Exhibit 10.1


 


Execution Version


 


 


COMMON
STOCK PURCHASE AGREEMENT


 


Dated as of OCTOBER
4, 2022


 


by and between


 


ARCIMOTO, INC.


 


and


 


TUMIM STONE CAPITAL
LLC


 




     


     


    


 


table of contents


 


	Article I PURCHASE
    AND SALE OF COMMON STOCK	1
	Section 1.1	Purchase and Sale of Stock	1
	Section 1.2 	Commencement Date; Settlement Dates	1
	Section 1.3 	Reservation of Common Stock	2
	Section 1.4 	Current Report; Prospectus Supplement	2
	 	 	 
	Article II PURCHASE
    TERMS	3
	Section 2.1 	VWAP Purchases	3
	Section 2.2 	Alternative VWAP Purchases	4
	Section 2.3 	Settlement	5
	Section 2.4 	Compliance with Rules of Trading Market.	5
	Section 2.5 	Beneficial Ownership Limitation	6
	Section 2.6 	Commitment Shares	6
	 	 	 
	Article III
    REPRESENTATIONS AND WARRANTIES OF THE INVESTOR	7
	Section 3.1	Organization and Standing of the Investor	7
	Section 3.2 	Authorization and Power	7
	Section 3.3	No Conflicts	7
	Section 3.4	Information	7
	Section 3.5 	No Governmental Review	8
	Section 3.6	Not an Affiliate	8
	Section 3.8	Statutory Underwriter Status	8
	Section 3.9	Resales of Securities	8
	 	 	 
	Article IV REPRESENTATIONS
    AND WARRANTIES OF THE COMPANY	8
	Section 4.1	Organization, Good Standing and Power	8
	Section 4.2 	Authorization, Enforcement	9
	Section 4.3	Capitalization	9
	Section 4.4	Issuance of Securities	10
	Section 4.5	No Conflicts	10
	Section 4.6 	Commission Documents, Financial Statements; Disclosure
    Controls and Procedures; Internal Controls Over Financial Reporting; Accountants	11
	Section 4.7 	Subsidiaries	13
	Section 4.8	No Material Adverse Effect	13
	Section 4.9	No Undisclosed Liabilities	13
	Section 4.10	No Undisclosed Events or Circumstances	13
	Section 4.11 	Indebtedness	13
	Section 4.12 	Title To Assets	14
	Section 4.13 	Actions Pending	14
	Section 4.14 	Compliance With Law	14
	Section 4.15 	Certain Fees	14
	Section 4.16	Operation of Business	15



 






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	Section 4.17
    	Environmental Compliance	15
	Section 4.18 	Material Agreements	15
	Section 4.19 	Transactions With Affiliates	16
	Section 4.20 	Securities Act	16
	Section 4.21 	Employees; Labor Laws	17
	Section 4.22 	Use of Proceeds	17
	Section 4.23 	Investment Company Act Status	17
	Section 4.24 	ERISA	18
	Section 4.25 	Taxes	18
	Section 4.26 	Insurance	18
	Section 4.27	U.S. Real Property Holding Corporation	18
	Section 4.28 	Listing and Maintenance Requirements; DTC Eligibility	18
	Section 4.29 	No Unlawful Payments	19
	Section 4.30	Money Laundering Laws	19
	Section 4.31 	OFAC	19
	Section 4.32 	Disclosure	20
	Section 4.33 	U.S. Real Property Holding Corporation	20
	Section 4.34 	Bank Holding Company Act.	20
	Section 4.35 	IT Systems	20
	Section 4.36 	Compliance With Data Privacy Laws	21
	Section 4.37 	Stock Option Plans	21
	Section 4.38	No Aggregation	21
	Section 4.39 	Dilutive Effect	21
	Section 4.40 	Manipulation of Price.	21
	Section 4.41 	Application of Takeover Protections	22
	Section 4.42 	Acknowledgement Regarding Investor’s Acquisition
    of Securities	22
	 	 	 
	Article V COVENANTS	22
	Section 5.1	Securities Compliance	22
	Section 5.2	Registration and Listing	22
	Section 5.3	Compliance with Laws.	23
	Section 5.5 	No Frustration; No Variable Rate Transactions.	23
	Section 5.6 	Stop Orders	24
	Section 5.7	Amendments to the Registration Statement; Prospectus
    Supplements; Free Writing Prospectuses.	25
	Section 5.8 	Prospectus Delivery	26
	Section 5.9	Selling Restrictions	26
	Section 5.10	Effective Registration Statement	27
	Section 5.11	Non-Public Information	27
	Section 5.12 	Broker/Dealer	27
	Section 5.13	Earnings Statement	28
	Section 5.14 	Corporate Existence	28
	Section 5.15	Fundamental Transaction	28
	Section 5.16	Disclosure Schedule.	28
	Section 5.17	Shareholder Approval	29



 






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	Article VI Conditions
    to commencement;  CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES	29
	Section 6.1	Conditions to Commencement	29
	Section 6.2	Conditions Precedent to the Obligations of the Company	30
	Section 6.3 	Conditions Precedent to the Obligations of the Investor	32
	 	 	 
	Article VII
    TERMINATION	36
	Section 7.1 	Automatic Termination; Termination by Mutual Consent;
    Termination by the Company	36
	Section 7.2 	Other Termination	36
	Section 7.3 	Effect of Termination	37
	 	 	 
	Article VIII
    INDEMNIFICATION	38
	Section 8.1	General Indemnity.	38
	Section 8.2 	Indemnification Procedures	39
	 	 	 
	Article IX MISCELLANEOUS	40
	Section 9.1	Fees and Expenses.	40
	Section 9.2 	Specific Enforcement, Consent to Jurisdiction, Waiver
    of Jury Trial.	40
	Section 9.3 	Entire Agreement; Amendment	40
	Section 9.4	Notices	41
	Section 9.5 	Waivers	42
	Section 9.6 	Headings; Construction	42
	Section 9.7 	Successors and Assigns	42
	Section 9.8 	Governing Law	43
	Section 9.9 	Survival	43
	Section 9.10 	Counterparts	43
	Section 9.11 	Publicity	43
	Section 9.12 	Severability	43
	Section 9.13 	No Third Party Beneficiaries	43
	Section 9.14 	Further Assurances	43
	Annex I.	Definitions	45 









 






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COMMON STOCK PURCHASE
AGREEMENT


 


This COMMON STOCK PURCHASE
AGREEMENT is made and entered into as of October 4, 2022 (this “Agreement”), by and between Tumim Stone Capital
LLC, a Delaware limited liability company (the “Investor”), and Arcimoto, Inc., an Oregon corporation (the “Company”).
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in Annex I hereto.


