UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For
the month of December 2024
Commission
File No. 001-33176
Baijiayun
Group Ltd
(Exact
name of registrant as specified in its charter)
24F,
A1 South Building, No. 32 Fengzhan Road
Yuhuatai
District, Nanjing
People’s
Republic of China
(Address
of principal executive offices)
Indicate by check
mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F ☐
EXHIBIT
INDEX
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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Baijiayun
Group Ltd |
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|
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By: |
/s/
Fangfei Liu |
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Name: |
Fangfei Liu |
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Title: |
Chief Financial Officer |
Dated:
December 6, 2024
2
Exhibit 4.1
NEITHER THIS NOTE NOR THE SECURITIES INTO
WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE.
THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
BAIJIAYUN
GROUP LTD
Convertible
Promissory Note
| Original Principal Amount: $3,000,000 |
Issuance Date: December 6, 2024
Number: RTC-1
FOR VALUE RECEIVED, BAIJIAYUN
GROUP LTD, an exempted company incorporated under the laws of the Cayman Islands (the “Company”), hereby promises to
pay to the order of YA II PN, LTD., or its registered assigns (the “Holder”), the amount set out above as the Original
Principal Amount (or such lesser amount as reduced pursuant to the terms hereof pursuant to repayment, redemption, conversion or otherwise,
the “Principal”) and the Payment Premium or the Redemption Premium, as applicable, in each case when due, and to pay
interest (“Interest”) on any outstanding Principal at the applicable Interest Rate (as defined below) from the date
set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity
Date or acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof). Certain capitalized terms
used herein are defined in Section (13). The Issuance Date is the date of the first issuance of this Convertible Promissory Note (as amended,
amended and restated, extended, supplemented or otherwise modified in writing from time to time, this “Note”) regardless
of the number of transfers and regardless of the number of instruments, which may be issued to evidence such Note. This Note was issued
with a 10% original issue discount. The Company and the Holder are referred to herein at times, collectively, as the “Parties,”
and each, a “Party.”
This Note is being issued pursuant
to Section 2.01 of the Standby Equity Purchase Agreement, dated December 6, 2024 (as may be amended, amended and restated, extended, supplemented
or otherwise modified in writing from time to time, the “SEPA”), by and between the Company and YA II PN, Ltd., as
the Investor. This Note may be repaid in accordance with the terms of the SEPA, including, without limitation,
pursuant to Investor Notices and corresponding Advance Notices deemed given by the Company in connection with such Investor Notices. The
Holder also has the option of converting on one or more occasions all or part of the then outstanding balance under this Note by delivering
to the Company one or more Conversion Notices in accordance with Section 3 of this Note.
(1)
GENERAL TERMS
(a)
Maturity Date. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding
Principal, accrued and unpaid Interest, and any other amounts outstanding pursuant to the terms of this Note. The “Maturity Date”
shall be October 6, 2025, as may be extended at the option of the Holder. Other than as specifically permitted by this Note, the Company
may not prepay or redeem any portion of the outstanding Principal and accrued and unpaid Interest.
(b)
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof at an annual rate
equal to 0% (“Interest Rate”), which Interest Rate shall increase to an annual rate of 18% upon the occurrence of an
Event of Default (for so long as such event remains uncured). Interest shall be calculated based on a 365-day year and the actual number
of days elapsed, to the extent permitted by applicable law.
(c) Monthly Payments.
If, any time after the Issuance Date set forth above, and from time to time thereafter, an Amortization Event has occurred, then the
Company shall make monthly payments beginning on the 7th Trading Day after the Amortization Event Date and continuing on the same day
of each successive Calendar Month until the entire outstanding principal amount shall have been repaid. Each monthly payment shall be
in an amount equal to the sum of (i) $2,500,000 of Principal in the aggregate among this Note and all Other Notes (or the outstanding
Principal if less than such amount) (the “Amortization Principal Amount”), plus (ii) the Payment Premium (as defined
below) in respect of such Amortization Principal Amount, and (iii) accrued and unpaid interest hereunder as of each payment date. The
obligation of the Company to make monthly prepayments related to an Amortization Event shall cease (with respect to any payment that
has not yet come due) if at any time after the Amortization Event Date (A) in the event of a Floor Price Event, either (i) on the date
that is the 5th consecutive Trading Day that the daily VWAP is greater than 110% of the Floor Price then in effect, or (ii) the Company
provides the Holder with a reset notice (“Reset Notice”) setting forth a reduced Floor Price which shall be equal to no more
than 75% of the closing price on the Trading Day immediately prior to such Reset Notice (and in no event greater than the Floor Price
in effect prior to such Reset Notice), or (B) in the event of a Registration Event, the condition or event causing the Registration Event
has been cured, unless, in any of the foregoing cases, a subsequent Amortization Event occurs.
(d)
Optional Redemption. The Company at its option shall have the right, but not the obligation, to redeem (“Optional
Redemption”) early a portion or all amounts outstanding under this Note as described in this Section; provided, that
the Company provides the Holder with at least 10 Trading Days’ prior written notice (each, a “Redemption Notice”)
of its desire to exercise an Optional Redemption, which Redemption Notice (i) shall be delivered to the Holder after the close of regular
trading hours on a Trading Day, and (ii) may only be given if the VWAP of the Ordinary Shares was less than the Fixed Price on the date
such Redemption Notice is delivered, unless otherwise agreed by the Holder.
Each Redemption Notice shall be irrevocable and shall specify the outstanding balance of the Note to be redeemed and the Redemption Amount.
The “Redemption Amount” shall be an amount equal to (a) the outstanding Principal balance being redeemed by the Company
plus (b) the Redemption Premium in respect of such Principal amount plus (c) all accrued and unpaid interest, if any, on
such Principal amount. After receipt of a Redemption Notice, the Holder shall have ten (10) Trading Days (beginning with the Trading Day
immediately following the date such Redemption Notice is delivered to the Holder in accordance with the terms of Section 5) to convert
all or any portion of the outstanding Principal of this Note plus all accrued and unpaid Interest, if any, in respect of such Principal.
On the eleventh (11th) Trading Day following the delivery of the applicable Redemption Notice, the Company shall deliver to
the Holder the Redemption Amount with respect to the Principal amount redeemed to the extent not converted and otherwise after giving
effect to conversions or other payments made during such ten (10) Trading Day period.
(e)
Payment Dates. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day.
(f) Other than as specifically set forth in this Note, the Company shall not have the ability to make any early repayments without
the consent of or at the request of the Holder.
(2)
EVENTS OF DEFAULT.
(a)
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and
whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body) shall have occurred:
(i)
The Company’s failure to pay to the Holder any amount of Principal, Redemption Amount, Payment Premium, Redemption Premium, Interest,
or other amounts when and as due under this Note or any other Transaction Document;
(ii)
(A) The Company or any Subsidiary of the Company shall commence, or there shall be commenced against the Company or any Subsidiary
of the Company, any proceeding under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto,
or the Company or any Subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction, whether now or hereafter in effect, relating
to the Company or any Subsidiary of the Company, in any such bankruptcy, insolvency or other proceeding which remains undismissed for
a period of sixty one (61) days; (B) the Company or any Subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of
relief or other order approving any such case or proceeding is entered; (C) the Company or any Subsidiary of the Company suffers any appointment
of any custodian, private or court appointed receiver or the like for it or all or substantially all of its property which continues undischarged
or unstayed for a period of sixty one (61) days; (D) the Company or any Subsidiary of the Company makes a general assignment of all or
substantially all of its assets for the benefit of creditors; (E) the Company or any Subsidiary of the Company shall
fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (F) the Company
or any Subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts; (G) the Company or any Subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval
of or acquiescence in any of the foregoing; or (H) any corporate or other action is taken by the Company or any Subsidiary of the Company
for the purpose of effecting any of the foregoing;
(iii)
The Company or any Subsidiary of the Company shall default in any of its obligations under one or more notes, debentures, mortgages,
credit agreements or other facilities, indenture agreements, factoring agreements or other instruments under which there may be issued,
or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement of the Company or any Subsidiary of the Company in an amount exceeding $500,000 in the aggregate, whether such indebtedness
now exists or shall hereafter be created, and such default is not cured within the time prescribed by the documents governing such indebtedness
or, if no time is prescribed, within ten (10) Trading Days;
(iv)
A final judgment or judgments for the payment of money in excess of $500,000 in the aggregate are rendered against the Company
and/or any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged, settled
or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, any judgment
which is covered by insurance or an indemnity from a creditworthy party shall not be included in calculating the $500,000 amount set forth
above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement
shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company
or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance
of such judgment;
(v)
The Ordinary Shares shall cease to be quoted or listed for trading, as applicable, on any Principal Market for a period of ten
(10) consecutive Trading Days;
(vi)
The Company or any Subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section (13))
unless in connection with such Change of Control Transaction this Note is repaid in full in accordance with the terms hereof;
(vii)
The Company’s (A) failure to deliver the required number of Ordinary Shares to the Holder within one (1) Trading Day after
the applicable Share Delivery Date or (B) notice, written or oral, to any holder of this Note, including by way of public announcement,
at any time, of its intention not to comply with a request for conversion of all or a portion of this Note into Ordinary Shares that is
tendered in accordance with the provisions of this Note;
(viii)
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined below) when such
payment is due;
(ix)
The Company’s failure to timely file with the Commission any Periodic Report on or before the due date of such filing as
established by the Commission, it being understood, for the avoidance of doubt, that such due date includes any permitted filing deadline
extension under Rule 12b-25 under the Exchange Act;
(x)
Any representation or warranty made or deemed to be made by or on behalf of the Company in or in connection with any Transaction
Document, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such
representation or warranty already qualified by materiality, such representation or warranty shall prove to have been incorrect in any
respect) when made or deemed made;
(xi)
(A) Any material provision of any Transaction Document, at any time after its execution and delivery and for any reason other than
as expressly permitted hereunder or thereunder, ceases to be in full force and effect; (B) the Company or any other Person contests in
writing the validity or enforceability of any provision of any Transaction Document; or (C) the Company denies in writing that it has
any further liability or obligation under any Transaction Document, or purports in writing to revoke, terminate (other than in accordance
with the relevant termination provisions) or rescind any Transaction Document;
(xii) The
Company uses the proceeds of the issuance of this Note, whether directly or indirectly, and whether immediately, incidentally or ultimately,
to purchase or carry margin stock (within the meaning of Regulations T, U and X of the Federal Reserve Board, as in effect
from time to time and all official rulings and interpretations thereunder or thereof), or to extend credit to others for the purpose
of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose; or
(xiii) Any Event of Default (as defined in the Other Notes or in any Transaction Document other than this Note) occurs with respect to
any Other Notes, or any breach of any material term of any other debenture, note, or instrument held by the Holder in the Company or any
agreement (including any Transaction Document) between or among the Company and the Holder; or
(xiv)
The Company shall fail to observe or perform any material covenant, agreement or warranty contained in, or otherwise commit any
material breach or default of any provision of, this Note (except as may be otherwise covered by Sections (2)(a)(i) through (2)(a)(xiii)
hereof) or any other Transaction Document, which is not cured or remedied within the time prescribed or, if no time is prescribed, within
ten (10) Business Days.
(b)
During the time that any portion of this Note is outstanding, if any Event of Default
has occurred (other than an event with respect to the Company described in Section (2)(a)(ii)), the full unpaid Principal amount of this
Note, together with interest and other amounts owing in respect thereof to the date of acceleration, shall become, at the Holder's election,
given by notice pursuant to Section (5), immediately due and payable in cash; provided, that, in the case of any event with respect to
the Company described in Section (2)(a)(ii), the full unpaid Principal amount of this Note, together with accrued and unpaid interest
and other amounts owing in respect thereof to the date of acceleration, shall automatically become due and payable, in each case without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company. Furthermore, in addition to any
other remedies, the Holder shall have the right (but not the obligation) to convert, on one or more occasions, all or part of the Note
in accordance with Section (3) (and subject to the limitations set out in Section (3)(c)(i) and Section (3)(c)(ii)) at any time after
an Event of Default has occurred until all amounts outstanding under this Note have been repaid in full. The Holder need not provide and
the Company hereby waives any presentment, demand, protest or other notice of any kind (other than required notice of conversion), and
the Holder may immediately enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable
law. Such declaration may be rescinded and annulled by the Holder in writing at any time prior to payment hereunder. No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
(3)
CONVERSION OF NOTE. This Note shall be convertible into Ordinary Shares on the terms and conditions set forth in this
Section (3).
(a)
Conversion Right. Subject to the limitations of Section (3)(c), at any time or times on or after the Issuance Date, the
Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount into fully paid and nonassessable Ordinary
Shares in accordance with Section (3)(b) at the Conversion Price. The number of Ordinary Shares issuable upon conversion of any Conversion
Amount pursuant to this Section (3)(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price. The Company
shall not issue any fraction of an Ordinary Share upon any conversion. All calculations under this Section (3) shall be rounded to the
nearest $0.0001. If the issuance would result in the issuance of a fraction of an Ordinary Share, the Company shall round such fraction
of an Ordinary Share to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable
with respect to the issuance and delivery of Ordinary Shares upon conversion of any Conversion Amount.
(b)
Mechanics of Conversion.
(i)
Optional Conversion. To convert any Conversion Amount into Ordinary Shares on any date (a “Conversion Date”),
the Holder shall (A) transmit by email (or otherwise deliver) for receipt on or prior to 9:00 a.m. New York Time on such date a copy of
an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company
and (B) if required by Section (3)(b)(iii), surrender this Note to a nationally recognized overnight delivery service for delivery to
the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Note in the case of its loss,
theft or destruction). On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice (or such
earlier date as required pursuant to the Exchange Act or other applicable law, rule or regulation for the settlement of a trade initiated
on the applicable Conversion Date of such Ordinary Shares issuable pursuant to such Conversion Notice) (the “Share Delivery Date”),
the Company shall (X) if legends are not required to be placed on certificates or the book-entry position of the Ordinary Shares and provided
that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer
Program, instruct such transfer agent to credit such aggregate number of Ordinary Shares to which the Holder shall be entitled to the
Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program,
issue and deliver, to the address as specified in the Conversion Notice, a certificate or book-entry position, registered in the name
of the Holder or its designee, for the number of Ordinary Shares to which the Holder shall be entitled, which certificates shall not bear
any restrictive legends unless required pursuant to rules and regulations of the Commission. If this Note is physically surrendered for
conversion and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted,
then the Company shall, as soon as practicable and in no event later than three (3) Business Days after receipt of this Note, issue and
deliver at its own cost to the holder a new Note representing the outstanding Principal not converted. The Person or Persons entitled
to receive the Ordinary Shares issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders
of such Ordinary Shares upon the transmission of a Conversion Notice.
(ii)
Company’s Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, on or prior to the applicable
Share Delivery Date to issue and deliver a certificate to the Holder or credit the Holder’s balance account with DTC for the number of
Ordinary Shares to which the Holder is entitled upon such Holder’s conversion of any Conversion Amount (a “Conversion Failure”),
and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction
of a sale by the Holder of Ordinary Shares issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out of pocket expenses,
if any) for the Ordinary Shares so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver
such certificate (and to issue such Ordinary Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such Ordinary Shares to which the Holder is entitled with respect to such Conversion Notice and
pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Ordinary Shares
multiplied by (B) the Closing Price on the Conversion Date.
(iii) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion
Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which notice
may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company
shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.
(c)
Limitations on Conversions, Beneficial Ownership. The Holder shall not have the right to convert any portion of this Note
to the extent that after giving effect to such conversion, the Holder, together with any affiliate thereof, would beneficially own (as
determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 4.99% of the number
of Ordinary Shares outstanding immediately after giving effect to such conversion. Since the Holder will not be obligated to report to
the Company the number of Ordinary Shares it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of Ordinary Shares
in excess of 4.99% of the then outstanding Ordinary Shares without regard to any other shares which may be beneficially owned by the Holder
or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section
will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section
applies, the determination of which portion of the Principal amount of this Note is convertible shall be the responsibility and obligation
of the Holder. If the Holder has delivered a Conversion Notice for a Principal amount of this Note that, without regard to any other shares
that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the
Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal amount permitted to be converted
on such Conversion Date in accordance with Section (3)(a) and, any Principal amount tendered for conversion in excess of the permitted
amount hereunder shall remain outstanding under this Note. The provisions of this Section may be waived by a Holder (but only as to itself
and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.
(d)
Other Provisions.
(i)
All calculations under this Section (3) shall be rounded to the nearest $0.0001 or whole share.
(ii)
So long as this Note or any Other Notes remain outstanding, the Company shall have reserved from its duly authorized share capital,
and shall have instructed the Transfer Agent to irrevocably reserve, the maximum number of Ordinary Shares issuable upon conversion of
this Note and the Other Notes (assuming for purposes hereof that (x) this Note and such Other Notes are convertible at the Floor Price
as of the date of determination, and (y) any such conversion shall not take into account any limitations on the conversion of the Note
or Other Notes set forth herein or therein (the “Required Reserve Amount”)), provided that at no time shall the number
of Ordinary Shares reserved pursuant to this Section (3)(d)(ii) be reduced other than pursuant to the conversion of this Note and the
Other Notes in accordance with their respective terms or reverse stock split. If at any time while this Note or any Other Notes remain
outstanding, the Company does not have a sufficient number of authorized and unreserved Ordinary Shares to satisfy the obligation to reserve
for the issuance the Required Reserve Amount, the Company will promptly take all corporate action necessary to propose to a meeting of
its shareholders an increase of its authorized share capital necessary to meet the Company’s obligations pursuant to this Debenture, recommending
that shareholders vote in favor of such an increase. The Company covenants that, upon issuance pursuant to conversion of this Note in
accordance with its terms, the Ordinary Shares, when issued, will be validly issued, fully paid and nonassessable.
(iii) Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section (2) herein
for the Company’s failure to deliver certificates representing Ordinary Shares upon conversion within the period specified herein
and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree
of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security. The exercise
of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
law.
(iv)
Legal Opinions. The Company is obligated to cause its legal counsel to deliver legal opinions to the Company’s transfer
agent in connection with any legend removal upon the expiration of any holding period or other requirement for which the Underlying Shares
may bear legends restricting the transfer thereof. To the extent that a legal opinion is not provided (either timely or at all), then,
in addition to being an Event of Default hereunder, the Company agrees to reimburse the Holder for all reasonable costs incurred by the
Holder in connection with any legal opinions paid for by the Holder in connection with the sale or transfer of the Underlying Ordinary
Shares. The Holder shall notify the Company of any such costs and expenses it incurs that are referred to in this section from time to
time and all amounts owed hereunder shall be promptly paid by the Company.
(e)
Adjustment of Conversion Price upon Subdivision or Combination of Ordinary Shares. If the Company, at any time while this
Note is outstanding, shall (i) pay a stock dividend or otherwise make a distribution or distributions on its Ordinary Shares or any
other equity or equity equivalent securities payable in Ordinary Shares, (ii) subdivide outstanding Ordinary Shares into a larger number
of shares, (iii) combine (including by way of reverse stock split) outstanding Ordinary Shares into a smaller number of shares, or (iv)
issue by reclassification of Ordinary Shares any shares of capital stock of the Company, then each of the Fixed Price and the Floor Price
shall be multiplied by a fraction of which the numerator shall be the number of Ordinary Shares (excluding treasury shares, if any) outstanding
before such event and of which the denominator shall be the number of Ordinary Shares outstanding after such event. Any adjustment made
pursuant to this Section shall become effective, in the case of a dividend distribution, immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution or, in the case of a subdivision, combination or re-classification,
immediately after the effective date of such subdivision, combination or re-classification.
(f) Adjustment of Conversion Price upon Issuance of Ordinary Shares. If the Company, at any time while this Note is outstanding,
issues or sells any Ordinary Shares or Convertible Securities (other than shares issued or sold by the Company in connection with any
Excluded Securities), for a consideration per share (the “New Issuance Price”) less than a price equal to the Fixed
Price in effect immediately prior to such issue or sale (such price the “Applicable Price”) (the foregoing, a “Dilutive
Issuance”), then immediately after such Dilutive Issuance the Fixed Price then in effect shall be reduced to an amount equal
to the New Issuance Price. For the purposes hereof, if the Company in any manner issues or sells any Convertible Securities (other than
shares issued or sold by the Company in connection with any Excluded Securities) and the lowest price per share for which one Ordinary
Share is issuable upon such conversion or exchange or exercise thereof is less than the Applicable Price, then such Ordinary Share shall
be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities
for such price per share. No further adjustment of the Conversion Price shall be made upon the actual issuance of such Ordinary Share
upon conversion or exchange or exercise of such Convertible Securities.
