exercising such Warrants, as applicable. For purposes of determining whether a Restricted Person has an equivalent offsetting
long position in the Common Stock, such Restricted Person shall be deemed to hold “long” all Common Stock that is either
(i) then owned by such Restricted Person, if any, or (ii) then issuable to such Restricted Person as Conversion Shares pursuant
to the terms of the Certificate of Designations then held by such Restricted Person, if any, (without regard to (i) any limitations
on conversion set forth in the Certificate of Designations and giving effect to any conversion price adjustments that would take
effect given only the passage of time and (ii) any limitations on exercise set forth in the Warrants and giving effect to any exercise
price adjustments that would take effect given only the passage of time). Notwithstanding the foregoing, nothing contained herein
shall (without implication that the contrary would otherwise be true) prohibit any Restricted Person from selling “long”
(as defined under Rule 200 promulgated under Regulation SHO under the 1934 Act) the Securities or any other Common Stock then owned
by such Restricted Person.

 

(z)          Reserved.

 

(aa)        Registration
Rights.

 

(i) Within one hundred eighty
(180) business days of the Closing Date on which the Purchasers have committed to the purchase of an aggregate amount of Preferred
Shares pursuant to this Agreement with an aggregate Stated Value equal to or exceeding $250,000 and this Agreement remains in full
force and effect, and there is not an effective Company registration statement covering the Preferred Shares and the Underlying
Securities (the “Registrable Securities”), the Company shall prepare and file with the SEC a registration statement
that includes all or any portion of the Preferred Shares or Underlying Securities that such Purchasers request to be registered
(the “Registration Statement”) and shall use its best efforts to ensure that such Registration Statement is
declared effective by the Commission.

 

    	 	21	 

     

    

 

(ii) Registration Procedures.
The Company will, as expeditiously as possible:

 

		(A)	subject to the timelines provided in this Agreement, (x)
use its best efforts to prepare and file with the Commission such amendments and supplements to such Registration Statement and
the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective until such Registration
Statement has been effective for a period of one (1) year, and comply with the provisions of the Securities Act with respect to
the disposition of all of the Registrable Securities covered by such Registration Statement in accordance with the Purchasers’
intended method of disposition set forth in such Registration Statement for such period;

 

		(B)	furnish to each Purchaser, at the Company’s expense,
such number of copies of the Registration Statement and the prospectus included therein (including each preliminary prospectus)
as such persons reasonably may request in order to facilitate the public sale or the disposition of the Registrable Securities
covered by such Registration Statement, or make them electronically available;

 

		(C)	as applicable, list or make available for quotation the
Registrable Securities covered by such Registration Statement with the Principal Market;

 

		(D)	notify each Purchaser within two (2) business days of the
happening of any event of which the Company has knowledge as a result of which the prospectus contained in such Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then existing, or which becomes subject
to a Commission, state or other governmental order suspending the effectiveness of the Registration Statement covering any of
the Registrable Securities; and

 

		(E)	provide to each Purchaser copies of the Registration Statement
and amendments thereto at least two (2) days prior to the filing thereof with the Commission.

 

(ii) Expenses. All expenses
incurred by the Company in complying with Section 4(aa), including, without limitation, all registration and filing fees, printing
expenses (if required), fees and disbursements of the Company counsel and independent public accountants for the Company, fees
and expenses (including reasonable counsel fees) incurred in connection with complying with state securities or “blue sky”
laws, fees of FINRA, and fees of transfer agents and registrars are herein called “Registration Expenses.” All
underwriting discounts, selling commissions and transfers applicable to the sale of Registrable Securities are herein called “Selling
Expenses.” The Company will pay all Registration Expenses in connection with any Registration Statement described in
Section 4(aa). Selling Expenses in connection with each such Registration Statement shall be borne by such Purchasers.

 

    	 	22	 

     

    

 

(iii) In the event that the Company
is required to prepare and file a Registration Statement with the Commission under this Section 4(aa) on a date on which the Financial
Statements would not be considered current under the 1934 Act and the rules and regulations promulgated under such act, the Company
must file a Registration Statement within three (3) Trading Days after of the date on which an SEC Report containing the Company’s
current Financial Statements is filed with the Commission.

 

(bb)        Right
of First Refusal.

 

(i) So long as the Purchasers
hold Preferred Shares with an aggregate Stated Value equal to or exceeding $62,500 and this Agreement remains in full force and
effect, upon any issuance by the Company of Common Stock, Common Stock Equivalents, conventional debt or a combination of such
securities and/or debt (a “Subsequent Financing”), unless the proposed terms of a Subsequent Financing shall
have first been delivered to the Purchasers in reasonable detail and the Purchasers shall have first been granted the option to
purchase such securities pursuant to such terms, the Purchasers shall have the right to purchase all, and no less than all, of
the securities offered to investors in a Subsequent Financing on the same terms, conditions and price provided for in the Subsequent
Financing. “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle
the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred shares, right, option,
warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.

 

(ii) At
least three (3) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to the Purchasers a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask each Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of any Purchaser(s), and only upon a request by any Purchaser(s), for a Subsequent Financing Notice, the Company
shall promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser(s).
The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount
of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed
to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

    	 	23	 

     

    

 

(iii) If such Purchaser(s) desire(s)
to purchase the securities offered to investors in such Subsequent Financing, such Purchaser(s) must provide written notice to
the Company within (3) Trading Days of receipt of the Subsequent Financing Notice that such Purchaser(s) intend(s) to purchase
such securities in the Subsequent Financing, and representing and warranting that such Purchaser(s) has or have such funds ready,
willing, and available for investment on the terms set forth in the Subsequent Financing Notice.

 

(iv) The Company must provide
the Purchasers with another Subsequent Financing Notice, and the Purchasers will again have the right to purchase such securities
as described in this Section 4(bb), if the Subsequent Financing subject to any Subsequent Financing Notice is not consummated for
any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after the date of the prior
Subsequent Financing Notice provided by the Company.

 

(v) The Company and the Purchasers
agree that if any Purchaser(s) elect(s) to purchase such securities in the Subsequent Financing, the transaction documents related
to the Subsequent Financing shall not include any term or provision whereby such Purchaser(s) shall be required to agree to any
restrictions on trading as to any of the Company’s securities purchased hereunder or be required to consent to any amendment
to or termination of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior written
consent of such Purchaser(s), unless such terms apply to all investors in the Subsequent Financing.

 

(vi) Notwithstanding anything
to the contrary in this Section 4(bb) and unless otherwise agreed to by such Purchaser(s), the Company shall either confirm in
writing to such Purchaser(s) that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser(s)
will not be in possession of any material, non-public information, by the twentieth (20th) Trading Day following delivery of the
Subsequent Financing Notice. If by such twentieth (20th) Trading Day, no public disclosure regarding a transaction with respect
to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by such
Purchaser(s), such transaction shall be deemed to have been abandoned and such Purchaser(s) shall not be deemed to be in possession
of any material, non-public information with respect to the Company or any of its Subsidiaries.

 

    	 	24	 

     

    

 

(vii) Notwithstanding the foregoing,
this Section 4(bb) shall not apply in respect of an Exempt Issuance. An “Exempt Issuance” means the issuance
of (A) shares of Common Stock or options to employees, officers, directors, advisors or independent contractors of the Company
pursuant to any stock or option plan duly adopted for such purpose, (B) shares of Common Stock, warrants or options to consultants,
advisors or independent contractors of the Company for compensatory purposes, (C) securities upon the conversion or exercise of
any securities issued pursuant to the Transaction Documents and/or other Company securities exercisable or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date hereof, provided that such securities have not been
amended since the date hereof to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities, (D) securities issuable pursuant to any contractual anti-dilution obligations of the Company in effect
as of the date hereof, provided that such obligations have not been materially amended since the date of hereof, (E) securities
issued pursuant to acquisitions or any other strategic transactions approved by the Company’s board of directors, provided
that any such issuance shall not include a transaction in which the Company is issuing securities primarily for the purpose of
raising capital or to an entity whose primary business is investing in securities, and (F) securities issuable pursuant to a registered
public offering by the Company.

 

(cc)         Most
Favored Nation Status. So long as the Purchasers hold Preferred Shares with an aggregate Stated Value equal to or exceeding
$125,000 and this Agreement remains in full force and effect, if the Company effects a Subsequent Financing, if a Purchaser reasonably
believes that the terms and conditions appurtenant to such issuance or sale are more favorable to such investors than were granted
to the Purchasers pursuant to the Transaction Documents, such Purchaser may elect, in its sole discretion, in lieu of cash consideration
(or whatever form of consideration is payable in such Subsequent Financing) to tender all or some of the Preferred Shares then
held by such Purchaser to the Company for the purchase of any securities issued in such Subsequent Financing on a $1.00 for $1.00
basis based on the then outstanding Stated Value of such Preferred Shares, along with any accrued but unpaid interest, liquidated
damages and other amounts owing thereon, and the effective price at which such securities were sold in such Subsequent Financing
so as to give such Purchaser the benefit of such more favorable terms and provisions, upon notice to the Company by such Purchaser
within five (5) Trading Days after the Company’s disclosure of such issuance or sale, which effective price shall not be
less than the Floor Price (as defined in the Certificate of Designations); provided, however, that this right shall not apply with
respect to an Exempt Issuance.

 

(dd)        Unless
Stockholder Approval has been obtained and deemed effective, neither the Company nor any Subsidiary shall make any issuance whatsoever
of Common Stock or Common Stock Equivalents which would cause any adjustment to the Conversion Price of the Preferred Shares, or
any adjustment to the Exercise Price of the Warrants, to the extent that the holders of Preferred Shares or Warrants, as applicable,
would not be permitted, pursuant to Section 6 of the Certificate of Designations and Section 2 of the Warrant, to convert or exercise
their respective outstanding Preferred Shares and exercise their respective Warrants in full, ignoring for such purposes the other
conversion or exercise limitations therein. Any Purchaser shall be entitled to obtain injunctive relief against the Company to
preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

    	 	25	 

     

    

 

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)          Register.
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to each holder of Securities), a register for the Preferred Shares and the Warrants in which the Company shall record
the name and address of the Person in whose name the Preferred Shares and Warrants have been issued (including the name and address
of each transferee), the number of the Preferred Shares and Warrants held by such Person and the number of Conversion Shares and
Warrant Shares issuable upon conversion of the Preferred Shares and exercise of the Warrants, as applicable. The Company shall
keep the register open and available at all times during business hours for inspection of any Purchaser or its legal representatives.

  

(b)          Transfer
Agent Instructions. The Company shall issue irrevocable instructions to VStock Transfer, LLC (together with any subsequent
transfer agent, the “Transfer Agent”) in the form previously provided to the Company (the “Irrevocable
Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at Depository
Trust Company (“DTC”), as applicable, registered in the name of each Purchaser or its respective nominee(s),
for the Securities in such amounts as specified from time to time by such Purchaser to the Company upon delivery of the Preferred
Shares and Warrants, conversion of the Preferred Shares, exercise of the Warrant Shares or issuance pursuant to the Certificate
of Designations and Warrants (as the case may be). The Company represents and warrants that no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 5(b) will be given by the Company to the Transfer Agent with respect to
the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company. If a Purchaser
effects a sale, assignment or transfer of the Securities, the Company shall permit the transfer and shall promptly instruct the
Transfer Agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in
such denominations as specified by such Purchaser to effect such sale, transfer or assignment. The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to the Purchasers. Accordingly, the Company acknowledges
that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a
breach or threatened breach by the Company of the provisions of this Section 5(b), that the Purchasers shall be entitled, in addition
to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other security being required. The Company shall cause its
counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Transfer Agent to the extent
required or requested by the Transfer Agent. Any fees (with respect to the Transfer Agent, counsel to the Company or otherwise)
associated with the issuance of such opinion shall be borne by the Company.

 

    	 	26	 

     

    

 

(c)          Legends.
Certificates and any other instruments evidencing the Preferred Shares and the Conversion Shares shall not bear any restrictive
or other legend, except as may be specified in the Certificate if Designations. Certificates and any other instruments evidencing
the Warrant Shares shall bear the restrictive legend provided for such shares in the Warrant.

 

		6.	CLOSING CONDITIONS.

 

(a)          Conditions
of Purchasers’ Obligations with respect to each Closing. With respect to each Closing, the obligations of the Purchasers
to purchase and pay for the Preferred Shares and Warrants in any Tranche, as provided herein, shall be subject to (i) the continuing
accuracy of the representations and warranties of the Company as of the date hereof and as of each Closing Date; (ii) the accuracy
of the statements of officers of the Company made pursuant to the provisions hereof; (iii) the performance by the Company of its
obligations hereunder; and (iv) the satisfaction of the conditions set forth in Section 6(c). 

 

(b)          Conditions
of Purchasers’ Obligations with respect to each Additional Closing. In addition to the conditions set forth in Section
6(a), with respect to each Additional Closing, the Purchasers shall not be obligated to purchase Preferred Shares and Warrants
in any Tranche in the event that (x) the Company’s consolidated cash balance exceeds $3,000,000 or (y) for each Trading Day
in a period of fifteen (15) consecutive Trading Days prior to the applicable Closing Date in question, the daily trading volume
for the Common Stock on the principal Trading Market does not exceed $125,000 per Trading Day.

 

(c)          Regulatory
Matters.

 

(i)          Reserved.

 

(ii)         Principal
Market Clearance. On the Closing Date, (A) the Company has submitted an additional listing application to the Principal Market
with respect to the Underlying Securities and such securities shall have been approved for listing on the Principal Market, subject
only to official notice of issuance, and (B) the issuance of such securities shall not be in violation of the rules and regulations
of the Principal Market, including, but not limited to, Nasdaq Stock Market Rules 5365(a), (b) and (c). 

 

(iii)        No
Integrated Offering. Neither the Company nor any of its officers, directors, employees or affiliates shall have made or shall
be making any offer or sale of any securities which are required to be “integrated” pursuant to the Securities Act
(or the rules and regulations of the SEC promulgated thereunder) with the offer and sale of the Securities.

 

(iv)        Certificate
of Designations. The Company shall have filed the Certificate of Designations with the Secretary of State of the State of Delaware
on or prior to the First Closing Date, which shall be in full force and effect as of the First Closing.

 

    	 	27	 

     

    

 

		7.	TERMINATION.

 

In the event that the
First Closing shall not have occurred with respect to a Purchaser within three (3) business days after the First Closing Date contemplated
in Section 1(b) hereof, then either the Company or such Purchaser, by written notice, shall have the right to terminate its obligations
under this Agreement with respect to itself at any time on or after the close of business on such date without liability of any
party to any other party; provided, however, (i) the right to terminate this Agreement under this Section 7 shall not be available
to any party if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result
of such party’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Securities shall be applicable
only to such Purchaser providing such written notice. Nothing contained in this Section 7 shall be deemed to release any party
from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents
or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or
the other Transaction Documents.

 

		8.	MISCELLANEOUS.

 

(a)          Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address
for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT,
ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

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

 

    	 	28	 

     

    

 

(c)          Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

  

(d)          Severability;
Maximum Payment Amount. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties hereto as to the subject matter hereof and
the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties hereto or the practical realization of the benefits that would otherwise
be conferred upon the parties hereto. The parties hereto will endeavor in good faith negotiations to replace the prohibited, invalid
or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited,
invalid or unenforceable provision(s). Notwithstanding anything to the contrary contained in this Agreement or any other Transaction
Document (and without implication that the following is required or applicable), it is the intention of the parties hereto that
in no event shall amounts and value paid by the Company and/or any of its Subsidiaries (as the case may be), or payable to or received
by the Purchasers, under the Transaction Documents (including without limitation, any amounts that would be characterized as “interest”
under applicable law) exceed amounts permitted under any applicable law. Accordingly, if any obligation to pay, payment made to
a Purchaser, or collection by any Purchaser pursuant to the Transaction Documents is finally judicially determined to be contrary
to any such applicable law, such obligation to pay, payment or collection shall be deemed to have been made by mutual mistake of
such Purchaser, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted with retroactive effect
to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by the applicable law. Such adjustment
shall be effected, to the extent necessary, by reducing or refunding, at the option of such Purchaser, the amount of interest or
any other amounts which would constitute unlawful amounts required to be paid or actually paid to such Purchaser under the Transaction
Documents. For greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid
to or received by a Purchaser under any of the Transaction Documents or related thereto are held to be within the meaning of “interest”
or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time
to which they relate.

