Exhibit 10.1


 


SECURITIES PURCHASE AGREEMENT


 


This Securities Purchase Agreement
(as amended, supplemented, restated and/or modified from time to time, this “Agreement”) is entered into as of May
27, 2021, by and between COMSovereign Holding Corp., a Nevada corporation (the “Company”), and Lind Global Asset Management
IV, LLC, a Delaware limited liability company (the “Investor”).


 


BACKGROUND


 


A. The
board of directors (the “Board of Directors”) of the Company has authorized the issuance to Investor of the Note (as
defined below) and the Warrant (as defined below).


 


B. The
Investor desires to purchase the Note and the Warrant on the terms and conditions set forth in this Agreement.


 


C. Concurrently
with the execution of this Agreement, the Company and the Investor will enter into a Security Agreement, substantially in the form attached
hereto as Exhibit A (the “Security Agreement”), pursuant to which the Company will grant a first priority security
interest in substantially all of its assets to secure the Company’s obligations hereunder.


 


NOW THEREFORE, in consideration
of the foregoing recitals and the covenants and agreements set forth 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. As used in this Agreement, the following terms shall have the following meanings specified or indicated
below, and such meanings shall be equally applicable to the singular and plural forms of such defined terms:


 


“1933 Act”
means the Securities Act of 1933, as amended.


 


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


 


“Acquisition”
means the acquisition by the Company or any direct or indirect Subsidiary of the Company of a majority of the Equity Interests or substantially
all of the assets and business of any Person, whether by direct purchase of Equity Interests, asset purchase, merger, consolidation or
like combination.


 


“Affiliate”
means a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control
with, the Person specified.


 


“Agreement”
has the meaning set forth in the preamble.


 


“Blue Sky Application”
has the meaning set forth in Section 9.3(a).


 


“Board of Directors”
has the meaning set forth in the recitals.


 


“Business Day”
means any day other than a Saturday, Sunday or any other day on which banks are permitted or required to be closed in New York City.


 






    


     


    

 


“Capital Stock”
means the Common Stock, the Preferred Stock and any other classes of capital stock of the Company.


 


“Change of Control”
means, with respect to the Company:


 


		(a)	a change in the composition of the Board of Directors of the Company at a single shareholder meeting where
a majority of the individuals that were directors of the Company immediately prior to the start of such shareholder meeting are no longer
directors at the conclusion of such meeting;



 


		(b)	a change in composition of the Board of Directors of the Company prior to the termination of this Agreement
where a majority of the individuals that were directors as of the date of this Agreement cease to be directors of the Company prior to
the termination of this Agreement;



 


		(c)	Daniel L. Hodges shall fail to hold the position of Chairman of the Board of Directors of the Company
or cease to serve a managerial function with respect to the day to day affairs of the Company, other than as a result of his death at
any time prior to the termination of this Agreement;



 


		(d)	other than a shareholder that holds such a position at the date of this Agreement, if a Person comes to
have beneficial ownership, control or direction over more than forty percent (40%) of the voting rights attached to any class of voting
securities of the Company; or



 


		(e)	without the prior consent of the Investor, the sale or other disposition by the Company or any of its
Subsidiaries in a single transaction, or in a series of transactions, of all or substantially all of their respective assets other than
to the Company or a subsidiary of the Company, whether now owned or hereafter acquired or created; provided, however, that a public offering
of not more than 50% of the common stock of a Subsidiary shall not be deemed a sale of all or substantially all of the assets of that
Subsidiary or any of its Subsidiaries.



 


“Closing”
has the meaning set forth in Section 2.2.


 


“Closing Date”
has the meaning set forth in Section 2.2.


 


“Code”
has the meaning set forth in Section 2.1.


 


“Commitment Fee”
means an amount equal to Two Hundred Thousand Dollars ($200,000).


 


“Common Stock”
means the common stock of the Company, par value $0.0001 per share.


 


“Company”
has the meaning set forth in the preamble.


 






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“Conversion Shares”
means the shares of Common Stock issuable upon the full or any partial conversion of the Note.


 


“Effectiveness Period”
has the meaning set forth in Section 9.2(a).


 


“Equity Interests”
means and includes capital stock, membership interests and other similar equity securities, and shall also include warrants or options
to purchase capital stock, membership interests or other equity interests.


 


“Event”
means any event, change, development, effect, condition, circumstance, matter, occurrence or state of facts.


 


“Event of Default”
has the meaning set forth in Section 7.1.


 


“Exempted Securities”
means (a) shares of Common Stock or preferred stock or rights, warrants or options to purchase Common Stock or preferred stock issued
in connection with any Acquisition, (b) equity securities issued by reason of a dividend, stock split, split-up or other distribution
on shares of Common Stock, (c) shares of Common Stock or rights, warrants or options to purchase Common Stock issued to employees
or directors of, or consultants or advisors to, the Company or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved
by the Board of Directors (“Equity Plans”), (d) shares of Common Stock actually issued upon the exercise of options,
warrants or shares of Common Stock actually issued upon the conversion or exchange of any securities convertible into Common Stock, in
each case provided that such issuance is pursuant to the terms of the applicable option, warrant or convertible security, or (e) shares
of Common Stock issued upon the exercise or conversion of options, warrants or convertible securities outstanding on the date hereof.


 


“Funding Amount”
means an amount equal to Ten Million Dollars ($10,000,000).


 


“Guarantor”
means each direct and indirect Subsidiary of the Company.


 


“Guarantor Security
Agreement” means the security agreement dated as of the date hereof among the Guarantors other than Lighter Than Air and the
Investor, and any other security agreement dated after the date hereof from (a) a Guarantor which is formed or acquired after the date
hereof and (b) Lighter Than Air once the Lighter Than Air Restriction is no longer applicable, in each case in accordance with the terms
hereof.


 


“Guaranty”
means that certain Guaranty dated as of the date hereof from the Guarantors in favor of the Investor, as the same may be amended, restated,
and/or modified from time to time, together with any other guaranty entered into after the date hereof in accordance with the terms hereof.


 


“HSR Act”
has the meaning set forth in Section 5.15.


 


“Investor”
has the meaning set forth in the preamble.


 


“Investor Group”
shall mean the Investor plus any other Person with which the Investor is considered to be part of a group under Section 13 of the 1934
Act or with which the Investor otherwise files reports under Sections 13 and/or 16 of the 1934 Act.


 






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“Investor Party”
has the meaning set forth in Section 5.11(a).


 


“Investor Shares”
means the Conversion Shares, the Warrant Shares and any other shares issued or issuable to the Investor pursuant to this Agreement, the
Note or the Warrant.


 


“IP Rights”
has the meaning set forth in Section 3.10.


 


“Law” means
any law, rule, regulation, order, judgment or decree, including, without limitation, any federal and state securities laws.


 


“Legend Removal Date”
has the meaning set forth in Section 5.1(c).


 


“Lighter Than Air”
means Lighter Than Air Systems Corp., a Florida corporation and wholly-owned Subsidiary of Sky Sovereign, Inc., a Nevada corporation.


 


“Lighter Than Air
Restriction” means that certain restriction contained in a purchase order financing arrangement with Newgate Commercial Credit
LLC pursuant to which Lighter Than Air is precluded from granting a Lien (as such term is defined in the Guarantor Security Agreement)
on its assets.


 


“Losses”
has the meaning set forth in Section 5.11(a).


 


“Material Adverse
Effect” means any material adverse effect on (i) the businesses, properties, assets, prospects, operations, results of operations
or financial condition of the Company, or the Company and the Subsidiaries, taken as a whole, or (ii) the ability of the Company to consummate
the transactions contemplated by this Agreement or to perform its obligations hereunder or under the Note or the Warrant; provided,
however, that none of the following shall be deemed either alone or in combination to constitute, and none of the following shall
be taken into account in determining whether there has been or would be, a Material Adverse Effect: (a) any adverse effect resulting
from or arising out of general economic conditions; (b) any adverse effect resulting from or arising out of general conditions in the
industries in which the Company and the Subsidiaries operate; (c) any adverse effect resulting from any changes to applicable Law; or
(d) any adverse effect resulting from or arising out of any natural disaster or any acts of terrorism, sabotage, military action
or war or any escalation or worsening thereof; provided, further, that any event, occurrence, fact, condition or change
referred to in clauses (a) through (d) immediately above shall be taken into account in determining whether a Material Adverse Effect
has occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition or change has a disproportionate
effect on the Company and/or the Subsidiaries compared to other participants in the industries in which the Company and the Subsidiaries
operate.


 


“Maximum Percentage”
means 4.99%; provided, that if at any time after the date hereof the Investor Group beneficially owns in excess of 4.99% of any
class of Equity Interests in the Company that is registered under the 1934 Act (excluding any Equity Interests deemed beneficially owned
by virtue of the Note and the Warrant), then the Maximum Percentage shall automatically increase to 9.99% so long as the Investor Group
owns in excess of 4.99% of such class of Equity Interests (and shall, for the avoidance of doubt, automatically decrease to 4.99% upon
the Investor Group ceasing to own in excess of 4.99% of such class of Equity Interests).


 






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“Money Laundering
Laws” has the meaning set forth in Section 3.25.


 


“New Securities”
means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to
purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable
for such equity securities.


 


“Note”
has the meaning set forth in Section 2.1.


 


“OFAC”
has the meaning set forth in Section 3.23.


 


“Offer Notice”
has the meaning set forth in Section 10.1.


 


“Permitted Debt”
shall have the meaning set forth in Section 5.7.


 


“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.


 


“Preferred Stock”
has the meaning set forth in Section 3.4(a).


