Document:

Purchase
Agreements

 

Contract
No.: [BITT-PA-201906029-002]

 

This
Purchase Agreement (“this Agreement”) is concluded by the following parties based on full friendly negotiation:

 

Party
A (Seller): Bitmaintech Pte. Ltd., with its principal place of business at 8 Kallang Avenue, Aperia Tower 1, #09-03/04,
Singapore, 339509.

 

Party
B (Purchaser): MGT Capital Investments, Inc., with its principal place of business at 512 S. Mangum Street –
Suite 408, Durham, NC 27701, USA

 

	1.	Products
	 	 
	1.1	The
    information (including but not limited to the quantity, total rated hashrate, estimated unit price (“Estimated Unit
    Price”), estimated price for one item (“Estimated Price (One Item)”), estimate total price for
    all the items (“Estimated Total Price (All the Items)”) of Products purchased by Party B from Party A is
    as follows (“Products”):

 

	No.	 	Product
    Name	 	Model	 	Rated
    Hashrate (TH/s)	 	 	Rated
    Power Consumption (W)	 	 	Estimated
    Unit Price 

    (USD)	 	 	Quantity	 	 	Estimated
    Price 

(One Item)	 
	1	 	Antminer	 	S17	 	 	        53	 	 	 	2,385±7	% 	 	 	2,517.00	 	 	 	1,100	 	 	 	     	 
	Total
    Rated Hashrate (TH/s)	 	 	58,300	 
	Estimated
    Total Price 

    (All the Items)	 	 	USD
    $2,768,700.00	 

 

	1.2	Where
    the actual Products provided by Party A are not in accordance with the description listed in Article 1.1, in the event that
    the total hashrate of the Products delivered to Party B is not less than the total rated hashrate provided in Article 1.1,
    the number of the Products can be adjusted based on the actual type of the Products before delivery.
	 	 
	1.3	Before
    the Products are delivered, both Parties shall confirm the actual delivered Products through signing an updated Sales and
    Purchase Agreement (hereinafter “Updated Agreement”, the Updated Agreement shall include a purchase order
    (“Purchase Oder”) with the information such as the types, quantity, unit price, total price, service fees,
    transportation mode and delivery address, etc. of the delivered Products). 

 

    	 	 	1

     

    

 

	2.	Price,
    Discount and Payment
	 	 
	2.1	Party
    A provides the corresponding discount (“Agreed Discount”) in accordance with the delivery period (“Delivery
    Period”) of the Products and the proportion of advance payment (“Advance Payment”) accounting
    for the Estimated Total Price (All the Items) of the Products. The formula for calculating the Agreed Discount is: 

 

 

among
them:

 

D
is the Agreed Discount percentage.

 

N
is the Delivery Period provided in this Agreement calculated by the number of days, i.e., Party A shall deliver the Products to
the carrier within the agreed period after Party B pays the Advance Payment. For example, if Party B pays the Advance Payment
on June 10, 2019, and the Delivery Period is 120 days, Party A shall deliver the Products to the carrier before October 8, 2019.
For the avoidance of doubt, in the event that the actual delivery period is inconsistent with the Delivery Period provided in
this Agreement, the Agreed Discount shall still be the discount listed in Article 2.2.

 

P
is the proportion of the Advance Payment paid by Party B accounting for the Estimated Total Price (All the Items) of the Products.

 

	2.2	The
                                         Delivery Period, Advance Payment, proportion of the Advance Payment accounting for the
                                         Estimated Total Price (All the Items), Agreed Discount and other information are as follows:

 

Delivery
Period: 120 days

Advance
Payment: USD $ 1,384,350.00

Proportion
of the Advance Payment accounting for the Estimated Total Price (All the Items): 50%

Agreed
Discount percentage: 4.5%

 

	2.3	Both
                                         Parties agree and confirm that the Estimated Unit Price of the Products provided in Article
                                         1.1 is not the actual transaction unit price (the “Actual Transaction Unit Price”)
                                         of the Products, and the Actual Transaction Unit Price shall be calculated according
                                         to the actual market unit price, i.e., Actual Transaction Unit Price = actual market
                                         unit price × (100% - Agreed Discount percentage). The actual market unit price
                                         of the Products shall be decided by Party A according to the market conditions then.
                                         For the avoidance of doubt, as for the Products explicitly listed in Article 1.1 of this
                                         Agreement, Party A undertakes that the Actual Transaction Unit Price shall not exceed
                                         the Estimated Unit Price as stipulated in Article 1.1.