 

    	 	29	 

     

    

 

(e)          Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and thereto
and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Purchasers,
the Company, their respective affiliates and Persons acting on their behalf solely with respect to the matters contained herein
and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the
instruments referenced herein and therein contain the entire understanding of such parties solely with respect to the matters covered
herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be
deemed to) (i) have any effect on any agreement that a Purchaser has entered into with the Company or any of its Subsidiaries prior
to the date hereof with respect to any prior investment made by such Purchaser in the Company or (ii) waive, alter, modify or amend
in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to a Purchaser or any other
Person, in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and
such Purchaser and all such agreements shall continue in full force and effect. Except as specifically set forth herein or the
other Transaction Documents, neither the Company nor any Purchaser makes any representation, warranty, covenant or undertaking
with respect to such matters. For clarification purposes, the recitals are part of this Agreement. No provision of this Agreement
may be amended other than by an instrument in writing signed by the Company and the holders of a majority of the Preferred Shares.
No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration also is offered to all of the parties to the Transaction Documents or all holders of Preferred
Shares (as the case may be). The Company has not, directly or indirectly, made any agreements with any Purchaser relating to the
terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents.
Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Purchaser has made a commitment
or promise and has any other obligation to provide any financing to the Company, any Subsidiary or otherwise. As a material inducement
for the Purchasers to enter into this Agreement, the Company expressly acknowledges and agrees that (i) no due diligence or other
investigation or inquiry conducted by any Purchaser, any of the Purchasers’ respective advisors or representatives shall
affect a Purchaser’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s
representations and warranties contained in this Agreement or any other Transaction Document, and (ii) unless a provision of this
Agreement or any other Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Reports,”
nothing contained in any of the SEC Reports shall affect a Purchaser’s right to rely on, or shall modify or qualify in any
manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other
Transaction Document.

 

(f)          Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one (1) business day after deposit with an overnight courier service with next day delivery specified,
in each case, properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications
shall be:

 

    	 	30	 

     

    

 

	If to the Company:
	 
	Summit Wireless Technologies Inc.
	6840 Via Del Oro Ste. 280
	San Jose, CA 95119
	Attn: Chief Executive Officer
	Email: bmoyer@summitwireless.com
	 
	If to a Purchaser:
	to the address, email address, or facsimile number of such Purchaser set forth on such Purchaser’s signature page attached hereto

 

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

 

(g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns, including, as contemplated below, any assignee of any of the Securities. The Company shall not assign this Agreement
or any rights or obligations hereunder without the prior written consent of the holders of a majority of the Preferred Shares,
including, without limitation, by way of a Fundamental Transaction (as defined in the Certificate of Designations) (unless the
Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Certificate of Designations).
A Purchaser may assign some or all of such Purchaser’s rights hereunder in connection with any transfer of any of its Securities
without the consent of the Company, provided that such assignee agrees in writing to be bound with respect to the transferred Securities,
in which event such assignee shall be deemed to be a “Purchaser” hereunder with respect to such assigned rights.

 

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

 

(i)          Survival.
The representations, warranties, agreements and covenants of the Company and each of the Purchasers included herein shall survive
the Closing. Each Purchaser shall be responsible only for such Purchaser’s own representations, warranties, agreements and
covenants hereunder.

 

    	 	31	 

     

    

 

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

 

(k)          Indemnification.

 

(i)          In
consideration of each of the Purchaser’s execution and delivery of the Transaction Documents and acquiring the Securities
thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend,
protect, indemnify and hold harmless each Purchaser (each, an “Indemnitee”) from and against any and all actions,
causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee
as a result of, or arising out of, or relating to (x) any misrepresentation or breach of any representation or warranty made by
the Company or any Subsidiary in any of the Transaction Documents, (y) any breach of any covenant, agreement or obligation of the
Company or any Subsidiary contained in any of the Transaction Documents or (z) any cause of action, suit, proceeding or claim brought
or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company
or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery,
performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed in whole or in part,
directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by a Purchaser pursuant
to Section 4(l), or (D) the status of such Purchaser either as an investor in the Company pursuant to the transactions contemplated
by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise
in any action or proceeding for injunctive or other equitable relief); provided, however, that the indemnity contained in clause
(z) above shall not apply to any Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or
willful misconduct of an Indemnitee. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason,
the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

 

    	 	32	 

     

    

 

(ii)         Promptly
after receipt by an Indemnitee under this Section 8(k) of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is
to be made against the Company under this Section 8(k), deliver to the Company a written notice of the commencement thereof, and
the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have
the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (x) the Company has
agreed in writing to pay such fees and expenses; (y) the Company shall have failed after a reasonable period of time to assume
the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified
Liability; or (z) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee
and the Company, and such Indemnitee shall have been advised by counsel, in its reasonable opinion, that a material conflict of
interest on any material issue is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which
case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company,
then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company);
provided further, that in the case of clauses (x), (y) and (z) above the Company shall not be responsible for the reasonable fees
and expenses of more than one (1) separate legal counsel for such Indemnitee. The Indemnitee shall reasonably cooperate with the
Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall furnish
to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability. The
Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations
with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent. The
Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee
of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include any
admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be
subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement
of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 8(k), except to the extent
that the Company is materially and adversely prejudiced in its ability to defend such action.

  

(iii)        The
indemnification required by this Section 8(k) shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iv)        The
indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against
the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

    	 	33	 

     

    

 

(l)            Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality
or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock
and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock
dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock after
the date of this Agreement. It is expressly understood and agreed that for all purposes of this Agreement, and without implication
that the contrary would otherwise be true, neither transactions nor purchases nor sales shall include the location and/or reservation
of borrowable shares of Common Stock.

 

(m)          Remedies.
Each Purchaser, and in the event of assignment by such Purchaser of its rights and obligations hereunder, each assignee of Securities,
shall have all rights and remedies set forth in the Transaction Documents and all of the rights which such holders have under any
law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise
all other rights granted by law. Furthermore, the Company recognizes that in the event that it or any Subsidiary fails to perform,
observe, or discharge any or all of its or such Subsidiary’s (as the case may be) obligations under the Transaction Documents,
any remedy at law may prove to be inadequate relief to a Purchaser. The Company therefore agrees that each Purchaser shall be entitled
to seek specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of
competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.
The remedies provided in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies
available under this Agreement and the other Transaction Documents, at law or in equity (including a decree of specific performance
and/or other injunctive relief).

 

(n)          Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever a Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in
its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in
part without prejudice to its future actions and rights.

  

(o)          Payment
Set Aside; Currency. To the extent that the Company makes a payment or payments to a Purchaser hereunder or pursuant to any
of the other Transaction Documents or a Purchaser enforces or exercises such Purchaser’s rights hereunder or thereunder,
and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law,
foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation
or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred
to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and
all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated
in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on
the date of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S.
Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date
of calculation.

 

(p)          Reserved.

   

[Signature pages follow]

 

    	 	34	 

     

    

 

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

 

	 	 
	 	Summit Wireless Technologies, Inc.
	 	 	 
	 	By:	 
	 	 	Name: Brett Moyer
	 	 	Title: Chief Executive Officer

 

    	 	35	 

     

    

 

[PURCHASER
SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

Date:

 

Name of Purchaser: _____________________________________________________________________________

 

Signature of Authorized Signatory of
Purchaser: _______________________________________________________

 

Name of Authorized Signatory: _________________________________________________________________________

 

Title of Authorized Signatory: __________________________________________________________________________

 

Email Address of Authorized Signatory:
__________________________________________________________________

 

Facsimile Number of Authorized Signatory: _______________________________________________________________

 

Address for Notice to Purchaser:

 

 

Address for Delivery of Securities to Purchaser (if not same
as address for notice):

 

 

First Closing Subscription Amount: _____________

 

Additional Closing Subscription Amount: _____________

 

EIN Number: _______________________

 

    	 	36	 

     

    

 

 

PURCHASER SCHEDULE

 

	
        Purchaser

        Name
	 	
        (1)

        Tranche 
	 	
        (2)

        Number of 

Preferred Shares
	 	
        (3)

        Number of

 Warrants
	 	
        (4)

        Purchase Price 

	
         

        [_____]

         
	 	
         

        [_____]
	 	
         

        [_____]
	 	
         

        [_____]
	 	
         

        $[_____]

	
         

        [_____]

         
	 	
         

        [_____]
	 	
         

        [_____]
	 	
         

        [_____]
	 	
         

        $[_____]

	
         

        Total

         
	 	 	 	
        [_____]

         
	 	
        [_____]

         
	 	
        $[_____]

         

 

    	 	37	 

     

    

 

 

DISCLOSURE SCHEDULES

 

Schedule 3(ss)

 

Affiliates

 

[________]

 

    	 	38	 

     

    

Exhibit A

 

Form of Certificate of Designations

 

 

    	 	39	 

     

    

 

 

Exhibit B

 

Form of Warrant

 

    	 	40EXHIBIT 4.1

   

STOCK PURCHASE AGREEMENT

     

AMONG

     

NF ENERGY SAVING CORPORATION, AS BUYER,

   

Lasting
wisdom holdings limited, AS PARENT,

   

Pukung
limited, AS HOLDCO,

   

Beijing
xin rong xin Industrial development co., ltd., as wfoe

   

BOQI ZHENGJI PHARMACY CHAIN CO., LTD.,

AS THE COMPANY,

   

AND

   

THE SELLING SHAREHOLDERS LISTED ON SCHEDULE
I,

HERETO, AS THE SELLERS,

   

DATED

   

April 11, 2019

   

     

     

    

 

TABLE OF CONTENTS

  

	 	Page
	 	 
	1.
    DEFINITIONS	1
	2. SALE AND
    TRANSFER OF SHARES; CLOSING	7
	2.1 Shares	7
	2.2 Purchase
    Price	7
	2.3 Payment
    of Initial Consideration	7
	2.4 Closing	7
	2.5 Closing
    Obligations	7
	2.6 Payment
    of Post-Closing Consideration	8
	2.7 Adjustment
    Procedure	8
	2.8 Method of
    Payment	8
	2.9 Further
    Assurances	8
	3. REPRESENTATIONS
    AND WARRANTIES OF SELLERS	9
	3.1 Title to
    the Shares	9
	3.2 Authority;
    Noncontravention by the Sellers	9
	3.3 Consents
    Required	9
	4. REPRESENTATIONS
    AND WARRANTIES OF THE ACQUIRED COMPANIES AND THE SELLERS	9
	4.1 Organization
    and Good Standing	9
	4.2 Authority;
    No Conflict	10
	4.3 Capitalization	11
	4.4 Financial
    Statements	11
	4.5 Books and
    Records	11
	4.6 Title to
    Properties; Encumbrances	11
	4.7 Condition
    and Sufficiency of Assets	12
	4.8 Accounts
    Receivable	12
	4.9 Inventory	12
	4.10 No Undisclosed
    Liabilities	12
	4.11 Taxes	12
	4.12 No Material
    Adverse Change	13
	4.13 Employee
    Benefits	13
	4.14 Compliance
    With Legal Requirements; Governmental Authorizations	13
	4.15 Legal Proceedings;
    Orders	14
	4.16 Absence
    of Certain Changes and Events	15
	4.17 Contracts;
    No Defaults	16
	4.18 Insurance	16
	4.19 Environmental
    Matters	17
	4.20 Employees	18
	4.21 Labor Relations;
    Compliance	18
	4.22 Intellectual
    Property	19
	4.23 Certain
    Payments	21
	4.24 Disclosure	21
	4.25 Relationships
    With Related Persons	22
	4.26 Brokers
    or Finders	22
	4.27 Investment
    Representations	22

 

    i

     

    

 

	5. REPRESENTATIONS
    AND WARRANTIES OF BUYER	22
	5.1 Organization
    and Good Standing	22
	5.2 Authority;
    No Conflict	22
	5.3 Stock Exchange
    Listing	23
	5.4 SEC Filings	23
	5.5 Certain
    Proceedings	23
	5.6 Brokers
    or Finders	23
	6. COVENANTS
    OF SELLERS	23
	6.1 Access and
    Investigation	23
	6.2 Operation
    of the Businesses of the Acquired Companies	23
	6.3 Negative
    Covenant	24
	6.4 Required
    Approvals	24
	6.5 Notification	24
	6.6 Payment
    of Indebtedness by Related Persons	24
	6.7 No Negotiation	24
	6.8 Proprietary
    Information	24
	6.9 Public Announcements	24
	6.10 Stockholder
    Covenant	25
	6.11 Best Efforts	25
	6.12 Release	25
	6.13 Confidentiality	25
	6.14 Securities
    Laws; Restrictions on Transfers	25
	7. Tax MAtters	26
	7.1 Responsibility
    for Filing Tax Returns	26
	7.2 Cooperation
    on Tax Matters	26
	7.3 Sales and
    Transfer Taxes	26
	8. CONDITIONS
    PRECEDENT TO BUYER’S OBLIGATION TO CLOSE	27
	8.1 Accuracy
    of Representations	27
	8.2 Sellers’
    Performance	27
	8.3 Authorization	27
	8.4 Consents
    and Approvals	27
	8.5 Government
    Consents, Authorizations, Etc	27
	8.6 Additional
    Documents	27
	8.7 No Proceedings	28
	8.8 No Claim
    Regarding Stock Ownership or Sale Proceeds	28
	8.9 No Prohibition	28
	8.10 Absence
    of Material Adverse Change	28
	9. CONDITIONS
    PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE	28
	9.1 Additional
    Documents	28
	9.2 Accuracy
    of Representations	29
	9.3 Buyer’s
    Performance	29
	9.4 No Injunction	29
	10. TERMINATION	29
	10.1 Termination
    Events	29
	10.2 Effect
    of Termination	29

 

    ii

     

    

 

	11. INDEMNIFICATION;
    REMEDIES	30
	11.1 Survival;
    Right to Indemnification Not Affected By Knowledge	30
	11.2 Indemnification
    and Payment of Damages by Sellers	30
	11.3 Indemnification
    and Payment of Damages by Sellers Environmental Matters	31
	11.4 Indemnification
    and Payment of Damages by Buyer	31
	11.5 Right of
    Set-Off	31
	11.6 Procedure
    for Indemnification Third Party Claims	32
	11.7 Procedure
    For Indemnification  Other Claims	32
	12. GENERAL
    PROVISIONS	33
	12.1 Expenses	33
	12.2 Public
    Announcements	33
	12.3 Confidentiality	33
	12.4 Notices	33
	12.5 Further
    Assurances	34
	12.6 Waiver	34
	12.7 Entire
    Agreement and Modification	35
	12.8 Assignments,
    Successors, and no Third-Party Rights	35
	12.9 Severability	35
	12.10 Section
    Headings, Construction	35
	12.11 Time of
    Essence	36
	12.12 Governing
    Law; Waiver of Jury Trial; Jurisdiction	36
	12.13 Counterparts;
    Facsimile and Electronic Signatures	37
	12.14 Representation
    by Counsel	37

 

    iii

     

    

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (this “Agreement”) is made as of April 11, 2019 by NF ENERGY SAVING CORPORATION, a Delaware corporation
(“Buyer”) LASTING WISDOM HOLDINGS LIMITED, a company organized under the laws of the British Virgin Islands
(“Parent”), PUKUNG LIMITED, a company organized under the laws of Hong Kong (“HoldCo”),
BEIJING XIN RONG XIN INDUSTRIAL DEVELOPMENT CO., LTD., a company organized under the laws of the PRC (“WFOE”), BOQI
ZHENGJI PHARMACY CHAIN CO., LTD. a company organized under the laws of the PRC (the “Company”) and the selling
shareholders listed on Schedule 1 hereto (the “Sellers” and, collectively with Parent, HoldCo,
WFOE and the Company, the “Seller Parties”).

 

RECITALS

 

Sellers desire to
sell, and Buyer desires to purchase, all of the issued and outstanding shares (the “Shares”) of capital stock of Parent
for the consideration and on the terms set forth in this Agreement.

 

AGREEMENT

 

The parties, intending
to be legally bound, agree as follows:

 

1.
DEFINITIONS.

 

For purposes of this
Agreement, the following terms have the meanings specified or referred to in this Section 1:

 

“Acquired Companies”
Parent, Holdco, WFOE, the Company and all Subsidiaries of the Company, collectively.

 

“Adjustment Amount”
as defined in Section 2.7(d).

 

“Applicable Contract”
any Contract (a) under which any Acquired Company has or may acquire any rights, (b) under which any Acquired Company
has or may become subject to any obligation or liability, or (c) by which any Acquired Company or any of the assets owned
or used by it is or may become bound.