(g) Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of Ordinary Shares are entitled to receive securities or other assets with respect
to or in exchange for Ordinary Shares (a “Corporate Event”), the Company shall make appropriate provision to
ensure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option, (i)
in addition to the Ordinary Shares receivable upon such conversion, such securities or other assets to which the Holder would have
been entitled with respect to such Ordinary Shares had such Ordinary Shares been held by the Holder upon the consummation of such
Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Note) or (ii) in lieu of
the Ordinary Shares otherwise receivable upon such conversion, such securities or other assets received by the holders of Ordinary
Shares in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive
had this Note initially been issued with conversion rights for the form of such consideration (as opposed to Ordinary Shares) at a
conversion rate for such consideration commensurate with the Conversion Price. Provision made pursuant to the preceding sentence
shall be in a form and substance satisfactory to the Required Holders. The provisions of this Section 3(g) shall apply similarly and
equally to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of
this Note.
(h)
Whenever the Conversion Price is adjusted pursuant to this Section (3), the Company shall promptly provide the Holder with a written
notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
(i) In case of any (1) merger
or consolidation of the Company or any Subsidiary of the Company with or into another Person, or (2) sale by the Company or any Subsidiary
of the Company of more than one-half of the assets of the Company in one or a series of related transactions, a Holder shall have the
right to (A) exercise any rights under Section (3)(b), (B) convert the aggregate amount of this Note then outstanding into the shares
of stock and other securities, cash and property receivable upon or deemed to be held by holders of Ordinary Shares following such merger,
consolidation or sale, and such Holder shall be entitled upon such event or series of related events to receive such amount of securities,
cash and property as the Ordinary Shares into which such aggregate Principal amount of this Note could have been converted immediately
prior to such merger, consolidation or sales would have been entitled, or (C) in the case of a merger or consolidation, require the surviving
entity to issue to the Holder a convertible Note with a Principal amount equal to the aggregate Principal amount of this Note then held
by such Holder, plus all accrued and unpaid interest and other amounts owing thereon, which such newly issued convertible Note shall
have terms identical (including with respect to conversion) to the terms of this Note, and shall be entitled to all of the rights and
privileges of the Holder of this Note set forth herein and the agreements pursuant to which this Note was issued. In the case of clause
(C), the conversion price applicable for the newly issued shares of convertible preferred stock or convertible debentures shall be based
upon the amount of securities, cash and property that each Ordinary Share would receive in such transaction and the Conversion Price
in effect immediately prior to the effectiveness or closing date for such transaction. The terms of any such merger, sale or consolidation
shall include such terms so as to continue to give the Holder the right to receive the securities, cash and property set forth in this
Section upon any conversion or redemption following such event. This provision shall similarly apply to successive such events.
(4)
REISSUANCE OF THIS NOTE.
(a)
Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section (4)(d)), registered in the name of
the registered transferee or assignee, representing the outstanding Principal being transferred by the Holder (along with any accrued
and unpaid interest thereof) and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section
(4)(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this
Note, acknowledge and agree that, by reason of the provisions of Section (3)(b)(iii) following conversion or redemption of any portion
of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.
(b)
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the
Holder to the Company in customary form and substance and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note (in accordance with Section (4)(d)) representing the outstanding Principal.
(c)
Note Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Note or Notes (in accordance with Section (4)(d)) representing in the aggregate the outstanding
Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder
at the time of such surrender.
(d) Issuance of New Notes.
Whenever the Company is required to issue a new Note pursuant to the terms hereof, such new Note (i) shall be of like tenor with this
Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note
being issued pursuant to Section (4)(a) or Section (4)(c), the Principal designated by the Holder which, when added to the Principal
represented by the other new Note(s) issued in connection with such issuance, does not exceed the Principal remaining outstanding under
this Note immediately prior to such issuance of such new Note), (iii) shall have an issuance date, as indicated on the face of such new
Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall
represent accrued and unpaid Interest from the Issuance Date.
(5) NOTICES.
Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing
by letter or electronic mail (“e-mail”) and will be deemed to have been delivered: upon the later of (A) either (i)
receipt, when delivered personally or (ii) one (1) Business Day after deposit with an overnight courier service with next day
delivery specified, as applicable and in each case, properly addressed to the party to receive the same and (B) receipt, when sent
by e-mail. The addresses and e-mail addresses for such communications shall be:
| If to the Company, to: |
|
Baijiayun Group Ltd
Tower 1, Zhongguancun Software Park Building 24
Haidian DistrictBeijing, 100190
The People’s Republic of China
Attn: Fangfei Liu
E-mail:liufangfei@baijiayun.com |
| |
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with a copy (which shall not constitute notice) to:
|
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Wilson Sonsini Goodrich & Rosati Professional
Corporation
Unit 2901, 29F, Tower C, Beijing Yintai Centre
No. 2 Jianguomenwai Avenue
Chaoyang District, Beijing 100022
People’s Republic of China
Attn: Dan Ouyang, Esq., K. Ronnie Li, Esq.
E-mail: douyang@wsgr.com, keli@wsgr.com |
|
|
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| If to the Holder: |
|
YA II PN, Ltd |
| |
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c/o Yorkville Advisors Global, LLC
1012 Springfield Avenue |
| |
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Mountainside, NJ 07092 |
| |
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Attention: Mark Angelo |
| |
|
Telephone: 201-985-8300 |
| |
|
Email: Legal@yorkvilleadvisors.com |
or at such other address and/or
e-mail address and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party in accordance with this Section at least three (3) Business 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) electronically generated by the sender’s
email service provider containing the time, date, recipient email address or (c) provided by a nationally recognized overnight delivery
service, shall be rebuttable evidence of personal service, receipt by e-mail or receipt from a nationally recognized overnight delivery
service in accordance with clause (A)(i), (A)(ii) or (B) above, respectively.
(6)
Except as expressly provided herein, no provision of this Note shall alter or impair the obligations of the Company, which are
absolute and unconditional, to pay the Principal of, and interest and other charges (if any) on, this Note at the time, place, and rate,
and in the currency, herein prescribed. This Note is a direct obligation of the Company. As long as this Note is outstanding, the Company
shall not and shall cause each of its Subsidiaries not to, without the consent of the Holder, (i) amend its certificate of incorporation,
bylaws or other charter documents so as to adversely affect any rights of the Holder; (ii) repay, repurchase or offer to repay, repurchase
or otherwise acquire Ordinary Shares or other equity securities of the Company; (iii) enter into any agreement with respect to any of
the foregoing, or (iv) enter into any agreement, arrangement or transaction in or of which the
terms thereof would restrict, materially delay, conflict with or impair the ability of the Company to perform its obligations under the
this Note, including, without limitation, the obligation of the Company to make cash payments hereunder.
(7)
This Note shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation, the
right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any
other proceedings of the Company, unless and to the extent converted into Ordinary Shares in accordance with the terms hereof.
(8)
CHOICE OF LAW; VENUE; WAIVER OF JURY TRIAL
(a)
Governing Law. This Note and the rights and obligations of the Parties hereunder shall, in all respects, be governed by,
and construed in accordance with, the laws (excluding the principles of conflict of laws) of the State of New York (the “Governing
Jurisdiction”) (including Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York), including
all matters of construction, validity and performance.
(b)
Jurisdiction; Venue; Service.
(i)
The Company hereby irrevocably consents to the non-exclusive personal jurisdiction of the state courts of the Governing Jurisdiction
and, if a basis for federal jurisdiction exists, the non-exclusive personal jurisdiction of any United States District Court for the Governing
Jurisdiction.
(ii)
The Company agrees that venue shall be proper in any court of the Governing Jurisdiction selected by the Holder or, if a basis
for federal jurisdiction exists, in any United States District Court in the Governing Jurisdiction selected by the Holder. The Company
waives any right to object to the maintenance of any suit, claim, action, litigation or proceeding of any kind or description, whether
in law or equity, whether in contract or in tort or otherwise, in any of the state or federal courts of the Governing Jurisdiction on
the basis of improper venue or inconvenience of forum.
(iii) Any
suit, claim, action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or tort or otherwise,
brought by the Company against the Holder arising out of or based upon this Note or any matter relating to this Note, or any other Transaction
Document, or any contemplated transaction, shall be brought in a court only in the Governing Jurisdiction. The Company shall not file
any counterclaim against the Holder in any suit, claim, action, litigation or proceeding brought by the Holder against the Company in
a jurisdiction outside of the Governing Jurisdiction unless under the rules of the court in which the Holder brought such suit, claim,
action, litigation or proceeding the counterclaim is mandatory, and not permissive, and would be considered waived unless filed as a
counterclaim in the suit, claim, action, litigation or proceeding instituted by the Holder against the Company. The Company agrees that
any forum outside the Governing Jurisdiction is an inconvenient forum and that any suit, claim, action, litigation or proceeding brought
by the Company against the Holder in any court outside the Governing Jurisdiction should be dismissed or transferred to a court located
in the Governing Jurisdiction. Furthermore, the Company irrevocably and unconditionally agrees that it will not bring or commence any
suit, claim, action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or
otherwise, against the Holder arising out of or based upon this Note or any matter relating to this Note, or any other Transaction Document,
or any contemplated transaction, in any forum other than the courts of the State of New York sitting in New York County, and the United
States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto
irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such suit, claim,
action, litigation or proceeding may be heard and determined in such New York State Court or, to the fullest extent permitted by applicable
law, in such federal court. The Company and the Holder agree that a final judgment in any such suit, claim, action, litigation 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.
(iv)
The Company and the Holder irrevocably consent to the service of process out of any of the aforementioned courts in any such suit,
claim, action, litigation or proceeding by the mailing of copies thereof by registered or certified mail postage prepaid, to it at the
address provided for notices in this Note, such service to become effective thirty (30) days after the date of mailing.
(v)
Nothing herein shall affect the right of the Holder to serve process in any other manner permitted by law or to commence legal
proceedings or to otherwise proceed against the Company or any other Person in the Governing Jurisdiction or in any other jurisdiction.
(c)
THE PARTIES MUTUALLY WAIVE ALL RIGHT TO TRIAL BY JURY OF ALL CLAIMS OF ANY KIND ARISING OUT OF OR BASED UPON THIS NOTE OR ANY MATTER
RELATING TO THIS NOTE, OR ANY OTHER TRANSACTION DOCUMENT, OR ANY CONTEMPLATED TRANSACTION. THE PARTIES ACKNOWLEDGE THAT THIS IS A WAIVER
OF A LEGAL RIGHT AND THAT THE PARTIES EACH MAKE THIS WAIVER VOLUNTARILY AND KNOWINGLY AFTER CONSULTATION WITH COUNSEL OF THEIR RESPECTIVE
CHOICE. THE PARTIES AGREE THAT ALL SUCH CLAIMS SHALL BE TRIED BEFORE A JUDGE OF A COURT HAVING JURISDICTION, WITHOUT A JURY.
(9)
If the Company fails to strictly comply with the terms of this Note, then the Company shall reimburse the Holder promptly for all
fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action in connection
with this Note, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the
rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which become due to the
Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation
or enforcement of any rights or remedies of the Holder.
(10)
Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other
breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon strict adherence
to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Note. Any waiver must be in writing.
(11)
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the
applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company
covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the Principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so)
hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder,
delay or imped the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such power as
though no such law has been enacted.
(12)
CERTAIN DEFINITIONS. For purposes of this Note, the following terms shall have the following meanings:
(a)
“Amortization Event” shall mean (i) the daily VWAP is less than the Floor Price then in effect for five Trading
Days during a period of seven consecutive Trading Days (a “Floor Price Event”), or (ii) any time after the Effectiveness
Deadline (as defined in the Registration Rights Agreement), the Investor is unable to utilize a Registration Statement to resell Underlying
Shares for a period of ten (10) consecutive Trading Days (a “Registration Event”) (the last day of each such occurrence,
an “Amortization Event Date”).
(b)
“Amortization Principal Amount” shall have the meaning set forth in Section (1)(c).
(c)
”Applicable Price” shall have the meaning set forth in Section (3)(f).
(a)
“Approved Stock Plan” means any employee benefit plan or share incentive plan which has been approved by the
Board of Directors of the Company, pursuant to which the Company’s securities may be issued to any employee, officer or director
for services provided to the Company.
(b)
“Bloomberg” means Bloomberg Financial Markets.
(c)
“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the
United States or a day on which banking institutions in the State of New York are authorized or required by law or other government action
to close.
(d)
“Buy-In” shall have the meaning set forth in Section (3)(b)(ii).
(e)
“Buy-In Price” shall have the meaning set forth in Section (3)(b)(ii).
(f)
“Calendar Month” means one of the twelve months of the year.
(g)
“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent (50%) of
the voting power of the Company (except that the acquisition of voting securities by the Holder or any other current holder of convertible
securities of the Company shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement at one time or
over time of more than one-half of the members of the board of directors of the Company (other than as due to the death or disability
of a member of the board of directors) which is not approved by a majority of those individuals who are members of the board of directors
on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board
of directors was approved by a majority of the members of the board of directors who are members on the date hereof), (c) the merger,
consolidation or sale of fifty percent (50%) or more of the assets of the Company or any Subsidiary of the Company in one or a series
of related transactions with or into another entity, or (d) the execution by the Company of an agreement to which the Company is a party
or by which it is bound providing for any of the events set forth above in (a), (b) or (c). No transfer to a wholly-owned Subsidiary shall
be deemed a Change of Control Transaction under this provision.
(h)
“Closing Price” means the price per share in the last reported trade of the Ordinary Shares on a Principal Market
or on the exchange which the Ordinary Shares are then listed as quoted by Bloomberg.
(i)
“Commission” means the Securities and Exchange Commission.
(j)
“Conversion Amount” means the portion of the Principal, Interest, or other amounts outstanding under this Note
to be converted, redeemed or otherwise with respect to which this determination is being made.
(k)
“Conversion Date” shall have the meaning set forth in Section (3)(b)(i).
(l)
“Conversion Failure” shall have the meaning set forth in Section (3)(b)(ii).
(m)
“Conversion Notice” shall have the meaning set forth in Section (3)(b)(i).
(n)
“Conversion Price” means, as of any Conversion Date or other date of determination the lower of (i) $10.84 (the
“Fixed Price”), or (ii) 90% of the lowest daily VWAP during the 10 consecutive Trading Days immediately preceding the
Conversion Date or other date of determination (the “Variable Price”), but which Variable Price shall not be lower
than the Floor Price then in effect and shall be in any event not lower than the par value of the Ordinary Share.
The Conversion Price shall be adjusted from time
to time pursuant to the other terms and conditions of this Note.
(o)
“Convertible Securities” means any stock or securities directly or indirectly convertible into or exercisable
or exchangeable for Ordinary Shares.
(p)
“Dilutive Issuance” shall have the meaning set forth in Section (3)(f).
(q)
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(r)
“Excluded Securities” means any Ordinary Shares issued or issuable or deemed to be issued by the Company: (i)
under any Approved Stock Plan, (ii) upon conversion of any securities issued pursuant to the SEPA (including Ordinary Shares issued in
connection with this Note and any of the Other Notes); (iii) upon conversion, exercise or exchange of any Warrants, Options or Convertible
Securities which are outstanding on the day immediately preceding the date of the SEPA; provided, that such issuance of Ordinary Shares
upon exercise of such Options or Convertible Securities is made pursuant to the terms of such Warrants, Options or Convertible Securities
in effect on such date and such Options or Convertible Securities are not amended, modified or changed on or after such date, (iv) upon
the exercise of any warrants issued or issuable to EF Hutton LLC in connection with the transactions contemplated under the SEPA, or (v)
upon a stock split, reverse stock split, distribution of bonus shares, combination or other recapitalization events.
(s) “Floor Price” solely with respect to the Variable Price, shall mean $1.85 per Ordinary Share. Notwithstanding
the foregoing, the Company may reduce the Floor Price to any amounts set forth in a written notice to the Holder; provided that such reduction
shall be irrevocable and shall not be subject to increase thereafter.
(t)
“Fundamental Transaction” means any of the following: (1) the Company effects any merger or consolidation
of the Company with or into another Person and the Company is the non-surviving company (other than a merger or consolidation with a wholly
owned Subsidiary of the Company for the purpose of redomiciling the Company), (2) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Ordinary Shares are permitted to tender or exchange their shares for other securities,
cash or property, or (4) the Company effects any reclassification of the Ordinary Shares or any compulsory share exchange pursuant to
which the Ordinary Shares is effectively converted into or exchanged for other securities, cash or property.
(u)
“New Issuance Price” shall have the meaning set forth in Section (3)(f).
(v)
“Ordinary Shares” means the Class A ordinary shares, par value $0.0001, of the Company and stock of any other
class into which such shares may hereafter be changed or reclassified.
(w)
“Other Notes” means any other notes issued pursuant to the SEPA and any other debentures, notes, or other instruments
issued in exchange, replacement, or modification of the foregoing.
(x)
“Payment Premium” means 10% of the Principal amount being paid.
(y)
“Periodic Reports” shall mean all of the Company’s reports required to be filed by the Company with the
Commission under applicable laws and regulations (including, without limitation, Regulation S-K), including annual reports (on Form 20-F)
and current reports (on Form 6-K), for so long as any amounts are outstanding under this Note or any Other Note; provided that
all such Periodic Reports shall include, when filed, all information, financial statements, audit reports (when applicable) and other
information required to be included in such Periodic Reports in compliance with all applicable laws and regulations.
(z)
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government
or political subdivision thereof or a governmental agency.
(aa)
“Principal Market” shall mean The Nasdaq Stock Market; provided however, that in the event the Ordinary Shares
are ever listed or traded on the New York Stock Exchange, or the NYSE American, then the “Principal Market” shall mean such
market or exchange on which the Ordinary Shares are then listed or traded to the extent such other market or exchange is the principal
trading market or exchange for the Ordinary Shares.
(bb)
“Redemption Premium” means 10% of the Principal amount being redeemed.
(cc)
“Registration Rights Agreement” means the registration rights agreement entered into between the Company and
the Holder on the date hereof.
(dd)
“Registration Statement” means a registration statement meeting the requirements set forth in the Registration
Rights Agreement, covering among other things the resale of the Underlying Shares and naming the Holder as a “selling stockholder”
thereunder.
(ee)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
(ff)
“Share Delivery Date” shall have the meaning set forth in Section (3)(b)(i).
(gg)
“Subsidiary” shall mean any Person in which the Company, directly or indirectly, (x) owns a majority of the
outstanding capital stock or holds a majority of the equity or similar interests of such Person or (y) controls or operates (by contract
or otherwise) all or substantially all of the business, operations or administration of such Person, and the foregoing are collectively
referred to herein as “Subsidiaries.”
(hh) “Trading
Day” means a day on which the Ordinary Shares are quoted or traded on a Principal Market on which the Ordinary Shares are
then quoted or listed; provided, that in the event that the Ordinary Shares are not listed or quoted on a Principal Market, then
Trading Day shall mean a Business Day.
(ii)
“Transaction Document” means this Note, the Other Notes, the SEPA, the Registration Rights Agreement and any
and all other documents, agreements, instruments or other items executed or delivered in connection with this Note or any of the foregoing.
(jj)
“Underlying Shares” means the Ordinary Shares issuable upon conversion of this Note or as payment of interest
in accordance with the terms hereof.
(kk)
“VWAP” means, for any Trading Day, the daily volume weighted average price of the Ordinary Shares for such Trading
Day on the Principal Market during regular trading hours as reported by Bloomberg L.P.
(ll)
“Warrants” means warrants to subscribe for 3,592,980 Ordinary Shares with an exercise price of $0.0001 that
are issued and outstanding on the day immediately preceding the date of the SEPA.
[Signature Page Follows]
IN WITNESS WHEREOF,
the Company has caused this Convertible Promissory Note to be duly executed by a duly authorized officer as of the date set forth above.
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COMPANY: |
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BAIJIAYUN GROUP LTD |
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By: |
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Name: |
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Title: |
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EXHIBIT I
CONVERSION NOTICE
(To be executed by the Holder in order to
Convert the Note)
TO: BAIJIAYUN GROUP LTD
Via Email:
The undersigned hereby irrevocably
elects to convert a portion of the outstanding and unpaid Conversion Amount of Note No. RTC-1 into Ordinary Shares of BAIJIAYUN
GROUP LTD, according to the conditions stated therein, as of the Conversion Date written below.