 


RECITALS


 


WHEREAS, the parties
desire that, upon the terms and subject to the conditions and limitations set forth herein, the Company may issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase from the Company, up to the lesser of (i) $50,000,000 worth of newly
issued shares of the Company’s common stock, no par value per share (“Common Stock”), and (ii) the Exchange Cap
(to the extent applicable under Section 2.4 hereof);


 


WHEREAS, in consideration
for the Investor’s execution and delivery of this Agreement and its obligation to purchase shares of Common Stock from the Company
upon the terms and subject to the conditions of this Agreement, the Company shall cause its transfer agent to issue to the Investor the
Initial Commitment Shares and the Additional Commitment Shares, at such times and otherwise in accordance with the terms and subject to
the conditions of this Agreement; and


 


WHEREAS, the issuance
of the Commitment Shares and the offer and sale of the Shares hereunder have been registered by the Company under the Registration Statement,
which has been declared effective by order of the Commission under the Securities Act;


 


NOW, THEREFORE, the
parties hereto, intending to be legally bound, hereby agree as follows:


 


Article
I

PURCHASE AND SALE OF COMMON STOCK


 


Section 1.1
Purchase and Sale of Stock. Upon the terms and subject to the conditions of this Agreement, during the Investment Period,
the Company, in its sole discretion, shall have the right, but not the obligation, to issue and sell to the Investor, and the Investor
shall purchase from the Company, up to the lesser of (i) $50,000,000 (the “Total Commitment”) in aggregate gross purchase
price of duly authorized, validly issued, fully paid and non-assessable shares of Common Stock and (ii) the Exchange Cap, to the extent
applicable under Section 2.4 (such lesser amount of shares of Common Stock, the “Aggregate Limit”), by the delivery
to the Investor of VWAP Purchase Notices and Alternative VWAP Purchase Notices as provided in Article II.


 


Section 1.2  Commencement
Date; Settlement Dates. This Agreement shall become effective and binding upon the payment of the fees required to be paid
on or prior to the Commencement Date pursuant to Section 9.1, the delivery of irrevocable instructions to the Company’s
transfer agent to issue the Initial Commitment Shares to the Investor or its designee(s) as provided in Sections 2.6 and 6.1, the
delivery of counterpart signature pages of this Agreement executed by each of the parties hereto, and the delivery of all other
documents, instruments and writings required to be delivered on the Commencement Date, in each case as provided in Section 6.1, to
the offices of Dorsey & Whitney LLP, 51 West 52nd Street, New York, New York 10019, at 3:30 p.m., New York time, or
at such other time as the parties may agree, on the Commencement Date. In consideration of and in express reliance upon the
representations, warranties and covenants contained in, and upon the terms and subject to the conditions of, this Agreement, during
the Investment Period the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, the Shares
in respect of each VWAP Purchase and the Shares in respect of each Alternative VWAP Purchase. The payment for, against delivery of,
Shares in respect of each VWAP Purchase and each Alternative VWAP Purchase under this Agreement (as applicable) shall occur in
accordance with Section 2.3.


 






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Section 1.3
Reservation of Common Stock. The Company has or will have duly authorized and reserved for issuance, and covenants to
continue to so reserve once reserved for issuance, free of all preemptive and other similar rights, at all times during the Investment
Period, the requisite aggregate number of authorized but unissued shares of its Common Stock to timely effect the issuance, sale and delivery
in full to the Investor of all Shares to be issued in respect of all VWAP Purchases and all Alternative VWAP Purchases under this Agreement,
in any case prior to the issuance to the Investor of such Shares.


 


Section 1.4 Current
Report; Prospectus Supplement. As soon as practicable, but in any event not later than 9:00 a.m. (New York time) on the
Trading Day immediately following the date of this Agreement, the Company shall file with the Commission (i) a current report on
Form 8-K relating to the transactions contemplated by, and describing the material terms and conditions of, this Agreement (the
“Current Report”), and (ii) a Prospectus Supplement pursuant to Rule 424(b) under the Securities Act specifically
relating to the transactions contemplated by, and describing the material terms and conditions of, this Agreement, containing
information previously omitted at the time of effectiveness of the Registration Statement in reliance on Rule 430B under the
Securities Act, and disclosing all information relating to the transactions contemplated hereby required to be disclosed in the
Registration Statement and the Prospectus as of the Commencement Date, including, without limitation, information required to be
disclosed in the section captioned “Plan of Distribution” in the Prospectus (the “Initial Prospectus
Supplement”). The Current Report shall include a copy of this Agreement as an exhibit and shall be incorporated by
reference in the Registration Statement and the Prospectus. The Company has prior to the date hereof provided the Investor a
reasonable opportunity to comment on a draft of the Current Report and the Initial Prospectus Supplement and has given due
consideration to all such comments (provided, however, that the failure of the Investor to make any objection
to the form and content thereof shall not relieve the Company of any obligation or liability under this Agreement or affect the
Investor’s right to rely on the representations and warranties made by the Company in this Agreement). If the transactions
contemplated by any one or more VWAP Purchases and/or one or more Alternative VWAP Purchases are material to the Company
(individually or collectively with other prior VWAP Purchases and Alternative VWAP Purchases, the material pricing and/or other
material terms of which have not previously been disclosed in the Initial Prospectus Supplement or any Prospectus Supplement filed
with the Commission under Rule 424(b) under the Securities Act after the date on which the Initial Prospectus Supplement was filed
with the Commission, or in any report, statement or other document filed by the Company with the Commission under the Exchange Act),
or if otherwise required under the Securities Act or as would be consistent with applicable and publicly available written guidance
or interpretations of the Commission’s staff, in each case as reasonably determined by mutual agreement of the Company and the
Investor, then, at or prior to 9:00 a.m. (New York time) on the first (1st) Trading Day immediately following (x) in the
case of a VWAP Purchase, the VWAP Purchase Exercise Date (such Trading Day being the first Trading Day of the VWAP Purchase
Valuation Period) with respect to such VWAP Purchase, and (y) in the case of an Alternative VWAP Purchase, the Alternative VWAP
Purchase Exercise Date (such Trading Day being the first Trading Day of the Alternative VWAP Purchase Valuation Period) with respect
to such Alternative VWAP Purchase, as the case may be, the Company shall file with the Commission a Prospectus Supplement pursuant
to Rule 424(b) under the Securities Act or a current report on Form 8-K with respect to the applicable VWAP Purchase or Alternative
VWAP Purchase, as applicable, disclosing all material pricing and other material terms thereof, total amount of Shares to be issued
and sold to the Investor pursuant to such VWAP Purchase(s) or Alternative VWAP Purchase(s) and, to the extent determinable at such
time, the gross proceeds anticipated to be received by the Company in connection therewith (to the extent such terms have not
previously been disclosed in the Initial Prospectus Supplement or in any Prospectus Supplement filed with the Commission under Rule
424(b) under the Securities Act after the date on which the Initial Prospectus Supplement was filed with the Commission, or in any
report, statement or other document filed by the Company with the Commission under the Exchange Act) and, (1) at or prior to 9:00
a.m. (New York time) on the VWAP Purchase Settlement Date with respect to such VWAP Purchase that, either individually or
collectively with other prior VWAP Purchases and/or Alternative VWAP Purchases (as applicable), necessitated the filing of such
Prospectus Supplement (or Exchange Act filing) or (2) at or prior to 9:00 a.m. (New York time) on the Alternative VWAP Purchase
Settlement Date with respect to such Alternative VWAP Purchase that, either individually or collectively with other prior VWAP
Purchases and/or Alternative VWAP Purchases (as applicable), necessitated the filing of such Prospectus Supplement (or Exchange Act
filing), as the case may be, the Company shall file with the Commission an additional Prospectus Supplement pursuant to Rule 424(b)
under the Securities Act or a current report on Form 8-K with respect to (A) in the case of a VWAP Purchase, the applicable VWAP
Purchase disclosing the applicable VWAP Purchase Price(s) for the Shares subject to such VWAP Purchase(s), the total aggregate VWAP
Purchase Price for such Shares and the net proceeds that are expected to be received by the Company from the sale of such Shares, or
(B) in the case of an Alternative VWAP Purchase, the applicable Alternative VWAP Purchase disclosing the applicable Alternative VWAP
Purchase Price(s) for the Shares subject to such Alternative VWAP Purchase(s), the total aggregate Alternative VWAP Purchase Price
for such Shares and the net proceeds that are expected to be received by the Company from the sale of such Shares. To the extent not
previously disclosed in a Prospectus Supplement or a current report on Form 8-K filed with the Commission, the Company shall
disclose, in each Quarterly Report on Form 10-Q and each Annual Report on Form 10-K filed with the Commission, the aggregate number
of shares of Common Stock sold pursuant to VWAP Purchases and/or Alternative VWAP Purchases consummated during the relevant fiscal
quarter as well as the aggregate net proceeds to the Company from such VWAP Purchases and/or Alternative VWAP Purchases.