 


“Prepayment Right”
shall have the meaning set forth in Section 2.4.


 


“Principal Amount”
has the meaning set forth in Section 2.1.


 


“Proceedings”
has the meaning set forth in Section 3.6.


 


“Prohibited Transaction”
means a transaction with a third party or third parties in which the Company issues or sells (or arranges or agrees to issue or sell):


 


(a) any
debt, equity or equity-linked securities (including options or warrants) that are convertible into, exchangeable or exercisable for, or
include the right to receive shares of the Company’s Capital Stock:


 


(i) at
a conversion, repayment, exercise or exchange rate or other price that is based on, and/or varies with, a discount to the
future trading prices of, or quotations for, shares of Common Stock; or


 


(ii) at
a conversion, repayment, exercise or exchange rate or other price that is subject to being reset at some future date after the
initial issuance of such debt, equity or equity-linked security or upon the occurrence of specified or contingent events (other than warrants
that may be repriced by the Company); or


 






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(b) any
securities in a capital or debt raising transaction or series of related transactions which grant to an investor the right to receive
additional securities based upon future transactions of the Company on terms more favorable than those granted to such investor in such
first transaction or series of related transactions;


 


and are deemed to include transactions generally
referred to as at-the-market transactions (ATMs) or equity lines of credit and stand-by equity distribution agreements, and convertible
securities and loans having a similar effect. Notwithstanding the foregoing, and for the avoidance of doubt, rights issuances, shareholder
purchase plans, Equity Plans, convertible securities, or issuances of Equity Interests, based on the trading price of the Common Stock
on the Trading Market but each at a fixed price per share, shall not be deemed to be a Prohibited Transaction.


 


“Prospectus” means the prospectus
included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Investor Shares covered by such Registration Statement and by all other amendments and supplements to the prospectus,
including post-effective amendments and all material incorporated by reference in such prospectus, and any “free writing prospectus”
as defined in Rule 405 under the 1933 Act.


 


“register,”
“registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of
such Registration Statement or document.


 


“Registration Statement”
means any registration statement of the Company filed under the 1933 Act, including the Prospectus and amendments and supplements to such
Registration Statement, and including post-effective amendments, all exhibits and all material incorporated by reference in such Registration
Statement.


 


“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant
to the Transaction Documents, including any Warrant Shares issuable upon exercise in full of all Warrants or Conversion Shares issuable
upon conversion in full of the Note, ignoring any conversion or exercise limits set forth therein.


 


“Reverse Split”
has the meaning set forth in Section 5.20.


 


“SEC” means
the United States Securities and Exchange Commission.


 


“SEC Documents”
has the meaning set forth in Section 3.5(a).


 


“Security Agreement”
has the meaning set forth in the recitals.


 


“Securities”
means the Note, the Warrant and the Investor Shares.


 


“Securities Termination
Event” means either of the following has occurred:


 


(a) trading
in securities generally in the United States has been suspended or limited for a consecutive period of greater than three (3) Business
Days; or


 






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(b) a
banking moratorium has been declared by the United States or the New York State authorities and is continuing for a consecutive period
of greater than three (3) Business Days.


 


“Skyline Partners
Notes” has the meaning set forth in Section 5.7.


 


“Stockholder Approval”
shall mean the approval of the holders of a majority of the outstanding shares of the Company’s voting Common Stock: (a) if and
to the extent legally required, to amend the Company’s Restated Articles of Incorporation to increase the number of authorized shares
of Common Stock by at least the number of shares of Common Stock equal to the number of Shares issuable hereunder, (b) to ratify and approve
all of the transactions contemplated by the Transaction Documents, including the issuance of all of the Investor Shares (as such term
is defined in each of such documents) issued and potentially issuable to the Investor thereunder, all as may be required by the applicable
rules and regulations of the Trading Market (or any successor entity).


 


“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of
the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or
the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Company.


 


“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.


 


“Trading Market”
means whichever of the New York Stock Exchange, NYSE American, or the Nasdaq Stock Market (including the Nasdaq Capital Market), on which
the Common Stock is listed or quoted for trading on the date in question.


 


“Transaction Documents”
means this Agreement, the Note, the Warrant, the Security Agreement, the Guaranty, the Guarantor Security Agreement, and any other documents
or agreements executed or delivered in connection with the transactions contemplated hereunder.


 


“VWAP”
means, as of any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of one share of Common Stock trading in the ordinary course of
business on the applicable trading price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg
Financial L.P.; (b) if the Common Stock is not then listed on a Trading Market and if the Common Stock is traded in the over-the-counter
market, as reported by the OTCQX or OTCQB Markets, the volume weighted average price of one share of Common Stock for such date (or the
nearest preceding date) on the OTCQX or OTCQB Markets, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed
or quoted on a Trading Market or on the OTCQX or OTCQB Markets and if prices for the Common Stock are then reported in the “Pink
Sheets” published by the OTC Markets Group (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other cases,
the fair market value of one share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and
reasonably acceptable to the Company.


 






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“Warrant”
has the meaning set forth in Section 2.1.


 


“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrant.


 


2.
PURCHASE AND SALE OF THE NOTE AND THE WARRANT.


 


2.1
Purchase and Sale of the Note and the Warrant. Subject to the terms and conditions set forth herein, at the Closing,
the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, (a) a convertible promissory note,
in the form attached hereto as Exhibit B (the “Note”), in the principal amount of Eleven Million Dollars ($11,000,000)
(the “Principal Amount”) and (b) a Common Stock purchase warrant, in the form attached hereto as Exhibit C,
registered in the name of the Investor, pursuant to which the Investor shall have the right to acquire 1,820,000 shares of Common Stock
(the “Warrant”), in exchange for the Funding Amount. The Investor and the Company agree that for U.S. federal income
tax purposes and applicable state, local and non-U.S. tax purposes, the Funding Amount shall be allocable between the Note and the Warrant
based on the relative fair market values thereof. Neither the Investor nor the Company shall take any contrary position on any tax return,
or in any audit, claim, investigation, inquiry or proceeding in respect of taxes, unless otherwise required pursuant to a final determination
within the meaning of Section 1313 of the Internal Revenue Code of 1986, as amended (the “Code”), or any analogous
provision of applicable state, local or non-U.S. law.


 


2.2 Closing.
The closing hereunder, including payment for and delivery of the Note and the Warrant, shall take place remotely via the exchange of documents
and signatures, no later than ten (10) Business Days following the execution and delivery of this Agreement, subject to satisfaction or
waiver of the conditions set forth in Section 6, or at such other time and place as the Company and the Investor agree upon, orally
or in writing (the “Closing,” and the date of the Closing being the “Closing Date”).


 


2.3 Commitment
Fee. At the Closing, the Company shall pay to the Investor the Commitment Fee, in United States dollars and in immediately available
funds. The Commitment Fee shall be paid by being offset against the Funding Amount payable by the Investor at Closing.


 


2.4 Prepayment
Right. As set forth in the Note, in its sole discretion and upon giving the prior written notice set forth in the Note, the Company
will have the right to pre-pay the entire then-outstanding principal amount of the Note at any time with no penalty or premium of any
kind (the “Prepayment Right”); provided, that in the event that the Company elects to exercise its Prepayment
Right, the Investor will have the option to convert up to twenty-five percent (25%) of the then outstanding principal amount of the Note,
at a price per share equal to the lesser of the Repayment Share Price or the Conversion Price (as each such term is defined in the Note).


 






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2.5 Senior
Obligation. As an inducement for the Investor to enter into this Agreement and to purchase the Note, all obligations of the Company
pursuant to this Agreement and the Note shall be secured by a first priority security interest in and lien upon substantially all of the
assets of the Company, other than as described in the Security Agreement. The obligations of the Company under the Transaction Documents
are also being guaranteed by each direct and indirect Subsidiary of the Company pursuant to the Guaranty and the guarantee obligations
are secured by a first priority lien and security interest in their assets pursuant to the Guarantor Security Agreement, other than the
liens permitted by the Guarantor Security Agreement.


 


3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Investor and covenants
with the Investor that, except as is set forth in the Disclosure Letter being delivered to the Investor as of the date hereof and as
of the Closing Date, the following representations and warranties are true and correct:


 


3.1
Organization and Qualification. The Company is a corporation duly organized and validly existing in good standing under
the Laws of the State of Nevada and has the requisite corporate power and authority to own its properties and to carry on its business
as now being conducted. The Company is duly qualified to do business and is in good standing in every jurisdiction in which the ownership
of its property or 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 have a Material Adverse Effect.


 


3.2
Authorization; Enforcement; Compliance with Other Instruments. The Company has the requisite corporate power and authority
to execute the Transaction Documents, to issue and sell the Note and the Warrant pursuant hereto, and to perform its obligations under
the Transaction Documents, including issuing the Investor Shares on the terms set forth in this Agreement. The execution and delivery
of the Transaction Documents by the Company and the issuance and sale of the Securities pursuant hereto, including without limitation
the reservation of the Conversion Shares and the Warrant Shares for future insuance, have been duly and validly authorized by the Company’s
Board of Directors and no further consent or authorization is required by the Company, its Board of Directors, its stockholders or any
other Person in connection therewith. The Transaction Documents have been duly and validly executed and delivered by the Company and
constitute 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 similar Laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.