 

    	 	 	2

     

    

 

	2.4	In
                                         the case that the Actual Transaction Unit Price is lower than the Estimated Unit Price
                                         of the Products, Party B may choose to increase the quantity of the Products. In this
                                         scenario, the total purchase price of the Products (after increasing the product quantity)
                                         shall not exceed the Estimated Price (One Item) under Article 1.1. Alternatively, Party
                                         B may choose to keep the quantity of the Products unchanged. In this scenario, Party
                                         A shall return the remaining Advance Payment to Party B within [10] working days after
                                         Parties sign the Updated Agreement.
	 	 
	2.5	Both
                                         Parties confirm that if the Advance Payment is less than the total purchase price of
                                         the Products calculated based on the Actual Transaction Unit Price, Party B shall pay
                                         Party A the remaining amount for the Products according to the Purchase Order(s) concluded
                                         by both Parties. The remaining amount shall be:

 

∑Actual
Transaction Unit Price ×quantity of the Products – Advance Payment. In the event that Party B shall pay the remaining
amount for the Products but it fails to make the payment within [5] working days before the delivery date, Party A shall still
deliver the Products according to the delivery date stipulated in this Agreement. The quantity shall be calculated based on payment
already paid by Party B and the Actual Transaction Unit Price.

 

	2.6	Party
                                         A’s bank account information is as follows:

 

Bank:

Account
Name:

Account
No.:

 

	2.7	The
                                         currency under this agreement is USD.
	 	 
	3.	Delivery
                                         
	 	 
	3.1	Party
                                         A shall deliver the Products within the Delivery Period as provided in this Agreement.
                                         In the event that Party A fails to deliver the Products within the Delivery Period and
                                         delivers the Products within 30 days after Delivery Period, Party B shall continue to
                                         perform this Agreement, and Party A shall provide Party B with an additional discount
                                         (“Additional Discount”) for the delayed delivery. The Additional Discount
                                         shall be calculated as the formula below:

 

De=Nd×0.1%×P

 

among
them:

 

De
is the Additional Discount;

Nd
is the number of delayed delivery days;

P
is the proportion of the Advance Payment paid by Party B accounting for the Estimated Total Price (All the Items) of the Products;

In
this circumstance, the Actual Transaction Unit Price provided in Article 2.3 of this Agreement shall be calculated as the formula
below: Actual Transaction Unit Price = actual market unit price × (100%- Agreed Discount - Additional Discount).

 

    	 	 	3

     

    

 

	3.2	In
                                         the event that Party A has not delivered the Products within 30 days after the Delivery
                                         Period, either Party is entitled to terminate this Agreement by issuing the other Party
                                         a written notice before Party A delivers the Products. Within 10 working days after this
                                         Agreement is terminated, Party A shall return the Advance Payment, and pay the liquidated
                                         damages to Party B. The amount of liquidated amount shall be: Advance Payment ×
                                         0.03333% × the number of days from the date when Party B makes its Advance Payment
                                         (excluding the current day) to the date when Party A returns the Advance Payment (including
                                         the current day).

 

In
the event that both Parties have not received written notice from the other Party requesting termination of this Agreement before
delivery of the Products, this Agreement shall continue to be performed. In this scenario, without prejudice to Article 3.1, the
additional discount provided by Party A to Party B shall be: De = 3% × P

 

among
them:

 

De
is the additional discount;

P
is the proportion of the Advance Payment paid by Party B accounting for the Estimated Total Price (All the Items) of the Products.

In
this case, the Actual Transaction Unit Price stipulated in Article 2.3 of this Agreement shall be calculated as follows:

Actual
Transaction Unit Price = actual market unit price × (100% - Agreed Discount - 3% ×P).

 

	4.	Purchase
                                         Cancellation
	 	 
	4.1	Before
                                         the Parties sign the Updated Agreement, Party B may, at any time, send a written notice
                                         to Party A (the “Cancellation Notice”) to cancel the purchase of some
                                         or all of the Products. After Party A receives the Cancellation Notice, the remaining
                                         Advance Payment shall be dealt with in accordance with Article 4.2 of this Agreement.
	 	 