 




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Article
II

PURCHASE TERMS


 


Subject to the satisfaction
or (to the extent permitted by applicable law) waiver of the conditions set forth in this Agreement, the parties agree (unless otherwise
mutually agreed upon by the parties in writing) as follows:


 


Section 2.1 VWAP
Purchases. Upon the initial satisfaction of all of the conditions set forth in Section 6.1 (such event, the
“Commencement” and the date of initial satisfaction of all of such conditions, the “Commencement
Date”) and from time to time thereafter, subject to the satisfaction of all of the conditions set forth in Sections 6.2
and 6.3 and this Section 2.1, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to
the Investor of a VWAP Purchase Notice on a VWAP Purchase Exercise Date, to purchase the applicable VWAP Purchase Share Amount, not
to exceed the applicable VWAP Purchase Maximum Amount, at the applicable VWAP Purchase Price therefor (as confirmed in the
applicable VWAP Purchase Confirmation) in accordance with this Agreement (each such purchase, a “VWAP Purchase”).
The Company may timely deliver a VWAP Purchase Notice to the Investor on any Trading Day the Company selects as the VWAP Purchase
Exercise Date for a VWAP Purchase, so long as (i) the Closing Sale Price of the Common Stock on such VWAP Purchase Exercise Date is
not less than the Threshold Price, (ii) at least three (3) Trading Days shall have elapsed since the later of (A) the most recent
prior VWAP Purchase Exercise Date on which the Company has delivered a VWAP Purchase Notice to the Investor pursuant to this
Agreement and (B) the most recent prior Alternative VWAP Purchase Exercise Date on which the Company has delivered an Alternative
VWAP Purchase Notice to the Investor pursuant to this Agreement, and (iii) all Shares subject to all prior VWAP Purchase Notices and
all prior Alternative VWAP Purchase Notices (as applicable) delivered by the Company to the Investor pursuant to this Agreement have
been received by the Investor or its Broker-Dealer as DWAC Shares, prior to the Company’s delivery to the Investor of such
VWAP Purchase Notice for such VWAP Purchase on such VWAP Purchase Exercise Date; provided, however, that the Investor
may, in its sole discretion, elect to waive satisfaction of any one or more of the conditions set forth in clauses (i), (ii) and
(iii) of this sentence, on any VWAP Purchase Exercise Date on which the Company shall have notified the Investor, via email
correspondence delivered to the Investor’s address pursuant to Section 9.4 (receipt of which shall be confirmed by the
Investor via email correspondence delivered to the Company’s address pursuant to Section 9.4, other than via auto-reply), that
the Company intends to timely deliver a VWAP Purchase Notice to the Investor on such VWAP Purchase Exercise Date, by the
Investor’s delivery of a written waiver thereof via email to the Company’s address pursuant to Section 9.4, all of which
shall occur prior to the Company’s delivery to the Investor of such VWAP Purchase Notice for a VWAP Purchase hereunder. For
the avoidance of doubt, the Company may not deliver a VWAP Purchase Notice for a VWAP Purchase and an Alternative VWAP Purchase
Notice for an Alternative VWAP Purchase on the same Trading Day. The Investor is obligated to accept each VWAP Purchase Notice
prepared and timely delivered by the Company in accordance with the terms of and subject to the satisfaction or, where legally
permissible, the waiver of the conditions contained in this Agreement in accordance with the terms of this Agreement. If the Company
delivers any VWAP Purchase Notice directing the Investor to purchase a VWAP Purchase Share Amount in excess of the applicable VWAP
Purchase Maximum Amount that the Company is then permitted to include in such VWAP Purchase Notice (calculated as of the applicable
VWAP Purchase Exercise Date), such VWAP Purchase Notice shall be void ab initio to the extent of the amount by which the VWAP
Purchase Share Amount set forth in such VWAP Purchase Notice exceeds such applicable VWAP Purchase Maximum Amount, and the Investor
shall have no obligation to purchase, and shall not purchase, such excess Shares pursuant to such VWAP Purchase Notice; provided, however,
that the Investor shall remain obligated to purchase the applicable VWAP Purchase Maximum Amount pursuant to such VWAP Purchase
Notice. At or prior to 8:30 a.m., New York City time, on the Trading Day immediately following the Trading Day on which the VWAP
Purchase Termination Time for a VWAP Purchase Valuation Period shall occur with respect to a VWAP Purchase hereunder (each, a
“VWAP Purchase Settlement Date”), the Investor shall provide to the Company a written confirmation for such VWAP
Purchase setting forth the applicable VWAP Purchase Price (both on a per Share basis and the total aggregate VWAP Purchase Price) to
be paid by the Investor for the applicable VWAP Purchase Share Amount with respect to such VWAP Purchase (each, a “VWAP
Purchase Confirmation”).