 


3.3
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the issuance
and sale of the Note and the Warrant hereunder will not (a) conflict with or result in a violation of the Company’s Restated Articles
of Incorporation or Amended and Restated By-laws, (b) 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 right of termination, amendment, acceleration or cancellation
of, any agreement to which the Company or any of the Subsidiaries is a party, or require the Company or any Subsidiary to grant a Lien
(as such term is defined in the Security Agreement) on any of its property or assets under the terms of any other agreement to which
it is a party, or (c) subject to the making of the filings referred to in Section  5, violate in any material respect any
Law or any rule or regulation of the Trading Market applicable to the Company or any of the Subsidiaries or by which any of their properties
or assets are bound or affected. Assuming the accuracy of the Investor’s representations in Section 4 and subject to
the making of the filings referred to in Section 5, (i) no approval or authorization will be required from any governmental
authority or agency, regulatory or self-regulatory agency or other third party (including the Trading Market) in connection with the
issuance of the Note and the Warrant and the other transactions contemplated by this Agreement (including the issuance of the Conversion
Shares upon conversion of the Note and the Warrant Shares upon exercise of the Warrant) and (ii) the issuance of the Note and the
Warrant, and the issuance of the Conversion Shares upon the conversion of the Note and the Warrant Shares upon exercise of the Warrant
will be exempt from the registration and qualification requirements under the 1933 Act and all applicable state securities Laws.


 






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3.4
Capitalization and Subsidiaries.


 


(a) The
authorized Capital Stock of the Company consists of: (i) 300,000,000 shares of Common Stock and (ii) 100,000,000 shares of Preferred Stock
to be designated by the Board of Directors (the “Preferred Stock”). As of the close of business on May 22, 2021, 71,170,690
shares of Common Stock and no shares of Preferred Stock were issued and outstanding. As of May 22, 2021, (x) an aggregate of 2,525,010
shares of Common Stock are issuable upon exercise of options granted under the Drone Aviation Holding Corp. 2015 Equity Incentive Plan,
all of which are fully vested and exercisable; (y) an aggregate of 5,333,838 shares of Common Stock are issuable upon exercise of options
granted under the Company’s 2020 Long-Term Incentive Plan, of which 805,171 shares were exercisable as of May 22, 2021 and 2,999,496
additional shares are reserved for future issuance thereunder; and (z) an aggregate of 50,004 shares of Common Stock are issuable upon
exercise of outstanding warrants granted by the Company prior to the merger with Drone Aviation Holding Corp., with exercise prices ranging
from $1.50 to $3.00 per share. As of May 22, 2021, an aggregate of 560,192 shares of Common Stock are issuable upon exercise of outstanding
warrants that were issued in connection with acquisitions, with exercise prices ranging from $0.1497 to $0.7212 per share. As of May 22,
2021, an aggregate of 4,433,734 shares of Common Stock are issuable upon exercise of warrants traded on Nasdaq under the symbol “COMSW”
with an exercise price of $4.50. As of May 22, 2021, an aggregate of 3,511,874 shares of Common Stock are issuable upon exercise of outstanding
warrants granted by the Company with exercise prices ranging from $2.97 to $8.40 per share. The Company has duly reserved up to 13,000,000
shares of Common Stock for issuance upon conversion of the Note (which assumes Conversion Shares (as defined in the Note) are used to
pay all principal installments under the Note) and has duly reserved 1,820,000 shares of Common Stock for issuance upon exercise of the
Warrant. The Conversion Shares, when issued upon conversion of the Note in accordance with its terms, and the Warrant Shares, if and when
issued upon exercise of the Warrant in accordance with its terms, will be validly issued, fully paid and non-assessable and free from
all taxes, liens and charges with respect to the issuance thereof. No shares of the Company’s Capital Stock are subject to preemptive
rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company. The Company’s Restated Articles
of Incorporation and Amended and Restated By-laws on file on the SEC’s EDGAR website are true and correct copies of the Company’s
Restated Articles of Incorporation and Amended and Restated By-laws as in effect as of the date hereof. The Company is not in violation
of any provision of its Restated Articles of Incorporation or Amended and Restated By-laws.


 






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(b) Schedule
3.4(b) lists each direct and indirect Subsidiary of the Company existing on the date hereof and indicates for each Subsidiary (i)
the authorized capital stock or other Equity Interests of such Subsidiary as of the date hereof, (ii) the number and kind of shares or
other ownership interests of such Subsidiary that are issued and outstanding as of the date hereof, and (iii) the owner of such shares
or other ownership interests. No Subsidiary has any outstanding stock options, warrants or other instruments pursuant to which such Subsidiary
may at any time or under any circumstances be obligated to issue any shares of its capital stock or other Equity Interests. Each Subsidiary
is duly organized and validly existing in good standing under the laws of its jurisdiction of formation and has all requisite power and
authority to own its properties and to carry on its business as now being conducted.


 


(c) Neither
the Company nor any Subsidiary is bound by any agreement or arrangement pursuant to which it is obligated to register the sale of any
securities under the 1933 Act. There are no outstanding securities of the Company or any of the Subsidiaries which contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to redeem or purchase any security of the Company or any Subsidiary. There are no outstanding securities or instruments
containing anti-dilution or similar provisions that will be triggered by the issuance of the Note, the Warrant or the Investor Shares.
Neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar
plan or agreement.


 


(d) The
issuance and sale of any of the Securities on the Closing Date will not obligate the Company to issue shares of Common Stock or other
securities to any other Person and will not result in the adjustment of the exercise, conversion, exchange, or reset price of any outstanding
securities.


 


(e) As
of the date of this Agreement, the Company has capacity under the rules and regulations of the Trading Market to issue up to 14,234,000
shares of Common Stock (or securities convertible into or exercisable for Common Stock) without obtaining Stockholder Approval.


 


3.5
SEC Documents; Financial Statements.


 


(a) As
of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included
therein and financial statements and schedules thereto and documents incorporated by reference therein being hereinafter referred to as
the “SEC Documents”). As of their respective filing dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and
none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted 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.


 






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(b) As
of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements
have been prepared in accordance with generally accepted accounting principles, and audited by a firm that is a member a member of the
Public Companies Accounting Oversight Board consistently applied, during the periods involved (except as may be otherwise indicated in
such financial statements or the notes thereto, or, in the case of unaudited interim statements, to the extent they may exclude footnotes
or may be condensed or summary statements) and fairly present in all material respects the consolidated financial position of the Company
as of the dates thereof and the consolidated results of its operations and consolidated cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided by or on behalf of the
Company to the Investor in connection with the Investor’s purchase of the Note and the Warrant which is not included in the SEC
Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstance under which they are or were made, not misleading.


 


(c) Except
as set forth on Schedule 3.5(c), the Company and each of the Subsidiaries maintain 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) reasonable controls to safeguard assets are in place 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.


 


3.6
Litigation and Regulatory Proceedings. Except as disclosed in SEC Documents, there are no material actions, causes
of action, suits, claims, proceedings, inquiries or investigations (collectively, “Proceedings”) before or by any
court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of
the Company or any of the Subsidiaries, threatened against or affecting the Company or any of the Subsidiaries, the Common Stock or any
other class of issued and outstanding shares of the Company’s Capital Stock, or any of the Company’s or the Subsidiaries’
officers or directors in their capacities as such and, to the knowledge of the executive officers of the Company, there is no reason
to believe that there is any basis for any such Proceeding.


 


3.7
No Undisclosed Events, Liabilities or Developments. Other than as set forth on Schedule 3.7 hereto, no event,
development or circumstance has occurred or exists, or to the knowledge of the executive officers of the Company is reasonably anticipated
to occur or exist that (a) would reasonably be anticipated to have a Material Adverse Effect or (b) would be required to be disclosed
by the Company under applicable securities Laws on a Registration Statement relating to an issuance and sale by the Company of its Common
Stock and which has not been publicly announced.


 






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3.8
Compliance with Law. The Company and each of the Subsidiaries have conducted and are conducting their respective businesses
in compliance in all material respects with all applicable Laws and are in compliance in all material respects with the rules and regulations
of the Trading Market. The Company is not aware of any facts which could reasonably be anticipated to lead to a delisting of the Common
Stock by the Trading Market in the future.


 


3.9
Employee Relations. Neither the Company nor any Subsidiary is involved in any union labor dispute nor, to the knowledge
of the Company, is any such dispute threatened. Neither the Company nor any Subsidiary is a party to any collective bargaining agreement.
No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s
employ or otherwise terminate such officer’s employment with the Company.


 


3.10
Intellectual Property Rights. The Company and each Subsidiary owns or possesses adequate rights or licenses to use
all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights (collectively, “IP Rights”)
necessary to conduct their respective businesses as now conducted. None of the material IP Rights of the Company or any of the Subsidiaries
are expected to expire or terminate within three (3) years from the date of this Agreement. Neither the Company nor any Subsidiary is
infringing, misappropriating or otherwise violating any IP Rights of any other Person. No claim has been asserted, and no Proceeding
is pending, against the Company or any Subsidiary alleging that the Company or any Subsidiary is infringing, misappropriating or otherwise
violating the IP Rights of any other Person, and, to the Company’s knowledge, no such claim or Proceeding is threatened, and the
Company is not aware of any facts or circumstances which might give rise to any such claim or Proceeding. The Company and the Subsidiaries
have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their material IP Rights.


 


3.11
Environmental Laws. Except, in each case, as would not be reasonably anticipated to have a Material Adverse Effect,
the Company and the Subsidiaries (a) are in compliance in all material respects with any and all applicable Laws relating to the protection
of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants, (b) have received
and hold all permits, licenses or other approvals required of them under all such Laws to conduct their respective businesses and (c)
are in compliance in all material respects with all terms and conditions of any such permit, license or approval.


 


3.12
Title to Assets. The Company and the Subsidiaries have good and marketable title to all personal property owned by
them which is material to their respective businesses, in each case free and clear of all liens, encumbrances and defects except those
set forth on Schedule 3.12. Any real property and facilities held under lease by the Company or any Subsidiary are held 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 the Subsidiaries.