 

“Appraisal Report”
as defined in Section 2.7(b).

 

“Appraised Value”
as defined in Section 2.7(b).

 

“Appraiser”
as defined in Section 2.7(b).

 

“Benefit Plan”
any “employee benefit plan,” as that term is defined in ERISA regardless of whether such plan is subject to ERISA,
that is maintained or contributed to by any Acquired Company or Sellers for the benefit of the Acquired Companies’ employees
or with respect to which any Acquired Company has or may have any liability.

 

“Best Efforts”
the efforts that a prudent Person desirous of achieving a result would use in similar circumstances to ensure that such result
is achieved as expeditiously as possible.

 

“Breach” a “Breach”
of a representation, warranty, covenant, obligation, or other provision of this Agreement or any instrument delivered pursuant
to this Agreement will be deemed to have occurred if there is or has been (a) any inaccuracy in or breach of, or any failure
to perform or comply with, such representation, warranty, covenant, obligation, or other provision, or (b) any claim (by
any Person) or other occurrence or circumstance that is or was inconsistent with such representation, warranty, covenant,
obligation, or other provision, and the term “Breach” means any such inaccuracy, breach, failure, claim, occurrence,
or circumstance.

 

     

     

    

 

“Buyer” as defined
in the first paragraph of this Agreement.

 

“Closing” as
defined in Section 2.5.

 

“Closing Date”
as defined in Section 2.5.

 

“Company” as
defined in the first paragraph of this Agreement.

 

“Confidential Information”
means all non-public, confidential or proprietary information of the Acquired Companies, including the Intellectual Property Assets.

 

“Consent” any
approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization).

 

“Contemplated Transactions”
means the purchase of the Shares by Buyer and the other transactions contemplated by this Agreement.

 

“Contract” any
agreement, contract, obligation, promise, or undertaking (whether written or oral and whether express or implied) that is
legally binding.

 

“Damages” as
defined in Section 11.2.

 

“Encumbrance”
any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right
of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise
of any other attribute of ownership.

 

“Environment”
soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins,
and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life,
and any other environmental medium or natural resource.

 

“Environmental, Health, and
Safety Liabilities” any cost, damages, expense, liability, obligation, or other responsibility arising from or under
Environmental Law or Occupational Safety and Health Law and consisting of or relating to:

 

(a) any environmental,
health, or safety matters or conditions (including on- site or off-site contamination, occupational safety and health, and regulation
of chemical substances or products);

 

(b) fines, penalties,
judgments, awards, settlements, legal or administrative proceedings, damages, losses, claims, demands and response, investigative,
remedial, or inspection costs and expenses arising under Environmental Law or Occupational Safety and Health Law;

 

(c) financial responsibility
under Environmental Law or Occupational Safety and Health Law for cleanup costs or corrective action, including any investigation,
cleanup, removal, containment, or other remediation or response actions (“Cleanup”) required by applicable
Environmental Law or Occupational Safety and Health Law (whether or not such Cleanup has been required or requested by any Governmental
Body or any other Person) and for any natural resource damages; or

 

    2

     

    

 

(d) any other compliance,
corrective, investigative, or remedial measures required under Environmental Law or Occupational Safety and Health Law.

 

The terms “removal,”
“remedial,” and “response action,” include the types of activities covered by the United States Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., as amended (“CERCLA”).

 

“Environmental Law”
any Legal Requirement that requires or relates to:

 

(a) advising appropriate
authorities, employees, and the public of intended or actual releases of pollutants or hazardous substances or materials, violations
of discharge limits, or other prohibitions and of the commencements of activities, such as resource extraction or construction,
that could have significant impact on the Environment;

 

(b) preventing or reducing
to acceptable levels the release of pollutants or hazardous substances or materials into the Environment;

 

(c) reducing the quantities,
preventing the release, or minimizing the hazardous characteristics of wastes that are generated;

 

(d) assuring that products
are designed, formulated, packaged, and used so that they do not present unreasonable risks to human health or the Environment
when used or disposed of;

 

(e) protecting resources,
species, or ecological amenities;

 

(f) reducing to acceptable
levels the risks inherent in the transportation of hazardous substances, pollutants, oil, or other potentially harmful substances;

 

(g) cleaning up pollutants
that have been released, preventing the threat of release, or paying the costs of such clean up or prevention; or

 

(h) making responsible
parties pay private parties, or groups of them, for damages done to their health or the Environment, or permitting self-appointed
representatives of the public interest to recover for injuries done to public assets.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended.

 

“Facilities”
any real property, leaseholds, or other interests currently or formerly owned or operated by any Acquired Company and any buildings,
plants, structures, or equipment (including motor vehicles, tank cars, and rolling stock) currently or formerly owned or
operated by any Acquired Company.

 

“Final Appraisal Date”
as defined in Section 2.7(b).

 

“Final Statements”
as defined in Section 2.7(c).

 

“Final Statement Date”
as defined in Section 2.7(c).

 

“Governmental Authorization”
any approval, consent, license, permit, waiver, or other authorization issued, granted, given, or otherwise made available by
or under the authority of any Governmental Body or pursuant to any Legal Requirement.

 

    3

     

    

 

“Governmental Body”
any:

 

(a) nation, state, county,
city, town, village, district, or other jurisdiction of any nature;

 

(b) federal, state,
local, municipal, foreign, or other government;

 

(c) governmental or
quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any
court or other tribunal);

 

(d) multi-national organization
or body; or

 

(e) body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power
of any nature.

 

“Hazardous Activity”
the distribution, generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage,
transfer, transportation, treatment, or use (including any withdrawal or other use of groundwater) of Hazardous Materials
in, on, under, about, or from the Facilities or any part thereof into the Environment, and any other act, business, operation,
or thing that increases the danger, or risk of danger, or poses an unreasonable risk of harm to persons or property on or off
the Facilities, or that may affect the value of the Facilities or the Acquired Companies.

 

“Hazardous Materials”
any waste or other substance that is listed, defined, designated, or classified as, or otherwise determined to be, hazardous,
radioactive, or toxic or a pollutant or a contaminant under or pursuant to any Environmental Law, including any admixture or solution
thereof, and specifically including petroleum and all derivatives thereof or synthetic substitutes therefor and asbestos or asbestos-containing
materials.

 

“Intellectual Property Assets”
as defined in Section 4.22.

 

“Knowledge”
an individual will be deemed to have “Knowledge” of a particular fact or other matter if:

 

(a) such individual
is actually aware of such fact or other matter; or

 

(b) a prudent individual
could be expected to discover or otherwise become aware of such fact or other matter in the course of conducting a reasonably
comprehensive investigation concerning the existence of such fact or other matter.

 

A Person (other than
an individual) will be deemed to have “Knowledge” of a particular fact or other matter if any individual who
is a key employee or is serving, or who has at any time served, as a director, officer, partner, executor, or trustee of such
Person (or in any similar capacity) has, or at any time had, Knowledge of such fact or other matter.

 

“Latest Balance Sheet”
as defined in Section 4.4.

 

“Legal Requirement”
any federal, state, local, municipal, foreign, international, multinational, or other administrative order, constitution, law,
ordinance, principle of common law, regulation, statute, or treaty.

 

“NASDAQ” the
NASDAQ Stock Market or any of its successor entities.

 

“Occupational Safety and Health
Law” any Legal Requirement designed to provide safe and healthful working conditions and to reduce occupational
safety and health hazards, and any program, whether governmental or private (including those promulgated or sponsored by industry
associations and insurance companies), designed to provide safe and healthful working conditions.

 

    4

     

    

 

“Order” any
award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative
agency, or other Governmental Body or by any arbitrator.

 

“Ordinary Course of Business”
an action taken by a Person will be deemed to have been taken in the “Ordinary Course of Business” only if:

 

(a) such action is consistent
with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of such Person;

 

(b) such action is not
required to be authorized by the board of directors of such Person (or by any Person or group of Persons exercising similar authority) and
is not required to be specifically authorized by the parent company (if any) of such Person; and

 

(c) such action is similar
in nature and magnitude to actions customarily taken, without any authorization by the board of directors (or by any Person or
group of Persons exercising similar authority), in the ordinary course of the normal day-to-day operations of other Persons that
are in the same line of business as such Person.

 

“Organizational Documents”
(a) the articles or certificate of incorporation and the bylaws of a corporation; (b) the partnership agreement and
any statement of partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited
partnership of a limited partnership; (d) any charter or similar document adopted or filed in connection with the creation,
formation, or organization of a Person; and (e) any amendment to any of the foregoing.

 

“Person” any
individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity or Governmental Body.

 

“PRC” the People’s
Republic of China (excluding, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan).

 

“Proceeding”
any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative,
or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

 

“Proportionate Percentage”
the percentage equal to the number of Shares owned by each Seller divided by the total number of all outstanding Shares, as set
out in Schedule I.

 

“Related Person”
with respect to a particular individual:

 

(a) each other member
of such individual’s Family;

 

(b) any Person that
is directly or indirectly controlled by such individual or one or more members of such individual’s Family;

 

(c) any Person in which
such individual or members of such individual’s Family hold (individually or in the aggregate) a Material Interest;
and

 

(d) any Person with
respect to which such individual or one or more members of such individual’s Family serves as a director, officer, partner,
executor, or trustee (or in a similar capacity).

 

    5

     

    

 

With respect to a
specified Person other than an individual:

 

(a) any Person that
directly or indirectly controls, is directly or indirectly controlled by, or is directly or indirectly under common control with
such specified Person;

 

(b) any Person that
holds a Material Interest in such specified Person;

 

(c) each Person that
serves as a director, officer, partner, executor, or trustee of such specified Person (or in a similar capacity);

 

(d) any Person in which
such specified Person holds a Material Interest;

 

(e) any Person with
respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity); and

 

(f) any Related Person
of any individual described in clause (b) or (c).

 

For purposes of this
definition, (a) the “Family” of an individual includes (i) the individual, (ii) the individual’s
spouse and former spouses, (iii) any other natural person who is related to the individual or the individual’s spouse
within the second degree, and (iv) any other natural person who resides with such individual, and (b) “Material
Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of voting securities or other voting interests representing at least 5% of the outstanding voting power of a Person
or equity securities or other equity interests representing at least 5% of the outstanding equity securities or equity interests
in a Person.

 

“Release” any
spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether
intentional or unintentional.

 

“Representative”
with respect to a particular Person, any director, officer, employee, agent, consultant, advisor, or other representative of such
Person, including legal counsel, accountants, and financial advisors.

 

“Securities Act”
the Securities Act of 1933 or any successor law, and regulations and rules issued pursuant to that Act or any successor law.

 

“Sellers” as
defined in the first paragraph of this Agreement.

 

“Shares” as
defined in the Recitals of this Agreement.

 

“Subsidiary”
with respect to any Person (the “Owner”), any corporation or other Person of which securities or other interests
having the power to elect a majority of that corporation’s or other Person’s board of directors or similar governing
body, or otherwise having the power to direct the business and policies of that corporation or other Person (other than securities
or other interests having such power only upon the happening of a contingency that has not occurred) are held by the Owner
or one or more of its Subsidiaries; when used without reference to a particular Person, “Subsidiary” means a Subsidiary
of the Company.

 

“Tax” any tax
(including any income tax, capital gains tax, value-added tax, sales tax, property tax, gift tax, or estate tax), levy, assessment,
tariff, duty (including any customs duty), deficiency, or other fee, and any related charge or amount (including any fine, penalty,
interest, or addition to tax), imposed, assessed, or collected by or under the authority of any Governmental Body or payable pursuant
to any tax-sharing agreement or any other Contract relating to the sharing or payment of any such tax, levy, assessment, tariff,
duty, deficiency, or fee.

 

    6

     

    

 

“Tax Return”
any return (including any information return), report, statement, schedule, notice, form, or other document or information filed
with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the determination,
assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance
with any Legal Requirement relating to any Tax.

 

“Threat of Release”
a substantial likelihood of a Release that may require action in order to prevent or mitigate damage to the Environment that may
result from such Release.

 

“Threatened”
a claim, Proceeding, dispute, action, or other matter will be deemed to have been “Threatened” if any demand or statement
has been made (orally or in writing) or any notice has been given (orally or in writing), or if any other event has occurred
or any other circumstances exist, that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action,
or other matter is likely to be asserted, commenced, taken, or otherwise pursued in the future.

 

2.
SALE AND TRANSFER OF SHARES; CLOSING.

 

2.1 Shares.
Subject to the terms and conditions of this Agreement, at the Closing, Sellers will sell and transfer the Shares to Buyer, and
Buyer will purchase the Shares from Sellers.

 

2.2 Purchase Price.
The aggregate purchase price (the “Purchase Price”) for the Shares consists of (a) cash consideration
of RMB 40,000,000 (the “Target Cash Consideration”), and (b)  1,500,000 shares of common stock of Buyer
(the “Buyer Shares”). The Purchase Price shall be subject to post-Closing adjustment in accordance with Sections 2.4
and 2.7.

 

2.3 Payment of
Initial Consideration. At the Closing, Buyer shall deliver to each of the Sellers their Proportionate Percentage of 500,000
of the Buyer Shares.

 

2.4 Closing.
The purchase and sale (the “Closing”) provided for in this Agreement will take place at such place as agreed
upon by the parties at 10:00 a.m. (local time) on April 20, 2019, or such later date which is no later than two business
days after the date that all closing conditions set forth in Sections 9 and 10 have been satisfied or waived, or
on such other date as Buyer and the Sellers shall mutually agree (the “Closing Date”). The Closing may also
be consummated by facsimile, electronically and by other means satisfactory to Buyer, the Sellers and their respective counsel.
The Closing shall be deemed to occur as of midnight on the Closing Date.

 

2.5 Closing Obligations.
At the Closing:

 

(a) Sellers will deliver
to Buyer (i) certificates representing all of the Shares, duly endorsed in blank or with a fully executed stock power attached,
or duly executed instrument of share transfer with respect to the Shares, all in proper form for transfer and in form and substance
satisfactory to Buyer; (ii) evidence that the register of members of the Parent has been updated to reflect the Buyer owns, beneficially
and on the record, all of the Shares; and (iii) all other agreements, documents, instruments or certificates required to be delivered
by Sellers at or prior to the Closing pursuant to Section 8.6; and

 

(b) Buyer will deliver,
by book-entry transfer (i)  100,000 common shares of Buyer to Yu Zhang; (ii)  100,000 common shares of Buyer to Yunpeng
Liu; (iii) 100,000 common shares of Buyer to Aiguo Leng (iv) 100,000 common shares of Buyer to Xiaona Liu; and (v) 100,000
common shares of Buyer to Peng Shao; and all other agreements, documents, instruments or certificates required to be delivered
by Buyer at or prior to the Closing pursuant to Section 9.1.

 

    7

     

    

 

2.6 Payment of
Post-Closing Consideration. Provided that, in the Buyer’s reasonable discretion, the Final Statements are not materially
different than the unaudited financial statements referred to in Section 4.4, then, no later than 15 business days following
the latest of (a) the Closing Date, (b) the Final Appraisal Date, or (c) the Final Statement Date, Buyer shall
deliver to each of the Sellers their Proportionate Percentage of each of (y) the Target Cash Consideration plus the Adjustment
Amount; and (z) 1,000,000 Buyer Shares.

 

2.7 Adjustment
Procedure.

 

(a) Target. The
targeted fair market value of the Acquired Companies is RMB 100,000,000 (the “Target”).

 

(b) Preparation of
Appraisal Report. The Seller Parties and Buyer will cooperate with one another to cause Liao Ning Ming Ke Asset Appraisal
Co., Ltd., an appraising firm mutually chosen by Buyer and the Sellers (the “Appraiser”), to deliver to Buyer
and each Seller, within a reasonable time, not in excess of 30 days after the Closing, an appraisal report (the “Appraisal
Report”) setting forth the Appraiser’s valuation of the fair market value of the Acquired Companies (the “Appraised
Value”). The date that the Appraiser delivers the Appraisal Report to the Buyer and the Sellers shall be referred to
as the “Final Appraisal Date”). The Buyer and each Seller Party agrees to furnish to the Appraiser such work
papers and other documents and information as the Appraiser may request and are available to that party or its Subsidiaries (or
its independent public accountants) in order to complete the Appraisal Report in accordance with this Agreement. The Appraisal
Report will be binding and conclusive.