	4.2	The
                                         Parties agree that, except as otherwise agreed in this Agreement, the remaining Advance
                                         Payment shall be dealt with as follows:

 

		(1)	Party
                                         B may use part or all of the remaining Advance Payment to purchase any of Party A’s
                                         products which are not provided in this Agreement.
	 	 	 
		(2)	In
                                         case that within three working days after Party A receives the Cancellation Notice, Party
                                         A and Party B separately sign Updated Agreement and/or Purchase Order, providing that
                                         Party B shall order or purchase the newly issued products of Party A after the effective
                                         date of this Agreement, whose algorithm is the same as the Products listed in Article
                                         1.1, Party B may still enjoy the discount agreed under this Agreement (including the
                                         Agreed Discount, and the Additional Discount on the condition that the requirements under
                                         Article 3 are met). In addition to the above, no matter what products of Party A are
                                         purchased by Party B using the remaining amount of the Advance Payment, Party B shall
                                         not enjoy any Agreed Discount and/or Additional Discount under this Agreement. For the
                                         avoidance of doubt, unless otherwise provided in Article 4.2 (2), once Party A receives
                                         the Cancellation Notice, Party B will no longer enjoy any discount (including the Agreed
                                         Discount and/or Additional Discount) even if it purchases the Products under this Agreement
                                         again.

 

    	 	 	4

     

    

 

		(3)	If
                                         there are remaining Advance Payment upon expiration of this Agreement, Party A shall
                                         refund the remaining Advance Payment to Party B within [10] working days. In this circumstance,
                                         Party A shall not be subject to any liquidated damages and/or interests.

 

	5.	Force
                                         Majeure 
	 	 
	5.1	To
                                         the extent that a Party is fully or partially delayed, prevented or hindered by an event
                                         of Force Majeure from performing any obligation under this Agreement (other than an obligation
                                         to make payment), subject to the exercise of reasonable diligence by the affected Party,
                                         the failure to perform shall be excused by the occurrence of such event of Force Majeure.
                                         A Party claiming that its performance is excused by an event of Force Majeure shall,
                                         promptly after the occurrence of such event of Force Majeure, notify the other Party
                                         of the nature, date of inception and expected duration of such event of Force Majeure
                                         and the extent to which the Party expects that the event will delay, prevent or hinder
                                         the Party from performing its obligations under this Agreement. The notifying Party shall
                                         thereafter use its best effort to eliminate such event of Force Majeure and mitigate
                                         its effects.
	 	 
	5.2	The
                                         affected Party shall use reasonable diligence to remove the event of Force Majeure, and
                                         shall keep the other Party informed of all significant developments.
	 	 
	6.	Representations
                                         and Warranties

 

The
Party B makes the following representations and warranties to Party A:

 

	6.2	It
                                         has the full power and authority to own its assets and carry on its businesses.
	 	 
	6.3	The
                                         obligations expressed to be assumed by it under this Agreement are legal, valid, binding
                                         and enforceable obligations.
	 	 
	6.4	It
                                         has the power to enter into, perform and deliver, and has taken all necessary action
                                         to authorize its entry into, performance and delivery of, this Agreement and the transactions
                                         contemplated by this Agreement.
	 	 
	6.5	The
                                         entry into and performance by it of, and the transactions contemplated by, this Agreement
                                         do not and will not conflict with:

 

	(1)	any
                                         Applicable Law;
	(2)	its
                                         constitutional documents; or
	(3)	any
                                         agreement or instrument binding upon it or any of its assets.

 

    	 	 	5

     

    

 

	6.6	All
                                         authorizations required or desirable:

 

	(1)	to
                                         enable it lawfully to enter into, exercise its rights under and comply with its obligations
                                         under this Agreement;
	(2)	to
                                         ensure that those obligations are legal, valid, binding and enforceable; and
	(3)	to
                                         make this Agreement admissible in evidence in its jurisdiction of incorporation,

 

have
been or will have been by the time, obtained or effected and are, or will be by the appropriate time, in full force and effect.

 

	6.7	It
                                         is not aware of any circumstances which are likely to lead to:

 

	(1)	any
                                         authorization obtained or effected not remaining in full force and effect;
	(2)	any
                                         authorization not being obtained, renewed or effected when required or desirable; or
	(3)	any
                                         authorization being subject to a condition or requirement which it does not reasonably
                                         expect to satisfy or the compliance with which has or could reasonably be expected to
                                         have a material adverse effect.