 






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Section 2.2 Alternative
VWAP Purchases. Upon the Commencement on the Commencement Date, and from time to time thereafter, subject to the
satisfaction of all of the conditions set forth in Sections 6.2 and 6.3 and this Section 2.2, in addition to purchases of Shares as
described in Section 2.1, the Company shall also have the right, but not the obligation, to direct the Investor, by its delivery to
the Investor of an Alternative VWAP Purchase Notice on an Alternative VWAP Purchase Exercise Date, to purchase the applicable
Alternative VWAP Purchase Share Amount, not to exceed the applicable Alternative VWAP Purchase Maximum Amount, at the applicable
Alternative VWAP Purchase Price therefor (as confirmed in the applicable Alternative VWAP Purchase Confirmation) in accordance with
this Agreement (each such purchase, an “Alternative VWAP Purchase”). The Company may timely deliver an
Alternative VWAP Purchase Notice to the Investor on any Trading Day the Company selects as the Alternative VWAP Purchase Exercise
Date for an Alternative VWAP Purchase, so long as (i) the Company shall have notified the Investor, via email correspondence
delivered to the Investor’s address pursuant to Section 9.4 (receipt of which shall be confirmed by the Investor via email
correspondence delivered to the Company’s address pursuant to Section 9.4, other than via auto-reply), prior to the
Company’s delivery of such Alternative VWAP Purchase Notice to the Investor hereunder, that the Company intends to timely
deliver an Alternative VWAP Purchase Notice to the Investor on such Alternative VWAP Purchase Exercise Date, and specifying the
number of Shares (not to exceed the applicable Alternative VWAP Purchase Maximum Amount) that would constitute the Alternative VWAP
Purchase Share Amount to be purchased by the Investor pursuant to such Alternative VWAP Purchase Notice, (ii) the Investor, in its
sole discretion, shall have notified the Company, via email correspondence delivered to the Company’s address pursuant to
Section 9.4, that it consents to the Company’s timely delivery of an Alternative VWAP Purchase Notice to the Investor on such
Alternative VWAP Purchase Exercise Date directing the Investor to purchase the Alternative VWAP Purchase Share Amount specified by
the Company in writing via email to the Investor pursuant to clause (i) above, (iii) the Closing Sale Price of the Common Stock on
such Alternative VWAP Purchase Exercise Date is not less than the Threshold Price, (iv) at least three (3) Trading Days shall have
elapsed since the later of (A) the most recent prior VWAP Purchase Exercise Date on which the Company has delivered a VWAP Purchase
Notice to the Investor pursuant to this Agreement and (B) the most recent prior Alternative VWAP Purchase Exercise Date on which the
Company has delivered an Alternative VWAP Purchase Notice to the Investor pursuant to this Agreement, and (v) all Shares subject to
all prior VWAP Purchase Notices and all prior Alternative VWAP Purchase Notices (as applicable) delivered by the Company to the
Investor pursuant to this Agreement shall have been received by the Investor or its Broker-Dealer as DWAC Shares, prior to the
Company’s delivery to the Investor of such Alternative VWAP Purchase Notice for such Alternative VWAP Purchase on such
Alternative VWAP Purchase Exercise Date; provided, however, that the Investor may, in its sole discretion, elect to
waive satisfaction of any one or more of the conditions set forth in clauses (iii), (iv) and (v) of this sentence, on any
Alternative VWAP Purchase Exercise Date on which the Company shall have notified the Investor, via email correspondence delivered to
the Investor’s address pursuant to Section 9.4 (receipt of which shall be confirmed by the Investor via email correspondence
delivered to the Company’s address pursuant to Section 9.4, other than via auto-reply), that the Company intends to timely
deliver an Alternative VWAP Purchase Notice to the Investor on such Alternative VWAP Purchase Exercise Date, by the Investor’s
delivery of a written waiver thereof via email to the Company’s address pursuant to Section 9.4, all of which shall occur
prior to the Company’s delivery to the Investor of such Alternative VWAP Purchase Notice for an Alternative VWAP Purchase
hereunder. For the avoidance of doubt, the Company may not deliver an Alternative VWAP Purchase Notice for an Alternative VWAP
Purchase and a VWAP Purchase Notice for a VWAP Purchase on the same Trading Day. Subject to the Company’s timely delivery of
written notice to the Investor in accordance with clause (i) of this Section 2.2 and the Investor’s delivery of its prior
written consent (in its sole discretion) to the Company pursuant to clause (ii) of this Section 2.2, the Investor shall be obligated
to accept each Alternative VWAP Purchase Notice prepared and timely delivered by the Company in accordance with the terms of and
subject to the satisfaction or, where legally permissible, the waiver of the conditions contained in this Agreement in accordance
with the terms of this Agreement. If the Company delivers any Alternative VWAP Purchase Notice directing the Investor to purchase an
Alternative VWAP Purchase Share Amount in excess of the applicable Alternative VWAP Purchase Maximum Amount that the Company is then
permitted to include in such Alternative VWAP Purchase Notice (calculated as of the applicable Alternative VWAP Purchase Exercise
Date), such Alternative VWAP Purchase Notice shall be void ab initio to the extent of the amount by which the Alternative
VWAP Purchase Share Amount set forth in such Alternative VWAP Purchase Notice exceeds such applicable Alternative VWAP Purchase
Maximum Amount, and the Investor shall have no obligation to purchase, and shall not purchase, such excess Shares pursuant to such
Alternative VWAP Purchase Notice; provided, however, that the Investor shall remain obligated to purchase the
applicable Alternative VWAP Purchase Maximum Amount pursuant to such Alternative VWAP Purchase Notice. At or prior to 8:30 a.m., New
York City time, on the Trading Day immediately following the Trading Day on which the Alternative VWAP Purchase Termination Time for
an Alternative VWAP Purchase Valuation Period shall occur with respect to an Alternative VWAP Purchase hereunder (each, an
“Alternative VWAP Purchase Settlement Date”), the Investor shall provide to the Company a written confirmation
for such Alternative VWAP Purchase setting forth the applicable Alternative VWAP Purchase Price (both on a per Share basis and the
total aggregate Alternative VWAP Purchase Price) to be paid by the Investor for the applicable Alternative VWAP Purchase Share
Amount with respect to such Alternative VWAP Purchase (each, an “Alternative VWAP Purchase Confirmation”).