Conversion Date:
Principal
Amount to be Converted:
Accrued Interest to be
Converted:
Total Conversion Amount to be converted:
Fixed Price:
Variable Price:
Applicable Conversion Price:
Number of Ordinary Shares to be issued:
Please issue the Ordinary Shares in the following name and deliver them to the
following account: Issue to:
Broker DTC Participant Code:
Account
Number:
| Authorized
Signature: |
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| Name: |
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| Title: |
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Exhibit 10.1
STANDBY EQUITY PURCHASE AGREEMENT
THIS STANDBY EQUITY PURCHASE
AGREEMENT (this “Agreement”) dated as of December 6, 2024 is made by and between YA II PN, LTD., a Cayman
Islands exempt limited company (the “Investor”), and BAIJIAYUN GROUP LTD, an exempted company incorporated under
the laws of the Cayman Islands (the “Company”). The Investor and the Company may be referred to herein individually
as a “Party” and collectively as the “Parties.”
WHEREAS, the Parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall have the right to issue and sell to the
Investor, from time to time as provided herein, and the Investor shall purchase from the Company, up to $50 million in aggregate gross
purchase price of newly issued fully paid shares of the Company’s Class A Ordinary Shares, par value $0.0001 per share (the “Ordinary
Shares”);
WHEREAS, the Ordinary
Shares are listed for trading on The Nasdaq Stock Market under the symbol “RTC;”
WHEREAS, the offer
and sale of the Ordinary Shares issuable hereunder will be made in reliance upon Section 4(a)(2) under the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder (the “Securities Act”), or upon such other exemption
from the registration requirements of the Securities Act as may be available with respect to any or all of the transactions to be made
hereunder; and
WHEREAS, the Parties
are concurrently entering into a Registration Rights Agreement in the form attached as Exhibit A hereto (the “Registration
Rights Agreement”), pursuant to which the Company shall register the resale of the Registrable Securities (as defined in the
Registration Rights Agreement), upon the terms and subject to the conditions set forth therein.
NOW, THEREFORE,
the Parties agree as follows:
Article I. Certain Definitions
Capitalized terms used in this
Agreement shall have the meanings ascribed to such terms in Annex I hereto, and hereby made a part hereof, or as otherwise set
forth in this Agreement.
Article II. Pre-Paid Advances
Section 2.01
Pre-Paid Advances. Subject to the satisfaction of the conditions set forth in Annex II attached hereto, the Investor
shall advance to the Company the aggregate principal amount of $15,000,000 in the tranches set forth below, which shall be evidenced by
convertible promissory notes in the form attached hereto as Exhibit B (each, a “Promissory Note”). Subject to
the satisfaction of the conditions set forth in Annex II attached hereto, the first Pre-Paid Advance shall be in a principal amount
of $3,000,000 (the “First Pre-Paid Advance”) and advanced on the date of the execution of this Agreement (the “First
Pre-Advance Closing”), the second Pre-Paid Advance shall be in a principal amount of $3,000,000 (the “Second Pre-Paid
Advance”) and advanced on the second Trading Day after the initial Registration Statement is filed with the SEC (the “Second
Pre-Advance Closing”), the third Pre-Paid Advance shall be in a principal amount of $2,000,000 (the “Third Pre-Paid
Advance”) and advanced on the second Trading Day after the initial Registration Statement is declared effective by the SEC (the
“Third Pre-Advance Closing”), and the Fourth Pre-paid Advance shall be in a principal amount of $7,000,000 (the “Fourth
Pre-Paid Advance,” and each of the First Pre-Paid Advance, the Second Pre-Paid Advance, the Third Pre-Paid Advance and the Fourth
Pre-Paid Advance, a “Pre-Paid Advance”) and advanced upon the mutual consent of the Company and the Investor(the “Fourth
Pre-Advance Closing,” and each of the First Pre-Advance Closing, the Second Pre-Advance Closing, the Third Pre-Advance Closing
and the Fourth Pre-Advance Closing, individually referred to as a “Pre-Advance Closing” and collectively referred to
as the “Pre-Advance Closings”).
Section 2.02
Pre-Advance Closing. Each Pre-Advance Closing shall occur remotely by conference call and electronic delivery of documentation.
The First Pre-Advance Closing shall take place at 10:00 a.m., New York time, on the date of the execution of this Agreement, provided
that the conditions set forth on Annex II have been satisfied (or such other date as is mutually agreed to by the Company and the Investor).
The Second Pre-Advance Closing shall take place at 10:00 a.m., New York time, on the second Trading Day after the filing of the initial
Registration Statement, provided that the conditions set forth on Annex II have been satisfied (or such other date as is mutually agreed
to by the Company and the Investor). The Third Pre-Advance Closing shall take place at 10:00 a.m., New York time, on the second Trading
Day after the initial Registration Statement is declared effective by the SEC, provided that the conditions set forth on Annex II have
been satisfied (or such other date as is mutually agreed to by the Company and the Investor). The Fourth Pre-Advance Closing shall take
place at 10:00 a.m., New York time, on a date mutually agreed to by the Company and the Investor, provided that the conditions set forth
on Annex II have been satisfied. At each Pre-Advance Closing, the Investor shall advance to the Company the principal amount of
the applicable Pre-Paid Advance then due pursuant to the terms of this Article II, less a discount in the amount equal to 10% of
the principal amount of such Pre-Paid Advance netted from the purchase price due for such Pre-Paid Advance and structured as an original
issue discount (the “Original Issue Discount”), in immediately available funds to an account designated by the Company
in writing, provided that the Company has delivered a Promissory Note with a principal amount equal to the full amount of such Pre-Paid
Advance, duly executed on behalf of the Company. The Company acknowledges
and agrees that the Original Issue Discount (i) shall not be funded but shall be deemed to be fully earned at each Pre-Advance Closing,
and (ii) shall not reduce the principal amount of each Promissory Note.
Article III. Advances
Section 3.01
Advances; Mechanics. Upon the terms and subject to the conditions of this Agreement, during the Commitment Period, (i) the
Company, at its sole discretion, shall have the right, but not the obligation, to issue and sell to the Investor, and the Investor shall
subscribe for and purchase from the Company, Advance Shares by the delivery to the Investor of Advance Notices, provided (x) no balance
is outstanding under a Promissory Note, or, (y) if there is a balance outstanding under a Promissory Note, solely in accordance with Section
3.01(a)(iii) hereof, and (ii) for as long as there is a balance outstanding under a Promissory Note, the Investor, at its sole discretion,
shall have the right, but not the obligation, by the delivery to the Company of Investor Notices, to cause an Advance Notice to be deemed
delivered to the Investor and the issuance and sale of Shares to the Investor pursuant to an Advance, in each of the foregoing cases,
on the following terms:
| (a) | Advance Notice. At any time during the Commitment
Period the Company may require the Investor to purchase Shares by delivering an Advance Notice to the Investor, subject to the satisfaction
(or waiver by the Investor) of the conditions set forth in Annex III and in accordance with the following provisions: |
| (i) | The Company shall, in its sole discretion, select the number of Advance Shares, not to exceed the Maximum
Advance Amount (unless otherwise agreed to in writing by the Company and the Investor), it desires to issue and sell to the Investor in
each Advance Notice and the time it desires to deliver each Advance Notice. |
| (ii) | There shall be no mandatory minimum Advances and there shall be no non-usage fee for not utilizing the
Commitment Amount or any part thereof. |
| (iii) | For so long as any amount remains outstanding under a Promissory Note, without the prior written consent
of the Investor, the Company may only (other than with respect to a deemed Advance Notice pursuant to an Investor Notice) submit an Advance
Notice if (A) (x) an Amortization Event has occurred and the obligation of the Company to make monthly prepayments under the Promissory
Note has not ceased, (y) the Company is then in breach of its obligations under Section 12.04 to pay the Commitment Fee, or (z)
the Daily Traded Amount on the Advance Notice Date is at least 250% of the average Daily Traded Amount for the 5 consecutive Trading Days
immediately preceding such Advance Notice Date, and (B) the aggregate purchase price owed to the Company from such Advances (“Advance
Proceeds”) shall be paid by the Investor by offsetting the amount of the Advance Proceeds against, in the case of subclauses
(x) and (z) of the immediately preceding clause (A), an equal amount outstanding under the subject Promissory Note (first towards accrued
and unpaid interest, and then towards outstanding principal) or, in the case of subclause (y) of the immediately preceding clause (A),
an equal amount owed to the Investor in respect of the Commitment Fee. Notwithstanding anything to the contrary herein, if the Company
delivers an Advance Notice pursuant to clause (A)(y) of the immediately preceding sentence to satisfy its obligation to pay the Commitment
Fee at a time when any amount remains outstanding under a Promissory Note, the amount of such Advance shall not exceed the balance owed
in respect of the Commitment Fee unless otherwise agreed to in writing by the Company and the Investor. |
| (b) | Investor Notice. At any time during the Commitment Period, provided that there is a balance remaining
outstanding under a Promissory Note, the Investor may, by delivering an Investor Notice to the Company, cause an Advance Notice to be
deemed delivered to the Investor and the issuance and sale of Shares to the Investor pursuant to an Advance, in accordance with the following
provisions: |
| (i) | The Investor shall, in its sole discretion, select the amount of the Advance up to the Maximum Advance
Amount applicable to the Investor, and the time it desires to deliver each Investor Notice; provided that the amount of the Advance selected
shall not exceed the balance owed under all Promissory Notes outstanding on the date of delivery of the Investor Notice. |
| (ii) | The Purchase Price of the Shares in respect of any Advance Notice deemed delivered pursuant to an Investor
Notice shall be equal to the Conversion Price (as defined in the Promissory Note) that would be applicable to the amount of the Advance
selected by the Investor if such amount were to be converted as of the date of delivery of the Investor Notice in accordance with Section
3 of the Promissory Note. The Investor shall pay the Purchase Price for the Shares to be issued pursuant to the Investor Notice by
offsetting the amount of the Purchase Price to be paid by the Investor against an equal amount outstanding under a Promissory Note (first
towards accrued and unpaid interest, if any, then towards principal). |
| (iii) | Each Investor Notice shall set forth the amount of the Advance requested, the Purchase Price (determined
in accordance with Section 3.01(b)(ii)) along with a report by Bloomberg, L.P. indicating the relevant VWAP used in calculating
the Conversion Price, the number of Shares to be issued by the Company and purchased by the Investor, the aggregate amount of accrued
and unpaid interest under the subject Promissory Note (if any) that shall be offset by the issuance of Shares, the aggregate amount of
principal of the Promissory Note that shall be offset by the issuance of Shares, and the total amount of the Promissory Note that shall
be outstanding following the closing of the Advance. Each Investor Notice shall serve as the Settlement Document in respect of such Advance. |
| (iv) | Upon the delivery of an Investor Notice, a corresponding Advance Notice shall simultaneously and automatically
be deemed to have been delivered by the Company to the Investor requesting the amount of the Advance set forth in the Investor Notice,
and any conditions precedent to such Advance Notice under the terms of this Agreement that have not been satisfied shall be deemed to
have been waived by the Investor. |
| (c) | Date of Delivery of Advance Notice. Advance Notices shall be delivered in accordance with the instructions
set forth on the bottom of Exhibit C attached hereto. An Advance Notice shall be deemed delivered on (i) the day it is received
by the Investor if such notice is received by e-mail at or before 9:00 a.m. New York City time on a Trading Day (or at such later time
if agreed to by the Investor in its sole discretion), or (ii) the immediately succeeding Trading Day if it is received by e-mail after
9:00 a.m. New York City time. An Advance Notice deemed delivered pursuant to an Investor Notice shall be deemed delivered on the same
date upon which the Investor Notice is received by the Company. Upon receipt of an Advance Notice, the Investor shall promptly provide
written confirmation (which may be by e-mail) of receipt of such Advance Notice. |
Section 3.02
Advance Limitations, Regulatory. Regardless of the Advance requested in an Advance Notice, including an Advance Notice deemed
delivered pursuant to an Investor Notice, and not withstanding any provision to the contrary herein, the final number of Shares to be
issued and sold pursuant to such Advance Notice shall be reduced (if at all) in accordance with each of the following limitations:
| (a) | Ownership Limitation; Commitment Amount. At the request
of the Company, the Investor will inform the Company in writing of the number of Ordinary Shares the Investor currently beneficially
owns. At the request of the Investor, the Company shall promptly confirm orally or in writing to the Investor the number of Ordinary
Shares then outstanding. Notwithstanding anything to the contrary contained in this Agreement, the Investor shall not be obligated to
purchase or acquire, and shall not purchase or acquire, any Ordinary Shares under this Agreement which, when aggregated with all other
Ordinary Shares beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and
Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor and its affiliates (on an aggregated basis)
of a number of Ordinary Shares exceeding 4.99% of the then outstanding voting power or number of Ordinary Shares (the “Ownership
Limitation”). In connection with each Advance Notice, any portion of an Advance that would (i) cause the Investor to exceed
the Ownership Limitation or (ii) cause the aggregate number of Shares issued and sold to the Investor hereunder to exceed the Commitment
Amount shall automatically be withdrawn with no further action required by the Company, and such Advance Notice shall be deemed automatically
modified to reduce the Advance by an amount equal to such withdrawn portion; provided that in the event of any such automatic withdrawal
and automatic modification, the Investor will promptly notify the Company of such event. |
| (b) | Registration Limitation. In no event shall an Advance
exceed the amount registered in respect of the transactions contemplated hereby under the Registration Statement then in effect (the
“Registration Limitation”). In connection with each Advance Notice, any portion of an Advance that would exceed the
Registration Limitation shall automatically be withdrawn with no further action required by the Company and such Advance Notice shall
be deemed automatically modified to reduce the aggregate amount of the requested Advance by an amount equal to such withdrawn portion;
provided that in the event of any such automatic withdrawal and automatic modification, the Investor will promptly notify the Company
of such event. |
Section 3.03
Advance Limitations, Minimum Acceptable Price.
| (a) | With respect to each Advance Notice, the Company may notify
the Investor of the Minimum Acceptable Price with respect to such Advance by indicating a Minimum Acceptable Price on such Advance Notice.
If no Minimum Acceptable Price is specified in an Advance Notice, then no Minimum Acceptable Price shall be in effect in connection with
such Advance. Each Trading Day during a Pricing Period for which (A) with respect to each Advance Notice with a Minimum Acceptable Price,
the VWAP of the Ordinary Shares is below the Minimum Acceptable Price in effect with respect to such Advance Notice, or (B) there is
no VWAP (each such day in the foregoing clauses (A) and (B), an “Excluded Day”), shall result in an automatic reduction
to the number of Advance Shares set forth in such Advance Notice by one third (1/3) (the resulting amount of each Advance being the “Adjusted
Advance Amount”), and each Excluded Day shall be excluded from the Pricing Period for purposes of determining the Market Price. |
| (b) | The total Advance Shares in respect of each Advance with
any Excluded Day(s) (after reductions have been made to arrive at the Adjusted Advance Amount, if any) shall be automatically increased
by such number of Ordinary Shares (the “Additional Shares”) equal to the greater of (a) the number of Ordinary Shares
sold by the Investor on such Excluded Day(s), if any, or (b) such number of Ordinary Shares elected to be subscribed for by the Investor,
and the subscription price per share for each Additional Share shall be equal to the Minimum Acceptable Price in effect with respect
to such Advance Notice multiplied by 85%, provided that this increase shall not cause the total Advance Shares to exceed the amount set
forth in the applicable Advance Notice or any limitations set forth in Section 3.02. |
Section 3.04
Unconditional Contract. Notwithstanding any other provision in this Agreement, the Company and the Investor acknowledge
and agree that upon the Investor’s receipt of a valid Advance Notice from the Company the Parties shall be deemed to have entered
into an unconditional contract binding on both Parties for the purchase and sale of Advance Shares pursuant to such Advance Notice in
accordance with the terms of this Agreement, and, subject to Applicable Laws and Section 7.20, the Investor may sell Ordinary Shares
after receipt of an Advance Notice, including during a Pricing Period.
Section 3.05
Closings. The closing of each Advance and each sale and purchase of Advance Shares (whether pursuant to an Advance Notice
delivered by the Company or in connection with an Advance Notice deemed delivered by the Company in connection with an Investor Notice)
(each, a “Closing”) shall take place as soon as practicable on or after each applicable Advance Date in accordance
with the procedures set forth below. The Company acknowledges that, other than in connection with an Investor Notice, the Purchase Price
is not known at the time an Advance Notice is delivered (at which time the Investor is irrevocably bound) but shall be determined on each
Closing based on the daily prices of the Ordinary Shares that are the inputs to the determination of the Purchase Price. In connection
with each Closing, the Company and the Investor shall fulfill each of its obligations as set forth below:
| (a) | On or prior to each Advance Date, the Investor shall deliver
to the Company a Settlement Document along with a report by Bloomberg, L.P. (or, if not reported on Bloomberg, L.P., another reporting
service reasonably agreed to by the parties) indicating the VWAP for each of the Trading Days during the Pricing Period or period for
determining the Conversion Price, in each case in accordance with the terms and conditions of this Agreement. In connection with an Investor
Notice, the Investor Notice shall serve as the Settlement Document. |
| (b) | Promptly after receipt of the Settlement Document with respect
to each Advance (and, in any event, not later than one (1) Trading Day after such receipt), the Company will, or will cause its transfer
agent to, electronically transfer such number of Advance Shares to be purchased by the Investor (as set forth in the Settlement Document)
by crediting the Investor’s account or its designee’s account at the Depository Trust Company through its Deposit Withdrawal
at Custodian System or by such other means of delivery as may be mutually agreed upon by the Parties, and transmit notification to the
Investor that such share transfer has been requested. Promptly upon receipt of such notification, the Investor shall pay to the Company
the aggregate purchase price of the Shares (as set forth in the Settlement Document) either (i) in the case of an Advance Notice submitted
other than after the occurrence of an event set forth in Section 3.01(a)(iii), in cash in immediately available funds to an account
designated by the Company in writing and transmit notification to the Company that such funds transfer has been requested, or (ii) in
the case of an Investor Notice or an Advance Notice submitted after the occurrence of an event set forth in Section 3.01(a)(iii),
as an offset of amounts owed under the Promissory Notes or in respect of the Commitment Fee, as applicable, as described in Section
3.01(a)(iii) or Section 3.01(b), as applicable. No fractional shares shall be issued, and any fractional shares that would
otherwise be issued in connection with an Advance shall be rounded to the next higher whole number of shares. To facilitate the transfer
of the Ordinary Shares by the Investor, the Ordinary Shares will not bear any restrictive legends so long as there is an effective Registration
Statement covering the resale of such Ordinary Shares (it being understood and agreed by the Investor that notwithstanding the lack of
restrictive legends, the Investor may only sell such Ordinary Shares pursuant to (x) the Plan of Distribution set forth in the Prospectus
included in the applicable Registration Statement and otherwise in compliance with the requirements of the Securities Act (including
any applicable prospectus delivery requirements) or (y) pursuant to an available exemption). |
| (c) | On or prior to the Advance Date, each of the Company and the Investor shall deliver to the other all documents,
instruments and writings expressly required to be delivered by either of them pursuant to this Agreement in order to implement and effect
the transactions contemplated herein. |
| (d) | Notwithstanding anything to the contrary in this Agreement, other than in respect of Advance Notices deemed
to be given pursuant to Investor Notices, if on any day during the Pricing Period (i) the Company notifies Investor that a Material Outside
Event has occurred, or (ii) the Company notifies the Investor of a Black Out Period, the parties agree that any pending Advance shall
end and the final number of Advance Shares to be purchased by the Investor at the Closing for such Advance shall be equal to the number
of Ordinary Shares sold by the Investor during the applicable Pricing Period prior to the notification from the Company of a Material
Outside Event or Black Out Period. |
Section 3.06
Hardship. In the event the Investor sells Ordinary Shares after receipt, or deemed receipt of an Advance Notice and the
Company fails to perform its obligations as mandated in this Agreement, the Company agrees that in addition to and in no way limiting
the rights and obligations set forth in Article VI hereto and in addition to any other remedy to which the Investor is entitled
at law or in equity, including, without limitation, specific performance, it will hold the Investor harmless against any loss, claim,
damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in connection with such default by the
Company. The Company agrees and acknowledges that irreparable damage may occur in the event of any such default, and it is accordingly
agreed that the Investor shall be entitled to an injunction or injunctions to prevent such breaches of this Agreement and to specifically
enforce (subject to Applicable Laws and the rules of the Principal Market), without the posting of a bond or other security, the terms
and provisions of this Agreement.