 

(c) Preparation of
Audited Financial Statement. The Buyer will cause HHC, LLP (the “Accountants”), the Buyer’s public
accountants, to deliver to each Seller, within a reasonable time, not in excess of 30 days after the Closing, audited consolidated
financial statements of the Acquired Companies, as of and for the periods ended on December 31 of each of 2017 and 2018, respectively
(the “Final Statements”). The date that the Accountants deliver the Final Statements to the last Seller shall
be referred to as the “Final Statement Date”).

 

(d) Adjustment Amount.
The “Adjustment Amount” (which may be a positive or negative number) will be equal to (a) the Appraised
Value minus (b) the Target.

 

2.8 Method of Payment.
All payments under this Agreement shall be made by wire transfer of immediately available funds. No later than 5 business days
before the date that any portion of the Purchase Price payable in cash is due to be paid to the Sellers, the Sellers shall deliver
to Buyer a flow of funds schedule designating each person entitled to receive part of the Purchase Price, the amount payable to
each person and the wire instructions for the account into which the amount payable to each person in cash is to be paid.

 

2.9 Further Assurances.
The Sellers shall, at any time and from time to time after the Closing, at the Sellers’ expense, upon the request of Buyer,
do, execute, acknowledge and deliver, and cause to be done, executed, acknowledged or delivered, all such further acts, deeds,
assignments, transfers, conveyances or assurances as may be reasonably required to consummate the transactions contemplated by
this Agreement.

 

    8

     

    

 

3.
REPRESENTATIONS AND WARRANTIES OF SELLERS.

 

Each Seller represents
and warrants to Buyer, severally as to himself, as follows:

 

3.1 Title to the
Shares. Such Seller is the lawful owner, of record and beneficially, of the number of Shares set forth opposite his name on
Schedule I and has good and marketable title to such Shares, free and clear of all Encumbrances whatsoever. Except for
this Agreement, there are no agreements or understandings between such Seller and any other Person with respect to the acquisition,
disposition or voting of or any other matters pertaining to any of the capital stock of Parent or any other Acquired Company and
no restriction on the voting rights and other incidents of record or beneficial ownership pertaining thereto. Such Seller acquired
his Shares in one or more transactions exempt from registration under the Securities Act and in compliance with applicable securities
Laws. No Seller has any right whatsoever to receive or acquire any additional shares of capital stock of Parent or any other Acquired
Company. There are no Proceedings or Orders pending or, to the Knowledge of such Seller, threatened by or against such Seller
relating to his Shares.

 

3.2 Authority;
Noncontravention by the Sellers. Such Seller has all requisite power and authority to execute, deliver and perform such Seller’s
obligations under this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance
by such Seller of this Agreement, and the consummation of the transactions contemplated hereby, have been duly and validly authorized
by all requisite action on the part of such Seller, and this Agreement has been duly and validly executed and delivered by such
Seller, and constitutes a valid and binding obligation of such Seller, enforceable against such Seller in accordance with its
terms. The execution, delivery and performance by such Seller of this Agreement applicable to such Seller or any of such Seller’s
properties, which violation would prevent the consummation of the transactions contemplated by this Agreement or result in an
Encumbrance on or against any assets, rights or properties of any Acquired Company or on or against any capital stock of any Acquired
Company (including the Shares) or give rise to any claim against such Seller, the Shares, any Acquired Company, or any Affiliate
of an Acquired Company.

 

3.3 Consents Required.
No consent, permit, approval, Order or authorization of or by, registration, declaration or filing with, or notification to any
Governmental Body is required by or with respect to such Seller in connection with the execution and delivery of this Agreement
and consummation by such Seller of the transactions contemplated hereby or thereby.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE ACQUIRED COMPANIES AND THE SELLERS

 

Each Acquired Company
and Seller jointly and severally represents and warrants to Buyer as follows:

 

4.1 Organization
and Good Standing.

 

(a) Each Acquired Company
is duly organized, validly existing, and in good standing under the laws of its jurisdiction of formation, with full corporate
power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports
to own or use, and to perform all of its obligations in the Ordinary Course of Business and under its contracts. Each Acquired
Company is duly qualified to do business as a foreign company and is in good standing under the laws of each country, territory
or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification.

 

(b) Sellers have delivered
to Buyer copies of the Organizational Documents of each Acquired Company, as currently in effect.

 

    9

     

    

 

4.2 Authority;
No Conflict.

 

(a) This Agreement
constitutes the legal, valid, and binding obligation of each Acquired Company, enforceable against each Acquired Company in
accordance with its terms. Sellers and the Acquired Companies have the absolute and unrestricted right, power, authority, and
capacity to execute and deliver this Agreement and the other documents required to be delivered hereunder and to perform
their obligations under this Agreement.

 

(b) Neither the execution
and delivery of this Agreement nor the consummation or performance of any of the Contemplated Transactions will, directly or indirectly
(with or without notice or lapse of time):

 

(i)
contravene, conflict with, or result in a violation of (A) any provision of the Organizational Documents of the Acquired
Companies, or (B) any resolution adopted by the board of directors or the stockholders of any Acquired Company;

 

(ii)
contravene, conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge
any of the Contemplated Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order
to which any Acquired Company or any Seller, or any of the assets owned or used by any Acquired Company, may be subject;

 

(iii)
contravene, conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Body
the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that is held by any Acquired
Company or that otherwise relates to the business of, or any of the assets owned or used by, any Acquired Company;

 

(iv)
cause Buyer or any Acquired Company to become subject to, or to become liable for the payment of, any Tax;

 

(v)
cause any of the assets owned by any Acquired Company to be reassessed or revalued by any taxing authority or other Governmental
Body;

 

(vi)
contravene, conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare
a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any
Applicable Contract; or

 

(vii)
result in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by any
Acquired Company.

 

No Seller or Acquired
Company is or will be required to give any notice to or obtain any consent from any Person in connection with the execution and
delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions.

 

    10

     

    

 

4.3 Capitalization.

 

The amount and ownership
of all equity series of each Acquired Company are as set out in Schedule I. Sellers are and will be on the Closing
Date the record and beneficial owners and holders of the Shares, free and clear of all Encumbrances. With the exception of the
Shares (which are owned by Sellers), all of the outstanding equity securities and other securities of each Acquired Company are
owned of record and beneficially by one or more of the Acquired Companies, free and clear of all Encumbrances. No legend or other
reference to any purported Encumbrance appears upon any certificate representing equity securities of any Acquired Company. All
of the outstanding equity securities of each Acquired Company have been duly authorized and validly issued and are fully paid
and nonassessable. There are no Contracts relating to the issuance, sale, or transfer of any equity securities or other securities
of any Acquired Company. None of the outstanding equity securities or other securities of any Acquired Company was issued in violation
of the Securities Act or any other Legal Requirement. No Acquired Company owns, or has any Contract to acquire, any equity securities
or other securities of any Person (other than Acquired Companies) or any direct or indirect equity or ownership interest
in any other business.

 

4.4 Financial Statements.
The Sellers have delivered to Buyer the unaudited consolidated balance sheets of the Acquired Companies as at December 31, 2018
(the “Latest Balance Sheet”) and December 31, 2017, and the related consolidated statements of income, changes in
stockholders’ equity, and cash flow for each of the fiscal years then ended, including the notes thereto. Such financial
statements and notes fairly present the financial condition and the results of operations, changes in stockholders’ equity,
and cash flow of the Acquired Companies as at the respective dates of and for the periods referred to in such financial statements.
The financial statements referred to in this Section 4.4 reflect the consistent application of such accounting principles
throughout the periods involved.

 

4.5 Books and Records.
The books of account, minute books, stock record books, and other records of the Acquired Companies, all of which have been made
available to Buyer, are complete and correct and have been maintained in accordance with sound business practices and the requirements
of Section 13(b)(2) of the Securities Exchange Act of 1934, as amended (regardless of whether or not the Acquired Companies
are subject to that Section), including the maintenance of an adequate system of internal controls. The minute books of the Acquired
Companies contain accurate and complete records of all meetings held of, and corporate action taken by, the stockholders, the
Boards of Directors, and committees of the Boards of Directors of the Acquired Companies, and no meeting of any such stockholders,
Board of Directors, or committee has been held for which minutes have not been prepared and are not contained in such minute books.
At the Closing, all of those books and records will be in the possession of the Acquired Companies.

 

4.6 Title to Properties;
Encumbrances. Sellers have delivered or made available to Buyer copies of the deeds and other instruments (as recorded) by
which the Acquired Companies acquired all real property, leaseholds, or other interests owned by it, and copies of all title insurance
policies, opinions, abstracts, and surveys in the possession of Sellers or the Acquired Companies and relating to such property
or interests. The Acquired Companies own (with good and marketable title in the case of real property, subject only to the matters
permitted by the following sentence) all the properties and assets (whether real, personal, or mixed and whether tangible
or intangible) that they purport to own located in the facilities owned or operated by the Acquired Companies or reflected
as owned in the books and records of the Acquired Companies, including all of the properties and assets reflected in the Latest
Balance Sheet (except for personal property sold since the date of the Latest Balance Sheet, as the case may be, in the Ordinary
Course of Business), and all of the properties and assets purchased or otherwise acquired by the Acquired Companies since the
date of the Latest Balance Sheet (except for personal property acquired and sold since the date of the Balance Sheet in the Ordinary
Course of Business and consistent with past practice). All material properties and assets reflected in the Latest Balance Sheet
are free and clear of all Encumbrances and are not, in the case of real property, subject to any rights of way, building use restrictions,
exceptions, variances, reservations, or limitations of any nature except, with respect to all such properties and assets, (a) mortgages
or security interests shown on the Latest Balance Sheet as securing specified liabilities or obligations, with respect to which
no default (or event that, with notice or lapse of time or both, would constitute a default) exists, (b) mortgages or
security interests incurred in connection with the purchase of property or assets after the date of the Latest Balance Sheet (such
mortgages and security interests being limited to the property or assets so acquired), with respect to which no default (or event
that, with notice or lapse of time or both, would constitute a default) exists, (c) liens for current taxes not yet
due, and (d) with respect to real property, (i) minor imperfections of title, if any, none of which is substantial in
amount, materially detracts from the value or impairs the use of the property subject thereto, or impairs the operations of any
Acquired Company, and (ii) zoning laws and other land use restrictions that do not impair the present or anticipated use
of the property subject thereto. All buildings, plants, and structures owned by the Acquired Companies lie wholly within the boundaries
of the real property owned by the Acquired Companies and do not encroach upon the property of, or otherwise conflict with the
property rights of, any other Person.

 

    11

     

    

 

4.7 Condition and
Sufficiency of Assets. The buildings, plants, structures, and equipment of the Acquired Companies are structurally sound,
are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such buildings,
plants, structures, or equipment is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that
are not material in nature or cost. The building, plants, structures, and equipment of the Acquired Companies are sufficient for
the continued conduct of the Acquired Companies’ businesses after the Closing in substantially the same manner as conducted
prior to the Closing.

 

4.8 Accounts Receivable.
All accounts receivable of the Acquired Companies that are reflected on the Latest Balance Sheet or on the accounting records
of the Acquired Companies as of the Closing Date (collectively, the “Accounts Receivable”) represent or will
represent valid obligations arising from sales actually made or services actually performed in the Ordinary Course of Business.
Unless paid prior to the Closing Date, the Accounts Receivable are or will be as of the Closing Date current and collectible net
of the respective reserves shown on the Latest Balance Sheet or on the accounting records of the Acquired Companies as of the
Closing Date (which reserves are adequate and calculated consistent with past practice and, in the case of the reserve as of the
Closing Date, will not represent a greater percentage of the Accounts Receivable as of the Closing Date than the reserve reflected
in the Latest Balance Sheet represented of the Accounts Receivable reflected therein and will not represent a material adverse
change in the composition of such Accounts Receivable in terms of aging). Subject to such reserves, each of the Accounts Receivable
either has been or will be collected in full, without any set-off, within ninety days after the day on which it first becomes
due and payable. There is no contest, claim, or right of set-off, other than returns in the Ordinary Course of Business, under
any Contract with any obligor of an Accounts Receivable relating to the amount or validity of such Accounts Receivable.

 

4.9 Inventory.
All inventory of the Acquired Companies, whether or not reflected in the Latest Balance Sheet, consists of a quality and quantity
usable and salable in the Ordinary Course of Business, except for obsolete items and items of below-standard quality, all of which
have been written off or written down to net realizable value in the Latest Balance Sheet or on the accounting records of the
Acquired Companies as of the Closing Date, as the case may be. The quantities of each item of inventory (whether raw materials,
work-in-process, or finished goods) are not excessive, but are reasonable in the present circumstances of the Acquired Companies.

 

4.10 No Undisclosed
Liabilities. The Acquired Companies have no liabilities or obligations of any nature (whether known or unknown and whether
absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the Latest
Balance Sheet and current liabilities incurred in the Ordinary Course of Business since the respective dates thereof.

 

4.11 Taxes.

 

(a) The Acquired Companies
have filed or caused to be filed on a timely basis through the date hereof all Tax Returns that are or were required to be filed
by or with respect to any of them, either separately or as a member of a group of corporations, pursuant to applicable Legal Requirements.
Sellers have delivered or made available to Buyer copies of all such Tax Returns filed for its three most recent completed Tax
years. The Acquired Companies have paid, or made provision for the payment of, all Taxes that have or may have become due pursuant
to those Tax Returns or otherwise, or pursuant to any assessment received by Sellers or any Acquired Company.

 

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(b) The charges, accruals,
and reserves with respect to Taxes on the respective books of each Acquired Company are adequate and are at least equal to that
Acquired Company’s liability for Taxes. There exists no proposed tax assessment against any Acquired Company except as disclosed
in the Latest Balance Sheet.

 

(c) All Taxes that any
Acquired Company is or was required by Legal Requirements to withhold or collect have been duly withheld or collected and, to
the extent required, have been paid to the proper Governmental Body or other Person.

 

(d) All Tax Returns
filed by (or that include on a consolidated basis) any Acquired Company are true, correct, and complete. There is no tax
sharing agreement that will require any payment by any Acquired Company after the date of this Agreement.

 

(e) No Acquired Company
has received any notice that any of its Tax Returns has been examined by any Governmental Body within the past 6 years.

 

4.12 No Material
Adverse Change. Since the date of the Latest Balance Sheet, there has not been any material adverse change in the business,
operations, properties, prospects, assets, or condition of any Acquired Company, and no event has occurred or circumstance exists
that may result in such a material adverse change.

 

4.13 Employee Benefits.
Sellers have delivered to Buyer a complete list of each Benefit Plan. With respect to each Benefit Plan, the Company has heretofore
made available to Buyer correct and complete copies of each of the following documents: (a) the Benefit Plan and all related
documents (including all amendments thereto), (b) the three most recent Form 5500 annual reports, if applicable, including
all attachments thereto, filed with the Department of Labor with respect to each such Benefit Plan, (c) the summary plan
description prepared for each such Benefit Plan (including all amendments thereto) and (d) all Contracts with third-party
administrators, actuaries, investment managers, consultants or other independent contractors related to each such Benefit Plan.
Each Benefit Plan has been administered and operated in material compliance with its terms, and the requirements of all applicable
Legal Requirements, including ERISA and including applicable Legal Requirements relating to the form or content of the Benefit
Plan. No Benefit Plan is a “multiemployer plan” (within the meaning of Section 3(37) of ERISA) or a “multiple
employer” plan (within the meaning of Section 4063 or 4064 of ERISA).

 

4.14 Compliance
With Legal Requirements; Governmental Authorizations.

 

(a) Each Acquired Company
has been and is in full compliance with each Legal Requirement that is or was applicable to it or to the conduct or operation
of its business or the ownership or use of any of its assets;

 

(b) No event has occurred
or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result in a violation by
any Acquired Company of, or a failure on the part of any Acquired Company to comply with, any Legal Requirement, or (B) may
give rise to any obligation on the part of any Acquired Company to undertake, or to bear all or any portion of the cost of, any
remedial action of any nature; and

 

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(c) No Acquired Company
has received, any notice or other communication (whether oral or written) from any Governmental Body or any other Person
regarding (A) any actual, alleged, possible, or potential violation of, or failure to comply with, any Legal Requirement,
or (B) any actual, alleged, possible, or potential obligation on the part of any Acquired Company to undertake, or to bear
all or any portion of the cost of, any remedial action of any nature.

 

(d) Each Governmental
Authorization held or required to be held by any Acquired Company or that otherwise relates to the business of, or to any of the
assets owned or used by, any Acquired Company is valid and in full force and effect.