 






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3.13
Insurance. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the
businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any of the Subsidiaries has been refused any
insurance coverage sought or applied for, and the Company has no reason to believe that it will not be able to renew all existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers.


 


3.14
Regulatory Permits. The Company and the Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from all regulatory authorities and agencies necessary to own, lease or operate their respective properties and assets and
conduct their respective businesses, and neither the Company nor any Subsidiary has received any notice of Proceedings relating to the
revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations
or permits with respect to which the failure to hold would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.


 


3.15
No Materially Adverse Contracts, Etc. Neither the Company nor any of the Subsidiaries is (a) subject to any charter,
corporate or other legal restriction, or any judgment, decree or order which in the judgment of the Company’s officers has or is
expected in the future to have a Material Adverse Effect or (b) a party to any contract or agreement which in the judgment of the Company’s
management has or would reasonably be anticipated to have a Material Adverse Effect.


 


3.16
Taxes. The Company and the Subsidiaries each has made or filed, or caused to be made or filed, all United States federal,
and applicable state, local and non-U.S. tax returns, reports and declarations required by any jurisdiction to which it is subject and
has paid all taxes and other governmental assessments and charges that are material in amount, required to be paid by it, regardless
of whether such amounts are shown or determined to be due on such returns, reports and declarations, except those being contested in
good faith by appropriate proceedings and for which it 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. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and, to the knowledge of the Company, there is no basis for any
such claim.


 


3.17 Solvency.
After giving effect to the receipt by the Company of the proceeds from the transactions contemplated by this Agreement (a) the Company’s
fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing
debts and other liabilities (including known contingent liabilities) as they mature; and (b) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company
does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash
to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that
it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction.


 






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3.18 Investment
Company. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.


 


3.19
Certain Transactions. Other than as disclosed in the SEC Documents, there are no contracts, transactions, arrangements
or understandings between the Company or any of its Subsidiaries, on the one hand, and any director, officer or employee thereof on the
other hand, that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC in the Company’s
Form 10-K or proxy statement pertaining to an annual meeting of stockholders.


 


3.20
No General Solicitation. Neither the Company, nor any of its Affiliates, nor any person acting on its behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale
of the Note or the Warrant pursuant to this Agreement.


 


3.21
Acknowledgment Regarding the Investor’s Purchase of the Note and the Warrant. The Company’s Board of Directors
has approved the execution of the Transaction Documents and the issuance and sale of the Note and the Warrant, based on its own independent
evaluation and determination that the terms of the Transaction Documents are reasonable and fair to the Company and in the best interests
of the Company and its stockholders. The Company is entering into this Agreement and the Security Agreement and is issuing and selling
the Note and the Warrant voluntarily and without economic duress. The Company has had independent legal counsel of its own choosing review
the Transaction Documents and advise the Company with respect thereto. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length purchaser with respect to the Note and the Warrant and the transactions contemplated
hereby and that neither the Investor nor any person affiliated with the Investor is acting as a financial advisor to, or a fiduciary
of, the Company (or in any similar capacity) with respect to execution of the Transaction Documents or the issuance of the Note and the
Warrant or any other transaction contemplated hereby.


 


3.22
No Brokers’, Finders’ or Other Advisory Fees or Commissions. Other than a payment of four hundred thousand
dollars ($400,000) to Kingswood Capital Markets, which is serving as a financial advisor with respect to the transactions contemplated
by the Transaction Documents, and which amount shall be paid by the Investor directly to Kingswood Capital Markets and be offset against
the Funding Amount payable by the Investor at Closing, no brokers, finders or other similar advisory fees or commissions will be payable
by the Company or any Subsidiary or by any of their respective agents with respect to the issuance of the Note or any of the other transactions
contemplated by this Agreement.


 


3.23 OFAC.
None of the Company nor any of the Subsidiaries nor, to the best knowledge of the Company, any director, officer, agent, employee, affiliate
or person acting on behalf of the Company and/or any Subsidiary has been or is currently subject to any United States sanctions administered
by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”); and the Company will
not directly or indirectly use any proceeds received from the Investor, or lend, contribute or otherwise make available such proceeds
to its Subsidiaries or to any affiliated entity, joint venture partner or other person or entity, to finance any investments in, or make
any payments to, any country or person currently subject to any of the sanctions of the United States administered by OFAC.


 






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3.24 No
Foreign Corrupt Practices. None of the Company or any of the Subsidiaries has, directly or indirectly: (a) made or authorized any
contribution, payment or gift of funds or property to any official, employee or agent of any governmental authority of any jurisdiction
except as otherwise permitted under applicable Law; or (b) made any contribution to any candidate for public office, in either case, where
either the payment or the purpose of such contribution, payment or gift was, is, or would be prohibited under the Foreign Corrupt Practices
Act or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a similar
subject matter applicable to the Company or its Subsidiaries and their respective operations and the Company has instituted and maintained
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with such legislation.


 


3.25 Anti-Money
Laundering. The operations of each of the Company and the Subsidiaries are and have been conducted at all times in compliance with
all applicable anti-money laundering laws, regulations, rules and guidelines in its jurisdiction of incorporation and in each other jurisdiction
in which such entity, as the case may be, conducts business (collectively, the “Money Laundering Laws”) and no action,
suit or proceeding by or before any court or governmental authority involving the Company or its Subsidiaries with respect to any of the
Money Laundering Laws is, to the best knowledge of the Company, pending, threatened or contemplated.


 


3.26 Disclosure.
The Company confirms that neither it, nor to its knowledge, any other Person acting on its behalf has provided the Investor or its agents
or counsel with any information that the Company believes constitutes material, non-public information. The Company understands and confirms
that the Investor will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All
disclosures provided to the Investor regarding the Company, its business and the transactions contemplated hereby, furnished by or on
behalf of the Company (including the Company’s representations and warranties set forth in this Agreement) are true and correct
in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading.


 


4.
REPRESENTATIONS AND WARRANTIES OF THE INVESTOR. The Investor represents and warrants to the Company as follows:


 


4.1
Organization and Qualification. The Investor is a limited liability company, duly organized and validly existing in
good standing under the laws of the State of Delaware.


 






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4.2
Authorization; Enforcement; Compliance with Other Instruments. The Investor has the requisite power and authority to
enter into this Agreement and the Security Agreement and to perform its obligations under the Transaction Documents. The execution and
delivery by the Investor of the Transaction Documents to which it is a party have been duly and validly authorized by the Investor’s
governing body and no further consent or authorization is required. The Transaction Documents to which it is a party have been duly and
validly executed and delivered by the Investor and constitute valid and binding obligations of the Investor, enforceable against the
Investor in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’
rights and remedies.


 


4.3
No Conflicts. The execution, delivery and performance of the Transaction Documents to which it is a party by the Investor
and the purchase of the Note and the Warrant by the Investor will not (a) conflict with or result in a violation of the Investor’s
organizational documents, (b) conflict with, or constitute a material default (or an event which, with notice or lapse of time or both,
would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
material agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or (c) violate any Law
applicable to the Investor or by which any of the Investor’s properties or assets are bound or affected. No approval or authorization
will be required from any governmental authority or agency, regulatory or self-regulatory agency or other third party in connection with
the purchase of the Note and the Warrant and the other transactions contemplated by this Agreement.


 


4.4
Investment Intent; Accredited Investor. The Investor is purchasing the Note and the Warrant for its own account, for
investment purposes, and not with a view towards distribution. The Investor is an “accredited investor” as such term is defined
in Rule 501(a) of Regulation D of the 1933 Act. The Investor has, by reason of its business and financial experience, such knowledge,
sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of
(a) evaluating the merits and risks of an investment in the Note, the Warrant and the Investor Shares and making an informed investment
decision, (b) protecting its own interests and (c) bearing the economic risk of such investment for an indefinite period of time.


 


4.5
Opportunity to Discuss. The Investor has received all materials relating to the business, finance and operations of
the Company and the Subsidiaries as it has requested and has had an opportunity to discuss the business, management and financial affairs
of the Company and the Subsidiaries with the Company’s management. In making its investment decision, the Investor has relied solely
on its own due diligence performed on the Company by its own representatives.


 


4.6 No
Other Representations.Except for the representations and warranties set forth in this Agreement and in other Transaction Documents,
the Investor makes no other representations or warranties to the Company.


 






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5.
OTHER AGREEMENTS OF THE PARTIES.


 


5.1 Legends,
etc. 


 


(a) Securities
may only be disposed of pursuant to an effective Registration Statement, to the Company or pursuant to an available exemption from or
in a transaction not subject to the registration requirements of the 1933 Act, and in compliance with any applicable state securities
laws.


 


(b) Certificates
evidencing the Securities will contain the following legend, so long as is required by this Section 5.1(b) or Section 5.1(c):


 


[NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED] [THESE SECURITIES HAVE NOT BEEN REGISTERED] WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE 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 AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. [THESE SECURITIES
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES] [THESE SECURITIES] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES.


 


The Company acknowledges and
agrees that the Investor may from time to time pledge, and/or grant a security interest in some or all of the Securities, in accordance
with applicable securities laws, pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required
under the terms of such agreement or account, the Investor may transfer pledged or secured Securities to the pledgees or secured parties.
Such a pledge or transfer would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee,
secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a
subsequent transfer following default by the Investor transferee of the pledge. No notice shall be required of such pledge. At the Company’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably
request in connection with a pledge or transfer of the Securities including the preparation and filing of any required prospectus supplement
under Rule 424(b)(3) of the 1933 Act or other applicable provision of the 1933 Act to appropriately amend the list of selling stockholders
thereunder.


