Debt Conversion Agreement (the “Agreement”) is entered into effective as of May 2, 2019 by and between Liu
Shu Juan (“Investor”) and Moxian, Inc., a Nevada corporation(the “Company”), with reference
to the following facts:
Investor has loaned certain funds to the Company totaling $5,032,760, of which $4,000,000 is described in the Loan Agreement
dated May 11, 2018 (the “Loan Agreement”), and $1,032,760 is in the form of unsecured advances to the
Investor has agreed to waive its right to a repayment of $4,272,760 of the amount owed by the Company and
The Company and Investor now desire to convert the remaining balance of $750,000 (the “Debt”) into shares
of Common Stock .
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Investor and the
Company agree as follows:
Conversion to Common Stock. Effective as of May 2, 2019, $750,000 of the Debt shall be converted into shares of Common
Stock at a price per share of $1.50 for an aggregate number of shares of 500,000. Upon execution of this Agreement, the Company
shall instruct its transfer agent to issue a total of 500,000 shares of Common Stock to the Investor, and the Investor shall acknowledge
the repayment of the entire amount under the Loan Agreement.
Investor Representations. The Company is issuing the Common Stock to Investor in reliance upon the following representations
made by Investor:
Investor acknowledges and agrees that the shares of Common Stock are characterized as “restricted securities” under
the Securities Act of 1933 (as amended and together with the rules and regulations promulgated thereunder, the “Securities
Act”) and that, under the Securities Act and applicable regulations thereunder, such securities may not be resold, pledged
or otherwise transferred without registration under the Securities Act or an exemption therefrom. Investor acknowledges and agrees
that (i) the shares of Common Stock are being offered in a transaction not involving any public offering in the United States
within the meaning of the Securities Act, and the shares of Common Stock have not yet been registered under the Securities Act,
and (ii) such shares of Common Stock may be offered, resold, pledged or otherwise transferred only in a transaction registered
under the Securities Act, or meeting the requirements of Rule 144, or in accordance with another exemption from the registration
requirements of the Securities Act (and based upon an opinion of counsel if the Company so requests) and in accordance with any
applicable securities laws of any State of the United States or any other applicable jurisdiction.
Investor acknowledges and agrees that (i) the registrar or transfer agent for the shares of Common Stock will not be required
to accept for registration of transfer any shares except upon presentation of evidence satisfactory to the Company that the restrictions
on transfer under the Securities Act have been complied with and (ii) any shares of Common Stock in the form of definitive physical
certificates will bear a restrictive legend.
Investor acknowledges and agrees that:
the shares of Common Stock have not been registered under the Securities Act, or under any state securities laws, and are being
offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering;
Investor is acquiring the shares of Common Stock solely for its own account for investment purposes, and not with a view to the
distribution thereof in a transaction that would violate the Securities Act or the securities laws of any State of the United
States or any other applicable jurisdiction;
Investor is a sophisticated purchaser with such knowledge and experience in business and financial matters that it is capable
of evaluating the merits and risks of purchasing the shares of Common Stock;
Investor has had the opportunity to obtain from the Company such information as desired in order to evaluate the merits and the
risks inherent in holding the shares of Common Stock;
Investor is able to bear the economic risk and lack of liquidity inherent in holding the shares of Common Stock;
Investor is an “accredited investor” within the meaning of Rule 501(a) under the Securities Act; and
Investor either has a pre-existing personal or business relationship with the Company or its officers, directors or controlling
persons, or by reason of Investor’s business or financial experience, or the business or financial experience of their professional
advisors who are unaffiliated with and who are not compensated by the Company, directly or indirectly, have the capacity to protect
their own interests in connection with the purchase of the Common Stock.
Investor’s investment in the Company pursuant to this Common Stock is consistent, in both nature and amount, with Investor’s
overall investment program and financial condition.
Investor’s principal residence is in the Peoples’ Republic of China.
This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada.
This Agreement constitutes the entire agreement between the parties and supersedes all prior oral or written negotiations and
agreements between the parties with respect to the subject matter hereof. No modification, variation or amendment of this Agreement
(including any exhibit hereto) shall be effective unless made in writing and signed by both parties.
Each party to this Agreement hereby represents and warrants to the other party that it has had an opportunity to seek the advice
of its own independent legal counsel with respect to the provisions of this Agreement and that its decision to execute this Agreement
is not based on any reliance upon the advice of any other party or its legal counsel. Each party represents and warrants to the
other party that in executing this Agreement such party has completely read this Agreement and that such party understands the
terms of this Agreement and its significance. This Agreement shall be construed neutrally, without regard to the party responsible
for its preparation.
Each party to this Agreement hereby represents and warrants to the other party that (i) the execution, performance and delivery
of this Agreement has been authorized by all necessary action by such party; (ii) the representative executing this Agreement
on behalf of such party has been granted all necessary power and authority to act on behalf of such party with respect to the
execution, performance and delivery of this Agreement; and (iii) the representative executing this Agreement on behalf of such
party is of legal age and capacity to enter into agreements which are fully binding and enforceable against such party.
This Agreement may be executed in any number of counterparts and may be delivered by facsimile transmission, all of which taken
together shall constitute a single instrument.
Agreement is entered into and effective as of the date first written above.
|Hao Qinghu, CEO
|Liu Shu Juan