 

	6.8	(a)
                                         It is not the target of economic sanctions administered by the Office of Foreign Assets
                                         Control of the U.S. Department of the Treasury, the U.S. Department of State, the United
                                         Nations Security Council, the European Union, Her Majesty’s Treasury or Singapore
                                         (“Sanctions”), including by being listed on the Specially Designated Nationals
                                         and Blocked Persons (SDN) List maintained by OFAC or any other Sanctions list maintained
                                         by one of the foregoing governmental authorities, directly or indirectly owned or controlled
                                         by one or more SDNs or other Persons included on any other Sanctions list, or located,
                                         organized or resident in a country or territory that is the target of Sanctions, and
                                         (b) the purchase of the Product(s) will not violate any Sanctions or import and export
                                         control related laws and regulations.
	 	 
	6.9	All
                                         information supplied by the Party B is and shall be true and correct, and the information
                                         does not contain and will not contain any statement that is false or misleading.
	 	 
	7.	Miscellaneous
                                         
	 	 
	7.1	Effective
                                         Date and Validity Period

 

		(1)	The
                                         effective date of this Agreement shall be the date when Party A has received the full
                                         Advance Payment paid by Party B. Both Parties agree and confirm that Party B shall pay
                                         Party A all the Advance Payment within [7] days after this Agreement is duly signed.
                                         Failing that, this Agreement shall not take effect.
		(2)	The
                                         validity period of this Agreement is calculated as follows: Delivery Period provided
                                         in Article 2.2 + 240 days. For example, if the Delivery Period provided in this Agreement
                                         is 120 days, then the validity period of this Agreement is 360 days.

 

    	 	 	6

     

    

 

		(3)	Nevertheless,
                                         this Agreement shall be automatically terminated when no Advance Payment left during
                                         the validity period of this Agreement.

 

	7.2	Parties
                                         agree that, except as otherwise agreed in this Agreement, neither Party may terminate
                                         this Agreement in advance. Before the termination of this Agreement, Party B shall not
                                         request Party A to return any payment paid by Party B.
	 	 
	7.3	The
                                         Party B acknowledges and agrees that the Product(s) in this Agreement are subject to
                                         the export control laws and regulations of all related countries, including but not limited
                                         to the Export Administration Regulations (“EAR”) of the United States. Without
                                         limiting the foregoing, the Party B shall not, without receiving the proper licenses
                                         or license exceptions from all related governmental authorities, including but not limited
                                         to the U.S. Bureau of Industry and Security, distribute, re-distribute, export, re-export,
                                         or transfer any Product(s) subject to this Agreement either directly or indirectly, to
                                         any national of any country identified in Country Groups D:1 or E:1 as defined in the
                                         EARs. In addition, the Product(s) under this Agreement may not be exported, re-exported,
                                         or transferred to (a) any person or entity listed on the “Entity List”, “Denied
                                         Persons List” or the SDN List as such lists are maintained by the U.S. Government,
                                         or (b) an end-user engaged in activities related to weapons of mass destruction. Such
                                         activities include but are not necessarily limited to activities related to: (1) the
                                         design, development, production, or use of nuclear materials, nuclear facilities, or
                                         nuclear weapons; (2) the design, development, production, or use of missiles or support
                                         of missiles projects; and (3) the design, development, production, or use of chemical
                                         or biological weapons. The Party B further agrees that it will not do any of the foregoing
                                         in violation of any restriction, law, or regulation of the European Union or an individual
                                         EU member state that imposes on an exporter a burden equivalent to or greater than that
                                         imposed by the U.S. Bureau of Industry and Security.
	 	 
	7.4	All
                                         information concerning this Agreement and matters pertaining to or derived from the provision
                                         of Products pursuant to this Agreement between the Parties, whether in oral or written
                                         form, or in the form of drawings, computer programs or other, as well as all data derived
                                         therefrom (“Confidential Information”), shall be deemed to be confidential
                                         and, as such, may not be divulged to any unauthorized person. Party B undertakes and
                                         agrees to take all reasonable and practicable steps to ensure and protect the confidentiality
                                         of the Confidential Information which cannot be passed, sold, traded, published or disclosed
                                         to any unauthorized person. This Article 7.4 shall be effective when this Agreement is
                                         duly signed and survive after termination of this Agreement.