 






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Section 2.3 Settlement.
The payment for, against delivery of, (a) Shares in respect of each VWAP Purchase shall be settled on the applicable VWAP Purchase
Settlement Date for such VWAP Purchase and (b) Shares in respect of each Alternative VWAP Purchase shall be settled on the
applicable Alternative VWAP Purchase Settlement Date for such Alternative VWAP Purchase. For each VWAP Purchase and each Alternative
VWAP Purchase, the Investor shall pay to the Company an amount in cash equal to, (i) in the case of a VWAP Purchase, the product of
(A) the total number of Shares purchased by the Investor in such VWAP Purchase (as confirmed in the applicable VWAP Purchase
Confirmation) and (B) the applicable VWAP Purchase Price for such Shares, and (ii) in the case of an Alternative VWAP Purchase, the
product of (A) the total number of Shares purchased by the Investor in such Alternative VWAP Purchase (as confirmed in the
applicable Alternative VWAP Purchase Confirmation) and (B) the applicable VWAP Purchase Price for such Shares (as confirmed in the
applicable Alternative VWAP Purchase Confirmation), in each case as full payment for such Shares, via wire transfer of immediately
available funds on the same Trading Day that the Investor receives such Shares as DWAC Shares in accordance with this Agreement, if
all of such Shares are so received by the Investor before 1:00 p.m., New York City time, or, if such Shares are received by the
Investor after 1:00 p.m., New York City time, then payment therefor shall be made on the Trading Day immediately following the
Trading Day on which the Investor has received all of such Shares as DWAC Shares (it being acknowledged and agreed that the Company
may not deliver any VWAP Purchase Notices or any Alternative VWAP Purchase Notices to the Investor, unless and until all such
Shares, and all Shares subject to all prior VWAP Purchase Notices and all prior Alternative VWAP Purchase Notices (as applicable)
timely delivered by the Company to the Investor pursuant to this Agreement, have been received by the Investor as DWAC Shares). If
the Company or the Transfer Agent shall fail for any reason (other than a failure of the Investor or its Broker-Dealer to set up a
DWAC and required instructions) to electronically transfer any Shares as DWAC Shares in respect of a VWAP Purchase or an Alternative
VWAP Purchase within two (2) Trading Days following the receipt by the Company of the applicable purchase price therefor in
compliance with this Section 2.3, and if on or after such Trading Day the Investor purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of such Shares that the Investor anticipated
receiving from the Company in respect of such VWAP Purchase or Alternative VWAP Purchase (as applicable), then the Company shall,
within two (2) Trading Days after the Investor’s request, either (1) pay cash to the Investor in an amount equal to the
Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Cover Price”), at which point the Company’s obligation to deliver such Shares as DWAC Shares shall
terminate, or (2) promptly honor its obligation to deliver to the Investor such Shares as DWAC Shares and pay cash to the Investor
in an amount equal to the excess (if any) of the Cover Price over the total purchase price paid by the Investor pursuant to this
Agreement for all of the Shares to be purchased by the Investor in connection with such VWAP Purchase or such Additional VWAP
Purchase (as applicable). The Company shall not issue any fraction of a share of Common Stock upon any VWAP Purchase or upon any
Additional VWAP Purchase. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
round such fraction of a share of Common Stock up or down to the nearest whole share. All payments made under this Agreement shall
be made in lawful money of the United States of America by wire transfer of immediately available funds to such account as the
Company may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount
expressed to be due by the terms of this Agreement is due on any day that is not a Trading Day, the same shall instead be due on the
next succeeding day that is a Trading Day.


 


Section 2.4 Compliance
with Rules of Trading Market.


 


(a)
Exchange Cap. Subject to Section 2.4(b), the Company shall not issue or sell any shares of Common Stock pursuant
to this Agreement, and the Investor shall not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent
that after giving effect thereto, the aggregate number of shares of Common Stock that would be issued pursuant to this Agreement and the
transactions contemplated hereby would exceed 9,171,179 (such number of shares equal to 19.99% of the number of shares of Common Stock
issued and outstanding immediately prior to the execution of this Agreement), which number of shares shall be reduced, on a share-for-share
basis, by the number of shares of Common Stock issued or issuable pursuant to any transaction or series of transactions that may be aggregated
with the transactions contemplated by this Agreement under applicable rules of the Trading Market (such maximum number of shares, the
“Exchange Cap”), unless the Company’s stockholders have approved the issuance of Common Stock pursuant to this
Agreement in excess of the Exchange Cap in accordance with the applicable rules of the Trading Market. For the avoidance of doubt, as
set forth in Section 5.17, the Company shall use its reasonable best efforts to obtain the Shareholder Approval to issue such number of
shares of its Common Stock in excess of the Exchange Cap as may be necessary for the Company to receive aggregate gross proceeds equal
to the Total Commitment from the sale of Shares to the Investor pursuant to VWAP Purchases and/or Alternative VWAP Purchases pursuant
to this Agreement, and the Company may not deliver any VWAP Purchase Notice or Alternative VWAP Purchase Notice and may not sell any Shares
to the Investor pursuant to this Agreement unless and until the Company shall have obtained the Shareholder Approval in accordance with
Section 5.17 and this Section 2.4(a) and in accordance with applicable rules of the Trading Market, applicable laws of the State of Oregon
and the Company’s Charter and Bylaws; provided, that if such Shareholder Approval is not obtained, the Exchange Cap shall
be applicable for all purposes of this Agreement and the transactions contemplated hereby at all times during the term of this Agreement
(except as set forth in Section 2.4(b)).


 






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(b)
At-Market Transaction. Notwithstanding Section 2.4(a) above, the Exchange Cap shall not be applicable for any purposes
of this Agreement and the transactions contemplated hereby, solely to the extent that (and only for so long as) the Average Price shall
equal or exceed the Base Price (it being hereby acknowledged and agreed that the Exchange Cap shall be applicable for all purposes of
this Agreement and the transactions contemplated hereby at all other times during the term of this Agreement, unless the stockholder approval
referred to in Section 2.4(a) is obtained). The parties acknowledge and agree that the Minimum Price used to determine the Base Price
hereunder represents the lower of (i) the Nasdaq official closing price of the Common Stock on the Trading Market (as reflected on Nasdaq.com)
on the Trading Day immediately prior to the date of this Agreement and (ii) the average Nasdaq official closing price of the Common Stock
on the Trading Market (as reflected on Nasdaq.com) for the five (5) consecutive Trading Days ending on the Trading Day immediately prior
to the date of this Agreement.


 


(c) General.
The Company shall not issue or sell any shares of Common Stock pursuant to this Agreement if such issuance or sale would reasonably
be expected to result in (i) a violation of the Securities Act or (ii) a breach of the rules of the Trading Market. The provisions
of this Section 2.4 shall be implemented in a manner otherwise than in strict conformity with the terms of this Section 2.4 only if
necessary to ensure compliance with the Securities Act and the applicable rules of the Trading Market. The limitations contained in
this Section 2.4 may not be waived by the Company or the Investor.