Article IV. Representations
and Warranties of the Investor
The Investor represents, warrants,
and covenants to the Company, as of the date hereof and as of each Advance Notice Date, that:
Section 4.01
Organization and Authorization. The Investor is duly organized, validly existing and in good standing under the laws of
the Cayman Islands and has the requisite corporate power and authority to enter into and perform its obligations under the Transaction
Documents to which it is a party and to purchase or acquire the Shares in accordance with the terms hereof. The decision to invest and
the execution and delivery of the Transaction Documents to which it is a party by the Investor, the performance by the Investor of its
obligations hereunder and the consummation by the Investor of the transactions contemplated hereby have been duly authorized and require
no other proceedings on the part of the Investor. The undersigned has the right, power and authority to execute and deliver the Transaction
Documents to which it is a party and all other instruments on behalf of the Investor or its shareholders. This Agreement and the Transaction
Documents to which it is a party have been duly executed and delivered by the Investor and, assuming the execution and delivery hereof
and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor, enforceable against the
Investor in accordance with its terms.
Section 4.02
Evaluation of Risks. The Investor has such knowledge and experience in financial, tax and business matters as to be capable
of evaluating the merits and risks of, and bearing the economic risks entailed by, an investment in the Shares and of protecting its interests
in connection with the transactions contemplated hereby. The Investor acknowledges and agrees that its investment in the Company involves
a high degree of risk, and that the Investor may lose all or a part of its investment.
Section 4.03
No Legal, Investment or Tax Advice from the Company. The Investor acknowledges that it had the opportunity to review the
Transaction Documents and the transactions contemplated by the Transaction Documents with its own legal counsel and investment and tax
advisors. The Investor is relying solely on such counsel and advisors and not on any statements or representations of the Company or any
of the Company’s representatives or agents for legal, tax, investment or other advice with respect to the Investor’s acquisition
of Shares hereunder, the transactions contemplated by this Agreement or the laws of any jurisdiction, and the Investor acknowledges that
the Investor may lose all or a part of its investment.
Section 4.04
Investment Purpose. The Investor is acquiring the Shares and any Promissory Note for its own account, for investment purposes
and not with a view towards, or for resale in connection with, the public sale or distribution thereof, in violation of the Securities
Act; provided, however, that by making the representations herein, the Investor does not agree, or make any representation or
warranty, to hold any of the Shares for any minimum or other specific term and reserves the right to dispose of the Shares at any time
in accordance with, or pursuant to, any Registration Statement filed pursuant to the Registration Rights Agreement or an applicable exemption
under the Securities Act. The Investor does not presently have any agreement or understanding, directly or indirectly, with any Person
to sell or distribute any of the Shares. This Investor is acquiring the Shares and the Promissory
Note hereunder in the ordinary course of its business. The Investor acknowledges that it will be disclosed as an “underwriter”
and a “selling shareholder” in each Registration Statement and in any prospectus contained therein to the extent required
by applicable law and to the extent the prospectus is related to the resale of Registrable Securities.
Section 4.05
Accredited Investor. The Investor is an “Accredited Investor” as that term is defined in Rule 501(a)(3)
of Regulation D.
Section 4.06
Reliance on Exemptions. The Investor understands that the Shares are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part
upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the
Investor to acquire the Shares pursuant to such exemptions.
Section 4.07
Information. The Investor and its advisors (and its counsel), if any, have been furnished with all materials relating to
the business, finances and operations of the Company and information the Investor deemed material to making an informed investment decision.
The Investor and its advisors (and its counsel), if any, have been afforded the opportunity to ask questions of the Company and its management
and have received answers to such questions. Neither such inquiries nor any other due diligence investigations conducted by such Investor
or its advisors (and its counsel), if any, or its representatives shall modify, amend or affect the Investor’s right to rely on
the Company’s representations and warranties contained in this Agreement. The Investor acknowledges and agrees that the Company
has not made to the Investor, and the Investor acknowledges and agrees it has not relied upon, any representations and warranties of the
Company, its employees or any third party other than the representations and warranties of the Company contained in this Agreement. The
Investor understands that its investment involves a high degree of risk. The Investor has sought such accounting, legal and tax advice,
as it has considered necessary to make an informed investment decision with respect to the transactions contemplated hereby.
Section 4.08
Not an Affiliate. The Investor is not an officer, director or a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with the Company or any affiliate of the Company (as that term
is defined in Rule 405 promulgated under the Securities Act).
Section 4.09
General Solicitation. Neither the Investor, nor any of its affiliates, nor any person acting on its or their behalf, has
engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with
any offer or sale of the Shares by the Investor.
Section 4.10
Trading Activities. The Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any
understanding with the Investor, engaged in any transactions in the securities of the Company (including, without limitation, any Short
Sales (as defined below) involving the Company’s securities) during the period commencing as of the time that the Investor first contacted
the Company or the Company’s agents regarding the specific investment in the Company contemplated by this Agreement and ending immediately
prior to the execution of this Agreement by the Investor.
Article V. Representations
and Warranties of the Company
Except as set forth in the
SEC Documents (but excluding statements in any “Risk Factors” section or similar cautionary, predictive or forward-looking
disclosure), the Company hereby makes the following representations, warranties and covenants to the Investor as of the date hereof and
as of each Advance Notice Date (other than representations and warranties which address matters only as of a specific date, which shall
be true and correct as of such date):
Section 5.01
Organization and Qualification. The Company and each of its Subsidiaries are entities duly formed, validly existing and
in good standing (to the extent applicable, or, if not applicable, any similar standard applicable in the relevant jurisdiction) under
the laws of the respective jurisdiction in which they are formed and have the requisite power and authority to own their properties and
to carry on their business as now being conducted. The Company and each of its Subsidiaries is duly qualified to do business and is in
good standing (to the extent applicable, or, if not applicable, any similar standard applicable in the relevant jurisdiction) in every
jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure
to be so qualified or be in good standing would not be reasonably expected to have, individually or in the aggregate, a Material Adverse
Effect.
Section 5.02
Authorization, Enforcement, Compliance with Other Instruments. The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement and the other Transaction Documents and to issue the Shares in accordance
with the terms hereof and thereof. The execution and delivery by the Company of this Agreement and the other Transaction Documents, and
the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the
Shares) have been or (with respect to consummation) will be duly authorized by the Company’s board of directors and no further consent
or authorization will be required by the Company, its board of directors or the Company’s shareholders. This Agreement and the other
Transaction Documents to which the Company is a party have been (or, when executed and delivered, will be) duly executed and delivered
by the Company and, assuming the execution and delivery thereof and acceptance by the Investor, constitute (or, when duly executed and
delivered, will be) the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or other laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies
and except as rights to indemnification and to contribution may be limited by federal or state securities law.
Section 5.03
Authorization of the Shares. The Shares to be issued under this Agreement have been, or with respect to the Shares to be
purchased by the Investor pursuant to an Advance Notice or otherwise issued after the date hereof, will be, when issued and delivered
pursuant to the terms hereof, approved by the board of directors of the Company or a duly authorized committee thereof, against payment
therefor as provided herein, duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien,
encumbrance, security interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first
refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Shares, when issued, will conform
to the description thereof set forth in or incorporated into the Prospectus. As of the date of each Pre-Advance Closing, and at all times
thereafter, the Company shall have reserved from its duly authorized share capital not less than the maximum number of Ordinary Shares
issuable upon conversion of all Promissory Notes (assuming for purposes hereof that (x) such Promissory Note is convertible at a conversion
price equal to the Floor Price as of the date of determination and (y) any such conversion shall not take into account any limitations
on the conversion of the Promissory Note set forth therein).
Section 5.04
No Conflict. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Shares) will not (i)
result in a violation of the certificate of incorporation or other organizational documents of the Company or its Subsidiaries (with respect
to consummation, as the same may be amended prior to the date on which any of the transactions contemplated hereby are consummated), (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give
to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company
or its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws and regulations) applicable to the Company or its Subsidiaries or by which any property or asset of the Company
or its Subsidiaries is bound or affected except, in the case of clause (ii) or clause (iii) above, to the extent such violations would
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
Section 5.05
Shares Issuable under the Promissory Note. The Company understands and acknowledges that the number of Ordinary Shares issuable
upon conversion of the Promissory Notes will increase in certain circumstances. The Company further acknowledges its obligation to issue
the Ordinary Shares upon conversion of the Promissory Notes in accordance with the terms thereof or upon delivery of an Advance Notice
(including upon receipt of an Investor Notice) is absolute and unconditional regardless of the dilutive effect that such issuance may
have on the ownership interests of other shareholders of the Company.
Section 5.06
SEC Documents; Financial Statements. Except for the Company’s annual report on Form 20-F for the fiscal year ended
June 30, 2023, for the past two (2) years the Company has timely filed (giving effect to permissible extensions in accordance with Rule
12b-25 under the Exchange Act) all SEC Documents. The Company has delivered or made available to the Investor through the SEC’s
website at http://www.sec.gov, true and complete copies of the SEC Documents, as applicable. Except as disclosed in amendments or subsequent
filings to the SEC Documents, as of its filing date (or, if amended or superseded by a filing prior to the date hereof, on the date of
such amended or superseded filing), each of the SEC Documents complied in all material respects with the requirements of the Exchange
Act or the Securities Act, as applicable, and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and did not contain any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
Section 5.07
Financial Statements. The consolidated financial statements of the Company included or incorporated by reference in the
SEC Documents, together with the related notes and schedules, present fairly, in all material respects, the consolidated financial position
of the Company and the Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders’
equity of the Company for the periods specified and have been prepared in compliance with the requirements of the Securities Act and Exchange
Act and in conformity with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent
basis (except for (i) such adjustments to accounting standards and practices as are noted therein, (ii) in the case of unaudited interim
financial statements, to the extent such financial statements may not include footnotes required by GAAP or may be condensed or summary
statements and (iii) such adjustments which are not material, either individually or in the aggregate) during the periods involved; the
other financial and statistical data with respect to the Company and the Subsidiaries contained or incorporated by reference in the SEC
Documents are accurately and fairly presented and prepared on a basis consistent with the financial statements and books and records of
the Company; there are no financial statements (historical or pro forma) that are required to be included or incorporated by reference
in the SEC Documents that are not included or incorporated by reference as required; the Company and the Subsidiaries do not have any
material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the SEC Documents
(excluding the exhibits thereto); and all disclosures contained or incorporated by reference in the SEC Documents regarding “non-GAAP
financial measures” (as such term is defined by the rules and regulations of the SEC) comply in all material respects with Regulation
G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The interactive data in eXtensible
Business Reporting Language included or incorporated by reference in the SEC Documents fairly presents the information called for in all
material respects and has been prepared in accordance with the SEC’s rules and guidelines applicable thereto.
Section 5.08
Registration Statement and Prospectus. The Company and the transactions contemplated by this Agreement meet the requirements
for and comply with the conditions for the use of Form F-3 under the Securities Act. Each Registration Statement and the offer and sale
of Shares as contemplated hereby, if and when filed, will meet the requirements of Rule 415 under the Securities Act and comply in
all material respects with said rule. Any statutes, regulations, contracts or other documents that are required to be described in a Registration
Statement or a Prospectus, or any amendment or supplement thereto, or to be filed as exhibits to a Registration Statement have been so
described or filed. Copies of each Registration Statement, any Prospectus, and any such amendments or supplements thereto and all documents
incorporated by reference therein that were filed with the SEC on or prior to the date of this Agreement have been delivered, or are available
through EDGAR, to the Investor and its counsel. The Company has not distributed and, prior to the later to occur of each Advance Notice
Date and completion of the distribution of the Shares, will not distribute any offering material in connection with the offering or sale
of the Shares other than a Registration Statement and the Prospectus to which the Investor has consented.
Section 5.09
No Misstatement or Omission. Each Registration Statement, when it became or becomes effective, and any Prospectus, on the
date of such Prospectus or amendment or supplement thereto, conformed and will conform in all material respects with the requirements
of the Securities Act. At each Advance Notice Date, the Registration Statement, and the Prospectus, as of such date, will conform in all
material respects with the requirements of the Securities Act. Each Registration Statement, when it became or becomes effective, did not,
and will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. Each Prospectus did not, or will not, include an untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. The documents incorporated by reference in a Prospectus or any Prospectus Supplement did not, and any further documents filed
and incorporated by reference therein will not, when filed with the SEC, contain an untrue statement of a material fact or omit to state
a material fact required to be stated in such document or necessary to make the statements in such document, in light of the circumstances
under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions from, any such document made
in reliance upon, and in conformity with, information furnished to the Company by the Investor specifically for use in the preparation
thereof.
Section 5.10
Conformity with Securities Act and Exchange Act. Each Registration Statement, each Prospectus, or any amendment or supplement
thereto, and the documents incorporated by reference in each Registration Statement, Prospectus or any amendment or supplement thereto,
when such documents were or are filed with the SEC under the Securities Act or the Exchange Act or became or become effective under the
Securities Act, as the case may be, conformed or will conform in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable.
Section 5.11
Home Country Practice. Prior to the date hereof, the Company has taken all actions required pursuant to Nasdaq Rule 5615(a)(3)
to duly and validly rely on the exemption for foreign private issuers from applicable rules and regulations of Nasdaq by adopting the
home country practice (the “Home Country Practice”) in connection with the transactions contemplated hereunder (including
an exemption from any Nasdaq rules that would otherwise require seeking shareholder approval in respect of such transactions). The Company
may issue the Ordinary Shares to the Investor in connection with the transactions contemplated by this Agreement without regard to the
limitations imposed by Nasdaq Rule 5635(d). The Company’s entry into and compliance with the obligations of the transactions contemplated
hereunder are not prohibited by its home country’s laws.
Section 5.12
Equity Capitalization.
(a) Authorized
and Outstanding Share Capital. As of the date hereof, the authorized share capital of the Company consists of (i) 400,000,000 Ordinary
Shares of par value US$0.0001 each, of which 19,658,966 are issued and outstanding, and (ii) 460,000,000 Class B Ordinary Shares of par
value US$0.0001 each, of which 5,957,691 are issued and outstanding. As of the date hereof, the Company has 3,592,980 warrants to purchase
3,592,980 Ordinary Shares with an exercise price of $0.0001 issued and outstanding.
(b) Valid
Issuance; Available Shares. All of such outstanding Ordinary Shares are duly authorized and have been validly issued and are
fully paid and nonassessable.
(C) Existing
Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company’s or any Subsidiary’s
shares, interests or capital stock is subject to preemptive rights or any other similar rights or liens suffered or permitted by the Company
or any Subsidiary; (B) other than the warrants issued or issuable to EF Hutton LLC in connection with the transactions contemplated
hereunder, there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the
Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries or options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries; (C) there are
no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities
under the Securities Act (except pursuant to this Agreement); (D) there are no outstanding securities or instruments of the Company
or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its
Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by
the issuance of the Shares; and (F) neither the Company nor any Subsidiary has entered into any Variable Rate Transaction (except
for this Agreement and any Variable Rate Transactions solely with the Investor following the date hereof).
Section 5.13
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights, if any, necessary to conduct their respective businesses as now conducted,
except as would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The Company and its Subsidiaries
have not received written notice of any infringement by the Company or its Subsidiaries of any trademark, trade name rights, patents,
patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, or trade secrets, except as
would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. There is no claim, action or proceeding
being made or brought against, or to the Company’s knowledge, being threatened against the Company or its Subsidiaries regarding
any trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations,
trade secret or other similar infringement matters; and, except as would not be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect, the Company is not aware of any facts or circumstances which might give rise to any of the foregoing.
Section 5.14
Employee Relations. Neither the Company nor any of its Subsidiaries is involved in any labor dispute nor, to the knowledge
of the Company or any of its Subsidiaries, is any such dispute threatened, in each case which would be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect.
Section 5.15
Environmental Laws. The Company and its Subsidiaries (i) have not received written notice alleging any failure to comply
in all respects with all Environmental Laws (as defined below), (ii) have received all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct their respective businesses and (iii) have not received written notice alleging any
failure to comply with all terms and conditions of any such permit, license or approval, except, in each of the foregoing clauses (i),
(ii) and (iii), where the failure to so comply would not be reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental Laws” means all applicable federal, state and local laws relating to pollution
or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface
or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices
or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.
Section 5.16
Title. Except as would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect,
the Company (or its Subsidiaries) has valid title to its properties and assets, free and clear of any pledge, lien, security interest,
encumbrance, claim or equitable interest. Any real property and facilities held under lease by the Company and 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 and its Subsidiaries.
Section 5.17
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks (other than directors and officers insurance coverage) and in such amounts as management of the Company believes
to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. The Company has no reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not be reasonably expected to have, individually or
in the aggregate, a Material Adverse Effect.
Section 5.18
Regulatory Permits. Except as would not be reasonably expected to have, individually or in the aggregate, a Material Adverse
Effect, the Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state
or foreign regulatory authorities necessary to own their respective businesses, and neither the Company nor any such Subsidiary has received
any written notice of proceedings relating to the revocation or modification of any such certificate, authorization or permits.
Section 5.19
Internal Accounting Controls. 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 generally accepted accounting principles and
to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. The Company’s management is not aware of any material weaknesses in the Company’s system
of internal accounting controls that have not been disclosed in the SEC Documents.
Section 5.20
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending against or affecting the Company, the Ordinary Shares or any of the Company’s
Subsidiaries, wherein an unfavorable decision, ruling or finding would be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect.
Section 5.21
Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in
a Form 20-F, there has been no Material Adverse Effect, nor any fact, event or occurrence affecting the Company or its Subsidiaries that
would be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. Since the date of the Company’s
most recent audited financial statements contained in a Form 20-F, neither the Company nor any of its Subsidiaries has (i) declared or
paid any dividends, (ii) sold any assets outside of the ordinary course of business, or (iii) made any capital expenditures outside of
the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any
law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any
Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings.
The Company is Solvent.
Section 5.22
Subsidiaries. Except as set forth in the Company’s most recent Form 20-F, the Company does not own or control, directly
or indirectly, any interest in any other corporation, partnership, association or other business entity.
Section 5.23
Tax Status. Each of the Company and its Subsidiaries (i) has timely made or filed all foreign, federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes
and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment
of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. The Company has not received
written notification of any unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company and its Subsidiaries know of no basis for any such claim where failure to pay would be reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect.
Section 5.24
Certain Transactions. Except as not required to be disclosed pursuant to Applicable Laws, none of the officers or directors
of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any officer or director, or any corporation, partnership,
trust or other entity in which any officer or director has a substantial interest or is an officer, director, trustee or partner.
Section 5.25
Rights of First Refusal. The Company is not obligated to offer the Ordinary Shares or the Promissory Notes offered hereunder
on a right of first refusal basis to any third parties including, but not limited to, current or former shareholders of the Company, underwriters,
brokers, agents or other third parties.
Section 5.26
Dilution. The Company is aware and acknowledges that issuance of Ordinary Shares hereunder could cause dilution to existing
shareholders and could significantly increase the outstanding number of Ordinary Shares.
Section 5.27
Acknowledgment Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length investor with respect to this Agreement and the transactions contemplated hereunder. The
Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereunder and any advice given by the Investor or any of its representatives
or agents in connection with this Agreement and the transactions contemplated hereunder is merely incidental to the Investor’s purchase
of the Shares hereunder or the Promissory Note. The Company is aware and acknowledges that it shall not be able to request Advances under
this Agreement if the Registration Statement is not effective or if any issuances of Ordinary Shares pursuant to any Advances would violate
any rules of the Principal Market. The Company acknowledges and agrees that it is capable of evaluating and understanding, and understands
and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement.
Section 5.28
Finder’s Fees. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees,
brokerage commissions or similar payments in connection with the transactions herein contemplated, except as set forth in the engagement
letter dated July 10, 2024 by and between the Company and EF Hutton LLC.
Section 5.29
Relationship of the Parties. Neither the Company, nor any of its Subsidiaries, affiliates, nor any person acting on its
or their behalf, is a client or customer of the Investor or any of its affiliates and neither the Investor nor any of its affiliates has
provided, or will provide, any services to the Company or any of its affiliates, its subsidiaries, or any person acting on its or their
behalf. The Investor’s relationship to Company is solely as investor as provided for in the Transaction Documents.