 

    	 	 	7

     

    

 

	7.5	This
                                         Agreement shall be solely governed by and construed in accordance with the laws of Singapore.
                                         Any dispute, controversy, difference or claim arising out of or relating to this Agreement,
                                         including the existence, validity, interpretation, performance, breach or termination
                                         hereof or any dispute regarding non-contractual obligations arising out of or relating
                                         to this Agreement shall be referred to and finally resolved by arbitration administered
                                         by the Singapore International Arbitration Centre (SIAC) under the SIAC Administered
                                         Arbitration Rules in force when the notice of arbitration is submitted. The law of this
                                         arbitration clause shall be Singapore law. The seat of arbitration shall be Singapore.
                                         The arbitration proceedings shall be conducted in English. The number of arbitrators
                                         shall be three unless otherwise subsequently agreed in writing by the Parties.
	 	 
	7.6	This
                                         Agreement may be executed in one or more counterparts, each of which will be deemed to
                                         be an original copy of this Agreement, and all of which, when taken together, will be
                                         deemed to constitute one and the same agreement. The facsimile, email or other electronically
                                         delivered signatures of the Parties shall be deemed to constitute original signatures,
                                         and facsimile or electronic copies hereof shall be deemed to constitute duplicate originals.

 

(The
rest part of the page is intentionally left in blank)

 

    	 	 	8

     

    

 

(below
is the Signature page of this Purchase Agreement)

 

	Signed
    for and on behalf of Party A	 	 
	 	Bitmaintech
    Pte. Ltd. 
	 	 	 
	 	Signature	/s/
	 	Title	 
	 	 	 
	Signed
    for and on behalf of the Party B	 	 
	 	 	 
	 	MGT
    CAPITAL INVESTMENTS, INC.
	 	 	 
	 	Signature:	/s/
    Robert Ladd
	 	Title:	President
    and CEO

 

    	 	 	9DESCRIPTION
OF COMMON STOCK

 

This
document describes the general terms of our Common Stock. Our Common Stock and the rights of the holders of our Common Stock are
subject to the applicable provisions of the Delaware General Corporation Law, which we refer to as “Delaware Law,”
our certificate of incorporation, our bylaws, the rights of the holders of our preferred stock, if any, as well as some of the
terms of any outstanding indebtedness that we may incur.

 

As
of July 17, 2019, under our certificate of incorporation, we had the authority to issue 200,000,000 shares of Common Stock,
par value $0.001 per share, of which 45,269,908 shares of our Common Stock were outstanding as of that date. Additionally,
we had the authority to issues 10,000,000 shares of preferred stock, par value $0.001 per share and no shares had been issued
to date.

 

The
following description of our Common Stock may not be complete and is subject to, and qualified in its entirety by reference to
Delaware law and the actual terms and provisions contained in our certificate of incorporation and our bylaws, each as amended
from time to time.

 

Voting
Rights

 

Each
outstanding share of our Common Stock is entitled to one vote per share of record on all matters submitted to a vote of stockholders
and to vote together as a single class for the election of directors and in respect of other corporate matters. At a meeting of
stockholders at which a quorum is present, for all matters other than the election of directors, a majority of the votes cast
decides all questions, unless the matter is one upon which a different vote is required by express provision of law or our amended
and restated articles of incorporation or our bylaws. Directors will be elected by a plurality of the votes of the shares present
at a meeting. Holders of shares of Common Stock do not have cumulative voting rights with respect to the election of directors
or any other matter.

 

Dividends

 

Holders
of our Common Stock are entitled to receive dividends or other distributions when, as, and if declared by our board of directors.
The right of our board of directors to declare dividends, however, is subject to any rights of the holders of other classes of
our capital stock, any indebtedness outstanding from time to time, and the availability of sufficient funds under Delaware law
to pay dividends.

 

Preemptive
Rights

 

The
holders of our Common Stock generally do not have preemptive rights to purchase or subscribe for any of our capital stock or other
Common Stock.

 

Redemption

 

The
shares of our Common Stock are not subject to redemption by operation of a sinking fund or otherwise.

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