 






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(c) Certificates
evidencing the Investor Shares shall not contain any legend (including the legend set forth in Section 5.1(b)): (i) while a Registration
Statement covering the Investor Shares is effective under the 1933 Act, (ii) following any sale of such Investor Shares pursuant to Rule
144, (iii) while such Investor Shares are eligible for sale without restriction under Rule 144, or (iv) if such legend is not required
under applicable requirements of the 1933 Act (including judicial interpretations and pronouncements issued by the Staff of the SEC).
The Company shall cause its counsel to issue any legal opinion or instruction required by the Company’s transfer agent to comply
with the requirements set forth in this Section. At such time as a legend is no longer required for the Investor Shares under this Section
5.1(c), the Company will, no later than three (3) Business Days following the delivery by the Investor to the Company or the Company’s
transfer agent of a certificate representing Investor Shares containing a restrictive legend (such third Business Day, the “Legend
Removal Date”), deliver or cause to be delivered to the Investor a certificate representing such Investor Shares that is free
from all restrictive and other legends. In addition to any other remedies available to the Investor, the Company shall pay to the Investor,
in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Investor Shares (based on the VWAP of the Common Stock
on the date such Investor Shares are submitted to the Company or the Company’s transfer agent) delivered for removal of the restrictive
or other legend, $5 per Trading Day for each Trading Day after the Legend Removal Date until such Investor Shares are delivered without
a legend.  The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge
the restrictions on transfer set forth in this Section except as it may reasonably determine are necessary or appropriate to comply or
to ensure compliance with those applicable laws that are enacted or modified after the Closing.


 


5.2 Furnishing
of Information. As long as the Investor owns the Securities, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the 1934 Act. As long as the Investor owns the Securities, if the Company is not required to file reports pursuant to such laws, it will
prepare and furnish to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the
Investor to sell the Investor Shares under Rule 144. The Company further covenants that it will take such further action as any holder
of Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such Investor Shares
without registration under the 1933 Act within the limitation of the exemptions provided by Rule 144 or other applicable exemptions.


 


5.3 Integration.
The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with
the offer or sale of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to
the Investor, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading
Market that would require, under the rules of the Trading Market, the Stockholder Approval.


 


5.4 Notification
of Certain Events. The Company shall give prompt written notice to the Investor of (a) the occurrence or non-occurrence of any
Event, the occurrence or non-occurrence of which would render any representation or warranty of the Company contained in this Agreement
or any other Transaction Document, if made on or immediately following the date of such Event, untrue or inaccurate in any material respect,
(b) the occurrence of any Event that, individually or in combination with any other Events, has had or could reasonably be expected
to have a Material Adverse Effect, (c) any failure of the Company to comply with or satisfy any covenant or agreement to be complied
with or satisfied by it hereunder or any Event that would otherwise result in the nonfulfillment of any of the conditions to the Investor’s
obligations hereunder, (d) any notice or other communication from any Person alleging that the consent of such Person is or may be
required in connection with the consummation of the transactions contemplated by this Agreement or any other Transaction Document, or
(e) any Proceeding pending or, to the Company’s knowledge, threatened against a party relating to the transactions contemplated
by this Agreement or any other Transaction Document.


 






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5.5
Available Stock. The Company shall at all times keep authorized and reserved and available for issuance, free of preemptive
rights, such number of shares of Common Stock as are issuable upon conversion of the Note and exercise of the Warrant at any time. If
the Company determines at any time that it does not have a sufficient number of authorized shares of Common Stock to reserve and keep
available for issuance as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase
the number of authorized shares of Common Stock by seeking Stockholder Approval for the authorization of such additional shares.


 


5.6
Use of Proceeds. The Company will use the proceeds from the sale of the Note and the Warrant for acquisitions, the
repayment of indebtedness and general working capital purposes.


 


5.7 Repayment
of Note. Other than as set forth on Schedule 5.7, neither the Company nor any Subsidiary has outstanding any Indebtedness (all such
Indebtedness set forth on Schedule 5.7 is hereinafter referred to as the “Permitted Debt”). The Company shall not make
any voluntary cash prepayments on any Indebtedness at any time while any amounts are owing under the Note, and shall not make any cash
payments whatsoever with respect to amounts owing under any convertible promissory notes issued in connection with the Company’s
acquisition of Skyline Partners Technology LLC (the “Skyline Partners Notes”) at any time while any amounts are owing
under the Note other than cash payments the Company is required to make pursuant to the express terms thereof existing on the date hereof.
If the Company or any Subsidiary issues any debt other than the Permitted Debt, including any subordinated debt or convertible debt (other
than the Note), or any Preferred Stock, other than Exempted Securities, unless otherwise waived in writing by and at the discretion of
the Investor, the Company will immediately utilize the proceeds of such issuance (or cause such Subsidiary to immediately utilize the
proceeds of such issuance) to repay the Note. If the Company issues any Equity Interests, other than Exempted Securities, for aggregate
proceeds to the Company of greater than $20,000,000, excluding offering costs or other expenses, unless otherwise waived in writing by
and at the discretion of the Investor, the Company will direct 20% of such proceeds from such issuance to repay the Note. Any such repayment
of the Note shall be made without premium or penalty.


 






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5.8 Intercreditor
Agreement. In the event that the Company or any Subsidiary incurs debt or issues convertible debt securities to a seller as partial
consideration paid to such seller in connection with an Acquisition, unless otherwise waived in writing by the Investor, as a condition
to consummation of such Acquisition, the holder of such debt or convertible debt securities shall enter into an intercreditor agreement
with the Company and the Investor on terms reasonably satisfactory to the Investor.


 


5.9 Prohibited
Transactions. The Company hereby covenants and agrees not to enter into any Prohibited Transactions without the Investor’s prior
written consent, until (30) days after such time as the Note has been repaid in full and/or has been converted into Conversion Shares.


 


5.10 Securities
Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the Trading Day immediately following the date
hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and shall, within four (4) Trading
Days following the date hereof, file a Current Report on Form 8-K disclosing the material terms of the transactions contemplated hereby
and including this Agreement as an exhibit thereto; provided, that the Company may not issue such press release or file such Form 8-K
without the Investor’s prior written consent. The Company shall not issue any press release nor otherwise make any such public statement
regarding the Investor or the Transaction Documents without the prior written consent of the Investor, except if such disclosure is required
by law, in which case the Company shall (a) ensure that such disclosure is restricted and limited in content and scope to the maximum
extent permitted by Law to meet the relevant disclosure requirement and (b) provide a copy of the proposed disclosure to the Investor
for review prior to release and the Company shall incorporate the Investor’s reasonable comments. Following the execution of this
Agreement, the Investor and its Affiliates and/or advisors may place announcements on their respective corporate websites and in financial
and other newspapers and publications (including, without limitation, customary “tombstone” advertisements) describing the
Investor’s relationship with the Company under this Agreement and including the name and corporate logo of the Company. Notwithstanding
anything herein to the contrary, to comply with United States Treasury Regulations Section 1.6011-4(b)(3)(i), each of the Company and
the Investor, and each employee, representative or other agent of the Company or the Investor, may disclose to any and all persons, without
limitation of any kind, the U.S. federal and state income tax treatment, and the U.S. federal and state income tax structure, of the transactions
contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating
to such tax treatment and tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy
provided to such recipient.


 


5.11 Indemnification
of the Investor.


 


(a) The
Company will indemnify and hold the Investor, its Affiliates and their respective directors, officers, managers, shareholders, members,
partners, employees and agents and permitted successors and assigns (each, an “Investor Party”) harmless from any and
all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements,
court costs and reasonable attorneys’ fees and costs of investigation and defense (collectively, “Losses”) that
any such Investor Party may suffer or incur as a result of or relating to:


 


(i) any
breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Transaction Document;


 






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(ii) any
misrepresentation made by the Company in any Transaction Document or in any SEC Document;


 


(iii) any
omission to state any material fact necessary in order to make the statements made in any SEC Document, in light of the circumstances
under which they were made, not misleading;


 


(iv) any
Proceeding before or by any court, public board, government agency, self-regulatory organization or body based upon, or resulting from
the execution, delivery, performance or enforcement of any of the Transaction Documents or the consummation of the transactions contemplated
thereby, and whether or not the Investor is party thereto by claim, counterclaim, crossclaim, as a defendant or otherwise, or if such
Proceeding is based upon, or results from, any of the items set forth in clauses (i) through (iii) above.


 


(b) In
addition to the indemnity contained herein, the Company will reimburse each Investor Party for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses
are incurred.


 


(c) The
provisions of this Section 5.11 shall survive the termination or expiration of this Agreement.


 


5.12 Non-Public
Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide the Investor
or its agents or counsel with any information that the Company believes constitutes material, non-public information. To the extent the
Company provides the Investor with material, non-public information, the Company shall publicly disclose such information within forty
eight (48) hours of providing the information to the Investor; provided, however, in the event that such material non-public information
is provided to Investor pursuant to Section 10, the Company shall publicly disclose such information within twenty (20) Business
Days of providing the information to the Investor. The Company understands and confirms that the Investor shall be relying on the foregoing
representation in effecting transactions in securities of the Company.