Section 5.30
Compliance with Laws. (i) The operations of the Company and its Subsidiaries are and have been conducted at all times in
compliance with the Applicable Laws in all material aspects and neither the Company nor the
Subsidiaries, nor any director, officer, or employee of the Company or any Subsidiary nor, to the Company’s knowledge, any agent,
affiliate or other person acting on behalf of the Company or any Subsidiary has, not complied with Applicable Law in all material respects;
(ii) the Company has not received a notice of non-compliance, nor knows of, nor has reasonable grounds to know of, any facts that any
director, officer, or employee of the Company or any Subsidiary nor, to the Company’s knowledge, any agent, affiliate or other person
acting on behalf of the Company or any Subsidiary, has not complied with Applicable Laws, or could give rise to a notice of non-compliance
with Applicable Laws; and (iii) no action, suit or proceeding by or before any governmental authority involving the Company or any of
its Subsidiaries with respect to Applicable Laws is pending or, to the knowledge of the Company, threatened.
Section 5.31
Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act) contained in the Registration Statement or a Prospectus has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.
Section 5.32
Sanctions Matters. Neither the Company nor any of its Subsidiaries or, to the knowledge of the Company, any director, officer
or controlled affiliate of the Company or any director or officer of any Subsidiary, is a Person that is or is owned or controlled by
a Person that is (i) the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign
Asset Control (“OFAC”), the United Nations Security Council, the European Union, His Majesty’s Treasury, or other
relevant sanctions authorities, including, without limitation, designation on OFAC’s Specially Designated Nationals and Blocked
Persons List or OFAC’s Foreign Sanctions Evaders List or other relevant sanctions authority (collectively, “Sanctions”),
or (ii) located, organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings
with that country or territory (including, without limitation, the Crimea, Zaporizhzhia and Kherson regions in Ukraine, the Donetsk People’s
Republic and Luhansk People’s Republic in Ukraine, Cuba, Iran, North Korea, Russia, Sudan and Syria (the “Sanctioned Countries”)).
Neither the Company nor any of its Subsidiaries will, directly or indirectly, use the proceeds from the sale of Advance Shares or any
Pre-Paid Advance, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person
(a) for the purpose of funding or facilitating any activities or business of or with any Person or in any country or territory that,
at the time of such funding or facilitation, is the subject of Sanctions or is a Sanctioned Country, or (b) in any other manner that
will result in a violation of Sanctions or Applicable Laws by any Person (including any Person participating in the transactions contemplated
by this Agreement, whether as underwriter, advisor, investor or otherwise). For the past five (5) years, neither the Company nor any of
its Subsidiaries has engaged in, and is now not engaged in, any dealings or transactions with any Person, or in any country or territory,
that at the time of the dealing or transaction is or was the subject of Sanctions or was a Sanctioned Country. Neither the Company nor
any of its Subsidiaries nor any director, officer or controlled affiliate of the Company or any of its Subsidiaries, has ever had funds
blocked by a United States bank or financial institution, temporarily or otherwise, as a result of OFAC concerns.
Article VI. Indemnification
Section 6.01
Indemnification by the Company. In consideration of the Investor’s execution and delivery of this Agreement and acquiring
the Shares hereunder, and in addition to all of the Company’s other obligations under this Agreement, the Company shall defend,
protect, indemnify and hold harmless the Investor and its investment manager, Yorkville Advisors Global, LP, and each of their respective
officers, directors, managers, members, partners, employees and agents (including, without limitation, those retained in connection with
the transactions contemplated by this Agreement) and each person who controls the Investor within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (collectively, the “Investor Indemnitees”) from and against any and all actions,
causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable and documented expenses in connection
therewith (irrespective of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought),
including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Investor
Indemnitees or any of them as a result of, or arising out of, or relating to (a) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement for the registration of the Shares as originally filed or in any amendment thereof,
or in any related prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided,
however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out
of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon
and in conformity with written information furnished to the Company by or on behalf of the Investor specifically for inclusion therein;
(b) any material misrepresentation or material breach of any representation or warranty made by the Company in this Agreement or any other
certificate, instrument or document contemplated hereby or thereby; or (c) any material breach of any covenant, agreement or obligation
of the Company contained in this Agreement or any other certificate, instrument or document contemplated hereby or thereby. To the extent
that the foregoing undertaking by the Company may be unenforceable under Applicable Law, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under Applicable Law.
Section 6.02
Indemnification by the Investor. In consideration of the Company’s execution and delivery of this Agreement, and in
addition to all of the Investor’s other obligations under this Agreement, the Investor shall defend, protect, indemnify and hold
harmless the Company, its Subsidiaries and all of its and their officers, directors, shareholders, employees and agents (including, without
limitation, those retained in connection with the transactions contemplated by this Agreement) and each person who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Company Indemnitees”)
from and against any and all Indemnified Liabilities incurred by the Company Indemnitees or any of them as a result of, or arising out
of, or relating to (a) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for
the registration of the Shares as originally filed or in any amendment thereof, or in any related prospectus, or in any amendment thereof
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading; provided, however, that the Investor will only be liable
for written information relating to the Investor furnished to the Company by or on behalf of the Investor specifically for inclusion in
the documents referred to in the foregoing indemnity, and will not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission
made therein in reliance upon and in conformity with written information furnished to the Investor by or on behalf of the Company specifically
for inclusion therein; (b) any material misrepresentation or material breach of any representation or warranty made by the Investor in
this Agreement or any instrument or document contemplated hereby or thereby executed by the Investor; or (c) any material breach of any
covenant, agreement or obligation of the Investor contained in this Agreement or any other certificate, instrument or document contemplated
hereby or thereby executed by the Investor. To the extent that the foregoing undertaking by the Investor may be unenforceable under Applicable
Laws, the Investor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under Applicable Laws.
Section 6.03
Notice of Claim. Promptly after receipt by an Investor Indemnitee or Company Indemnitee of notice of the commencement of
any action or proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Investor Indemnitee
or Company Indemnitee, as applicable, shall, if a claim for an Indemnified Liability in respect thereof is to be made against any indemnifying
party under this Article VI, deliver to the indemnifying party a written notice of the commencement thereof; but the failure to
so notify the indemnifying party will not relieve it of liability under this Article VI except to the extent the indemnifying party
is prejudiced by such failure. The indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually
reasonably satisfactory to the indemnifying party and the Investor Indemnitee or Company Indemnitee, as the case may be; provided, however,
that an Investor Indemnitee or Company Indemnitee shall have the right to retain its own counsel with the actual and reasonable third
party fees and expenses of not more than one counsel for such Investor Indemnitee or Company Indemnitee to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Investor
Indemnitee or Company Indemnitee and the indemnifying party would be inappropriate due to actual or potential differing interests between
such Investor Indemnitee or Company Indemnitee and any other party represented by such counsel in such proceeding. The Investor Indemnitee
or Company Indemnitee shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action
or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Investor Indemnitee
or Company Indemnitee which relates to such action or claim. The indemnifying party shall keep the Investor Indemnitee or Company Indemnitee
reasonably apprised as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be
liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Investor Indemnitee or Company 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 Investor Indemnitee or Company Indemnitee
of a release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Investor Indemnitee or Company Indemnitee with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The indemnification required by this Article VI shall be made by
periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received and payment
therefor is due.
Section 6.04
Remedies. The remedies provided for in this Article VI are not exclusive and shall not limit any right or remedy
which may be available to any indemnified person at law or equity. The obligations of the Parties to indemnify or make contribution under
this Article VI shall survive expiration or termination of this Agreement.
Section 6.05
Limitation of liability. Notwithstanding the foregoing, no Party shall seek, nor shall any Party be entitled to recover
from the other Party, punitive or exemplary damages.
Article VII.
Covenants
The Company covenants with the
Investor, and the Investor covenants with the Company, as follows, which covenants of one Party are for the benefit of the other Party,
during the Commitment Period:
Section 7.01
Effective Registration Statement. During the Commitment Period, the Company shall maintain the continuous effectiveness
of each Registration Statement filed with the SEC under the Securities Act pursuant to and in accordance with the Registration Rights
Agreement; provided, however, that in the event there are no Pre-Paid Advances outstanding, the Company shall only be required to use
its commercially reasonable efforts to maintain the continuous effectiveness of the Registration Statement and each subsequent Registration
Statement filed with the SEC under the Securities Act pursuant to and in accordance with the Registration Rights Agreement.
Section 7.02
Registration and Listing. The Company shall cause the Ordinary Shares to continue to be registered as a class of securities
under Section 12(b) of the Exchange Act, and to comply with its reporting and filing obligations under the Exchange Act, and shall not
take any action or file any document (whether or not permitted by the Securities Act or the Exchange Act) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations under the Exchange Act or Securities Act, except as permitted
herein. The Company shall continue (i) the listing and trading of its Ordinary Shares, (ii) the listing of the Shares purchased by the
Investor hereunder on the Principal Market and (iii) to comply with the Company’s reporting, filing and other obligations under
the rules and regulations of the Principal Market. If the Company receives any notice that the listing or quotation of the Ordinary Shares
on the Principal Market shall be terminated on a date certain, the Company shall promptly (and in any case within 24 hours) notify the
Investor of such fact in writing and shall use its commercially reasonable efforts to cause the Ordinary Shares to remain listed on its
Principal Market or to be listed or quoted on another Principal Market.
Section 7.03
Blue Sky. The Company shall take such action, if any, as is necessary by the Company in order to obtain an exemption for
or to qualify the Shares for sale by the Company to the Investor pursuant to the Transaction Documents, and at the request of the Investor,
the subsequent resale of Registrable Securities by the Investor, in each case, under applicable state securities or “Blue Sky”
laws and shall provide evidence of any such action so taken to the Investor from time to time during the Commitment Period; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify, (y) subject itself to general taxation in any such jurisdiction, or
(z) file a general consent to service of process in any such jurisdiction.
Section 7.04
Suspension of Registration Statement.
| (a) | Establishment of a Black Out Period. During the Commitment
Period, the Company from time to time may suspend the use of a Registration Statement by written notice to the Investor in the event
that the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of material nonpublic information
concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of
the Company or (B) amend or supplement the Registration Statement or Prospectus so that such Registration Statement or Prospectus shall
not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (a “Black Out Period”). |
| (b) | No Sales by Investor During the Black Out Period.
During such Black Out Period, the Investor agrees not to sell any Ordinary Shares of the Company pursuant to such Registration Statement,
but the Investor may sell shares pursuant to an exemption from registration, if available, subject to the Investor’s compliance
with Applicable Laws. |
| (c) | Limitations on the Black Out Period. The Company shall
not impose any Black Out Period that is longer than 20 days or in a manner that is more restrictive (including, without limitation, as
to duration) than the comparable restrictions that the Company may impose on transfers of the Company’s equity securities by its
directors and senior executive officers. In addition, the Company shall not deliver any Advance Notice during any Black Out Period. If
the public announcement of such material, nonpublic information is made during a Black Out Period, the Black Out Period shall terminate
immediately after such announcement, and the Company shall immediately notify the Investor of the termination of the Black Out Period. |
Section 7.05
Listing of Ordinary Shares. As of each Advance Notice Date, the Shares to be sold by the Company from time to time hereunder
will have been registered under Section 12(b) of the Exchange Act and approved for listing on the Principal Market, subject to official
notice of issuance.
Section 7.06
Opinion of Counsel. Prior to the date of the delivery by the Company of the first Advance Notice and the first Pre-Paid
Advance, the Investor shall have received an opinion letter from counsel to the Company in form and substance reasonably satisfactory
to the Investor.
Section 7.07
Exchange Act Registration. The Company will file in a timely manner all reports and other documents required of it as a
reporting company under the Exchange Act and, during the Commitment Period, will not take any action or file any document (whether or
not permitted by Exchange Act or the rules thereunder) to terminate or suspend its reporting and filing obligations under the Exchange
Act.
Section 7.08
Transfer Agent Instructions. For any time while there is a Registration Statement in effect for this transaction, the Company
shall (if required by the transfer agent for the Ordinary Shares) deliver to the transfer agent for the Ordinary Shares (with a copy to
the Investor) instructions to issue Ordinary Shares to the Investor free of restrictive legends upon each Advance if the delivery of such
instructions are consistent with Applicable Law, in each case supported by an opinion from legal counsel for the Company to extent requested
by the transfer agent, provided however that counsel for the Company shall have been furnished with customary documentation as they may
reasonably request for the purpose of rendering the opinions requested by the transfer agent.
Section 7.09
Corporate Existence. The Company will use commercially reasonable efforts to preserve and continue the corporate existence
of the Company during the Commitment Period.
Section 7.10
Notice of Certain Events Affecting Registration; Suspension of Right to Make an Advance. The Company will promptly notify
the Investor, and confirm in writing, upon its becoming aware of the occurrence of any of the following events in respect of a Registration
Statement or related Prospectus: (i) receipt of any request for amendments or supplements to the Registration Statement or related Prospectus;
(ii) the issuance by the SEC or any other Federal governmental authority of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Ordinary Shares for sale in any jurisdiction or the initiation or written
threat of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in the Registration Statement
or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related Prospectus or documents so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and that in the case of the related Prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or of the necessity to amend the Registration Statement
or supplement a related Prospectus to comply with the Securities Act or any other law (and the Company will promptly make available to
the Investor any such supplement or amendment to the related Prospectus), and (v) the Company’s reasonable determination that a
post-effective amendment to the Registration Statement would be required under Applicable Law. The Company shall not deliver to the Investor
any Advance Notice, and the Company shall not sell any Shares pursuant to any pending Advance Notice (other than as required pursuant
to Section 3.05(d)), during the continuation of any of the foregoing events (each of the events described in the immediately preceding
clauses (i) through (iv), inclusive, a “Material Outside Event”).
Section 7.11
Consolidation. If an Advance Notice has been delivered to the Investor, then the Company shall not effect any consolidation
of the Company with or into, or a transfer of all or substantially all the assets of the Company to another entity before the transaction
contemplated in such Advance Notice has been closed in accordance with Section 2.02 hereof, and all Shares in connection with such
Advance have been received by the Investor.
Section 7.12
Issuance of the Company’s Ordinary Shares. Assuming the accuracy of the Investor’s representations and warranties
set forth in Article IV, the issuance and sale of the Ordinary Shares to the Investor hereunder shall be made in accordance with the provisions
and requirements of Section 4(a)(2) of the Securities Act and any applicable state securities law.
Section 7.13
Reservation of Shares. As of the date of each Pre-Advance Closing, and at all times thereafter, the Company shall have reserved
from its duly authorized capital stock not less than the number of Ordinary Shares issuable upon conversion of all Promissory Notes (assuming
for purposes hereof that (x) such Promissory Note is convertible at a conversion price equal to the Floor Price as of the date of determination,
and (y) any such conversion shall not take into account any limitations on the conversion of the Promissory Note set forth therein).
Section 7.14
Expenses. The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated,
will pay all expenses incident to the performance of its obligations hereunder, including but not limited to (i) the preparation, printing
and filing of the Registration Statement and each amendment and supplement thereto, of each Prospectus and of each amendment and supplement
thereto; (ii) the preparation, issuance and delivery of any Shares issued pursuant to this Agreement, (iii) all fees and disbursements
of the Company’s counsel, accountants and other advisors (but not, for the avoidance doubt, the fees and disbursements of Investor’s
counsel, accountants and other advisors), (iv) the qualification of the Shares under securities laws in accordance with the provisions
of this Agreement, including filing fees in connection therewith, (v) the printing and delivery of copies of any Prospectus and any amendments
or supplements thereto requested by the Investor, (vi) the fees and expenses incurred in connection with the listing or qualification
of the Shares for trading on the Principal Market, and (vii) filing fees of the SEC and the Principal Market.
Section 7.15
Current Report. The Company shall, not later than 9:00 a.m., New York City time, on the first business day after the date
of this Agreement, file with the SEC a current report on Form 6-K describing all the material terms of the transactions contemplated
by the Transaction Documents in the form required by the Exchange Act and attaching all the material Transaction Documents (including
any exhibits thereto, the “Current Report”). The Company shall provide the Investor and its legal counsel a reasonable
opportunity to comment on a draft of the Current Report including any exhibits to be filed related thereto, as applicable, prior to filing
the Current Report with the SEC and shall give due consideration to all such comments. Notwithstanding anything contained in this Agreement
to the contrary, the Company expressly agrees that from and after the filing of the Current Report with the SEC, the Company shall have
publicly disclosed all material, non-public information provided to the Investor (or the Investor’s representatives or agents) by
the Company or any of its Subsidiaries, or any of their respective officers, directors, employees, agents or representatives in connection
with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the Current Report, the
Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, 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 the Investor or any of its respective officers, directors, affiliates, employees or agents, on the other hand, including that
certain non-binding term sheet dated July 25, 2024, and signed by the Company on August 15, 2024, shall terminate. The Company shall not,
and the Company shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees and agents not
to, provide the Investor with any material, non-public information regarding the Company or any of its Subsidiaries without the express
prior written consent of the Investor (which may be granted or withheld in the Investor’s sole discretion). The Company understands
and confirms that the Investor will rely on the foregoing representations in effecting resales of Shares.
Section 7.16
Advance Notice Limitation. The Company shall not deliver an Advance Notice if a shareholder meeting or corporate action,
or the record date for any shareholder meeting or any corporate action, would fall during the period beginning two (2) Trading Days prior
to the date of delivery of such Advance Notice and ending two (2) Trading Days following the Closing of such Advance.
Section 7.17
Use of Proceeds. The Company will only use the proceeds from the transactions contemplated herein for general corporate
working capital purposes or in the manner as will be set forth in the Prospectus included in any Registration Statement (and any post-effective
amendment thereto) and any Prospectus Supplement thereto filed pursuant to this Agreement. Notwithstanding anything to the contrary herein,
neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions contemplated herein to repay
any advances or loans to any executives, directors, or employees of the Company or any Subsidiary or to make any payments in respect of
any related party obligations, including without limitation any payables or notes payable to related parties of the Company or any Subsidiary
whether or not such amounts are described on the balance sheets of the Company in any SEC Documents and any Subsidiary or described in
any “Related Party Transactions” section of any SEC Documents. Neither the Company nor any of its Subsidiaries will, directly
or indirectly, use the proceeds from the transactions contemplated herein, or lend, contribute, facilitate, or otherwise make available
such proceeds to any subsidiary, joint venture partner or other Person (a) for the purpose of funding or facilitating, directly or
indirectly, any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation,
is, or whose government is, the subject of Sanctions or is a Sanctioned Country, or (b) in any other manner that will result in a
violation of Sanctions or Applicable Laws by any Person (including any Person participating in the transactions contemplated by this Agreement,
whether as underwriter, advisor, investor or otherwise). The Company shall not without the prior written consent of the Investor loan,
invest, transfer or “downstream” any cash proceeds, or assets or property acquired with cash proceeds from the issuance and
sale of the Promissory Note to any Subsidiary, unless the Investor and such Subsidiary enter into a subsidiary guaranty in the form of
the Global Guaranty Agreement.
Section 7.18
Compliance with Laws. The Company shall comply in all material respects with all Applicable Laws, including but not limited
to, the reporting obligations applicable to the Company and the transactions hereunder in accordance with the Trial Administrative Measures
of Overseas Securities Offering and Listing by Domestic Companies promulgated by the China Securities Regulatory Commission; provided,
however, that no such compliance shall limit or modify any agreement, obligation, covenant, representation or warranty under any Transaction
Document.
Section 7.19
Market Activities. Neither the Company, nor any Subsidiary, nor any of their respective officers, directors or controlling
persons will, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably
be expected to constitute or result, in the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of Ordinary Shares or (ii) sell, bid for, or purchase Ordinary Shares in violation of Regulation M, or pay anyone
any compensation for soliciting purchases of the Shares.
Section 7.20
Trading Information. On the first Trading Day of each week (provided the Investor sold any shares during the prior week)
and otherwise upon the Company’s reasonable request, the Investor agrees to provide the Company with trading reports setting forth
the number and average sales prices of the Ordinary Shares sold by the Investor during the prior trading week.
Section 7.21
Selling Restrictions. Except as expressly set forth below, the Investor covenants that from and after the date hereof through
and including the Trading Day next following the expiration or termination of this Agreement as provided in Section 10.01 (the
“Restricted Period”), neither the Investor nor any of its officers, nor any entity managed or controlled by the Investor
(collectively, the “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted Person”)
shall, directly or indirectly, engage in any “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange
Act) of the Ordinary Shares, either for its own principal account or for the principal account of any other Restricted Person. Notwithstanding
the foregoing, it is expressly understood and agreed that nothing contained herein shall (without implication that the contrary would
otherwise be true) prohibit any Restricted Person during the Restricted Period from: (1) selling “long” (as defined under
Rule 200 promulgated under Regulation SHO) any Ordinary Shares; (2) selling a number of Ordinary Shares equal to the number of Advance
Shares that such Restricted Person is unconditionally obligated to purchase under a pending Advance Notice but has not yet received from
the Company or the transfer agent pursuant to this Agreement; or (3) selling a number of Ordinary Shares equal to the number of Ordinary
Shares that the Investor is entitled to receive but has not yet received from the Company or the transfer agent upon the completion of
a pending conversion of the Promissory Note for which a valid Conversion Notice (as defined in the Promissory Note) has been submitted
to the Company.