 


Section 2.5
Beneficial Ownership Limitation. Notwithstanding any other provision of this Agreement, the Investor shall not purchase
or acquire, or be obligated or have the right to purchase or acquire, any shares of Common Stock pursuant to this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange Act
and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates, would result in the beneficial ownership by the Investor of
more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”).
If the Company issues a VWAP Purchase Notice with respect to a VWAP Purchase or an Alternative VWAP Purchase Notice with respect to an
Alternative VWAP Purchase, in any case that would cause the aggregate number of shares of Common Stock then beneficially owned (as calculated
pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates to exceed the
Beneficial Ownership Limitation, such VWAP Purchase Notice and such Alternative VWAP Purchase Notice (as applicable) shall be void ab
initio to the extent of the amount by which the number of shares of Common Stock otherwise issuable pursuant to such VWAP Purchase
Notice or such Alternative VWAP Purchase Notice (as applicable), together with all shares of Common Stock then beneficially owned (as
calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates, would
exceed the Beneficial Ownership Limitation. Upon the written or oral request of the Investor, the Company shall promptly (but not later
than the next Trading Day) confirm orally or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor
and the Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Investor’s
written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder
at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error. Upon delivery of a written
notice to the Company, the Investor may from time to time increase or decrease the Beneficial Ownership Limitation to any other amount
of Common Stock not in excess of 9.99% of the then issued and outstanding shares of Common Stock as specified in such notice; provided
that any such increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after
such written notice is delivered to the Company. The provisions of this Section 2.5 shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2.5 to the extent necessary to correct this Section 2.5 (or any portion of this
Section 2.5) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained in this Section 2.5 or
to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Section
2.5 may not be waived by the Company or the Investor.


 


Section 2.6   
Commitment Shares. 


 


(a) Initial Commitment
Shares. In consideration for the Investor’s execution and delivery of this Agreement, concurrently with the execution
and delivery of this Agreement, the Company shall deliver irrevocable instructions to its transfer agent to electronically issue to
the Investor or its designee(s) the Initial Commitment Shares as DWAC Shares, such that they are credited to the Investor’s or
its designee’s specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer
(FAST) Program not later than 4:00 p.m. (New York City time) on the Trading Day immediately following the date of this Agreement,
all of which Initial Commitment Shares shall be issued pursuant to the Registration Statement and the Prospectus and shall be freely
tradable and transferable and without restriction on resale and without any stop transfer instructions maintained against the
transfer thereof. For the avoidance of doubt, all of the Initial Commitment Shares shall be fully earned as of the Commencement
Date, regardless of whether any VWAP Purchases or any Alternative VWAP Purchases are effected hereunder and regardless of any
subsequent termination of this Agreement.


 






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(b)
Additional Commitment Shares. In further consideration for the Investor’s commitment to purchase Common Stock
upon the terms and subject to the conditions of this Agreement, on the first Trading Day after the Trading Day on which the Company shall
have received the Shareholder Approval, the Company shall deliver irrevocable instructions to its transfer agent to electronically issue
to the Investor or its designee(s) the Additional Commitment Shares as DWAC Shares, such that they are credited to the Investor’s
or its designee’s specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer
(FAST) Program not later than 4:00 p.m. (New York City time) on the second Trading Day immediately following the Trading Day on which
the Company shall have received the Shareholder Approval, all of which Additional Commitment Shares shall be issued pursuant to the Registration
Statement and the Prospectus and shall be freely tradable and transferable and without restriction on resale and without any stop transfer
instructions maintained against the transfer thereof. For the avoidance of doubt, all of the Additional Commitment Shares shall be fully
earned as of the Trading Day on which the Company shall have received the Shareholder Approval, regardless of whether any VWAP Purchases
or any Alternative VWAP Purchases are effected hereunder and regardless of any subsequent termination of this Agreement. Prior to the
issuance of the Additional Commitment Shares, the Company shall authorize and reserve 386,369 shares of Common Stock for issuance to the
Investor as Additional Commitment Shares in accordance with this Section 2.6(b).


 


Article
III

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR


 


The Investor hereby makes
the following representations and warranties to the Company:


 


Section 3.1
Organization and Standing of the Investor. The Investor is a limited liability company duly organized and validly existing
under the laws of the State of Delaware.


 


Section 3.2 Authorization
and Power. The Investor has the requisite limited liability company power and authority to enter into and perform its
obligations under this Agreement and to purchase the Shares in accordance with the terms hereof. The execution, delivery and
performance of this Agreement by the Investor and the consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action, and no further consent or authorization of the Investor, its Board of Directors or
members is required. This Agreement has been duly executed and delivered by the Investor. This Agreement constitutes a valid and
binding obligation of the Investor enforceable against it in accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership, or similar laws
relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of
general application.


 


Section 3.3
No Conflicts. The execution, delivery and performance by the Investor of this Agreement and the consummation by the
Investor of the transactions contemplated herein do not and shall not (i) result in a violation of such Investor’s charter documents,
bylaws or other applicable organizational instruments, (ii) conflict with, constitute a default (or an event which, with notice or lapse
of time or both, would become a default) under, or give rise to any rights of termination, amendment, acceleration or cancellation of,
any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the
Investor is a party or is bound, (iii) create or impose any lien, charge or encumbrance on any property of the Investor under any agreement
or any commitment to which the Investor is party or under which the Investor is bound or under which any of its properties or assets are
bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, or regulation, or any order, judgment or decree
of any court or Governmental Entity applicable to the Investor or by which any of its properties or assets are bound or affected, except,
in the case of clauses (ii), (iii) and (iv), for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations
as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of the Investor to enter into and perform
its obligations under this Agreement in any material respect. The Investor is not required under federal, state, local or foreign law,
rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or Governmental
Entity in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the Shares in accordance
with the terms hereof.


 


Section 3.4
Information. All materials relating to the business, financial condition, management and operations of the Company and
materials relating to the offer and sale of the Securities which have been requested by the Investor have been furnished or otherwise
made available to the Investor or its advisors (subject to Section 5.12 of this Agreement). The Investor and its advisors have been afforded
the opportunity to ask questions of representatives of the Company. The Investor has sought such accounting, legal and tax advice as it
has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. The Investor understands
that it (and not the Company) shall be responsible for its own tax liabilities that may arise as a result of this investment or the transactions
contemplated by this Agreement. The Investor is aware of all of its obligations under U.S. federal and applicable state securities laws
and all rules and regulations promulgated thereunder in connection with this Agreement and the transactions contemplated hereby and the
purchase and sale of the Securities.