 

(e) Each Acquired Company
has been and is in full compliance with all of the terms and requirements of each Governmental Authorization held or required
to be held by it or that otherwise relates to the business of, or to any of the assets owned or used by, it;

 

(f) No event has occurred
or circumstance exists that may (with or without notice or lapse of time) (A) constitute or result directly or indirectly
in a violation of or a failure to comply with any term or requirement of any Governmental Authorization held or required to be
held by an Acquired Company or that otherwise relates to the business of, or to any of the assets owned or used by, it, or (B) result
directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of, or any modification to, any
Governmental Authorization held or required to be held by an Acquired Company or that otherwise relates to the business of, or
to any of the assets owned or used by, it;

 

(g) No Acquired Company
has received, any notice or other communication (whether oral or written) from any Governmental Body or any other Person
regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or requirement
of any Governmental Authorization, or (B) any actual, proposed, possible, or potential revocation, withdrawal, suspension,
cancellation, termination of, or modification to any Governmental Authorization; and

 

(h) All applications
required to have been filed for the renewal of the Governmental Authorizations referred to above have been duly filed on a timely
basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to such Governmental
Authorizations have been duly made on a timely basis with the appropriate Governmental Bodies.

 

The Acquired Companies
have been granted all of the Governmental Authorizations necessary to permit the Acquired Companies to lawfully conduct and operate
their businesses in the manner they currently conduct and operate such businesses and to permit the Acquired Companies to own
and use their assets in the manner in which they currently own and use such assets.

 

4.15 Legal Proceedings;
Orders.

 

(a) There is no pending
Proceeding that has been commenced by or against any Acquired Company or that otherwise relates to or may affect the business
of, or any of the assets owned or used by, any Acquired Company; or that challenges, or that may have the effect of preventing,
delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To the Knowledge of Sellers and
the Acquired Companies, (1) no such Proceeding has been Threatened, and (2) no event has occurred or circumstance exists
that may give rise to or serve as a basis for the commencement of any such Proceeding.

 

(b) There is no Order
to which any of the Acquired Companies, or any of the assets owned or used by any Acquired Company, is subject. No Seller is subject
to any Order that relates to the business of, or any of the assets owned or used by, any Acquired Company. To the Knowledge of
Sellers and the Acquired Companies, no officer, director, agent, or employee of any Acquired Company is subject to any Order that
prohibits such officer, director, agent, or employee from engaging in or continuing any conduct, activity, or practice relating
to the business of any Acquired Company.

 

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(c) Each Acquired Company
is, in full compliance with all of the terms and requirements of each Order to which it, or any of the assets owned or used by
it, is or has been subject. No event has occurred or circumstance exists that may constitute or result in (with or without notice
or lapse of time) a violation of or failure to comply with any term or requirement of any Order to which any Acquired Company,
or any of the assets owned or used by any Acquired Company, is subject. No Acquired Company has received, any notice or other
communication (whether oral or written) from any Governmental Body or any other Person regarding any actual, alleged, possible,
or potential violation of, or failure to comply with, any term or requirement of any Order to which any Acquired Company, or any
of the assets owned or used by any Acquired Company, is or has been subject.

 

4.16 Absence of
Certain Changes and Events. Since the date of the Latest Balance Sheet, the Acquired Companies have conducted their businesses
only in the Ordinary Course of Business and there has not been any:

 

(a) change in any Acquired
Company’s authorized or issued capital stock; grant of any stock option or right to purchase shares of capital stock of
any Acquired Company; issuance of any security convertible into such capital stock; grant of any registration rights; purchase,
redemption, retirement, or other acquisition by any Acquired Company of any shares of any such capital stock; or declaration or
payment of any dividend or other distribution or payment in respect of shares of capital stock;

 

(b) amendment to the
Organizational Documents of any Acquired Company;

 

(c) payment or increase
by any Acquired Company of any bonuses, salaries, or other compensation to any stockholder, director, officer, or (except in the
Ordinary Course of Business) employee or entry into any employment, severance, or similar Contract with any director, officer,
or employee;

 

(d) adoption of, or
increase in the payments to or benefits under, any profit sharing, bonus, deferred compensation, savings, insurance, pension,
retirement, or other employee benefit plan for or with any employees of any Acquired Company;

 

(e) damage to or destruction
or loss of any asset or property of any Acquired Company, whether or not covered by insurance, materially and adversely affecting
the properties, assets, business, financial condition, or prospects of the Acquired Companies, taken as a whole;

 

(f) entry into, termination
of, or receipt of notice of termination of (i) any license, distributorship, dealer, sales representative, joint venture,
credit, or similar agreement, or (ii) any Contract or transaction involving a total remaining commitment by or to any Acquired
Company of at least $10,000.00;

 

(g) sale (other than
sales of inventory in the Ordinary Course of Business), lease, or other disposition of any asset or property of any Acquired Company
or mortgage, pledge, or imposition of any lien or other encumbrance on any material asset or property of any Acquired Company,
including the sale, lease, or other disposition of any of the Intellectual Property Assets;

 

(h) cancellation or
waiver of any claims or rights with a value to any Acquired Company in excess of $10,000.00;

 

(i) material change
in the accounting methods used by any Acquired Company; or

 

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(j) agreement, whether
oral or written, by any Acquired Company to do any of the foregoing.

 

4.17 Contracts;
No Defaults.

 

The Sellers have delivered
to Buyer copies, including all schedules, exhibits and amendments, of all Contracts to which an Acquired Company is a party or
to which the business of an Acquired Company is subject involving either (a) obligations (contingent or otherwise) of,
or the possibility of payments to, an Acquired Company in excess of $10,000.00 (the “Material Contracts”),
(b) actual or purported restrictions on the ability of the Company to compete in any line of business or with any Person
or in any geographic area during any period of time, or (c) actual or purported restrictions on the prices the Company may
charge for its products or services. Each Material Contract is valid and binding on the applicable Acquired Company in accordance
with its terms and is in full force and effect. No Acquired Company is in material breach or violation of any Material Contract
and no event has occurred which, with the giving of notice or the passage of time, would result in a default or violation thereunder.
To the Sellers’ and the Acquired Companies’ Knowledge, no other party to any Material Contract is in material breach
or violation of that Contract and no event has occurred which, with the giving of notice or the passage of time, would result
in a default or violation thereunder. The Sellers and the Acquired Companies have no reason to believe that there is a reasonable
likelihood that any party to any Material Contract will be unable to or will choose to not comply with the terms of any Material
Contract. No Acquired Company has received from any party to a Material Contract any notice of any intention to terminate any
Material Contract. All Contracts of the Acquired Companies relating to the sale, design, manufacture, or provision of products
or services by the Acquired Companies have been entered into in the Ordinary Course of Business and have been entered into without
the commission of any act alone or in concert with any other Person, or any consideration having been paid or promised, that is
or would be in violation of any Legal Requirement.

 

4.18 Insurance.

 

(a) Sellers have delivered
to Buyer: true and complete copies of all policies of insurance to which any Acquired Company is a party or under which any Acquired
Company, or any director of any Acquired Company, is or has been covered at any time within the years preceding the date of this
Agreement; insurance; and true and complete copies of all pending applications for policies of any statement by the auditor of
any Acquired Company’s financial statements with regard to the adequacy of such entity’s coverage or of the reserves
for claims.

 

(b) All policies to
which any Acquired Company is a party or that provide coverage to any Seller, any Acquired Company, or any director or officer
of an Acquired Company: (A) are valid, outstanding, and enforceable; (B) are issued by an insurer that is financially
sound and reputable; (C) taken together, provide adequate insurance coverage for the assets and the operations of the Acquired
Companies for all risks to which the Acquired Companies are normally exposed; (D) are sufficient for compliance with all
Legal Requirements and Contracts to which any Acquired Company is a party or by which any of them is bound; (E) will continue
in full force and effect following the consummation of the Contemplated Transactions; and (F) do not provide for any retrospective
premium adjustment or other experienced-based liability on the part of any Acquired Company.

 

(c) No Seller or Acquired
Company has received (A) any refusal of coverage or any notice that a defense will be afforded with reservation of rights,
or (B) any notice of cancellation or any other indication that any insurance policy is no longer in full force or effect
or will not be renewed or that the issuer of any policy is not willing or able to perform its obligations thereunder.

 

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(d) The Acquired Companies
have paid all premiums due, and have otherwise performed all of their respective obligations, under each policy to which any Acquired
Company is a party or that provides coverage to any Acquired Company or director thereof.

 

(e) The Acquired Companies
have given notice to the insurer of all claims that may be insured thereby.

 

4.19 Environmental
Matters.

 

(a) Each Acquired Company
is, and at all times has been, in full compliance with, and has not been and is not in violation of or liable under, any Environmental
Law. No Seller or Acquired Company has any basis to expect, nor has any of them or any other Person for whose conduct they are
or may be held to be responsible received, any actual or Threatened order, notice, or other communication from (i) any Governmental
Body or private citizen acting in the public interest, or (ii) the current or prior owner or operator of any Facilities,
of any actual or potential violation or failure to comply with any Environmental Law, or of any actual or Threatened obligation
to undertake or bear the cost of any Environmental, Health, and Safety Liabilities with respect to any of the Facilities or any
other properties or assets (whether real, personal, or mixed) in which Sellers or any Acquired Company has had an interest,
or with respect to any property or Facility at or to which Hazardous Materials were generated, manufactured, refined, transferred,
imported, used, or processed by Sellers, any Acquired Company, or any other Person for whose conduct they are or may be held responsible,
or from which Hazardous Materials have been transported, treated, stored, handled, transferred, disposed, recycled, or received.

 

(b) There are no pending
or, to the Knowledge of Sellers and the Acquired Companies, Threatened claims, Encumbrances, or other restrictions of any nature,
resulting from any Environmental, Health, and Safety Liabilities or arising under or pursuant to any Environmental Law, with respect
to or affecting any of the Facilities or any other properties and assets (whether real, personal, or mixed) in which Sellers
or any Acquired Company has or had an interest.

 

(c) No Seller or Acquired
Company has any basis to expect, nor has any of them or any other Person for whose conduct they are or may be held responsible,
received, any citation, directive, inquiry, notice, Order, summons, warning, or other communication that relates to Hazardous
Activity, Hazardous Materials, or any alleged, actual, or potential violation or failure to comply with any Environmental Law,
or of any alleged, actual, or potential obligation to undertake or bear the cost of any Environmental, Health, and Safety Liabilities
with respect to any of the Facilities or any other properties or assets (whether real, personal, or mixed) in which Sellers
or any Acquired Company had an interest, or with respect to any property or facility to which Hazardous Materials generated, manufactured,
refined, transferred, imported, used, or processed by Sellers, any Acquired Company, or any other Person for whose conduct they
are or may be held responsible, have been transported, treated, stored, handled, transferred, disposed, recycled, or received.

 

(d) No Seller or Acquired
Company, or any other Person for whose conduct they are or may be held responsible, has any Environmental, Health, and Safety
Liabilities with respect to the Facilities or [, to the Knowledge of Sellers and the Acquired Companies,] with respect to any
other properties and assets (whether real, personal, or mixed) in which Sellers or any Acquired Company (or any predecessor),
has or had an interest, or at any property geologically or hydrologically adjoining the Facilities or any such other property
or assets.

  

(e) There are no Hazardous
Materials present on or in the Environment at the Facilities or at any geologically or hydrologically adjoining property, including
any Hazardous Materials contained in barrels, above or underground storage tanks, landfills, land deposits, dumps, equipment (whether
moveable or fixed) or other containers, either temporary or permanent, and deposited or located in land, water, sumps, or
any other part of the Facilities or such adjoining property, or incorporated into any structure therein or thereon. No Seller,
Acquired Company, any other Person for whose conduct they are or may be held responsible, or any other Person, has permitted or
conducted, or is aware of, any Hazardous Activity conducted with respect to the Facilities or any other properties or assets (whether
real, personal, or mixed) in which Sellers or any Acquired Company has or had an interest.

 

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(f) There has been no
Release or, to the Knowledge of Sellers and the Acquired Companies, Threat of Release, of any Hazardous Materials at or from the
Facilities or at any other locations where any Hazardous Materials were generated, manufactured, refined, transferred, produced,
imported, used, or processed from or by the Facilities, or from or by any other properties and assets (whether real, personal,
or mixed) in which Sellers or any Acquired Company has or had an interest, or any geologically or hydrologically adjoining
property, whether by Sellers, any Acquired Company, or any other Person.

 

(g) Sellers have delivered
to Buyer true and complete copies and results of any reports, studies, analyses, tests, or monitoring possessed or initiated by
Sellers or any Acquired Company pertaining to Hazardous Materials or Hazardous Activities in, on, or under the Facilities, or
concerning compliance by Sellers, any Acquired Company, or any other Person for whose conduct they are or may be held responsible,
with Environmental Laws.

 

4.20 Employees.

 

(a) The Sellers have
provided to Buyer a complete and accurate list of the following information for each employee, officer or director of the Acquired
Companies, including each employee on leave of absence or layoff status: employer; name; job title; current compensation paid
or payable and any change in compensation since January 1, 2017; vacation accrued; and service credited for purposes of vesting
and eligibility to participate under any Acquired Company’s pension, retirement, profit-sharing, thrift-savings, deferred
compensation, stock bonus, stock option, cash bonus, employee stock ownership (including investment credit or payroll stock ownership),
severance pay, insurance, medical, welfare, or vacation plan or any other employee benefit plan).

 

(b) No employee or director
of any Acquired Company is a party to, or is otherwise bound by, any agreement or arrangement, including any confidentiality,
noncompetition, or proprietary rights agreement, between such employee or director and any other Person (“Proprietary
Rights Agreement”) that in any way adversely affects or will affect (i) the performance of his duties as an employee
or director of the Acquired Companies, or (ii) the ability of any Acquired Company to conduct its business, including any
Proprietary Rights Agreement with Sellers or the Acquired Companies by any such employee or director. To Sellers’ Knowledge,
no director, officer, or other key employee of any Acquired Company intends to terminate his employment with such Acquired Company.

 

4.21 Labor Relations;
Compliance. No Acquired Company is a party to any collective bargaining or other labor Contract. There is not presently pending
or existing, and there is not Threatened, (a) any strike, slowdown, picketing, work stoppage, or employee grievance process,
(b) any Proceeding against or affecting any Acquired Company relating to the alleged violation of any Legal Requirement pertaining
to labor relations or employment matters, including any charge or complaint filed by an employee or union with any relevant Governmental
Body, organizational activity, or other labor or employment dispute against or affecting any of the Acquired Companies or their
premises, or (c) any application for certification of a collective bargaining agent. No event has occurred or circumstance
exists that could provide the basis for any work stoppage or other labor dispute. There is no lockout of any employees by any
Acquired Company, and no such action is contemplated by any Acquired Company. Each Acquired Company has complied in all respects
with all Legal Requirements relating to employment, equal employment opportunity, nondiscrimination, immigration, wages, hours,
benefits, collective bargaining, the payment of social security and similar taxes, occupational safety and health, and plant closing.
No Acquired Company is liable for the payment of any compensation, damages, taxes, fines, penalties, or other amounts, however
designated, for failure to comply with any of the foregoing Legal Requirements.

 

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4.22 Intellectual
Property.

 

(a) Intellectual
Property Assets. The term “Intellectual Property Assets” includes: (i) the name “BOQI ZHENGJI”,
fictional business names, trading names, registered and unregistered trademarks, service marks, and applications (collectively,
“Marks”); (ii) all patents, patent applications, and inventions and discoveries that may be patentable
(collectively, “Patents”); (iii) all copyrights in both published works and unpublished works (collectively,
“Copyrights”); (iv) all rights in mask works (collectively, “Rights in Mask Works”);
and (v) all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process
technology, plans, drawings, and blue prints (collectively, “Trade Secrets”); owned, used, or licensed by any
Acquired Company as licensee or licensor.

 

(b) Agreements
– The Sellers have provided to Buyer copies of all Contracts relating to the Intellectual Property Assets to which any Acquired
Company is a party or by which any Acquired Company is bound, except for any license implied by the sale of a product and perpetual,
paid-up licenses for commonly available software programs with a value of less than $10,000.00 under which an Acquired Company
is the licensee. There are no outstanding and, to Sellers’ Knowledge, no Threatened disputes or disagreements with respect
to any such agreement.

 

(c) Know-How Necessary
for the Business.