 


5.13 Stockholder
Approval. If required by the rules and regulations of the Trading Market or to otherwise fulfill any of its obligations under the
Transaction Documents, the Company shall hold a special meeting of stockholders (which may also be at the annual meeting of stockholders)
on or before the 60th calendar day following the date hereof for the purpose of obtaining the Stockholder Approval; provided, however,
such sixty (60) calendar days shall be increased to ninety (90) calendar days in the event the Company receives comments to its proxy
statement from the SEC, with the recommendation of the Board of Directors that such proposal be approved, and the Company shall solicit
proxies from its stockholders in connection therewith in the same manner as all other management proposals in such proxy statement and
all management-appointed proxyholders shall vote their proxies in favor of such proposal. If the Company does not obtain Stockholder Approval
at the first meeting, the Company shall call a meeting every four months thereafter to seek Stockholder Approval until the date the Stockholder
Approval is obtained. Prior to any such stockholder meeting, the Company shall timely file a proxy statement pursuant to Section 14(a)
of the 1934 Act in compliance in all material respects with the provisions of the Company’s Bylaws and all applicable Law.


 






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5.14 Listing
of Securities. The Company shall: (a) in the time and manner required by each Trading Market on which the Common Stock is listed,
prepare and file with such Trading Market an additional shares listing application covering the Investor Shares, (b) take all steps
necessary to cause such shares to be approved for listing on each Trading Market on which the Common Stock is listed as soon as possible
thereafter, (c) provide to the Investor evidence of such listing, and (d) maintain the listing of such shares on each such Trading Market.


 


5.15 Antitrust
Notification. If the Investor determines, in its sole judgment and upon the advice of counsel, that the issuance of the Note, the
Warrant or the Investor Shares pursuant to the terms hereof would be subject to the provisions of the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”), the Company shall file as soon as practicable after the date on which the
Company receives notice from the Investor of the applicability of the HSR Act and a request to so file with the United States Federal
Trade Commission and the United States Department of Justice the notification and report form required to be filed by it pursuant to the
HSR Act in connection with such issuance.


 


5.16 Change
of Prime Broker, Custodian. The Investor has informed the Company of the names of its prime broker and its share custodian. The Investor
shall notify the Company of any change in its prime broker or share custodian within three (3) Business Days of such change having taken
effect.


 


5.17 Share
Transfer Agent. The Company has informed the Investor of the name of its share transfer agent and represents and warrants that the
transfer agent participates in the Depository Trust Company Fast Automated Securities Transfer program. The Company shall not change its
share transfer agent without the prior written consent of the Investor.


 


5.18 Tax
Treatment. The Investor and the Company agree that for U.S. federal income tax purposes, and applicable state, local and non-U.S.
income tax purposes, the Note is not intended to be, and shall not be, treated as indebtedness. Neither the Investor nor the Company shall
take any contrary position on any tax return, or in any audit, claim, investigation, inquiry or proceeding in respect of taxes, unless
otherwise required pursuant to a final determination within the meaning of Section 1313 of the Code, or any analogous provision of applicable
state, local or non-U.S. law.


 






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5.19 Set-Off.


 


(a) The
Investor may set off any of its obligations to the Company (whether or not due for payment), against any of the Company’s obligations
to the Investor (whether or not due for payment) under this Agreement and/or any other Transaction Document.


 


(b) The
Investor may do anything necessary to effect any set-off undertaken in accordance with this Section 5.19 (including varying the
date for payment of any amount payable by the Investor to the Company).


 


5.20 Reverse
Stock Split. If at any time the last closing trade price for the Common Stock on the Trading Market as reported by the Trading Market
is less than $1.00, the Company shall promptly call a meeting of the stockholders of the Company for purposes of approving a reverse stock
split of the shares of Common Stock such that the trade price of the Common Stock will be at least $2.00 (a “Reverse Split”)
and, subject to receipt of stockholder approval, shall use its best efforts to promptly effect a Reverse Split.


 


5.21 Future
Entity Formation. To the extent that from and after the date hereof the Company or any of its Subsidiaries acquires or otherwise forms
any Subsidiary, the Company shall (i) provide the Investor with written notice of such acquisition or formation within five (5) business
days of the date of any such acquisition or formation, (ii) cause any such entity to enter into a guaranty in substantially the same form
as the guaranty entered into on the date hereof (or join the existing guaranty) in order to guarantee the obligations of the Company under
the Transaction Documents and (iii) cause such Subsidiary to grant a lien on substantially all of its assets in favor of the Investor
to secure its obligations under its guaranty and the obligations of the Company under the Transaction Documents pursuant to (ii) above.


 


5.22 Covenants
Regarding Lighter Than Air.  To the extent that at any time after the date hereof Lighter Than Air is no longer subject to the
Lighter Than Air Restriction, immediately upon such occurrence, the Company shall (a) notify the Investor such restriction no longer exists;
and (b) cause Lighter Than Air to grant a lien on substantially all of its assets in favor of the Investor to secure its obligations under
the Guaranty and the obligations of the Company under the Transaction Documents.  In addition, until such time as Lighter Than Air
has provided the Investor with a security interest in its assets, the aggregate fair market value of all assets of Lighter Than Air shall
not exceed $5,000,000.


 


6. CLOSING
CONDITIONS


 


6.1 Conditions
Precedent to the Obligations of the Investor. The obligation of the Investor to fund the Note and acquire the Warrant at the Closing
is subject to the satisfaction or waiver by the Investor, at or before such Closing, of each of the following conditions:


 


(a) Required
Documentation. The Company must have delivered to the Investor copies of all resolutions duly adopted by the Board of Directors of
the Company, or any such other documentation of the Company approving the Agreement, the Transaction Documents and any of the transactions
contemplated hereby or thereby;


 






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(b) Consents
and Permits. The Company must have obtained and delivered to the Investor copies of all necessary permits, approvals, and registrations
necessary to effect this Agreement, the Transaction Documents and any of the transactions contemplated hereby or thereby, including pursuant
to Section 3.14 of this Agreement;


 


(c) Trading
Market Approval. The Company must have obtained and delivered to the Investor copies of all necessary Trading Market approvals for
the issuance of the Note, the Warrant, and, upon the conversion of the Note, the Conversion Shares, and upon exercise of the Warrant,
the Warrant Shares;


 


(d) No
Event(s) of Default. The Investor must be of the reasonable opinion that no Event of Default has occurred and no Event of Default
would result from the execution of this Agreement or any of the Transaction Documents or the transactions contemplated hereby or thereby;


 


(e) Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material respects
as of the date when made and as of such Closing as though made on and as of such date;


 


(f) Performance.
The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by it at or prior to such Closing;


 


(g) 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 the consummation of any of the transactions
contemplated by the Transaction Documents;


 


(h) No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or any Trading
Market (except for any suspensions of trading of not more than one day on which the Trading Market is open solely to permit dissemination
of material information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have
been at all times since such date listed for trading on a Trading Market;


 


(i) Limitation
on Beneficial Ownership. The issuance of the Note and the Warrant shall not cause the Investor Group to become, directly or indirectly,
a “beneficial owner” (within the meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder)
of a number of Equity Interests of a class that is registered under the 1934 Act which exceeds the Maximum Percentage of the Equity Interests
of such class that are outstanding at such time;


 


(j) Perfection
of Security Interest; Evidence of Lien Release. The Investor shall have, to its satisfaction, perfected the security interest granted
in the assets and collateral of the Company and its Subsidiaries (other than Lighter Than Air) described in the Security Agreement and
the Guarantor Security Agreement, as applicable, and the Company shall have delivered evidence satisfactory to the Investor that duly
authorized UCC-3 financing statements have been filed with respect to each of the UCC-1 financing statements set forth on Schedule 6.1(j)
hereto by the secured party identified in each such financing statement (or the Person so authorized to file the same by such secured
party); and


 






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(k) Funds
Flow Request. The Company shall have delivered to the Investor a flow of funds request, substantially in the form set out in Exhibit
D.


 


6.2 Conditions
Precedent to the Obligations of the Company. The obligation of the Company to issue the Note and the Warrant at the Closing is subject
to the satisfaction or waiver by the Company, at or before such Closing, of each of the following conditions:


 


(a) Representations
and Warranties. The representations and warranties of the Investor contained herein shall be true and correct in all material respects
as of the date when made and as of such Closing Date as though made on and as of such date;


 


(b) Performance.
The Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Investor at or prior to the Closing; and


 


(c) 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 the consummation of any of the transactions
contemplated by the Transaction Documents.


 


7. EVENTS
OF DEFAULT


 


7.1 Events
of Default. The occurrence of any of the following events shall be an “Event of Default” under this Agreement:


 


(a) an
Event of Default under the Note;


 


(b) any
of the representations or warranties made by the Company or any of its agents, officers, directors, employees or representatives in any
Transaction Document or public filing being inaccurate, false or misleading in any material respect, as of the date as of which it is
made or deemed to be made, or any certificate or financial or other written statements furnished by or on behalf of the Company to the
Investor or any of its representatives, is inaccurate, false or misleading, in any material respect, as of the date as of which it is
made or deemed to be made, or on any Closing Date; or


 


(c) a
failure by the Company to comply with any of its covenants or agreements set forth in this Agreement, including those set forth in Section
10.


 


7.2 Investor
Right to Investigate an Event of Default. If in the Investor’s reasonable opinion, an Event of Default has occurred, or is or
may be continuing:


 


(a) the
Investor may notify the Company that is wishes to investigate such purported Event of Default;


 






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(b) the
Company shall cooperate with the Investor in such investigation;


 


(c) the
Company shall comply with all reasonable requests made by the Investor to the Company in connection with any investigation by the Investor
and shall (i) provide all information requested by the Investor in relation to the Event of Default to the Investor; provided that the
Investor agrees that any materially price sensitive information and/or non-public information will be subject to confidentiality, and
(ii) provide all such requested information within three (3) Business Days of such request; and


 


(d) the
Company shall pay all reasonable costs incurred by the Investor in connection with any such investigation.