 






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Section
3.5
No Governmental ReviewSection 3.6. The Investor understands that no United States federal
or state agency or any other Governmental Entity has passed on or made any recommendation or endorsement of the Securities or the fairness
or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the
Securities.


 


Section 3.6 Not
an AffiliateSection 3.7. The Investor is not an officer, director or an Affiliate of the
Company. As of the date of this Agreement, the Investor does not beneficially own any shares of Common Stock or securities
exercisable for or convertible into shares of Common Stock, other than (i) the Initial Commitment Shares and (ii) Common Stock and
Common Stock Equivalents purchased or acquired by one or more Affiliates of the Investor pursuant to the Securities Purchase
Agreement and pursuant to Common Stock Equivalents purchased or acquired under the Securities Purchase Agreement, and during the
Restricted Period, Investor will not acquire beneficial ownership of any shares of the Company’s capital stock (including
shares of Common Stock or securities exercisable for or convertible into shares of Common Stock) other than pursuant to this
Agreement, the Securities Purchase Agreement and Common Stock Equivalents purchased or acquired under the Securities Purchase
Agreement; provided, however, that nothing in this Agreement shall prohibit or be deemed to prohibit the Investor from
purchasing, in an open market transaction or otherwise, shares of Common Stock necessary to make delivery by the Investor in
satisfaction of a sale by the Investor of Shares that the Investor anticipated receiving from the Company in connection with the
settlement of a VWAP Purchase or an Alternative VWAP Purchase, if the Company or its transfer agent shall have failed for any reason
(other than a failure of Investor or its Broker-Dealer to set up a DWAC and required instructions) to electronically transfer all of
the Shares subject to such VWAP Purchase or Alternative VWAP Purchase, as applicable, to the Investor on the applicable VWAP
Purchase Settlement Date or Alternative VWAP Purchase Settlement Date, as applicable, by crediting the Investor’s or its
designated Broker-Dealer’s account at DTC through its DWAC delivery system in compliance with Section 2.3 of this
Agreement.


 


Section 3.7
No Governmental Review. The Investor understands that no United States federal or state
agency or any other Governmental Entity has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.


 


Section 3.8
Statutory Underwriter Status. The Investor acknowledges that it will be disclosed as an “underwriter” in
the Initial Prospectus Supplement and any additional Prospectus Supplements filed pursuant to Section 1.4. to the extent required by applicable
law and to the extent such Prospectus Supplement is related to the offer and sale of Securities issued and issuable pursuant to this Agreement.


 


Section 3.9
Resales of Securities. The Investor represents, warrants and covenants that it will resell Securities purchased or acquired
by the Investor from the Company pursuant to this Agreement only in a manner described under the caption “Plan of Distribution”
in the Initial Prospectus Supplement, and in a manner in compliance with all applicable U.S. federal and state securities laws, rules
and regulations.


 


Article
IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY


 


Except as set forth in the
disclosure schedule delivered by the Company to the Investor (which is hereby incorporated by reference in, and constitutes an
integral part of, this Agreement) (the “Disclosure Schedule”), the Company hereby makes the following
representations, warranties and covenants to the Investor:


 


Section 4.1 Organization,
Good Standing and Power. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary
is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected
to result in a Material Adverse Effect.


 






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Section 4.2
Authorization, Enforcement. The Company has the requisite corporate power and authority to enter into and perform its
obligations under this Agreement and to issue the Securities in accordance with the terms hereof. Except for approvals of the Company’s
Board of Directors or a committee thereof as may be required in connection with any issuance and sale of Shares to the Investor hereunder
(which approvals shall be obtained prior to the delivery of any VWAP Purchase Notice and any Alternative VWAP Purchase Notice), the execution,
delivery and performance by the Company of this Agreement and the consummation by it of the transactions contemplated hereby have been
duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company, its Board of Directors
or its stockholders is required. This Agreement has been duly executed and delivered by the Company and constitutes a valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to,
or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application
(including any limitation of equitable remedies).


 


Section 4.3 Capitalization.
The authorized capital stock of the Company and the shares thereof issued and outstanding were as set forth in the Commission
Documents as of the dates reflected therein. All of the outstanding shares of Common Stock have been duly authorized and validly
issued, and are fully paid and nonassessable. Except as set forth in the Commission Documents, no shares of Common Stock are
entitled to preemptive rights and there are no outstanding debt securities and no contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for, any shares of capital stock of the Company other than those issued or granted in the ordinary
course of business pursuant to the Company’s equity incentive and/or compensatory plans or arrangements. Except for customary
transfer restrictions contained in agreements entered into by the Company to sell restricted securities, the Company is not a party
to, and it has no Knowledge of, any agreement restricting the voting or transfer of any outstanding shares of the capital stock of
the Company. The offer and sale of all capital stock, convertible or exchangeable securities, rights, warrants or options of the
Company issued prior to the Commencement Date complied, in all material respects, with all applicable federal and state securities
laws, and no stockholder has any right of rescission or damages or any “put” or similar right with respect thereto that
would have a Material Adverse Effect. The Company has made available via the Commission’s Electronic Data Gathering, Analysis
and Retrieval System (“EDGAR”) true and correct copies of the Company’s Articles of Incorporation as in
effect on the Commencement Date (the “Charter”), and the Company’s Bylaws as in effect on the Commencement
Date (the “Bylaws”).


 






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Section 4.4
Issuance of Securities. The Commitment Shares have been, and the Shares to be issued under this Agreement have been,
or with respect to Shares to be purchased by the Investor pursuant to a particular VWAP Purchase Notice or a particular Alternative VWAP
Purchase Notice, will be, prior to the delivery to the Investor hereunder of such VWAP Purchase Notice or Alternative VWAP Purchase Notice,
as the case may be, duly authorized by all necessary corporate action on the part of the Company. The Commitment Shares, when issued to
the Investor in accordance with this Agreement, and the Shares, when issued and sold against payment therefor in accordance with this
Agreement, shall be validly issued and outstanding, fully paid and non-assessable and free from all liens, charges, taxes, security interests,
encumbrances, rights of first refusal, preemptive or similar rights and other encumbrances with respect to the issue thereof, and the
Investor shall be entitled to all rights accorded to a holder of Common Stock. An aggregate of 386,369 shares of Common Stock have been
duly authorized and reserved by the Company for issuance and sale to the Investor as Initial Commitment Shares. Prior to the Commencement
Date, an aggregate of 35,767,404 shares of Common Stock will have been duly authorized and reserved by the Company for issuance and sale
to the Investor pursuant to VWAP Purchases and Alternative VWAP Purchases under this Agreement and as Additional Commitment Shares in
accordance with Section 2.6(b) under this Agreement.