Section 7.22
Assignment. Neither this Agreement nor any rights or obligations of the Parties may be assigned to any other Person, except
for assignments by the Investor to any of its affiliates. Without the consent of the Investor, the Company shall not have the right to
assign or transfer any of its rights or provide any third party the right to bind or obligate the Company to deliver Advance Notices or
effect Advances hereunder.
Section 7.23
No Frustration; No Variable Rate Transactions, Etc.
| (a) | No Frustration. The Company shall not enter into,
announce or recommend to its shareholders any agreement, plan, arrangement or transaction in or of which the terms thereof would restrict,
materially delay, conflict with or impair the ability or right of the Company to perform its obligations under the Transaction Documents
to which it is a party, including, without limitation, the obligation of the Company to deliver the Shares to the Investor in respect
of an Advance Notice. |
| (b) | No Variable Rate Transactions or Related Party Payments.
From the date hereof until the date upon which the Promissory Notes to be issued hereunder have been repaid in full, the Company shall
not (A) repay any loans to any executives or employees of the Company or to make any payments in respect of any related party debt or
(B) effect or enter into an agreement to effect any issuance by the Company or any of its Subsidiaries of Ordinary Shares or any security
which entitles the holder to acquire Ordinary Shares (or a combination of units thereof) involving a Variable Rate Transaction, other
than involving a Variable Rate Transaction with the Investor. The Investor shall be entitled to seek injunctive relief against the Company
and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages, without the necessity
of showing economic loss and without any bond or other security being required. |
| (c) | During the period beginning on the date hereof and ending
on the date upon which the Promissory Note(s) to be issued hereunder have been repaid in full, the Company shall not effect any reverse
stock split or share consolidation, unless such reverse stock split or share consolidation is effected to comply with the continued listing
requirements of the Principal Market and the Company provides the Investor no less than five (5) Trading Days’ Notice prior to
effecting such reverse stock split or share consolidation. |
Article VIII.
Non-Exclusive Agreement
Subject to Section 7.23
hereof, this Agreement and the rights awarded to the Investor hereunder are non-exclusive, and the Company may, at any time throughout
the term of this Agreement and thereafter, issue and allot, or undertake to issue and allot, any shares and/or securities and/or convertible
notes, bonds, debentures, options to acquire shares or other securities and/or other facilities which may be converted into or replaced
by Ordinary Shares or other securities of the Company, and to extend, renew and/or recycle any bonds and/or debentures, and/or grant any
rights with respect to its existing and/or future share capital.
Article IX.
Choice of Law/Jurisdiction
Section 9.01
This Agreement, and any and all claims, proceedings or causes of action relating to this Agreement or arising from this Agreement
or the transactions contemplated herein, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted,
construed, governed and enforced under and solely in accordance with the substantive and procedural laws of the State of New York, in
each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly
within the State of New York. The Parties further agree that any action between them shall be heard in New York County, New York, and
expressly consent to the jurisdiction and venue of the Supreme Court of New York, sitting in New York County, New York and the United
States District Court of the Southern District of New York, sitting in New York, New York, for the adjudication of any civil action asserted
pursuant to this Agreement.
EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED
HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.
Article X. Termination
Section 10.01
Termination.
| (a) | Unless earlier terminated as provided hereunder, this Agreement
shall terminate automatically on the earliest of (i) the 24-month anniversary of the Effective Date, provided that if any Promissory
Notes are then outstanding, such termination shall be delayed until such date that all Promissory Note that were outstanding have been
repaid, or (ii) the date on which the Investor shall have made payment of Advances pursuant to this Agreement for Ordinary Shares equal
to the Commitment Amount. |
| (b) | The Company may terminate this Agreement effective upon five
(5) Trading Days’ prior written notice to the Investor; provided that (i) there are no outstanding Advance Notices under which
Ordinary Shares have yet to be issued, (ii) there is not an outstanding Promissory Note, and (iii) the Company has paid all amounts owed
to the Investor pursuant to this Agreement. This Agreement may be terminated at any time by the mutual written consent of the Parties,
effective as of the date of such mutual written consent unless otherwise provided in such written consent. |
| (c) | Nothing in this Section 10.01 shall be deemed to release
the Company or the Investor from any liability for any breach under this Agreement prior to the valid termination hereof, or to impair
the rights of the Company and the Investor to compel specific performance by the other Party of its obligations under this Agreement.
The indemnification provisions contained in Article X shall survive the termination of this Agreement. |
Article XI. Notices
Other than with respect to
Advance Notices, which must be in writing delivered in accordance with Section 3.01 and will be deemed delivered on the day set
forth in Section 3.01(c), 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 e-mail if sent on a Trading Day between 9:30 a.m. New York City time and 4 p.m. New York City time, or, if not sent
on a Trading Day between 9:30 a.m. New York City time and 4 p.m. New York City time, on the immediately following Trading Day; (iii) 5
days after being sent by U.S. certified mail, return receipt requested, or (iv) 1 day after deposit with a nationally recognized overnight
delivery service, in each case of the foregoing clauses (i) through (iv), properly addressed to the Party to receive the same. The addresses
for such communications (except for Advance Notices which shall be delivered in accordance with Exhibit C hereof) shall be:
| If to the Company, to: |
Baijiayun Group Ltd
Tower 1, Zhongguancun Software Park Building 24
Haidian DistrictBeijing,
100190
The People’s Republic of China
Attn: Fangfei Liu
E-mail:liufangfei@baijiayun.com
|
|
With copies (which shall not
constitute notice or delivery of
process) to:
|
Wilson Sonsini Goodrich &
Rosati Professional Corporation
Unit 2901, 29F, Tower C, Beijing
Yintai Centre
No. 2 Jianguomenwai Avenue
Chaoyang District, Beijing 100022
People’s Republic of China
Attn: Dan Ouyang, Esq., K. Ronnie
Li, Esq.
E-mail: douyang@wsgr.com, keli@wsgr.com
|
| If to the Investor: |
YA II PN, Ltd.
1012 Springfield Avenue
Mountainside, NJ 07092
Attn: Mark Angelo
E-mail: mangelo@yorkvilleadvisors.com
|
|
With a Copy (which shall not
constitute notice or delivery of
process) to:
|
Robert Harrison, Esq.
1012 Springfield Avenue
Mountainside, NJ 07092
E-mail: legal@yorkvilleadvisors.com
|
or at such other address and/or e-mail and/or
to the attention of such other person as the recipient Party has specified by written notice given to each other Party three (3) Trading
Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver
or other communication, (ii) electronically generated by the sender’s email service provider containing the time, date, and recipient
email address or (iii) provided by a nationally recognized overnight delivery service shall be rebuttable evidence of delivery in accordance
with clause (i), (ii) or (iii) above, respectively.
Article XII. Miscellaneous
Section 12.01
Counterparts. This Agreement may be executed in identical counterparts, both which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each Party and delivered to the other Party. Facsimile or other
electronically scanned and delivered signatures (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform
Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com), including
by e-mail attachment, shall be deemed to have been duly and validly delivered and be valid as originals and effective for all purposes
of this Agreement.
Section 12.02
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor,
the Company, their respective affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
contains the entire understanding of the Parties with respect to the matters covered herein and, except as specifically set forth herein,
neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the Parties to this Agreement.
Section 12.03
Reporting Entity for Ordinary Shares. The reporting entity relied upon for the determination of the trading price or trading
volume of the Ordinary Shares on any given Trading Day for the purposes of this Agreement shall be Bloomberg, L.P. or any successor thereto.
The written mutual consent of the Investor and the Company shall be required to employ any other reporting entity.
Section 12.04
Commitment and Structuring Fee. Each of the Parties shall pay its own fees and expenses (including the fees of any
attorneys, accountants, appraisers or others engaged by such party) in connection with this Agreement and the transactions contemplated
hereby, except that the Company shall pay to the Investor, or an affiliate thereof, a structuring fee in the amount of $25,000, which
has been paid prior to the date hereof. The Company shall pay a commitment fee in an amount equal to 1.00% of the Commitment Amount (the
“Commitment Fee”) in cash or by the issuance to the Investor on or before the Effectiveness Deadline (as defined in
the Registration Rights Agreement) of such number of Ordinary Shares that is equal to (i) the Commitment Fee divided by (ii) the
closing price of the Ordinary Shares as reported as the Nasdaq Official Closing Price (as reflected on Nasdaq.com) on the Trading Day
immediately prior to the date of issuance (the “Commitment Shares”). The Commitment Shares issuable hereunder shall
be included on the initial Registration Statement.
Section 12.05
Brokerage. Each of the Parties represents that it has had no dealings in connection with this transaction with any finder
or broker who will demand payment of any fee or commission from the other Party. The Company on the one hand, and the Investor, on the
other hand, agree to indemnify the other against and hold the other harmless from any and all liabilities to any person claiming brokerage
commissions or finder’s fees on account of services purported to have been rendered on behalf of the indemnifying party in connection
with this Agreement or the transactions contemplated hereby.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF,
the Parties have caused this Standby Equity Purchase Agreement to be executed by the undersigned, thereunto duly authorized, as of the
date first set forth above.
| |
COMPANY: |
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BAIJIAYUN GROUP LTD |
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By: |
/s/ Yi Ma |
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Name: |
Yi Ma |
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Title: |
Chairman and chief executive officer |
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INVESTOR: |
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YA II PN, LTD. |
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By: |
Yorkville Advisors Global, LP |
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Its: |
Investment Manager |
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By: |
Yorkville Advisors Global II, LLC |
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Its: |
General Partner |
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By: |
/s/ Matthew Beckman |
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Name: |
Matthew Beckman |
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Title: |
Manager |
ANNEX I TO THE
STANDBY EQUITY PURCHASE AGREEMENT
DEFINITIONS
“Additional Shares”
shall have the meaning set forth in Section 3.03.
“Adjusted Advance Amount”
shall have the meaning set forth in Section 3.03.
“Advance”
shall mean any issuance and sale of Advance Shares by the Company to the Investor pursuant to this Agreement.
“Advance Date”
shall mean the first Trading Day after expiration of the applicable Pricing Period for each Advance, provided that, with respect to an
Advance pursuant to an Investor Notice, the Advance Date shall be the first Trading Day after the date of delivery of such Investor Notice.
“Advance Notice”
shall mean a written notice in the form of Exhibit C attached hereto to the Investor executed by an officer of the Company and
setting forth the number of Advance Shares that the Company desires to issue and sell to the Investor.
“Advance Notice Date”
shall mean each date the Company is deemed to have delivered (in accordance with Section 3.01(c) of this Agreement) an Advance
Notice to the Investor, subject to the terms of this Agreement.
“Advance Shares”
shall mean the Ordinary Shares that the Company shall issue and sell to the Investor pursuant to the terms of this Agreement.
“Agreement”
shall have the meaning set forth in the preamble of this Agreement.
“Amortization Event”
shall have the meaning set forth in the Promissory Note.
“Applicable Laws”
shall mean, with respect to any Person, all applicable laws, statutes, rules, regulations, orders, executive orders, directives, policies,
guidelines and codes having the force of law, whether local, national, or international, as amended from time to time, that are binding
upon or applicable to such Person or any of such Person’s assets, rights or properties, including without limitation (i) all applicable
laws that relate to money laundering, terrorist financing, financial record keeping and reporting, (ii) all applicable laws that relate
to anti-bribery, anti-corruption, books and records and internal controls, including the United States Foreign Corrupt Practices Act of
1977, and (iii) any Sanctions laws.
“Black Out Period”
shall have the meaning set forth in Section 7.01.
“Closing”
shall have the meaning set forth in Section 3.05.
“Commitment Amount”
shall mean $50,000,000 of Ordinary Shares.
“Commitment Fee”
shall have the meaning set forth in Section 12.04.
“Commitment Shares”
shall have the meaning set forth in Section 12.04.
“Commitment Period”
shall mean the period commencing on the Effective Date and expiring upon the date of termination of this Agreement in accordance with
Section 10.01.
“Common Share Equivalents”
shall mean any securities of the Company or its Subsidiaries which entitle the holder thereof to acquire at any time Ordinary Shares,
including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares.
“Ordinary Shares”
shall have the meaning set forth in the recitals of this Agreement.
“Company”
shall have the meaning set forth in the preamble of this Agreement.
“Company Indemnitees”
shall have the meaning set forth in Section 6.02.
“Condition Satisfaction
Date” shall have the meaning set forth in Annex III.
“Conversion Price”
shall have the meaning set forth in the Promissory Note.
“Daily Traded Amount”
shall mean the daily trading volume of the Company’s Ordinary Shares on the Principal Market during regular trading hours as reported
by Bloomberg L.P.
“Effective Date”
shall mean the date hereof.
“Environmental Laws”
shall have the meaning set forth in Section 5.14.
“Event of Default”
shall have the meaning set forth in the Promissory Note.
“Exchange Act”
shall mean the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“Excluded Day”
shall have the meaning set forth in Section 3.03.
“Fixed Price”
shall have the meaning set forth in the Promissory Note.
“Floor Price”
shall have the meaning set forth in each Promissory Note.
“Global Guaranty Agreement”
shall mean the global guaranty agreement in the form attached hereto as Exhibit F.
“Hazardous Materials”
shall have the meaning set forth in Section 5.14.
“Indemnified Liabilities”
shall have the meaning set forth in Section 6.01.
“Investor”
shall have the meaning set forth in the preamble of this Agreement.
“Investor Notice”
shall mean a written notice to the Company in the form set forth herein as Exhibit E attached hereto.
“Investor Indemnitees”
shall have the meaning set forth in Section 6.01.
“Market Price”
shall mean the lowest daily VWAP of the Ordinary Shares during the Pricing Period, other than the daily VWAP on an Excluded Day.
“Material Adverse Effect”
shall mean any fact, event, occurrence or condition that has had or would reasonably be expected to have, individually or in the aggregate,
(i) a material adverse effect on the legality, validity or enforceability of this Agreement or the transactions contemplated herein, (ii)
a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and its
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect and
on a timely basis its obligations under this Agreement.
“Material Outside Event”
shall have the meaning set forth in Section 7.10.
“Maximum Advance Amount”
means (A) in respect of each Advance Notice delivered by the Company pursuant to Section 3.01(a) of this Agreement, an amount equal to
one hundred percent (100%) of the average of the Daily Traded Amount during the five (5) consecutive Trading Day immediately preceding
an Advance Notice, and (B) in respect of each Advance Notice deemed delivered by the Company pursuant to an Investor Notice, the amount
selected by the Investor in such Investor Notice, which amount shall not exceed the limitations set forth in Section 3.01(b) of this Agreement.
“Minimum Acceptable
Price” shall mean the minimum price notified by the Company to the Investor in each Advance Notice, if applicable.
“OFAC” shall have
the meaning set forth in Section 5.31.
“Original Issue Discount”
shall have the meaning set forth in Section 2.02.
“Ownership Limitation”
shall have the meaning set forth in Section 3.02(a).
“Person”
shall mean an individual, a corporation, a partnership, a limited liability company, a trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.
“Plan of Distribution”
shall mean the section of a Registration Statement disclosing the plan of distribution of the Shares.
“Pre-Advance
Closing” shall have the meaning set forth in Section 2.01.
“Pre-Paid
Advance” shall mean have the meaning set forth in Section 2.01.
“Pricing Period”
shall mean the three (3) consecutive Trading Days commencing on the Advance Notice Date.
“Principal Market”
shall mean The Nasdaq Stock Market; provided however, that in the event the Ordinary Shares are ever listed or traded on the New York
Stock Exchange, or the NYSE American, then the “Principal Market” shall mean such other market or exchange on which the Ordinary
Shares are then listed or traded to the extent such other market or exchange is the principal trading market or exchange for the Ordinary
Shares.
“Promissory Note”
shall have the meaning set forth in Section 2.01.
“Prospectus”
shall mean any prospectus (including, without limitation, all amendments and supplements thereto) used by the Company in connection with
a Registration Statement, including documents incorporated by reference therein.
“Prospectus Supplement”
shall mean any prospectus supplement to a Prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act, including documents
incorporated by reference therein.
“Purchase Price”
shall mean (i) the price per Advance Share obtained by multiplying the Market Price by 85% in respect of an Advance Notice delivered by
the Company, or (ii) in the case of any Advance Notice delivered pursuant to an Investor Notice, the Purchase Price set forth in Section
3.01(b)(ii).
“Registration Limitation”
shall have the meaning set forth in Section 3.02(b).
“Registration Statement”
shall have the meaning set forth in the Registration Rights Agreement.
“Registrable Securities”
shall have the meaning set forth in the Registration Rights Agreement.
“Regulation D”
shall mean the provisions of Regulation D promulgated under the Securities Act.
“Sanctions”
shall have the meaning set forth in Section 5.31.
“Sanctioned Countries”
shall have the meaning set forth in Section 5.31.
“SEC” shall
mean the U.S. Securities and Exchange Commission.
“SEC Documents”
shall mean (1) any registration statement on Form F-1 or Form F-3 filed by the Company with the SEC, including the financial statements,
schedules, exhibits and all other documents filed as a part thereof or incorporated therein and all information deemed to be a part thereof
as of the effective date of such registration statement under the Securities Act, (2) any prospectus filed by the Company with the SEC,
including all documents incorporated or deemed incorporated therein by reference, whether or not included in a registration statement
on Form F-1 or Form F-3, in the form in which such prospectus has most recently been filed with the SEC pursuant to Rule 424(b) under
the Securities Act, (3) all reports, schedules, registrations, forms, statements, information and other documents filed with or furnished
to the SEC by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act during the two (2) years prior to the date
hereof, including, without limitation, the Current Report, (4) each Registration Statement, as the same may be amended from time to time,
the Prospectus contained therein and each Prospectus Supplement thereto and (5) all information contained in such filings and all documents
and disclosures that have been and heretofore shall be incorporated by reference therein.
“Securities Act”
shall have the meaning set forth in the recitals of this Agreement.
“Settlement Document”
in respect of an Advance Notice delivered by the Company, shall mean a settlement document in the form set out on Exhibit D, and
in respect of an Advance Notice deemed delivered pursuant to an Investor Notice, shall mean the Investor Notice containing the information
set forth on Exhibit E.
“Shares”
shall mean the Commitment Shares and the Ordinary Shares to be issued from time to time hereunder pursuant to an Advance or in connection
with a Pre-Paid Advance.
“Solvent”
shall mean, as to any Person as of any date of determination, that on such date (a) the fair value of the property of such Person is greater
than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of such Person
is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and
matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in a business or a transaction, and is not
about to engage in a business or a transaction, for which such Person’s property would constitute an unreasonably small capital.
The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Subsidiaries”
shall mean any Person in which the Company, directly or indirectly, (x) owns a majority of the outstanding capital stock or holds a majority
of the equity or similar interests of such Person or (y) controls or operates (by contract or otherwise) all or substantially all of the
business, operations or administration of such Person, and the foregoing are collectively referred to herein as “Subsidiaries.”
“Trading Day”
shall mean any day during which the Principal Market shall be open for business.
“Transaction Documents”
means, collectively, this Agreement, the Registration Rights Agreement, any Promissory Notes issued by the Company hereunder, and each
of the other agreements and instruments entered into or delivered by any of the Parties in connection with the transactions contemplated
hereby and thereby, as may be amended from time to time.