 


7.3 Remedies
Upon an Event of Default


 


(a) If
an Event of Default occurs pursuant to Section 7.1(a), the Investor shall have such remedies as are set forth in the Note.


 


(b) If
an Event of Default occurs pursuant to Section 7.1(b) or Section 7.1(c) and is not remedied within (i) five (5) Business
Days following the Company becoming aware of such Event of Default or the Investor notifying the Company in writing of the occurrence
of such Event of Default, whichever is earlier, for an Event of Default occurring by the Company’s failure to comply with Section
7.1(c), or (ii) ten (10) Business Days following the Company becoming aware of such Event of Default or the Investor notifying the
Company in writing of the occurrence of such Event of Default, whichever is earlier, for an Event of Default occurring pursuant to Section
7.1(b), the Investor may declare, by notice to the Company, effective immediately, all outstanding obligations by the Company under
the Transaction Documents to be immediately due and payable in immediately available funds and the Investor shall have no obligation to
consummate any Closing under this Agreement or to accept the conversion of the Note into Conversion Shares.


 


(c) If
any Event of Default occurs and is not remedied within (i) five (5) Business Days following the Company becoming aware of such Event of
Default or the Investor notifying the Company in writing of the occurrence of such Event of Default, whichever is earlier, for an Event
of Default occurring by the Company’s failure to comply with Section 7.1(c), or (ii) ten (10) Business Days following the
Company becoming aware of such Event of Default or the Investor notifying the Company in writing of the occurrence of such Event of Default,
whichever is earlier, for an Event of Default occurring pursuant to Section 7.1(b), the Investor may, by written notice to the
Company, terminate this Agreement effective as of the date set forth in the Investor’s notice.


 






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8. TERMINATION


 


8.1 Events
of Termination. This Agreement:


 


(a) may
be terminated:


 


(i) by
the Investor on the occurrence or existence of a Securities Termination Event or a Change of Control;


 


(ii) by
the mutual written consent of the Company and the Investor, at any time;


 


(iii) by
either Party, by written notice to the other Party, effective immediately, if the Closing has not occurred within fifteen (15) Business
Days of the date of this Agreement or such later date as the Company and the Investor agree in writing, provided that the right to terminate
this Agreement under this Section 8.1(a)(iii) is not available to any party that is in material breach of or material default under
this Agreement or whose failure to fulfill any obligation under this Agreement has been the principal cause of, or has resulted in the
failure of the Closing to occur; or


 


(iv) by
the Investor, in accordance with Section 7.3(c).


 


8.2 Automatic
Termination. This Agreement will automatically terminate, without further action by the parties, at the time after the Closing that
the Principal Amount outstanding under the Note and any accrued but unpaid interest is reduced to zero (0), whether as a result of Conversion
or repayment by the Company in accordance with the terms of this Agreement and the Note.


 


8.3 Effect
of Termination.


 


(a) Subject
to Section 8.3(b), each party’s right of termination under Section 8.1 is in addition to any other rights it may have
under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.


 


(b) If
the Investor terminates this Agreement under Section 8.1(a)(i):


 


(i) the
Investor may declare, by notice to the Company, all outstanding obligations by the Company under the Transaction Documents to be due and
payable (including, without limitation, the immediate repayment of any Principal Amount outstanding under the Note plus accrued but unpaid
interest) without presentment, demand, protest or any other notice of any kind, all of which are expressly waived by the Company, anything
to the contrary contained in this Agreement or in any other Transaction Document notwithstanding; and


 


(ii) the
Company must within five (5) Business Days of such notice being received, pay to the Investor in immediately available funds the outstanding
Principal Amount for the Note plus all accrued interest thereon (if any), unless the Investor terminates this Agreement as a result of
an Event of Default and provided that (A) subsequent to the termination under Section 8.1(a)(i), the Investor is not prohibited
by Law or otherwise from exercising its conversion rights pursuant to this Agreement or the Note, (B) the Investor actually exercises
its conversion rights under this Agreement or the Note, and (C) the Company otherwise complies in all respects with its obligation to
issue Conversion Shares in accordance with the Note (which obligation will survive termination).


 






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(c) Upon
termination of this Agreement, the Investor will not be required to fund any further amount after the date of termination of the Agreement,
provided that termination will not affect any undischarged obligation under this Agreement, and any obligation of the Company to pay or
repay any amounts owing to the Investor hereunder and which have not been repaid at the time of termination.


 


(d) Nothing
in this Agreement will be deemed to release any party from any liability for any breach by such party of the terms and provisions of this
Agreement or to impair the right of any party to compel specific performance by any other Party of its obligations under this Agreement.


 


9. REGISTRATION
RIGHTS


 


9.1 Registration.


 


(a) Piggyback
Registration Rights. If the Company at any time after June 15, 2021 determines to file a Registration Statement to register the offer
and sale, by the Company, of Common Stock (other than (x) on Form S-4 or Form S-8 under the 1933 Act or any successor forms thereto, (y)
an at-the-market offering, or (z) a registration of securities solely relating to an offering and sale to employees or directors of the
Company pursuant to any employee stock plan or other employee benefit plan arrangement), the Company shall, as soon as reasonably practicable,
give written notice to the Investor of its intention to so register the offer and sale of Common Stock and, upon the written request,
given within five (5) Business Days after delivery of any such notice by the Company, of the Investor to include in such registration
the Investor Shares (which request shall specify the number of Investor Shares proposed to be included in such registration), the Company
shall cause all such Investor Shares to be included in such Registration Statement on the same terms and conditions as the Common Stock
otherwise being sold pursuant to such registered offering.


 


(b) Registration
Statement. In the event that the Company does not determine to file a Registration Statement to register the offer and sale, by the
Company, of Common Stock pursuant to Section 9.1(a) above on or before August 1, 2021, the Company shall prepare and file with
the SEC a Registration Statement covering the resale of all of the Investor Shares within thirty (30) days thereafter. The foregoing Registration
Statement shall be filed on Form S-1 or a Form S-3 or any successor forms thereto. The Registration Statement (and each amendment or supplement
thereto, and each request for acceleration of effectiveness thereof) shall be provided to the Investor and its counsel at least five (5)
Business Days prior to its filing or other submission and the Company shall incorporate all reasonable comments provided by the Investor
or its counsel.


 






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(c) Expenses.
Except as otherwise expressly provided herein, the Company will pay all fees and expenses incident to the performance of or compliance
with this Section 9, including all fees and expenses associated with effecting the registration of the Investor Shares, including
all filing and printing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Investor
Shares for sale under applicable state securities laws, listing fees, fees and expenses of one counsel to the Investor and the Investor’s
reasonable expenses in connection with the registration, but excluding discounts, commissions, fees of underwriters, selling brokers,
dealer managers or similar securities industry professionals with respect to the Investor Shares being sold.


 


(d) Effectiveness.
The Company shall use its best efforts to have any Registration Statement filed under this Section 9 declared effective as soon
as practicable after filing thereof but in no event later than the date that is seventy-five (75) days following the filing of such Registration
Statement. The Company shall notify the Investor by e-mail as promptly as practicable, and in any event, within twenty-four (24) hours,
after the Registration Statement is declared effective and shall simultaneously provide the Investor with copies of any related Prospectus
to be used in connection with the sale or other disposition of the securities covered thereby.


 


9.2 Company
Obligations. The Company will use its commercially reasonable efforts to effect the registration of the Investor Shares in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:


 


(a) use
its commercially reasonable efforts to cause the Registration Statement to become effective and to remain continuously effective for a
period that will terminate upon the first date on which all Investor Shares are either covered by the Registration Statement or may be
sold without restriction, including volume or manner-of-sale restrictions, pursuant to Rule 144 or have been sold by the Investor (the
“Effectiveness Period”) and advise the Investor in writing when the Effectiveness Period has expired;


 


(b) prepare
and file with the SEC such amendments and post-effective amendments and supplements to the Registration Statement and the Prospectus as
may be necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the Investor Shares covered thereby;


 


(c) provide
copies to and permit counsel designated by the Investor to review all amendments and supplements to the Registration Statement no fewer
than three (3) Business Days prior to its filing with the SEC and not file any document to which such counsel reasonably objects;


 


(d) furnish
to the Investor and its legal counsel, without charge, (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the
case may be) one copy of the Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment
or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence
from the SEC or the staff of the SEC, in each case relating to the Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including
a preliminary prospectus, and all amendments and supplements thereto and such other documents as the Investor may reasonably request in
order to facilitate the disposition of the Investor Shares that are covered by the related Registration Statement;


 






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(e) immediately
notify the Investor of any request by the SEC for the amending or supplementing of the Registration Statement or Prospectus or for additional
information;


 


(f) use
its commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the earliest possible moment and notify the Company of the issuance of any
such order and the resolution thereof, or its receipt of notice of the initiation or threat of any proceeding for such purpose;


 


(g) prior
to any public offering of Investor Shares, use its commercially reasonable efforts to register or qualify or cooperate with the Investor
and its counsel in connection with the registration or qualification of such Investor Shares for offer and sale under the securities or
blue sky laws of such jurisdictions requested by the Investor and do any and all other commercially reasonable acts or things necessary
or advisable to enable the distribution in such jurisdictions of the Investor Shares covered by the Registration Statement and the Company
shall promptly notify the Investor of any notification with respect to the suspension of the registration or qualification of any of such
Investor Shares for sale under the securities or blue sky laws of such jurisdictions or its receipt of notice of the initiation or threat
of any proceeding for such purpose;


 


(h) immediately
notify the Investor, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event
as a result of which, the Registration Statement or Prospectus includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading (in the case of the Prospectus, in light
of the circumstances in which they were made), and promptly prepare, file with the SEC and furnish to such holder a supplement to or an
amendment of such Registration Statement or Prospectus as may be necessary 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 not misleading (in the case of such Prospectus, in light of the circumstances in which they were made);


 


(i) otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act;


 


(j) 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 complete
the Registration Statement or to avoid or correct a misstatement or omission in the 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, and 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; and


 






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(k) take
all other reasonable actions necessary to expedite and facilitate disposition by the Investor of all Investor Shares pursuant to the Registration
Statement.