 

(i)
The Intellectual Property Assets are all those necessary for the operation of the Acquired Companies’ businesses
as they are currently conducted. One or more of the Acquired Companies is the owner of all right, title, and interest in and to
each of the Intellectual Property Assets, free and clear of all liens, security interests, charges, encumbrances, equities, and
other adverse claims, and has the right to use without payment to a third party all of the Intellectual Property Assets.

 

(ii)
All former and current employees of each Acquired Company have executed written Contracts with one or more of the Acquired
Companies that assign to one or more of the Acquired Companies all rights to any inventions, improvements, discoveries, or information
relating to the business of any Acquired Company. No employee of any Acquired Company has entered into any Contract that restricts
or limits in any way the scope or type of work in which the employee may be engaged or requires the employee to transfer, assign,
or disclose information concerning his work to anyone other than one or more of the Acquired Companies.

 

(d) Patents.

 

(i)
The Sellers have delivered to Buyer a complete and accurate list and summary description of all Patents. One or more of
the Acquired Companies is the owner of all right, title, and interest in and to each of the Patents, free and clear of all liens,
security interests, charges, encumbrances, entities, and other adverse claims.

 

(ii)
All of the issued Patents are currently in compliance with formal legal requirements (including payment of filing, examination,
and maintenance fees and proofs of working or use), are valid and enforceable, and are not subject to any maintenance fees or
taxes or actions falling due within ninety days after the Closing Date.

 

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(iii)
No Patent has been or is now involved in any interference, reissue, reexamination, or opposition proceeding. To Sellers’
Knowledge, there is no potentially interfering patent or patent application of any third party.

  

(iv)
No Patent is infringed or, to Sellers’ Knowledge, has been challenged or threatened in any way. None of the products
manufactured and sold, nor any process or know-how used, by any Acquired Company infringes or is alleged to infringe any patent
or other proprietary right of any other Person.

 

(v)
All products made, used, or sold under the Patents have been marked with the proper patent notice.

 

(e) Trademarks.

 

(i)
The Sellers have delivered to Buyer a complete and accurate list and summary description of all Marks. One or more of the
Acquired Companies is the owner of all right, title, and interest in and to each of the Marks, free and clear of all liens, security
interests, charges, encumbrances, equities, and other adverse claims.

 

(ii)
All Marks that have been registered with the United States Patent and Trademark Office are currently in compliance with
all formal legal requirements (including the timely post-registration filing of affidavits of use and incontestability and renewal
applications), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety
days after the Closing Date.

 

(iii)
No Mark has been or is now involved in any opposition, invalidation, or cancellation and, to Sellers’ Knowledge,
no such action is Threatened with the respect to any of the Marks.

 

(iv)
To Sellers’ Knowledge, there is no potentially interfering trademark or trademark application of any third party.

 

(v)
No Mark is infringed or, to Sellers’ Knowledge, has been challenged or threatened in any way. None of the Marks used
by any Acquired Company infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.

 

(vi)
All products and materials containing a Mark bear the proper federal registration notice where permitted by law.

 

(f) Copyrights.

 

(i)
The Sellers have delivered to Buyer a complete and accurate list and summary description of all Copyrights. One or more
of the Acquired Companies is the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all
liens, security interests, charges, encumbrances, equities, and other adverse claims.

 

(ii)
All the Copyrights have been registered and are currently in compliance with formal legal requirements, are valid and enforceable,
and are not subject to any maintenance fees or taxes or actions falling due within ninety days after the date of Closing.

 

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(iii)
No Copyright is infringed or, to Sellers’ Knowledge, has been challenged or threatened in any way. None of the subject
matter of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based
on the work of a third party.

 

(iv)
All works encompassed by the Copyrights have been marked with the proper copyright notice.

 

(g) Trade Secrets.

 

(i)
With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate, and sufficient
in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory
of any individual.

 

(ii)
Sellers and the Acquired Companies have taken all reasonable precautions to protect the secrecy, confidentiality, and value
of their Trade Secrets.

 

(iii)
One or more of the Acquired Companies has good title and an absolute (but not necessarily exclusive) right to use
the Trade Secrets. The Trade Secrets are not part of the public knowledge or literature, and, to Sellers’ Knowledge, have
not been used, divulged, or appropriated either for the benefit of any Person (other than one or more of the Acquired Companies) or
to the detriment of the Acquired Companies. No Trade Secret is subject to any adverse claim or has been challenged or threatened
in any way.

 

4.23 Certain Payments.
No Acquired Company or director, officer, agent, or employee of any Acquired Company, or to Sellers’ or the Acquired Companies’
Knowledge any other Person associated with or acting for or on behalf of any Acquired Company, has directly or indirectly (a) made
any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public,
regardless of form, whether in money, property, or services (i) to obtain favorable treatment in securing business, (ii) to
pay for favorable treatment for business secured, (iii) to obtain special concessions or for special concessions already
obtained, for or in respect of any Acquired Company or any Affiliate of an Acquired Company, or (iv) in violation of any
Legal Requirement, (b) established or maintained any fund or asset that has not been recorded in the books and records of
the Acquired Companies.

 

4.24 Disclosure.

 

(a) No representation
or warranty of Sellers in this Agreement omits to state a material fact necessary to make the statements herein or therein, in
light of the circumstances in which they were made, not misleading.

 

(b) No notice given
pursuant to Section 6.5 will contain any untrue statement or omit to state a material fact necessary to make the statements therein
or in this Agreement, in light of the circumstances in which they were made, not misleading.

 

(c) There is no fact
known to any Seller that has specific application to any Seller or any Acquired Company (other than general economic or industry
conditions) and that materially adversely affects or, as far as any Seller can reasonably foresee, materially threatens,
the assets, business, prospects, financial condition, or results of operations of the Acquired Companies (on a consolidated basis) that
has not been set forth in this Agreement.

 

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4.25 Relationships
With Related Persons. No Seller or any Related Person of Sellers or of any Acquired Company has, or since the first day of
the next to last completed fiscal year of the Acquired Companies has had, any interest in any property (whether real, personal,
or mixed and whether tangible or intangible), used in or pertaining to the Acquired Companies’ businesses. No Seller or
any Related Person of Sellers or of any Acquired Company is, or since the first day of the next to last completed fiscal year
of the Acquired Companies has owned (of record or as a beneficial owner) an equity interest or any other financial or profit
interest in, a Person that has (i) had business dealings or a material financial interest in any transaction with any Acquired
Company other than business dealings or transactions conducted in the Ordinary Course of Business with the Acquired Companies
at substantially prevailing market prices and on substantially prevailing market terms, or (ii) engaged in competition with
any Acquired Company with respect to any line of the products or services of such Acquired Company (a “Competing Business”)
in any market presently served by such Acquired Company except for less than one percent of the outstanding capital stock of any
Competing Business that is publicly traded on any recognized exchange or in the over-the-counter market. No Seller or any Related
Person of Sellers or of any Acquired Company is a party to any Contract with, or has any claim or right against, any Acquired
Company.

 

4.26 Brokers or
Finders. Sellers and their agents have incurred no obligation or liability, contingent or otherwise, for brokerage or finders’
fees or agents’ commissions or other similar payment in connection with this Agreement.

 

4.27 Investment
Representations. Each Seller (a)  acknowledges and understands that it is acquiring the Buyer Shares under this Agreement
under a private placement in reliance upon the exemption from the registration requirement of the Securities Act provided by Section
4(a)(2) of the Securities Act and Rule 506(b) thereunder and similar exemptions under applicable state securities laws; (b) is
an “accredited investor,” as defined in Rule 501(a) of Regulation D under Section 4(a)(2) of the Securities Act; (c)
is acquiring the Buyer Shares under this Agreement for its own account and not with a view to its distribution in violation of
the Securities Act; and (d) acknowledges and understands that the Buyer Shares are “restricted securities” as defined
in Rule 144(a)(3) under the Securities Act, and the Seller will not offer, sell, pledge or otherwise transfer any of such securities,
directly or indirectly, unless the offer, sale, pledge or transfer is in a transaction that does not require registration under
the U.S. Securities Act or any applicable state securities laws; or pursuant to an effective registration statement under the
Securities Act.

 

5.
REPRESENTATIONS AND WARRANTIES OF BUYER.

 

Buyer represents and
warrants to Sellers as follows:

 

5.1 Organization
and Good Standing. Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State
of Delaware.

 

5.2 Authority;
No Conflict.

 

(a) This Agreement constitutes
the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. Buyer has the absolute
and unrestricted right, power, and authority to execute and deliver this Agreement and to perform its obligations under this Agreement.

 

(b) Neither the execution
and delivery of this Agreement by Buyer nor the consummation or performance of any of the Contemplated Transactions by Buyer will
give any Person the right to prevent, delay, or otherwise interfere with any of the Contemplated Transactions pursuant to: (i) any
provision of Buyer’s Organizational Documents; (ii) any resolution adopted by the board of directors or the stockholders
of Buyer; (iii) any Legal Requirement or Order to which Buyer may be subject or bound.

 

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(c) No consent, permit,
approval, Order or authorization of or by, registration, declaration or filing with, or notification to any Governmental Body
is required by or with respect to Buyer in connection with the execution and delivery of this Agreement and consummation by Buyer
of the transactions contemplated hereby or thereby, except for such filings as may be required to be made to the NASDAQ.

 

5.3 Stock Exchange
Listing. Prior to the Closing, the Buyer Shares will be duly authorized for listing on NASDAQ, subject to all necessary regulatory
approvals. Buyer is not in default in any material respect of any of the listing or other requirements of NASDAQ.

 

5.4 SEC Filings.
Buyer has timely filed with or furnished to, as applicable, the SEC all registration statements, prospectuses, reports, schedules,
forms, statements and other documents (including exhibits and all other information incorporated by reference) required to be
filed or furnished by it with the SEC since January 1, 2016.

 

5.5 Certain Proceedings.
There is no pending Proceeding that has been commenced against Buyer and that challenges, or may have the effect of preventing,
delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Buyer’s Knowledge, no
such Proceeding has been Threatened.

 

5.6 Brokers or
Finders. Buyer and its officers and agents have incurred no obligation or liability, contingent or otherwise, for brokerage
or finders’ fees or agents’ commissions or other similar payment in connection with this Agreement and will indemnify
and hold Sellers harmless from any such payment alleged to be due by or through Buyer as a result of the action of Buyer or its
officers or agents.

 

6.
COVENANTS OF SELLERS

 

6.1 Access and
Investigation. Between the date of this Agreement and the Closing Date, Sellers will, and will cause each Acquired Company
and its Representatives to, (a) afford Buyer and its Representatives and prospective lenders and their Representatives (collectively,
“Buyer’s Advisors”) full and free access to each Acquired Company’s personnel, properties (including
subsurface testing), contracts, books and records, and other documents and data, (b) furnish Buyer and Buyer’s Advisors
with copies of all such contracts, books and records, and other existing documents and data as Buyer may reasonably request, and
(c) furnish Buyer and Buyer’s Advisors with such additional financial, operating, and other data and information as
Buyer may reasonably request.

 

6.2 Operation of
the Businesses of the Acquired Companies. Between the date of this Agreement and the Closing Date, Sellers will, and will
cause each Acquired Company to:

 

(a) conduct the business
of such Acquired Company only in the Ordinary Course of Business;

 

(b) not enter into (i) any
transaction other than in the Ordinary Course of Business, (ii) any transaction which is not at arms-length with unaffiliated
third Persons or (iii) any transaction with any Affiliate;

 

(c) use their Best Efforts
to preserve intact the current business organization of such Acquired Company, keep available the services of the current officers,
employees, and agents of such Acquired Company, and maintain the relations and good will with suppliers, customers, landlords,
creditors, employees, agents, and others having business relationships with such Acquired Company;

 

(d) confer with Buyer
concerning operational matters of a material nature; and

 

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(e) otherwise report
periodically to Buyer concerning the status of the business, operations, and finances of such Acquired Company.

 

6.3 Negative Covenant.
Except as otherwise expressly permitted by this Agreement, between the date of this Agreement and the Closing Date, Sellers will
not, and will cause each Acquired Company not to, without the prior consent of Buyer, take any affirmative action, or fail to
take any reasonable action within their or its control, as a result of which any of the changes or events listed in Section
4.16 is likely to occur.

 

6.4 Required Approvals.
As promptly as practicable after the date of this Agreement, Sellers will, and will cause each Acquired Company to, obtain any
consents and approvals of, or effect the notification of or filing with, each Person, whether private or governmental, whose consent
or approval is required in order to permit the consummation of the Contemplated Transactions, to obtain any consent that may be
required from a party to an agreement with an Acquired Company that may give such party a right to cancel such agreement as a
result of the Contemplated Transactions. Between the date of this Agreement and the Closing Date, Sellers will, and will cause
each Acquired Company to, cooperate with Buyer with respect to all consents, approvals or filings that Buyer elects to make or
obtain or is required by Legal Requirements to make or obtain in connection with the Contemplated Transactions.

 

6.5 Notification.
Between the date of this Agreement and the Closing Date, each Seller will promptly notify Buyer in writing if such Seller or any
Acquired Company becomes aware of any fact or condition that causes or constitutes a Breach of any of Sellers’ or the Acquired
Companies’ representations and warranties as of the date of this Agreement, or if such Seller or any Acquired Company becomes
aware of the occurrence after the date of this Agreement of any fact or condition that would (except as expressly contemplated
by this Agreement) cause or constitute a Breach of any such representation or warranty had such representation or warranty
been made as of the time of occurrence or discovery of such fact or condition. During the same period, each Seller will promptly
notify Buyer of the occurrence of any Breach of any covenant of Sellers in this Section 6 or of the occurrence of any event
that may make the satisfaction of the conditions in Section 8 impossible or unlikely.

 

6.6 Payment of
Indebtedness by Related Persons. Except as expressly provided in this Agreement, Sellers will cause all indebtedness owed
to an Acquired Company by any Seller or any Related Person of any Seller to be paid in full prior to Closing.

 

6.7 No Negotiation.
Until such time, if any, as this Agreement is terminated pursuant to Section 10, Sellers will not, and will cause each
Acquired Company and each of their Representatives not to, directly or indirectly solicit, initiate, or encourage any inquiries
or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits of any unsolicited
inquiries or proposals from, any Person (other than Buyer) relating to any transaction involving the sale of the business
or assets (other than in the Ordinary Course of Business) of any Acquired Company, or any of the capital stock of any Acquired
Company, or any merger, consolidation, business combination, or similar transaction involving any Acquired Company.

 

6.8 Proprietary
Information. All confidential or proprietary information or work product relating to the Acquired Companies or business of
the Acquired Companies that is known to the Sellers as of the Closing Date shall be the sole property of Buyer and the Acquired
Companies. The Sellers shall not use or disclose such information or work product except for the benefit of Buyer or the Acquired
Companies and their respective successors and assigns, and the Sellers shall take reasonable steps to protect such information
and work product from misuse, loss, theft or accidental disclosure.

 

6.9 Public Announcements.
No Seller Party shall issue any such press release or make any such public statement without the prior consent of Buyer, except
as may be required by applicable Law.

 

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6.10 Stockholder
Covenant. The Sellers shall not (i) sell, transfer, assign, tender, create an Encumbrance upon or otherwise dispose of,
or enter into any contract, option or other arrangement with respect to the sale, transfer, assignment, tender, Encumbrance or
other disposition of any of the Shares or (ii) grant any proxies with respect to any of the Shares, deposit any of the Shares
into a voting trust or enter into a voting or option agreement with respect to any of the Shares.

 

6.11 Best Efforts.
Between the date of this Agreement and the Closing Date, Sellers will use their Best Efforts to cause the conditions in Section
8 to be satisfied.

 

6.12 Release.
After the Closing Date, (a) none of Buyer, any Related Party of Buyer nor any Acquired Company will have any debt, obligation
or liability to any Seller, and (b) each Seller on behalf of itself and all of its Related Parties, hereby unconditionally
releases and discharges the Buyer, all of Buyer’s Related Parties and each Acquired Company from any and all claims, debts,
obligations and liabilities, whether known or unknown, contingent or non-contingent, at law or in equity, in each case arising
from or in connection with Seller’s ownership of the Acquired Companies or resulting from Seller or any of its Related Parties
having been a director, officer or employee of any Acquired Company; provided however, that nothing in this Section 6.12
shall terminate or release Buyer’s obligations to Sellers under this Agreement (or under any other agreement or instrument
to be executed in conjunction with this Agreement in order to consummate the Contemplated Transactions).