“Variable Rate Transaction”
shall mean a transaction in which the Company (i) issues or sells any Ordinary Shares or Common Share Equivalents that are convertible
into, exchangeable or exercisable for, or include the right to receive additional Ordinary Shares either (A) at a conversion price, exercise
price, exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the Ordinary Shares
at any time after the initial issuance of Ordinary Shares or Common Share Equivalents, or (B) with a conversion, exercise or exchange
price that is subject to being reset at some future date after the initial issuance of such equity or debt security or upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Ordinary Shares
(including, without limitation, any “full ratchet,” “share ratchet,” “price ratchet,” or “weighted
average” anti-dilution provisions, but not including any standard anti-dilution protection for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction), (ii) enters into, or effects a transaction under, any agreement, including
but not limited to an “equity line of credit” or other continuous offering or similar offering of Ordinary Shares or Common
Share Equivalents, (iii) issues or sells any Ordinary Shares or Common Share Equivalents (or any combination thereof) at an implied discount
(taking into account all the securities issuable in such offering) to the market price of the Ordinary Shares at the time of the offering
in excess of 30% or (iv) enters into or effects any forward purchase agreement, equity pre-paid forward transaction or other similar offering
of securities where the purchaser of securities of the Company receives an upfront or periodic payment of all, or a portion of, the value
of the securities so purchased, and the Company receives proceeds from such purchaser based on a price or value that varies with the trading
prices of the Ordinary Shares.
“VWAP” shall
mean for any Trading Day or specified period, the daily volume weighted average price of the Ordinary Shares for such Trading Day on the
Principal Market during regular trading hours, or such specified period, as reported by Bloomberg L.P through its “AQR” function.
All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or other
similar transaction during such period.
ANNEX II TO THE
STANDBY EQUITY PURCHASE AGREEMENT
CONDITIONS PRECEDENT TO THE INVESTOR’S
OBLIGATION TO FUND A PRE-PAID ADVANCE
The obligation of the Investor
to advance to the Company a Pre-Paid Advance hereunder at each Pre-Advance Closing is subject to the satisfaction, as of the date of such
Pre-Advance Closing, of each of the following conditions, provided that these conditions are for the Investor’s sole benefit and
may be waived by the Investor at any time in its sole discretion by providing the Company with prior written notice thereof:
| (a) | The Company shall have duly executed and delivered to the
Investor each of the Transaction Documents to which it is a party and the Company shall have duly executed and delivered to the Investor
a Promissory Note with a principal amount corresponding to the amount of the applicable Pre-Paid Advance (before any deductions made
thereto). |
| (b) | The Company shall have delivered to the Investor a compliance
certificate executed by the chief executive officer of the Company certifying that Company has complied with all of the conditions precedent
to the Pre-Advance Closing set forth herein and which may be relied upon by the Investor as evidence of satisfaction of such conditions
without any obligation to independently verify. |
| (c) | The Investor shall have received an opinion of counsel to
the Company, dated on or before the Pre-Advance Closing Date, in a form reasonably acceptable to the Investor. |
| (d) | The Investor shall have received a closing statement in a
form to be agreed by the Parties, duly executed by an officer of the Company, setting forth wire transfer instructions of the Company
for the payment of the amount of the Pre-Paid Advance, the amount to be paid by the Investor, which shall be the full principal amount
of the Pre-Paid Advance, less the Original Issue Discount and any other deductions that may be agreed by the Parties. |
| (e) | The Company shall have delivered to the Investor certified
copies of its and each of its Subsidiaries’ charter, shareholder or operating agreements and all other organizational documents. |
| (f) | The Company shall have delivered to the Investor a certificate
evidencing the incorporation and good standing of the Company as of a date within ten (10) days of the Pre-Advance Closing date. |
| (g) | The board of directors of the Company shall have approved
the transactions contemplated by the Transaction Documents, such approval shall not have been amended, rescinded or modified and shall
remain in full force and effect as of the date hereof and such Pre-Advance Closing Date, and a true, correct and complete copy of such
approval shall have been provided to the Investor. |
| (h) | Each and every representation and warranty of the Company
shall be true and correct in all material respects (other than representations and warranties qualified by materiality, which shall be
true and correct in all respects) as of the date when made and as of the applicable Pre-Advance Closing Date as though originally made
at that time (except for representations and warranties that speak only as of a specific date or time, which shall be true and correct
as of such specific date or time) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements
and conditions set forth in each Transaction Document required to be performed, satisfied or complied with by the Company at or prior
to such Pre-Advance Closing. |
| (i) | No Suspension of Trading in or Delisting of Ordinary Shares.
Trading in the Ordinary Shares shall not have been suspended by the SEC, the Principal Market or FINRA, the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Ordinary Shares on the Principal Market shall be terminated
on a date certain (unless, prior to such date certain, the Ordinary Shares is listed or quoted on any subsequent Principal Market), nor
shall there have been imposed any suspension of, or restriction on, accepting additional deposits of the Ordinary Shares, electronic
trading or book-entry services by DTC with respect to the Ordinary Shares that is continuing, and the Company shall not have received
any notice from DTC to the effect that a suspension of, or restriction on, accepting additional deposits of the Ordinary Shares, electronic
trading or book-entry services by DTC with respect to the Ordinary Shares is being imposed or is contemplated. |
| (j) | The Company shall have obtained all governmental, regulatory
or third-party consents and approvals, if any, necessary for the sale of the Ordinary Shares under the Transaction Documents. |
| (k) | No statute, rule, regulation, executive order, decree, ruling
or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental entity of competent jurisdiction
that prohibits the consummation of any of the transactions contemplated by the Transaction Documents. |
| (l) | Since the date of execution of this Agreement, no fact, occurrence,
event or condition, or series thereof, shall have occurred that has, individually or in the aggregate, resulted in or would reasonably
be expected to result in a Material Adverse Effect or an Event of Default. |
| (m) | No material breach of this Agreement or any Transaction Document
shall have occurred (or any fact or occurrence that with the passage of time or the giving of notice, or both, would constitute a material
breach of this Agreement or any Transaction Document) and no Event of Default shall have occurred (assuming that the Promissory Note
had been outstanding as of each Pre-Advance Closing (or any fact or occurrence that with the passage of time or the giving of notice,
of both, would constitute an Event of Default). |
| (n) | The Company shall have notified the Principal Market of the
issuance of all of the Shares hereunder, the Principal Market shall have completed its review of the related Listing of Additional Share
form and the Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be) the
maximum number of Ordinary Shares issuable pursuant to the Promissory Note to be issued at the Pre-Advance Closing. |
| (o) | The Company and its Subsidiaries shall have delivered to
the Investor such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as the Investor
or its counsel may reasonably request. |
| (p) | Solely with respect to the First Pre-Advance Closing, the
First Pre-Advance Closing shall have taken place within 30 days of the date hereof. |
| (q) | Solely with respect to the Second Pre-Advance Closing, (i)
the First Pre-Advance Closing shall have taken place in accordance with the terms hereof and (ii) the Registration Statement shall be
filed in accordance with the provisions set forth in the Registration Rights Agreement, including the filing deadline set forth therein. |
| (r) | Solely with respect to the Third Pre-Advance Closing, (i)
the Second Pre-Advance Closing shall have taken place in accordance with the terms hereof and (ii) the Registration Statement shall be
effective in accordance with the provisions set forth in the Registration Rights Agreement, including the effectiveness deadline set
forth therein. |
| (s) | Solely with respect to the Fourth Pre-Advance Closing, (i)
the Third Pre-Advance Closing shall have taken place in accordance with the terms hereof and (ii) the Investor and the Company shall
have mutually consented to the Fourth Pre-Advance Closing. |
ANNEX III TO THE
STANDBY EQUITY PURCHASE AGREEMENT
CONDITIONS PRECEDENT TO THE RIGHT OF THE
COMPANY TO DELIVER AN ADVANCE NOTICE
The right of the Company to
deliver an Advance Notice and the obligations of the Investor hereunder with respect to an Advance are subject to the satisfaction or
waiver, on each Advance Notice Date (a “Condition Satisfaction Date”), of each of the following conditions:
| (a) | Accuracy of the Company’s Representations and Warranties.
Each and every representation and warranty of the Company shall be true and correct in all material respects (other than representations
and warranties qualified by materiality, which shall be true and correct in all respects) as of the date when made and as of the applicable
Condition Satisfaction Date as though originally made at that time (except for representations and warranties that speak only as of a
specific date or time, which shall be true and correct as of such specific date or time). |
| (b) | Issuance of Commitment Shares. The Company
shall have paid the Commitment Fee or issued the Commitment Shares to an account designated by the Investor on or prior to the Effective
Deadline (as defined in the Registration Rights Agreement), in accordance with Section 12.04, all of which Commitment Fee shall
be fully earned and non-refundable as of the Effective Date, regardless of whether any Advance Notices are made or settled hereunder
or any subsequent termination of this Agreement. |
| (c) | Registration of the Ordinary Shares with the SEC.
There is an effective Registration Statement pursuant to which the Investor is permitted to utilize the prospectus thereunder to resell
all of the Ordinary Shares issuable pursuant to such Advance Notice. The Current Report shall have been filed with the SEC and the Company
shall have filed with the SEC in a timely manner all reports, notices and other documents required under the Exchange Act and applicable
SEC regulations during the twelve-month period immediately preceding the applicable Condition Satisfaction Date. |
| (d) | Authority. The Company shall have obtained all permits
and qualifications required by any applicable state for the offer and sale of all the Ordinary Shares issuable pursuant to such Advance
Notice or shall have the availability of exemptions therefrom. The sale and issuance of such Ordinary Shares shall be legally permitted
by all laws and regulations to which the Company is subject. |
| (e) | Board. The board of directors of the Company shall
have approved the transactions contemplated by the Transaction Documents, such approval shall not have been amended, rescinded or modified
and shall remain in full force and effect as of the Effective Date and such Condition Satisfaction Date, and a true, correct and complete
copy of such approval shall have been provided to the Investor. |
| (f) | No Material Outside Event; No MAE. No Material Outside Event or Material Adverse Effect shall have
occurred and be continuing. |
| (g) | Performance by the Company. The Company shall have
performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Company at or prior the applicable Condition Satisfaction Date. |
| (h) | No Injunction. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority
of competent jurisdiction that prohibits or directly, materially and adversely affects any of the transactions contemplated by this Agreement. |
| (i) | No Suspension of Trading in or Delisting of Ordinary Shares.
Trading in the Ordinary Shares shall not have been suspended by the SEC, the Principal Market or FINRA, the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Ordinary Shares on the Principal Market shall be terminated
on a date certain (unless, prior to such date certain, the Ordinary Shares is listed or quoted on any subsequent Principal Market), nor
shall there have been imposed any suspension of, or restriction on, accepting additional deposits of the Ordinary Shares, electronic
trading or book-entry services by DTC with respect to the Ordinary Shares that is continuing, the Company shall not have received any
notice from DTC to the effect that a suspension of, or restriction on, accepting additional deposits of the Ordinary Shares, electronic
trading or book-entry services by DTC with respect to the Ordinary Shares is being imposed or is contemplated. |
| (j) | Authorized. All of the Shares issuable pursuant to
the applicable Advance Notice shall have been duly authorized by all necessary corporate action of the Company. All Shares relating to
all prior Advance Notices required to have been received by the Investor under this Agreement shall have been delivered to the Investor
in accordance with this Agreement. |
| (k) | Executed Advance Notice. The representations contained
in the applicable Advance Notice shall be true and correct in all material respects as of the applicable Condition Satisfaction Date. |
EXHIBIT A
REGISTRATION RIGHTS AGREMEENT
EXHIBIT B
CONVERTIBLE PROMISSORY NOTE
EXHIBIT C
ADVANCE NOTICE
| Dated: ______________ |
Advance Notice Number: ____ |
The
undersigned, _______________________, hereby certifies, with respect to the sale of Ordinary Shares of
BAIJIAYUN GROUP LTD (the “Company”) issuable in connection with this Advance Notice, delivered pursuant to that
certain Standby Equity Purchase Agreement, dated as of December 6, 2024 (the “Agreement”), as follows (with capitalized
terms used herein without definition having the same meanings as given to them in the Agreement):
1. The
undersigned is the duly elected ______________ of the Company.
2. There
are no fundamental changes to the information set forth in the Registration Statement which would require the Company to file a post-effective
amendment to the Registration Statement.
3. The
Company has performed all covenants and agreements to be performed by the Company contained in this Agreement on or prior to the Advance
Notice Date. All conditions to the delivery of this Advance Notice are satisfied as of the date hereof.
4. The
number of Advance Shares the Company is requesting is _____________________.
6. The
Minimum Acceptable Price with respect to this Advance Notice is____________ (if left blank then no Minimum Acceptable Price will be applicable
to this Advance).
7. The
number of Ordinary Shares of the Company outstanding as of the date hereof is ___________.
The undersigned has executed
this Advance Notice as of the date first set forth above.
| |
BAIJIAYUN GROUP LTD |
| |
|
|
| |
By: |
|
| |
Name: |
|
| |
Title: |
|
Please deliver this Advance Notice by email to:
Email: Trading@yorkvilleadvisors.com
Attention: Trading Department
and Compliance Officer
Confirmation Telephone Number:
(201) 985-8300.
EXHIBIT D
SETTLEMENT DOCUMENT
VIA EMAIL
BAIJIAYUN GROUP LTD
Attn:
Email:
| |
Below please find the settlement information with respect to the Advance Notice Date of: |
|
| 1. |
Number of Ordinary Shares requested in the Advance Notice |
|
| 2. |
Minimum Acceptable Price for this Advance (if any) |
|
| 3. |
Number of Excluded Days (if any) |
|
| 4. |
Adjusted Advance Amount (if applicable) |
|
| 5. |
Market Price |
|
| 6. |
Purchase Price (Market Price x 85%) per share |
|
| 7. |
Number of Advance Shares due to the Investor |
|
| 8. |
Total Purchase Price due to Company (row 6 x row 7) |
|
If there were any Excluded
Days then add the following
| 9. |
Number of Additional Shares to be issued to the Investor |
|
| 10. |
Additional amount to be paid to the Company by the Investor (Additional Shares in row 9 x Minimum Acceptable Price x 97%) |
|
| 11. |
Total Amount to be paid to the Company (Purchase Price in row 8 + additional amount in row 10) |
|
| 12. |
Total Advance Shares to be issued to the Investor (Advance Shares due to the Investor in row 7 + Additional Shares in row 9) |
|
Please issue the number of Advance Shares due to the Investor to the account of the Investor as follows:
Investor’s
DTC participant #:
ACCOUNT NAME:
ACCOUNT NUMBER:
ADDRESS:
CITY:
COUNTRY:
Contact person:
Number and/or email:
| |
Sincerely,
|
| |
|
| |
YA II PN, LTD. |
Agreed and approved By: BAIJIAYUN GROUP LTD:
EXHIBIT E
INVESTOR NOTICE,
CORRESPONDING ADVANCE NOTICE,
AND SETTLEMENT DOCUMENT
YA II PN, LTD.
| Dated: ______________ |
Investor Notice Number: ____ |
On behalf of YA II PN, LTD.
(the “Investor”), the undersigned hereby certifies, with respect to the purchase of Ordinary Shares of BAIJIAYUN
GROUP LTD (the “Company”) issuable in connection with this Investor Notice, delivered pursuant to that certain
Standby Equity Purchase Agreement, dated as of December 6, 2024, as amended and supplemented from time to time (the “Agreement”),
as follows:
| 1. |
Advance requested in the Advance Notice |
|
| 2. |
Purchase Price (equal to the Conversion Price as defined in the Promissory Note) |
|
| 3. |
Number of Shares due to Investor |
|
The aggregate purchase price
of the Shares to be paid by Investor pursuant to this Investor Notice and corresponding Advance Notice shall be offset against amounts
outstanding under the Pre-Paid Advance evidenced by the Promissory Note dated [___________] (first towards accrued and unpaid interest,
and then towards outstanding principal) as follows (and this information shall satisfy the obligations of the Investor to deliver a Settlement
Document pursuant to the Agreement):
| 1. |
Amount offset against accrued and unpaid Interest |
$[____________] |
| 2. |
Amount offset against Principal |
$[____________] |
| 3. |
Total amount of the Promissory Note outstanding following the Advance |
$[____________] |
Please issue the number of Shares
due to the Investor to the account of the Investor as follows:
Investor’s
DTC participant #:
ACCOUNT NAME:
ACCOUNT NUMBER:
ADDRESS:
CITY:
Please deliver this Investor Notice by email to:
Email: liufangfei@baijiayun.com;
zhangxin@baijiayun.com; yinyuan@baijiayun.com
With copy by email to: mayi@baijiayun.com
Attention: Fangfei Liu
The undersigned has executed this Investor Notice as of the date first
set forth above.
| YA II PN, Ltd. |
|
| |
|
|
| By: |
Yorkville Advisors Global, LP |
|
| Its: |
Investment Manager |
|
| |
|
|
|
| |
By: |
Yorkville Advisors Global II, LLC |
|
| |
Its: |
General Partner |
|
| |
|
|
|
| |
By: |
|
|
| |
Name: |
|
|
| |
Title: |
|
|
EXHIBIT F
FORM OF GLOBAL GUARANTY AGREEMENT
Exhibit 10.2
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) dated as of December 6, 2024 is made by and between YA II PN, LTD., a Cayman Islands
exempt limited company (the “Investor”), and BAIJIAYUN GROUP LTD, an exempted company incorporated under the laws of
the Cayman Islands (the “Company”). The Investor and the Company may be referred to herein individually as a “Party”
and collectively as the “Parties.”
WHEREAS, the Company
and the Investor have entered into that certain Standby Equity Purchase Agreement, dated as of the date hereof (the “Purchase
Agreement”), pursuant to which the Company may issue, from time to time, to the Investor up to $50 million of newly issued Class
A Ordinary Shares of the Company, par value $0.0001 per share (the “Ordinary Shares”); and
WHEREAS, pursuant to
the terms of, and in consideration for the Investor entering into, the Purchase Agreement, and to induce the Investor to execute and deliver
the Purchase Agreement, the Company has agreed to provide the Investor with certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities Act”).
AGREEMENT
NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investor hereby agree as follows:
1.
DEFINITIONS.
Capitalized terms used herein
and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:
(a)
“Business Day” shall mean any day on which The Nasdaq Stock Market is open for trading, other than any day on
which commercial banks are authorized or required to be closed in New York City.
(b)
“Effectiveness Deadline” means, with respect to the initial Registration Statement filed hereunder, the 90th
calendar day following the date hereof, provided, however, in the event the Company is notified by the SEC that the Registration Statement
will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such Registration Statement
shall be the fifth Business Day following the date on which the Company is so notified if such date precedes the date required above.
(c)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.
(d)
“Filing Deadline” means, with respect to the initial Registration Statement required hereunder, the 30th
calendar day following date hereof.
(e)
“Person” means a corporation, a limited liability company, an association, a partnership, an organization, a
business, an individual, a governmental or political subdivision thereof or a governmental agency.
(f)
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of
the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.
(g)
“Registrable Securities” means all of (i) the Shares (as defined in the Purchase Agreement) and (ii) any capital
stock issued or issuable with respect to the Shares, including, without limitation, (1) as a result of any stock split, stock dividend
or other distribution, recapitalization or similar event or otherwise, and (2) shares of capital stock of the Company into which the Common
Shares are converted or exchanged and shares of capital stock of a successor entity into which the Common Shares are converted or exchanged,
provided, however, that any such Registrable Securities shall cease to be Registrable Securities for all purposes hereunder upon the earliest
to occur of the following: (A) the sale by any Holder of such Registrable Securities to the public either pursuant to a Registration Statement
or under Rule 144 (in which case, only such Registrable Securities sold shall cease to be Registrable Securities) or (B) such Registrable
Securities becoming eligible for sale by the Holder pursuant to Rule 144 without volume or manner-of-sale restrictions and without the
requirement for current public information pursuant to Rule 144.
(h)
“Registration Statement” means any registration statement of the Company filed pursuant to this Agreement, including
the Prospectus, amendments and supplements to such registration statement or Prospectus, including post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.
(i)
“Required Registration Amount” means (i) with respect to the initial Registration Statement, at least 4,324,325
Oridnary Shares issued or to be issued upon pursuant to the Purchase Agreement and the 54,055 Commitment Shares, and (ii) with respect
to subsequent Registration Statements, such number of Ordinary Shares as requested by the Investor not to exceed 300% of the maximum number
of Ordinary Shares issuable upon conversion of all Promissory Notes then outstanding (assuming for purposes hereof that (x) such Promissory
Notes are convertible at the Conversion Price (as defined in the Promissory Notes) in effect as of the date of determination, and (y)
any such conversion shall not take into account any limitations on the conversion of the Promissory Notes set forth therein), in each
case subject to any cutback set forth in Section 2(e).
(j)
“Rule 144” means Rule 144 under the Securities Act or any successor rule thereto.
(k)
“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as
such Rule.
(l)
“SEC” means the Securities and Exchange Commission or any other federal agency administering the Securities
Act and the Exchange Act at the time.