 


9.3 Indemnification.


 


(a) Indemnification
by the Company. The Company will indemnify and hold harmless the Investor Parties, from and against any Losses to which they may become
subject under the 1933 Act or otherwise, arising out of, relating to or based upon: (i) any untrue statement or alleged untrue statement
of any material fact contained in any Registration Statement, any preliminary prospectus, final Prospectus or other document, including
any blue sky application (as defined below), or any amendment or supplement thereof or any omission or alleged omission of a material
fact required to be stated therein or, in the case of the Registration Statement, necessary to make the statements therein not misleading
or, in the case of any preliminary prospectus, final Prospectus or other document, necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading; (ii) any blue sky application or other document executed by the Company
specifically for that purpose or based upon written information furnished by the Company filed in any state or other jurisdiction in order
to qualify any or all of the Investor Shares under the securities laws thereof (any such application, document or information herein called
a “Blue Sky Application”); (iii) any violation or alleged violation by the Company or its agents of the 1933 Act, the
1934 Act or any similar federal or state law or any rule or regulation promulgated thereunder applicable to the Company or its agents
and relating to any action or inaction required of the Company in connection with the registration or the offer or sale of the Investor
Shares pursuant to any Registration Statement; or (iv) any failure to register or qualify the Investor Shares included in any such Registration
Statement in any state where the Company or its agents has affirmatively undertaken or agreed in writing that the Company will undertake
such registration or qualification on the Investor’s behalf and will reimburse the indemnified Investor Parties for any legal or
other expenses reasonably incurred by them in connection with investigating, preparing or defending any such Losses; provided,
however, that the Company will not be liable in any such case if and to the extent, but only to the extent, that any such Losses
arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with
information furnished by the Investor or any such controlling Person in writing specifically for use in such Registration Statement or
Prospectus.


 






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(b) Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim, action, suit or proceeding with respect to which it seeks indemnification following such Person’s receipt of,
or such Person otherwise become aware of, the commencement of such claim, action, suit or proceeding and (ii) permit such indemnifying
party to assume the defense of such claim, action, suit or proceeding with counsel reasonably satisfactory to the indemnified party; provided,
however, that any Person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate
in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (A) the indemnifying
party has agreed to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such Person or (C) in the reasonable judgment of any such Person, based upon written advice of its
counsel, a conflict of interest exists between such Person and the indemnifying party with respect to such claims (in which case, if the
Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person); and provided,
further, that the failure or delay of any indemnified party to give notice as provided herein shall not relieve the indemnifying
party of its obligations hereunder, except to the extent that such failure or delay to give notice shall materially adversely affect the
indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection
with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for
all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party, consent to entry of any judgment
or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation.


 


(c) Contribution.
If for any reason the indemnification provided for in the preceding paragraph (a) is unavailable to an indemnified party or insufficient
to hold it harmless, other than as expressly specified therein, the indemnifying party shall contribute to the amount paid or payable
by the indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No Person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this Section are in addition to any other rights or remedies that any indemnified
party may have under applicable law, by separate agreement or otherwise.


 


10. RIGHTS
TO FUTURE STOCK ISSUANCES. Subject to the terms and conditions of this Section 10 and applicable securities laws, if at any
time prior to the second anniversary of the Closing, the Company proposes to offer or sell any New Securities, the Company shall first
offer the Investor the opportunity to purchase up to ten percent (10%) of such New Securities. The Investor shall be entitled to apportion
the right of first offer hereby granted to it in such proportions as it deems appropriate among itself and its Affiliates.


 


10.1 The
Company shall give notice (the “Offer Notice”) to the Investor, stating (a) its bona fide intention to offer such New
Securities, (b) the number of such New Securities to be offered, and (c) the price and terms, if any, upon which it proposes to offer
such New Securities.


 


10.2 By
notification to the Company within ten (10) days after the Offer Notice is given, the Investor may elect to purchase or otherwise acquire,
at the price and on the terms specified in the Offer Notice, up to ten percent (10%) of such New Securities. The closing of any sale pursuant
to this Section 10 shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of
initial sale of New Securities pursuant to Section 10.3.


 






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10.3 The
Company may, during the ninety (90) day period following the expiration of the period provided in Section 10.2, offer and sell
the remaining portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the
offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities
within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder
shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Investors in accordance with
this Section 10.


 


10.4 The
right of first offer in this Section 10 shall not be applicable to Exempted Securities, or any New Securities registered for sale
under the 1933 Act.


 


11. GENERAL
PROVISIONS


 


11.1
Fees and Expenses. Prior to the date of this Agreement, the Company has paid Morgan, Lewis & Bockius LLP $30,000.
At the Closing, the Company shall reimburse the Investor up to an additional $55,000 of due diligence costs and reasonable fees and disbursements
of Morgan, Lewis & Bockius LLP in connection with the preparation of the Transaction Documents, it being understood that Morgan,
Lewis & Bockius LLP has not rendered any legal advice to the Company in connection with the transactions contemplated hereby and
that the Company has relied for such matters on the advice of its own counsel. All fees to be paid referenced above shall be offset against
the Funding Amount of Lind Global Macro Fund, LP and paid directly by Lind Global Macro Fund, LP to Morgan, Lewis & Bockius LLP.
Except as specified above, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction
Documents. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Note and the Warrant.


 


11.2 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email
at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the
date of transmission, if such notice or communication is delivered via email at the email address specified in this Section on a day that
is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date, (c)
the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:


 


If to the Company:


 


COMSovereign Holding Corp.

500 Quorum Drive, Suite 400

Dallas, Texas


	 	Telephone:	(904) 834-4400
	 	Email:	dhodges@comsovereign.com
	 	 	legal@comsovereign.com
	 	Attention:	Daniel L. Hodges, Chairman & Chief Executive Officer



 






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With a copy (which shall not constitute
notice) to:


 


Pryor Cashman LLP


7 Times Square


New York, New York 10036


	 	Telephone: 	(212) 326-0846
	 	Email: 	ehellige@pryorcashman.com
	 	Attention: 	Eric M. Hellige, Esq.



 


If to the Investor:


 


Lind Global Asset Management IV, LLC

c/o The Lind Partners LLC

444 Madison Avenue, Floor 41

New York, NY 10022


	 	Telephone: 	(646) 395-3931
	 	Email:	 jeaston@thelindpartners.com and 

notice@thelindpartners.com
	 	Attention: 	Jeff Easton



 


With a copy (which shall not constitute
notice) to:


 


Morgan, Lewis & Bockius LLP

One Federal Street

Boston, MA 02110


	 	Telephone: 	(617) 341-7269
	 	Email: 	bryan.keighery@morganlewis.com
	 	Attention: 	Bryan S. Keighery



 


or such other address as may be designated in
writing hereafter, in the same manner, by such Person.


 


11.3
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope
or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to
the maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be
affected or impaired thereby.


 






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11.4
Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York,
without reference to principles of conflict of laws or choice of laws.


 


11.5
Jurisdiction and Venue. Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall
be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York. The Company and the Investor irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive,
and hereby waive any objection to such exclusive jurisdiction or that such courts represent an inconvenient forum. The prevailing party
in any such action shall be entitled to recover its reasonable and documented attorneys’ fees and out-of-pocket expenses relating
to such action or proceeding.


 


11.6
WAIVER OF RIGHT TO JURY TRIAL. THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER
TRANSACTION DOCUMENTS.


 


11.7 Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Securities.


 


11.8
Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.


 


11.9
Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed
by the Company and the Investor. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise
of any such right.


 


11.10 Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof. 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. This Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement or any of the Transaction Documents.


 


11.11
Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the
Company and the Investor and their respective successors and assigns. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Investor. The Investor may assign any or all of its rights under this Agreement to
any Person to whom the Investor assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions hereof that apply to the “Investor” and such transferee is an accredited
investor.


 






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


 


11.13
Further Assurances. Each party hereto 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.


 


11.14
Counterparts. This Agreement may be executed in two identical counterparts, both of 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. Signature
pages delivered by facsimile or e-mail shall have the same force and effect as an original signature.


 


11.15 Specific
Performance. The Company acknowledges that monetary damages alone would not be adequate compensation to the Investor for a breach
by the Company of this Agreement and the Investor may seek an injunction or an order for specific performance from a court of competent
jurisdiction if (a) the Company fails to comply or threatens not to comply with this Agreement or (b) the Investor has reason to believe
that the Company will not comply with this Agreement.


 


[Signature Page Follows]


 




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IN WITNESS WHEREOF, the undersigned
have executed this Securities Purchase Agreement as of the date first set forth above.


 


	COMPANY: 	 	INVESTOR:
	 	 	 	 	 
	COMSOVEREIGN HOLDING CORP. 		Lind
    GLOBAL Asset management iv, llc
	 	 	 	 	 
	By:	/s/ Daniel L. Hodges		By:	/s/ Jeff Easton
	Name: 	Daniel L. Hodges	 	Name:	 Jeff Easton
	Title: 	Chief Executive Officer		Title:	Authorized Signatory



 


[Signature Page of Securities
Purchase Agreement]