 

6.13 Confidentiality.
From and after the Closing Date, each Seller will, and will cause each of its Related Parties to (a) protect and safeguard
the confidentiality of all of the Confidential Information with at least the same degree of care as a reasonably prudent person
would exercise to protect its own Confidential Information, (b) not use Confidential Information, or permit it to be accessed
or used, for any purpose, and (c) not disclose any Confidential Information to any Person except as required by applicable
law or legal process. Each Seller hereby assumes full responsibility and liability for the compliance of all of Seller’s
Related Parties with the terms of this Section 6.13. Prior to making any disclosure of any Confidential Information required
by applicable law or legal process, a Seller shall provide Buyer with (i) if and to the extent legally permitted, prompt
written notice of such requirement so that Buyer may seek a protective order or other remedy; and (ii) reasonable assistance
in opposing such disclosure or seeking a protective order or other remedy.

 

6.14 Securities
Laws; Restrictions on Transfers5.1 . Each Seller acknowledges and understands that until such time as the same is no longer
required under the requirements of the Securities Act or applicable state securities laws, the certificates representing the Buyer
Shares, and all certificates representing any securities issued in exchange thereof or in substitution therefor, will bear the
following legend:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS.  THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF NF ENERGY SAVING CORPORATION
(THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO
THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT
(“REGULATION S”), (C) IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT OR (2) RULE 144
UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (D) PURSUANT TO ANOTHER EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE
U.S. SECURITIES ACT, AND IN EACH CASE, IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS, AFTER, IN THE CASE OF TRANSFERS
PURSUANT TO CLAUSE (C)(2) OR (D) (OR IF REQUIRED BY THE CORPORATION, OR ITS TRANSFER AGENT, CLAUSE (B)) ABOVE, THE HOLDER HAS
PROVIDED TO THE CORPORATION A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE
CORPORATION, TO THE EFFECT THAT THE SALE OF SUCH SECURITIES IS NOT REQUIRED TO BE REGISTERED UNDER THE U.S. SECURITIES ACT OR
APPLICABLE STATE SECURITIES LAWS.”

 

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7.
Tax MAtters

 

7.1 Responsibility
for Filing Tax Returns.

 

(a) The Sellers shall
prepare, or cause to be prepared, in a timely manner, all income Tax Returns of each Acquired Company that are due after the Closing
with respect to any taxable period ending prior to or ending on and including the Closing Date; provided, however, that any such
Tax Return shall be prepared by treating items on that Tax Return in a manner consistent with the prior Tax Returns of each Acquired
Company. The Sellers shall deliver to the Buyer draft copies of each such Tax Return prior to the date for filing that Tax Return.
The Sellers shall make all changes in each such Tax Return reasonably requested by the Buyer. The Buyer shall cause each such
Tax Return to be appropriately signed and filed, and the Sellers shall pay to each Acquired Company any Taxes due from that Acquired
Company on that Tax Return.

 

(b) The Buyer shall
after the Closing prepare and file, or cause to be prepared and filed, Tax Returns of each Acquired Company for any period beginning
prior to the Closing Date and ending after the Closing Date (a “Straddle Period”). Any such Tax Return shall
be prepared by treating items on that Tax Return in a manner consistent with the prior Tax Returns of each Acquired Company. The
Buyer shall deliver to the Sellers draft copies of each such Tax Return at least thirty (30) days prior to the date for filing
that Tax Return. The Buyer shall make all changes in each such Tax Return reasonably requested by the Sellers. The Sellers shall
pay to each Acquired Company the Taxes due for the period prior to and including the Closing Date from that Acquired Company on
that Tax Return.

 

7.2 Cooperation
on Tax Matters. Commencing on the Closing Date, the Buyer, on the one hand, and the Sellers, on the other hand, shall cooperate
fully, as and to the extent reasonably requested by the other party, in connection with the filing and execution of Tax Returns
and any audit, litigation or other proceeding with respect to Taxes, in each case, in respect of any period ending prior to or
on the Closing Date or any Straddle Period.

 

7.3 Sales and Transfer
Taxes. All sales and transfer Taxes (including all stock transfer Taxes, if any) incurred in connection with this Agreement
and the transactions contemplated hereby and thereby will be borne by the Sellers, and the Sellers shall, at the Sellers’
own expense, file all necessary Tax Returns and other documentation with respect to all such sales and transfer Taxes.

 

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8.
CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE.

 

Buyer’s obligation
to purchase the Shares and to take the other actions required to be taken by Buyer at the Closing is subject to the satisfaction,
at or prior to the Closing, of each of the following conditions (any of which may be waived by Buyer, in whole or in part):

 

8.1 Accuracy of
Representations.

 

(a) All of the Seller
Parties’ representations and warranties in this Agreement (considered collectively), and each of those representations and
warranties (considered individually)(without giving effect to any qualification contained therein as to materiality, including
the phrases “material”, “in all material respects” and “material adverse change”), must have
been accurate in all material respects as of the date of this Agreement, and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date.

 

(b) Each of Seller Parties’
representations and warranties in Sections 3, 4.3, 4.4, 4.12, and 4.24 must have been
accurate in all respects as of the date of this Agreement, and must be accurate in all respects as of the Closing Date as if made
on the Closing Date.

 

8.2 Sellers’
Performance. All of the covenants and obligations that the Seller Parties are required to perform or to comply with pursuant
to this Agreement at or prior to the Closing (considered collectively), and each of these covenants and obligations (considered
individually), must have been duly performed and complied with in all material respects.

 

8.3 Authorization.
All action necessary to authorize the execution, delivery and performance of this Agreement by the Seller Parties and the consummation
of the transactions contemplated hereby, shall have been duly and validly taken by each of them, and each Seller Party shall have
full power and authority or capacity to enter into this Agreement and to consummate the transactions contemplated hereby on the
terms provided herein.

 

8.4 Consents and
Approvals. Buyer shall have received duly executed copies of all consents and approvals required for or in connection with
the execution and delivery by the Seller Parties of this Agreement, for the consummation of the transactions contemplated hereby,
and the continued conduct of the business of the Acquired Companies as previously conducted, each in form and substance satisfactory
to Buyer.

 

8.5 Government
Consents, Authorizations, Etc. All consents, authorizations, orders and approvals of, filings or registrations with and the
expiration of all waiting periods imposed by, any third Person, including any Governmental Body, which are required for or in
connection with the execution and delivery by the parties of this Agreement and the consummation by the parties of the transactions
contemplated hereby and in order to permit or enable the Acquired Companies to conduct their business after the Closing in substantially
the same manner as previously conducted shall have been obtained or made, in form and substance reasonably satisfactory to Buyer,
and shall be in full force and effect.

 

8.6 Additional
Documents. Each of the following documents must have been delivered to Buyer:

 

(a) A certificate executed
by each of the Seller Parties representing and warranting to Buyer that each of the Seller Parties’ representations and
warranties in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as
of the Closing Date as if made on the Closing Date.

 

(b) A copy of Parent’s
current memorandum and articles of association.

 

(c) A copy of resolutions
of Parent’s board of directors approving the updating of Parent’s register of members, to reflect Buyer’s ownership
of all of the Shares.

 

(d) A copy of Parent’s
certificate of incumbency.

 

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(e) A copy of Parent’s
good standing certificate.

 

(f) such other documents
as Buyer may reasonably request for the purpose of (i) evidencing the accuracy of any of Sellers’ representations and
warranties, (ii) evidencing the performance by any Seller of, or the compliance by any Seller with, any covenant or obligation
required to be performed or complied with by such Seller, (iii) evidencing the satisfaction of any condition referred to
in this Section 8, or (iv) otherwise facilitating the consummation or performance of any of the Contemplated Transactions.

 

8.7 No Proceedings.
Since the date of this Agreement, there must not have been commenced or Threatened against Buyer, or against any Person affiliated
with Buyer, any Proceeding (a) involving any challenge to, or seeking damages or other relief in connection with, any of
the Contemplated Transactions, or (b) that may have the effect of preventing, delaying, making illegal, or otherwise interfering
with any of the Contemplated Transactions.

 

8.8 No Claim Regarding
Stock Ownership or Sale Proceeds. There must not have been made or Threatened by any Person any claim asserting that such
Person (a) is the holder or the beneficial owner of, or has the right to acquire or to obtain beneficial ownership of, any
stock of, or any other voting, equity, or ownership interest in, any of the Acquired Companies, or (b) is entitled to all
or any portion of the Purchase Price payable for the Shares.

 

8.9 No Prohibition.
Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time), materially contravene, or conflict with, or result in a material violation of, or cause Buyer or any
Person affiliated with Buyer to suffer any material adverse consequence under, (a) any applicable Legal Requirement or Order,
or (b) any Legal Requirement or Order that has been published, introduced, or otherwise proposed by or before any Governmental
Body.

 

8.10 Absence of
Material Adverse Change. Since the date of this Agreement, in the reasonable judgment of Buyer, there shall have been no material
adverse change in the assets, financial condition, operating results, customer, supplier or employee relations or liabilities
of the Acquired Companies including any material casualty loss or damage to the assets of the Acquired Companies, whether or not
covered by insurance.

 

9.
CONDITIONS PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE.

 

Sellers’ obligation
to sell the Shares and to take the other actions required to be taken by Sellers at the Closing is subject to the satisfaction,
at or prior to the Closing, of each of the following conditions (any of which may be waived by Sellers, in whole or in part):

 

9.1 Additional
Documents. Each of the following documents must have been delivered to the Sellers:

 

(a) A certificate executed
by Buyer to the effect that, except as otherwise stated in such certificate, each of Buyer’s representations and warranties
in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing
Date as if made on the Closing Date.

 

(b) A certificate of
the Secretary (or equivalent officer) of Buyer certifying that attached thereto are true and complete copies of all resolutions
adopted by the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement and the consummation
of the Transaction and that all such resolutions are in full force and effect and are all the resolutions adopted in connection
with the transactions contemplated hereby.

 

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9.2 Accuracy of
Representations. All of Buyer’s representations and warranties in this Agreement (considered collectively), and each
of these representations and warranties (considered individually), must have been accurate in all material respects as of the
date of this Agreement and must be accurate in all material respects as of the Closing Date as if made on the Closing Date.

 

9.3 Buyer’s
Performance. All of the covenants and obligations that Buyer is required to perform or to comply with pursuant to this Agreement
at or prior to the Closing (considered collectively), and each of these covenants and obligations (considered individually), must
have been performed and complied with in all material respects.

 

9.4 No Injunction.
There must not be in effect any Legal Requirement or any injunction or other Order that (a) prohibits the sale of the Shares
by Sellers to Buyer, and (b) has been adopted or issued, or has otherwise become effective, since the date of this Agreement.

 

10.
TERMINATION.

 

10.1 Termination
Events. This Agreement may, by notice given prior to or at the Closing, be terminated:

 

(a) by either Buyer
or Sellers if a material Breach of any provision of this Agreement has been committed by the other party and such Breach has not
been waived;

 

(b) (i) by Buyer if
any of the conditions in Section 8 has not been satisfied as of the Closing Date or if satisfaction of such a condition
is or becomes impossible (other than through the failure of Buyer to comply with its obligations under this Agreement) and
Buyer has not waived such condition on or before the Closing Date; or

 

(ii)
by Sellers, if any of the conditions in Section 9 has not been satisfied of the Closing Date or if satisfaction
of such a condition is or becomes impossible (other than through the failure of Sellers to comply with their obligations under
this Agreement) and Sellers have not waived such condition on or before the Closing Date;

 

(c) by mutual consent
of Buyer and Sellers; or

 

(d) either by Buyer
or by all Sellers if the Closing has not occurred (other than through the failure of any party seeking to terminate this Agreement
to comply fully with its obligations under this Agreement) on or before July 1, 2019 or such later date as the parties may
agree upon.

 

10.2 Effect of
Termination. Each party’s right of termination under Section 10.1 is in addition to any other rights it may have
under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. If this Agreement
is terminated pursuant to Section 10.1, all further obligations of the parties under this Agreement will terminate, except
that the obligations in Sections 12.1 and 12.3 will survive; provided, however, that if this Agreement is terminated
by a party because of the Breach of the Agreement by the other party or because one or more of the conditions to the terminating
party’s obligations under this Agreement is not satisfied as a result of the other party’s failure to comply with
its obligations under this Agreement, the terminating party’s right to pursue all legal remedies will survive such termination
unimpaired.

 

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11.
INDEMNIFICATION; REMEDIES.

 

11.1 Survival;
Right to Indemnification Not Affected By Knowledge. All representations, warranties, covenants, and obligations in this Agreement
and any other certificate or document delivered pursuant to this Agreement will survive the Closing. The right to indemnification,
payment of Damages or other remedy based on such representations, warranties, covenants, and obligations will not be affected
by any investigation conducted with respect to, or any Knowledge acquired (or capable of being acquired) at any time, whether
before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of
or compliance with, any such representation, warranty, covenant, or obligation. The waiver of any condition based on the accuracy
of any representation or warranty, or on the performance of or compliance with any covenant or obligation, will not affect the
right to indemnification, payment of Damages, or other remedy based on such representations, warranties, covenants, and obligations.

 

11.2 Indemnification
and Payment of Damages by Sellers. Sellers, jointly and severally, will indemnify and hold harmless Buyer, the Acquired Companies,
and their respective Representatives, stockholders, controlling persons, and affiliates (collectively, the “Indemnified
Persons”) for, and will pay to the Indemnified Persons the amount of, any loss, liability, claim, damage (including
incidental and consequential damages), expense (including costs of investigation and defense and reasonable attorneys’ fees) or
diminution of value, whether or not involving a third-party claim (collectively, “Damages”), arising, directly
or indirectly, from or in connection with:

 

(a) any Breach of any
representation or warranty made by Sellers or the Acquired Companies in this Agreement or any other certificate or document delivered
by Sellers or the Acquired Companies pursuant to this Agreement;

 

(b) any Breach of any
representation or warranty made by Sellers or the Acquired Companies in this Agreement as if such representation or warranty were
made on and as of the Closing Date and is expressly identified in the certificate delivered pursuant to Section 2.6 as
having caused the condition specified in Section 8.1 not to be satisfied;

 

(c) any Breach by any
Seller of any covenant or obligation of such Seller in this Agreement;

 

(d) any product sold,
shipped or manufactured by, or any services provided by, any Acquired Company prior to the Closing Date;

 

(e) any Taxes owed by
the Acquired Companies relating to any period prior to the Closing Date; and

 

(f) any claim by any
Person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged
to have been made by any such Person with any Seller or any Acquired Company (or any Person acting on their behalf) in connection
with any of the Contemplated Transactions.

 

The remedies provided
in this Section 11.2 will not be exclusive of or limit any other remedies that may be available to Buyer or the other Indemnified
Persons.

 

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11.3 Indemnification
and Payment of Damages by Sellers Environmental Matters. In addition to the provisions of Section 11.2, Sellers, jointly
and severally, will indemnify and hold harmless Buyer, the Acquired Companies, and the other Indemnified Persons for, and will
pay to Buyer, the Acquired Companies, and the other Indemnified Persons the amount of, any Damages (including costs of cleanup,
containment, or other remediation) arising, directly or indirectly, from or in connection with:

 

(a) any Environmental,
Health, and Safety Liabilities arising out of or relating to: (i) (A) the ownership, operation, or condition at any
time on or prior to the Closing Date of the Facilities or any other properties and assets (whether real, personal, or mixed and
whether tangible or intangible) in which Sellers or any Acquired Company has or had an interest, or (B) any Hazardous
Materials or other contaminants that were present on the Facilities or such other properties and assets at any time on or prior
to the Closing Date; or (ii) (A) any Hazardous Materials or other contaminants, wherever located, that were, or were
allegedly, generated, transported, stored, treated, Released, or otherwise handled by Sellers or any Acquired Company or by any
other Person for whose conduct they are or may be held responsible at any time on or prior to the Closing Date, or (B) any
Hazardous Activities that were, or were allegedly, conducted by Sellers or any Acquired Company or by any other Person for whose
conduct they are or may be held responsible; or

 

(b) any bodily injury
(including illness, disability, and death, and regardless of when any such bodily injury occurred, was incurred, or manifested
itself), personal injury, property damage (including trespass, nuisance, wrongful eviction, and deprivation of the use of real
property), or other damage of or to any Person, including any employee or former employee of Sellers or any Acquired Company or
any other Person for whose conduct they are or may be held responsible, in any way arising from or allegedly arising from any
Hazardous Activity conducted or allegedly conducted with respect to the Facilities or the operation of the Acquired Companies
prior to the Closing Date, or from Hazardous Material that was (i) present or suspected to be present on or before the Closing
Date on or at the Facilities (or present or suspected to be present on any other property, if such Hazardous Material emanated
or allegedly emanated from any of the Facilities and was present or suspected to be present on any of the Facilities on or prior
to the Closing Date) or (ii) Released or allegedly Released by Sellers or any Acquired Company or any other Person for
whose conduct they are or may be held responsible, at any time on or prior to the Closing Date.