(m)
“Securities Act” shall have the meaning set forth in the Recitals above.
2.
REGISTRATION.
(a)
The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration Statements,
obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of any Registration Statement that has been
declared effective shall begin on the date hereof and continue until all the earlier of (i) the date on which the Investor has sold all
of the Registrable Securities and (ii) the date of termination of the Purchase Agreement if as of such termination date the Investor holds
no Registrable Securities (the “Registration Period”).
(b)
Subject to the terms and conditions of this Agreement, the Company shall (i) as soon as practicable, but in no case later than
the Filing Deadline, prepare and file with the SEC an initial Registration Statement on Form F-3 (or, if the Company is not then eligible,
on Form F-1) or any successor form thereto covering the resale by the Investor of the Required Registration Amount in accordance with
applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor under
Rule 415 at then prevailing market prices (and not fixed prices). The Registration Statement shall contain “Selling Shareholders”
and “Plan of Distribution” sections. The Company shall use its best efforts to have the Registration Statement declared
effective by the SEC as soon as practicable, but in no event later than the Effectiveness Deadline. By 9:30 am on the business day following
the date of effectiveness, the Company shall file with the SEC in accordance with Rule 424 under the Securities Act the final Prospectus
to be used in connection with sales pursuant to such Registration Statement. Prior to the filing of the Registration Statement with the
SEC, the Company shall furnish a draft of the Registration Statement to the Investor for their review and comment. Notwithstanding any
other provision of this Agreement, upon written comments from the staff of the SEC that object to the sales of the Registrable Securities
to be registered on a particular Registration Statement as a secondary offering (following the Company’s diligent efforts to advocate
with the SEC for the position of a secondary offering), the Company shall file a new Registration Statement registering the sales of the
Resgirable Securities in form mutullay agreed between the Company and the Holder, subject to any determination by the SEC.
(c)
Sufficient Number of Shares Registered. If at any time all Registrable Securities are not covered by a Registration Statement
filed pursuant to Section 2(a) as a result of Section 2(e) or otherwise, the Company shall use its commercially reasonable efforts to
file with the SEC one (1) or more additional Registration Statements so as to cover all of the Registrable Securities not covered by such initial Registration
Statement, in each case as soon as practicable (taking into account any position of the staff of the SEC with respect to the date on which
the Staff will permit such additional Registration Statement(s) to be filed with the SEC and the rules and regulations of the SEC). The
Company shall use its commercially reasonable efforts to cause each such new Registration Statement to become effective as soon as reasonably
practicable following the filling thereof with the SEC.
(d)
During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration Statement, which Prospectus
is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective
at all times during the Registration Period, (ii) prepare and file with the SEC additional Registration Statements in order to register
for resale under the Securities Act all of the Registrable Securities; (iii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented or amended to be filed pursuant
to Rule 424; (iv) respond as promptly as reasonably possible to any comments received from the SEC with respect to a Registration Statement
or any amendment thereto and as promptly as reasonably possible provide the Investor true and complete copies of all correspondence from
and to the SEC relating to a Registration Statement (provided that the Company may excise any information contained therein which would
constitute material non-public information as to any Investor which has not executed a confidentiality agreement with the Company); and
(v) comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered
by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments
and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section
2(c)) by reason of the Company’s filing a report on Form 20-F, Form 6-K or any analogous report under the Exchange Act, the Company
shall incorporate such report by reference into the Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or supplement
the Registration Statement.
(e)
Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in
the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement
in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall reduce the number of
Registrable Securities to be included in such Registration Statement (after consultation with the Investor as to the specific Registrable
Securities to be removed therefrom) to the maximum number of securities as is permitted to be registered by the SEC. In the event of any
reduction in Registrable Securities pursuant to this paragraph, the Company shall use its commercially reasonable efforts to file one
(1) or more New Registration Statements with the Commission in accordance with Section 2(c) until such time as all Registrable Securities
have been included in Registration Statements that have been declared effective and the Prospectuses contained therein are available for
use by the Investor.
(f) Failure to File or Obtain Effectiveness of the Registration Statement or Remain Current. If: (i) a Registration Statement
is not filed on or prior to its Filing Date, or (ii) a Registration Statement is not declared effective on or prior to the Effectiveness
Deadline, or the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the Securities
Act, within five (5) Business Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the SEC that
a Registration Statement will not be “reviewed,” or not subject to further review, or (iii) after the effectiveness, a Registration
Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective,
or (iv) the Investor is not permitted to utilize the Prospectus therein to resell such Registrable Securities for more than 15 consecutive
Trading Days or more than an aggregate of 30 calendar days during any 12-month period (which need not be consecutive calendar days),
or (v) if after the date that is six (6) months from the date hereof, the Company does not have available adequate current public information
as set forth in Rule 144(c) (any such failure or breach being referred to as an “Event”), then in addition to any
other rights the Investor may have hereunder or under applicable law, such Event shall constitute a Registration Event (as defined in
the Promissory Notes), and the Company shall be in breach of the term and conditions of this Agreement and such Event shall be deemed
an Event of Default (as defined in the Promissory Notes) for so long as such Event remains uncured. During the period of the existence
of an uncured Event, the Investor shall have no obligation to accept an Advance Notice or accept or purchase any Advance Shares (other
than any Advance Shares purchased by the Investor prior to the occurrence of the Event).
(g)
Piggy-Back Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable
Securities and the Company proposes to register the offer and sale of any Common Shares under the Securities Act (other than a registration
(i) pursuant to a Registration Statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors
of the Company pursuant to any employee stock plan or other employee benefit arrangement), (ii) pursuant to a Registration Statement on
Form F-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), or
(iii) in connection with any dividend or distribution reinvestment or similar plan), whether for its own account or for the account of
one (1) or more stockholders of the Company and the form of Registration Statement to be used may be used for any registration of Registrable
Securities, the Company shall give prompt written notice (in any event no later than five (5) days prior to the filing of such Registration
Statement) to the holders of Registrable Securities of its intention to effect such a registration and, shall include in such registration
all Registrable Securities with respect to which the Company has received written requests for inclusion from the holders of Registrable
Securities; provided, however, that, the Company shall not be required to register any Registrable Securities pursuant to
this Section 2(g) that have been sold or may permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel
to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent.
(h)
No Inclusion of Other Securities. In no event shall the Company include any securities other than Registrable Securities
on any Registration Statement pursuant to Section 2(a) or Section 2(c) without the Investor’s prior written consent.
3.
RELATED OBLIGATIONS.
(a)
The Company shall, not less than three (3) Business Days prior to the filing of each Registration Statement and not less than
one (1) Business Day prior to the filing of any related amendments and supplements to all Registration Statements (except for annual reports
on Form 20-F, supplements and amendments to update the Registration Statement solely for information reflected in the Company’s
annual reports on Form 20-F or current reports on Form 6-K), furnish to each Investor copies of all such documents proposed to be filed,
which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt
review of such Investor. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which the Investor shall reasonably object in good faith; provided that, the Company is notified of such objection in writing
no later than two (2) Trading Days after the Investor have been so furnished copies of a Registration Statement.
(b)
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge
(i) at least one (1) copy (which may be in electronic form) of such Registration Statement as declared effective by the SEC and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, all exhibits and each preliminary
prospectus, (ii) at least one (1) copy (which may be in electronic form) of the final prospectus included in such Registration Statement
and all amendments and supplements thereto, and (iii) any documents, which are not publicly available through EDGAR, as such Investor
may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor.
(c)
The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor reasonably requests,
(ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions
as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto to (w) make any change to its articles
of incorporation or by-laws, (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(c), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify each Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale
under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.
(d)
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing
of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an
untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading (provided that in no
event shall such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission and deliver one (1) electronic copy of such supplement or amendment to the Investor.
The Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to each Investor by email on the same day of such effectiveness), (ii) of any request by the SEC for amendments or
supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate. The Company shall respond as promptly
as reasonably practicable to any comments received from the SEC with respect to a Registration Statement or any amendment thereto.
(e)
The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction within the United
States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution
thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.
(f)
Without limiting any obligation of the Company under the Purchase Agreement, the Company shall use its best efforts to cause all
of the Registrable Securities covered by each Registration Statement to be listed on the Principal Market. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section 3(f).
(g)
The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a material misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or
(iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or
by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow
the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order
for, such information.
(h)
The Company shall cooperate with the holders of the Registrable Securities to facilitate the timely preparation and delivery of
certificates representing the Registrable Securities to be sold pursuant to such Registration Statement or Rule 144 free of any restrictive
legends and representing such number of Common Shares and registered in such names as the holders of the Registrable Securities may reasonably
request prior to sales of Registrable Securities pursuant to such Registration Statement or Rule 144; provided, that the Company
may satisfy its obligations hereunder without issuing physical stock certificates through the use of The Depository Trust Company’s Direct
Registration System.
(i)
The Company shall use its best efforts to cause the Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities.
(j)
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.
(k)
Within two (2) Business Days after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor whose Registrable Securities are included in such Registration Statement) confirmation that such Registration
Statement has been declared effective by the SEC.
(l)
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of Registrable
Securities pursuant to a Registration Statement.
4.
OBLIGATIONS OF THE INVESTOR.
(a)
The Investor agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(d) the Investor shall as soon as reasonably practicable discontinue disposition of Registrable Securities pursuant to any Registration
Statement covering such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(d) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary
contained herein, subject to compliance with the securities laws, the Company shall cause its transfer agent to deliver unlegended certificates
for Common Shares to a transferee of the Investor in accordance with the terms of the Purchase Agreement in connection with any sale of
Registrable Securities with respect to which the Investor has entered into a contract for sale prior to the Investor’s receipt of
a notice from the Company of the happening of any event of the kind described in Section 3(d) and for which the Investor has not yet settled.
(b) The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.
(c)
The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by
the Company in connection with the preparation and filing of each Registration Statement hereunder, unless the Investor has notified the
Company in writing of the Investor’s election to exclude all of the Investor’s Registrable Securities from such Registration
Statement.
5.
EXPENSES OF REGISTRATION.
All expenses incurred by the
Company in complying with its obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable
Securities shall be paid by the Company, including, without limitation, all registration, listing and qualifications fees, printers, fees and expenses of the Company’s
counsel and accountants (except legal fees of Investor’s counsel associated with the review of the Registration Statement).
6.
INDEMNIFICATION.
With respect to Registrable
Securities which are included in a Registration Statement under this Agreement:
(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within the meaning
of the Securities Act or the Exchange Act (each, an “Investor Indemnified Person”), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint
or several (collectively, “Indemnified Damages”), incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or
other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto
(“Claims”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material
fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of
the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue
Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any final
prospectus (as amended or supplemented, if the Company files any amendment or supplement thereto with the SEC) or the omission or alleged
omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being,
collectively, “Violations”). The Company shall reimburse the Investor and each such Investor Indemnified Person promptly
as Indemnified Damages are incurred and are due and payable, including reasonable legal fees, disbursements and other expenses incurred
by an Investor Indemnified Person in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim arising out of or based
upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Investor
Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or
supplement thereto; (y) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to
be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section
3(c); and (z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of an Investor Indemnified Person.
(b)
In connection with a Registration Statement, the Investor agrees to indemnify, hold harmless and defend, to the same extent and
in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers, employees, representatives,
or agents and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each a “Company
Indemnified Person”), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities
Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or is based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs (i) in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with such Registration Statement or (ii) from the Investor’s
violation of any prospecuts delivery requirements under the Securities Act, the Exchange Act, any other law, including, without limitation,
any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to
a Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this
Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld,
conditioned or delayed; provided, further, however, that, other than in connection with fraud or gross negligence on the part of the Investor,
the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net
proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of such Company Indemnified Person. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any prospectus
shall not inure to the benefit of any Company Indemnified Person if the untrue statement or omission of material fact contained in the
prospectus was corrected and such new prospectus was delivered to the Investor prior to such Investor’s use of the prospectus to
which the Claim relates.
(c)
Promptly after receipt by an Investor Indemnified Person or Company Indemnified Person under this Section 6 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Investor Indemnified Person or Company
Indemnified Person shall, if indemnification in respect of such Claim is to be sought from any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate
in and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, assume control of
the defense thereof with counsel reasonably and mutually satisfactory to the indemnifying party and the Investor Indemnified Person or
the Company Indemnified Person, as the case may be; provided, however, that an Investor Indemnified Person or Company Indemnified Person
shall have the right to retain its own counsel with the fees and expenses of not more than one (1) counsel for such Investor Indemnified
Person or Company Indemnified Person to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Investor Indemnified Person or Company Indemnified
Person and the indemnifying party would be inappropriate due to actual or potential differing interests between such Investor Indemnified
Person or Company Indemnified Person and any other party represented by such counsel in such proceeding. The Investor Indemnified Person
or Company Indemnified Person shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of
any Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Investor Indemnified
Person or Company Indemnified Person which relates to such action or claim. The indemnifying party shall keep the Investor Indemnified
Person or Company Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect
thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written
consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying
party shall, without the prior written consent of the Investor Indemnified Person or Company Indemnified Person, as the case may be, which
consent shall not be unreasonably withheld, conditioned or delayed, 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 Investor Indemnified
Person or Company Indemnified Person of a full and unconditional release from all liability in respect to such claim or litigation. Following
indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Investor Indemnified Person
or Company Indemnified Person with respect to all third parties, firms or corporations relating to the Claim(s) for which indemnification
has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such
Claim shall not relieve such indemnifying party of any liability to the Investor Indemnified Person or Company Indemnified Person under
this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such Claim.
(d)
The indemnification required by this Section 6 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 Damages are incurred.
(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Investor
Indemnified Person or Company Indemnified Person against the indemnifying party or others and (ii) any liabilities the indemnifying party
may be subject to pursuant to the law.
7.
CONTRIBUTION.
To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation and
(ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.
8.
REPORTS UNDER THE EXCHANGE ACT.
With a view to making available
to the Investor the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation of the SEC that may at
any time permit the Investor to sell securities of the Company to the public without registration, and as a material inducement to the
Investor’s purchase of the Promissory Notes, the Company represents, warrants, and covenants to the following:
(a)
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has timely filed all required
reports under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the
issuer was required to file such reports), other than Form 6-K reports.
(b)
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or
15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Purchase Agreement)
and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.
(c)
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly
(if applicable) report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as
may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.
9.
AMENDMENT OF REGISTRATION RIGHTS.
Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Company and the Investor. Any amendment or waiver effected in accordance with this Section 9
shall be binding upon each of the Investor and the Company. No such amendment shall be effective to the extent that it applies to fewer
than all of the holders of the Registrable Securities. 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 this Agreement unless the same consideration also is offered to all of the parties
to this Agreement.
10. MISCELLANEOUS.
(a)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions, notices or elections
from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice
or election received from the registered owner of such Registrable Securities.
(b)
Neither this Agreement nor any rights or obligations of the Investor or the Company hereunder may be assigned to any other Person,
except for assignments by the Investor to any of its affiliates.
(c)
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 pursuant to the notice provisions of the Purchase Agreement or to such other address
and/or electronic mail 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) electronically generated by the sender’s email service provider containing
the time, date, and recipient email or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by email or receipt from a nationally recognized overnight delivery service in accordance with this section.
(d)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.
(e)
The laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investor as its
stockholder. All other 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 jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Supreme Court of the State of New York, sitting
in New York County, New York and federal courts for the Southern District of New York sitting New York, New York, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Each party 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. If any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement
in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(f)
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.
(g)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
(h)
This Agreement may be executed in identical counterparts, both of which shall be considered one (1) and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. Electronically scanned and delivered
signatures (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the
Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com), including by e-mail attachment, shall be deemed
to have been duly and validly delivered and be valid and effective for all purposes of this Agreement.
(i)
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 the 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.
(j)
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.
(k)
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.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF,
the Investor and the Company have caused their signature page to this Registration Rights Agreement to be duly executed as of the date
first above written.
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COMPANY: |
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COMPANY NAME INC. |
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By: |
/s/ Yi Ma |
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Name: |
Yi Ma |
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Title: |
Chairman and chief executive officer |
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INVESTOR: |
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YA II PN, Ltd. |
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|
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By: |
Yorkville Advisors Global, LP |
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Its: |
Investment Manager |
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|
|
| |
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By: |
Yorkville Advisors Global II, LLC |
| |
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Its: |
General Partner |
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|
| |
|
By: |
/s/ Matthew Beckman |
| |
|
Name: |
Matthew Beckman |
| |
|
Title: |
Manager |
14
Exhibit 99.1
Baijiayun Announces Up To $15 Million Convertible
Promissory Notes And $50 Million Standby Equity Purchase Agreement
BEIJING, Dec. 6, 2024 /PRNewswire/ -- Baijiayun
Group Ltd ("Baijiayun" or the "Company") (NASDAQ: RTC), a one-stop AI video solution provider, today announced that
it has entered into a Standby Equity Purchase Agreement (the “SEPA”), with YA II PN, Ltd. (“YA”), a fund managed
by Yorkville Advisors Global, LP. Subject to the terms and conditions set forth in the the SEPA, YA is committed to purchase up to $50
million (the “Commitment Amount”) of the Company’s Class A Ordinary Shares (the “Shares”) at any time during
the two-year period following the execution date of the SEPA, by delivering written notice to YA (an “Advance Notice”). Pursuant
to the SEPA, YA will advance to the Company, subject to the satisfaction of certain conditions as set forth therein, the principal amount
of up to $15 million (the “Pre-Paid Advance”), which will be evidenced by convertible promissory notes (the “Promissory
Notes”, together with the “SEPA”, the “Offering”) in four tranches. The first Pre-Advance, in the principal
amount of $3,000,000, was advanced December 6, 2024 in connection with the execution of the SEPA, and is subject to a 10% discount to
the principal amount of such Promissory Note.
If there is no balance outstanding under the Promissory
Notes, the Company will have sole discretion to sell the Shares to YA from time to time by issuing Advance Notices to YA following the
effectiveness of a registration statement with the U.S. Securities and Exchange Commission registering the Shares issuable pursuant to
the SEPA and the satisfaction of other customary conditions.
The Company intends to use the proceeds from the offering
of the Shares pursuant to the SEPA for working capital and other general corporate purposes.
The Company and the Investor have entered into a registration
rights agreement on the date hereof (the “Registration Rights Agreement”), pursuant to which the Company shall register the
resale of the Shares issuable pursuant to the SEPA.
The foregoing does not purport to be a complete description
of the rights and obligations of the parties to the SEPA, the Promissory Notes, the Registration Rights Agreement, or of the transactions
contemplated thereby and is qualified in its entirety by reference to such documents, the copies of which have been filed as exhibits
to the Company’s Current Report on Form 6-K on December 6, 2024.
D. Boral Capital LLC acted as the exclusive placement
agent for the Offering.
About Baijiayun Group Ltd
Baijiayun is a one-stop AI video solution provider
with core expertise in SaaS/PaaS solutions. Baijiayun is committed to delivering reliable, high-quality video experiences across devices
and localities and has grown rapidly since its inception in 2017. Premised on its industry-leading video-centric technologies, Baijiayun
offers a wealth of video-centric technology solutions, including Video SaaS/PaaS, Video Cloud and Software, and Video AI and System Solutions.
Baijiayun caters to the evolving communications and collaboration needs of enterprises of all sizes and industries. For more information,
please visit ir.baijiayun.com.
Safe Harbor Statement
This press release contains certain "forward-looking
statements." These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. Statements that are not historical facts, including statements about the parties' perspectives and expectations, are forward-looking
statements. The words "will," "expect," "believe," "estimate," "intend," and "plan"
and similar expressions indicate forward-looking statements.
Such forward-looking statements are inherently uncertain,
and shareholders and other potential investors must recognize that actual results may differ materially from the expectations as a result
of a variety of factors. Such forward-looking statements are based upon management's current expectations and include known and unknown
risks, uncertainties, and other factors, many of which are hard to predict or control, that may cause the actual results, performance,
or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. The
forward-looking information provided herein represents the Company's estimates as of the date of this press release, and subsequent events
and developments may cause the Company's estimates to change.
The Company specifically disclaims any obligation
to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing
the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
A further list and description of risks and uncertainties
can be found in the documents the Company has filed or furnished or may file or furnish with the U.S. Securities and Exchange Commission,
which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they
were made, and the Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the
date they were made except as required by law or applicable regulation.
For investor and media enquiries, please contact:
Company Contact:
Ms. Fangfei Liu
Chief Financial Officer, Baijiayun Group Ltd
Phone: +86 25 8222 1596
Email: ir@baijiayun.com
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