 

Buyer will be entitled
to control any Cleanup, any related Proceeding, and, except as provided in the following sentence, any other Proceeding with respect
to which indemnity may be sought under this Section 11.3. The procedure described in Section 11.9 will apply to
any claim solely for monetary damages relating to a matter covered by this Section 11.3.

 

11.4 Indemnification
and Payment of Damages by Buyer. Buyer will indemnify and hold harmless Sellers, and will pay to Sellers the amount of any
Damages arising, directly or indirectly, from or in connection with (a) any Breach of any representation or warranty made
by Buyer in this Agreement or in any certificate delivered by Buyer pursuant to this Agreement, (b) any Breach by Buyer of
any covenant or obligation of Buyer in this Agreement, or (c) any claim by any Person for brokerage or finder’s fees
or commissions or similar payments based upon any agreement or understanding alleged to have been made by such Person with Buyer
(or any Person acting on its behalf) in connection with any of the Contemplated Transactions.

 

11.5 Right of Set-Off.
Upon notice to Sellers specifying in reasonable detail the basis for such set-off, Buyer may set off any amount to which it may
be entitled under this Section 11 against amounts otherwise payable by it under this Agreement. Neither the exercise of nor the
failure to exercise such right of set-off will constitute an election of remedies or limit Buyer in any manner in the enforcement
of any other remedies that may be available to it.

 

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11.6 Procedure
for Indemnification Third Party Claims.

 

(a) Promptly after receipt
by an indemnified party under Section 11.2, 11.4, or (to the extent provided in the last sentence of Section
11.3) Section 11.3 of notice of the commencement of any Proceeding against it, such indemnified party will, if a claim
is to be made against an indemnifying party under such Section, give notice to the indemnifying party of the commencement of such
claim, but the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it may have
to any indemnified party, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced
by the indemnifying party’s failure to give such notice.

 

(b) If any Proceeding
referred to in Section 11.9(a) is brought against an indemnified party and it gives notice to the indemnifying party of
the commencement of such Proceeding, the indemnifying party will, unless the claim involves Taxes, be entitled to participate
in such Proceeding and, to the extent that it wishes (unless (i) the indemnifying party is also a party to such Proceeding
and the indemnified party determines in good faith that joint representation would be inappropriate, or (ii) the indemnifying
party fails to provide reasonable assurance to the indemnified party of its financial capacity to defend such Proceeding and provide
indemnification with respect to such Proceeding), to assume the defense of such Proceeding with counsel satisfactory to the indemnified
party and, after notice from the indemnifying party to the indemnified party of its election to assume the defense of such Proceeding,
the indemnifying party will not, as long as it diligently conducts such defense, be liable to the indemnified party under this
Section 10 for any fees of other counsel or any other expenses with respect to the defense of such Proceeding, in each
case subsequently incurred by the indemnified party in connection with the defense of such Proceeding, other than reasonable costs
of investigation. If the indemnifying party assumes the defense of a Proceeding, (i) it will be conclusively established
for purposes of this Agreement that the claims made in that Proceeding are within the scope of and subject to indemnification;
(ii) no compromise or settlement of such claims may be effected by the indemnifying party without the indemnified party’s
consent unless (A) there is no finding or admission of any violation of Legal Requirements or any violation of the rights
of any Person and no effect on any other claims that may be made against the indemnified party, and (B) the sole relief provided
is monetary damages that are paid in full by the indemnifying party; and (iii) the indemnified party will have no liability
with respect to any compromise or settlement of such claims effected without its consent. If notice is given to an indemnifying
party of the commencement of any Proceeding and the indemnifying party does not, within ten days after the indemnified party’s
notice is given, give notice to the indemnified party of its election to assume the defense of such Proceeding, the indemnifying
party will be bound by any determination made in such Proceeding or any compromise or settlement effected by the indemnified party.

 

(c) Notwithstanding
the foregoing, if an indemnified party determines in good faith that there is a reasonable probability that a Proceeding may adversely
affect it or its affiliates other than as a result of monetary damages for which it would be entitled to indemnification under
this Agreement, the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise,
or settle such Proceeding, but the indemnifying party will not be bound by any determination of a Proceeding so defended or any
compromise or settlement effected without its consent (which may not be unreasonably withheld).

 

(d) Sellers hereby consent
to the non-exclusive jurisdiction of any court in which a Proceeding is brought against any Indemnified Person for purposes of
any claim that an Indemnified Person may have under this Agreement with respect to such Proceeding or the matters alleged therein,
and agree that process may be served on Sellers with respect to such a claim anywhere in the world.

 

11.7 Procedure
For Indemnification Other Claims. A claim for indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

 

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12.
GENERAL PROVISIONS.

 

12.1 Expenses.
Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred
in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including
all fees and expenses of agents, representatives, counsel, and accountants. In the event of termination of this Agreement, the
obligation of each party to pay its own expenses will be subject to any rights of such party arising from a breach of this Agreement
by another party.

 

12.2 Public Announcements.
Any public announcement or similar publicity with respect to this Agreement or the Contemplated Transactions will be issued, if
at all, at such time and in such manner as Buyer determines. Unless consented to by Buyer in advance or required by Legal Requirements,
prior to the Closing, Sellers shall, and shall cause the Acquired Companies to, keep this Agreement strictly confidential and
may not make any disclosure of this Agreement to any Person. Sellers and Buyer will consult with each other concerning the means
by which the Acquired Companies’ employees, customers, and suppliers and others having dealings with the Acquired Companies
will be informed of the Contemplated Transactions, and Buyer will have the right to be present for any such communication.

 

12.3 Confidentiality.
Between the date of this Agreement and the Closing Date, Buyer and Sellers will maintain in confidence, and will cause the directors,
officers, employees, agents, and advisors of Buyer and the Acquired Companies to maintain in confidence, any written, oral, or
other information obtained in confidence from another party or an Acquired Company in connection with this Agreement or the Contemplated
Transactions, unless (a) such information is already known to such party or to others not bound by a duty of confidentiality
or such information becomes publicly available through no fault of such party, (b) the use of such information is necessary
or appropriate in making any filing or obtaining any consent or approval required for the consummation of the Contemplated Transactions,
or (c) the furnishing or use of such information is required by legal proceedings. If the Contemplated Transactions are not
consummated, each party will return or destroy as much of such written information as the other party may reasonably request.
Whether or not the Closing takes place, Sellers waive, and will upon Buyer’s request cause the Acquired Companies to waive,
any cause of action, right, or claim arising out of the access of Buyer or its representatives to any trade secrets or other confidential
information of the Acquired Companies except for the intentional competitive misuse by Buyer of such trade secrets or confidential
information.

 

12.4 Notices.
All notices, amendments, waivers, or other communications under this Agreement shall be in writing and shall be deemed to be sufficient
if delivered personally, sent electronically, sent by nationally-recognized overnight or second day delivery courier or mailed
by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice):

 

(a) If to an Acquired
Company prior to Closing or any Seller, to:

 

	Name:	LASTING WISDOM HOLDINGS LIMITED
	Address:	Wickhams Cay II, Road Town, Tortola, vg 110, British Virgin Island
	Attention:	Wu Shangwen
	Telephone:	+86 0411 8295 2829
	Facsimile:	+86 0411 8295 2829
	Email :	wushangwen @boqijituan.com

 

    33

     

    

 

	with a copy to:	 
	 	 
	Name:	Vistra ( China) Company Limited
	Address:	33/F Westgate Tower, No. I 038 Nanjing West Road , Jing’an District, Shanghai 200041, PRC
	Attention:	Doris
	Telephone:	+86 021 6090 0598
	Facsimile :	+86 021 6361 6489
	Email:	shanghai@vistra.com
	 	 
	If to an Acquired Company following the Closing or Buyer, to:
	 
	Name:	NF ENERGY SAYING CORPORATION
	Address:	390 Qingnian Avenue, Heping District t, Shenyang, Liaoning Province, P.R.C.
	Attention:	Li Hong
	Telephone:	+86 24 8563-1159
	Facsimile:	+86 24 8563-1 I 59
	Email:	info@nfenergy.com
	 	 
	with a copy to:	 
	 	 
	Name:	Carter Ledyard & Milburn LLP
	Address:  	2 Wall Street New York, New York 10005-2072
	Attention:	Pang Zhang-Whitaker, Esq.
	Telephone:	+1 212 238 8844
	Facsimile:	+1 212 732 3232
	Email:	zhang@clm.com

 

All such notices and other communications
shall be deemed to have been delivered and received (i) in the case of personal delivery or delivery electronically, on the
date of that delivery if delivered during business hours on a Business Day or, if not delivered during business hours on a Business
Day, the first Business Day thereafter, (ii) in the case of delivery by nationally-recognized overnight or second day delivery
courier, on the Business Day delivered, and (iii) in the case of mailing, on the sixth Business Day following that mailing.
A copy of any notice or other communication sent electronically shall also be sent on the same day by registered or certified
mail (return receipt requested) or by nationally recognized overnight or second day delivery courier.

 

12.5 Further Assurances.
The parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to
each other such other documents, and (c) to do such other acts and things, all as the other party may reasonably request
for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.

 

12.6 Waiver.
The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement
will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege
will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.
To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or the documents referred
to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless
in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except in the specific
instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation
of such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided
in this Agreement or the documents referred to in this Agreement.

 

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12.7 Entire Agreement
and Modification. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and
constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the
agreement between the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement
executed by the party to be charged with the amendment.

 

12.8 Assignments,
Successors, and no Third-Party Rights. Neither party may assign any of its rights under this Agreement without the prior consent
of the other parties, except that Buyer may assign any of its rights under this Agreement to any Subsidiary of Buyer. Subject
to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors
and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give any Person
other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement
or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit
of the parties to this Agreement and their successors and assigns.

 

12.9 Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

12.10 Section Headings,
Construction.

 

(a) All words used in
this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided,
the word “including” does not limit the preceding words or terms. The words “herein”, “hereof”,
“hereunder”, “hereby”, “hereto”, “hereinafter”, and other words of similar import
refer to this Agreement as a whole, including any schedules and exhibits, as the same may from time to time be amended, modified,
supplemented or restated, and not to any particular article, section, subsection, paragraph, subparagraph or clause contained
in this Agreement. All references to articles, sections, subsections, clauses, paragraphs, schedules and exhibits mean such provisions
of this Agreement and the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the
article, section and paragraph headings in this Agreement are for convenience of reference only and shall not govern or affect
the interpretation of any of the terms or provisions of this Agreement.

 

(b) Where specific language
is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit
or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement has
been chosen by the parties to express their mutual intent, each party has been represented by legal counsel with respect to, and
has had substantial input in, the drafting of this Agreement, and no rule of strict construction shall be applied against any
party. Unless expressly provided otherwise, the measure of a period of one month or year for purposes of this Agreement shall
be that date of the following month or year corresponding to the starting date, provided that if no corresponding date exists,
the measure shall be that date of the following month or year corresponding to the next day following the starting date. For example,
one month following February 18 is March 18, and one month following March 31 is May 1.

 

(c) References to “dollars”
or “$” mean United States Dollars.

 

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12.11 Time of Essence.
With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

 

12.12 Governing
Law; Waiver of Jury Trial; Jurisdiction.

 

(a) All questions concerning
the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced in accordance
with the domestic laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule (whether
in the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of Delaware. In furtherance of the foregoing, the internal law of the State of Delaware shall control the interpretation
and construction of this Agreement, even if under the State of Delaware’s choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily or necessarily apply.

 

(b) BECAUSE DISPUTES
ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT
PERSON AND THE PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE
RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL
SYSTEM, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BASED UPON OR ARISING
OUT OF THIS AGREEMENT OR THE RELATED DOCUMENTS OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF
OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE RELATED DOCUMENTS, INCLUDING, CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(c) EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR HIMSELF OR ITSELF AND HIS OR ITS PROPERTY, TO THE JURISDICTION OF ANY DELAWARE STATE
COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW CASTLE COUNTY IN THE STATE OF DELAWARE, AND, EFFECTIVE AS
OF THE CLOSING, TO THE JURISDICTION OF ANY OTHER COURT IN ANY OTHER JURISDICTION IN WHICH AN ACTION IS BROUGHT AGAINST A PARTY
TO THIS AGREEMENT BY A THIRD PARTY ASSERTING A CLAIM AGAINST WHICH THE DEFENDANT IS ENTITLED UNDER THIS AGREEMENT TO BE INDEMNIFIED,
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATED DOCUMENTS OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN ANY SUCH DELAWARE STATE OR FEDERAL COURT. EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW.

 

    36

     

    

 

(d) EACH PARTY IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT SUCH PARTY MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT SUCH PARTY
MAY HAVE OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE RELATED DOCUMENTS IN ANY DELAWARE STATE OR FEDERAL COURT SITTING IN NEW CASTLE COUNTY IN THE STATE OF DELAWARE OR SUCH
OTHER COURT AS IS PROVIDED FOR IN THE PRECEDING PARAGRAPH. EACH PARTY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

12.13 Counterparts;
Facsimile and Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. Facsimile and electronic counterpart signatures
to this Agreement shall be acceptable and binding.

 

12.14 Representation
by Counsel. Each of the parties hereto has been represented or has had the opportunity to be represented by legal counsel
of their own choice.

    

[Signature Pages Follow]

    

    37

     

    

  

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

 

	BUYER:	 
	 	 
	NF ENERGY SAVING CORPORATION
	 	 
	By:	 	 
	Name: Yongquan Bi	 
	Title:  Chief Executive Officer	 
	 	 
	SELLERS:	 
	 	 
	By:	 	 
	Name: Yu Zhang	 
	 	 
	By:	 	 
	Name: Yunpeng Liu	 
	 	 
	By:	 	 
	Name: Aiguo Leng	 
	 	 
	By:	 	 
	Name: Xiaona Liu	 
	 	 
	By:	 	 
	Name: Peng Shao	 
	 	 
	ACQUIRED COMPANIES	 
	 	 
	LASTING WISDOM HOLDINGS LIMITED, Parent
	 	 
	By:	                       	 
	Name:	 
	Title:	 

  

     

     

    

 

	PUKUNG LIMITED, HoldCo,	 
	 	 
	By:	                     	 
	Name:	 
	Title:	 
	 	 
	BEIJING XIN RONG XIN INDUSTRIAL DEVELOPMENT CO., LTD., WFOE
	 	 
	By:	 	 
	Name:	 
	Title:	 
	 	 
	BOQI ZHENGJI PHARMACY CHAIN CO., LTD., the Company    
	 	 
	By:	 	 
	Name:	 
	Title:

	 

 

     

     

    

 

SCHEDULE I

 

CAPITALIZATION/OWNERSHIP OF ALL EQUITY
SHARES OF EACH ACQUIRED COMPANY

 

	Ownership of Parent:	 	 	 	 	 	 
	Sellers:	 	# of Shares:	 	 	Percentage 

of Outstanding Shares

 Owned (the

 Proportionate

 Percentage):	 
	Yu Zhang	 	 	1	 	 	 	20	%
	Yunpeng Liu	 	 	1	 	 	 	20	%
	Aiguo Leng	 	 	1	 	 	 	20	%
	Xiaona Liu	 	 	1	 	 	 	20	%
	Peng Shao	 	 	1	 	 	 	20	%
	Total outstanding Shares: 5

	 	 	 	Total: 100
	%
	 	 	 	 	 	 	 	 	 
	Ownership of Holdco:	 	 	 	 	 	 
	Shareholder:	 	# of TYPE OF CAPITAL

 STOCK of parent:	 	 	Percentage 

of Shares

 Owned:	 
	Parent	 	 	10,000	 	 	 	100	%

 

	Ownership of WFOE:	 	 	 
	Shareholder:	 	Percentage

 of Shares

 Owned:	 
	Holdco	 	 	100	%
	 	 	 	 	 
	Ownership of the Company:	 	 	 
	Shareholder:	 	Percentage

 of Shares

 Owned:	 
	WFOE	 	 	100	%

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