 


Section 4.5 No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of
the transactions contemplated hereby do not and shall not (i) result in a violation of any provision of the Company’s Charter
or Bylaws, (ii) other than any conflicts, defaults or rights that have been waived, conflict with, constitute a default (or an event
which, with notice or lapse of time or both, would become a default) under, or give rise to any rights of termination, amendment,
acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement,
instrument or obligation to which the Company or any of its Subsidiaries is a party or is bound, (iii) create or impose a lien,
charge or encumbrance on any property or assets of the Company or any of its Subsidiaries under any agreement or any commitment to
which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any
of their respective properties or assets is subject, or (iv) result in a violation of any federal, state, local or foreign statute,
rule, regulation, order, judgment or decree applicable to the Company or any of its Subsidiaries or by which any property or asset
of the Company or any of its Subsidiaries are bound or affected (including federal and state securities laws and regulations and the
rules and regulations of the Trading Market), except, in the case of clauses (ii), (iii) and (iv), for such conflicts, defaults,
terminations, amendments, acceleration, cancellations, liens, charges, encumbrances and violations as would not, individually or in
the aggregate, have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the
Securities Act and any applicable state securities laws, the Company is not required under any federal, state, local or foreign law,
rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or
Governmental Entity (including, without limitation, the Trading Market) in order for it to execute, deliver or perform any of its
obligations under this Agreement, or to issue the Securities to the Investor in accordance with the terms hereof (other than (i)
such consents, authorizations, orders, filings or registrations as have been obtained or made prior to the Commencement Date and
(ii) any filings which may be required to be made by the Company with the Commission subsequent to the Commencement Date, including,
but not limited to, a Prospectus Supplement under Section 1.4 of this Agreement).


 






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Section 4.6
Commission Documents, Financial Statements; Disclosure Controls and Procedures; Internal Controls Over Financial Reporting;
Accountants.


 


(a)
Since December 31, 2021, the Company has timely filed (giving effect to permissible extensions in accordance with Rule 12b-25 under
the Exchange Act) all Commission Documents required to be filed with or furnished to the Commission by the Company under the Securities
Act or the Exchange Act, including those required to be filed with or furnished to the Commission under Section 13(a) or Section 15(d)
of the Exchange Act. As of the date of this Agreement, no Subsidiary of the Company is required to file or furnish any report, schedule,
registration, form, statement, information or other document with the Commission. As of its filing date, each Commission Document filed
with or furnished to the Commission and incorporated by reference in the Registration Statement and the Prospectus complied in all material
respects with the requirements of the Securities Act or the Exchange Act, as applicable, and, as of its filing date (or, if amended or
superseded by a filing prior to the Commencement Date, on the date of such amended or superseded filing), such Commission Document did
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. Each Commission Document to
be filed with or furnished to the Commission after the Commencement Date and incorporated by reference in the Registration Statement,
the Prospectus and any Prospectus Supplement required to be filed pursuant to Section 1.4 during the Investment Period (including, without
limitation, the Current Report), when such document becomes effective or is filed with or furnished to the Commission and, if applicable,
when such document becomes effective, as the case may be, shall comply in all material respects with the requirements of the Securities
Act or the Exchange Act, as applicable, and shall not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. To the Knowledge of the Company, there are no outstanding or unresolved comments or undertakings in such comment
letters received by the Company from the Commission. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the Securities Act or the Exchange Act.


 


(b) The consolidated
financial statements of the Company included or incorporated by reference in the Commission Documents filed with or furnished to the
Commission and incorporated by reference in the Registration Statement and the Prospectus, together with the related notes and
schedules, present fairly, in all material respects, the consolidated financial position of the Company and the consolidated
Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders’
equity of the Company and the consolidated Subsidiaries for the periods specified (subject, in the case of unaudited statements, to
normal year-end audit adjustments which will not be material, either individually or in the aggregate) and have been prepared in
compliance with the published requirements of the Securities Act and Exchange Act, as applicable, and in conformity with generally
accepted accounting principles in the United States (“GAAP”) applied on a consistent basis (except (i) for such
adjustments to accounting standards and practices as are noted therein and (ii) in the case of unaudited interim statements, to the
extent they may exclude footnotes or may be condensed or summary statements) during the periods involved. The pro forma financial
statements or data included or incorporated by reference in the Commission Documents filed with or furnished to the Commission and
incorporated by reference in the Registration Statement and the Prospectus, if any, comply with the requirements of Regulation S-X
of the Securities Act, including, without limitation, Article 11 thereof, and the assumptions used in the preparation of such pro
forma financial statements and data are reasonable, the pro forma adjustments used therein are appropriate to give effect to the
circumstances referred to therein and the pro forma adjustments have been properly applied to the historical amounts in the
compilation of those statements and data. The other financial and statistical data with respect to the Company and the Subsidiaries
contained or incorporated by reference in the Commission Documents filed with or furnished to the Commission and incorporated by
reference in the Registration Statement and the Prospectus, if any, are accurately and fairly presented and prepared on a basis
consistent with the financial statements and books and records of the Company. There are no financial statements (historical or pro
forma) that are required to be included or incorporated by reference in the Commission Documents filed with or furnished to the
Commission and incorporated by reference in the Registration Statement and the Prospectus that are not included or incorporated by
reference as required. The Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent
(including any off-balance sheet obligations or any “variable interest entities” as that term is used in Accounting
Standards Codification Paragraph 810-10-25-20), not described in the Registration Statement and the Prospectus or in the Commission
Documents incorporated by reference in the Registration Statement and the Prospectus that are required to be described or
incorporated by reference in the Registration Statement and the Prospectus. All disclosures contained or incorporated by reference
in the Registration Statement and the Prospectus, if any, regarding “non-GAAP financial measures” (as such term is
defined by the rules and regulations of the Commission) comply in all material respects with Regulation G of the Exchange Act and
Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The reserves, if any, established by the Company or
the lack of reserves, if applicable, are reasonable based upon facts and circumstances known by the Company on the date hereof and
there are no loss contingencies that are required to be accrued by the Statement of Financial Accounting Standard No. 5 of the
Financial Accounting Standards Board which are not provided for by the Company in its financial statements or otherwise. The Company
is not currently contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any
letter of the independent accountants of the Company with respect thereto) included or incorporated by reference in the Registration
Statement and the Prospectus, nor is the Company currently aware of facts or circumstances which would require the Company to amend
or restate any such financial statements, in each case, in order for any of such financials statements to be in compliance with GAAP
and the rules and regulations of the Commission. The Company has not been informed by its independent accountants that they
recommend that the Company amend or restate any of the financial statements included or incorporated by reference in the
Registration Statement and the Prospectus or that there is any need for the Company to amend or restate any of such financial
statements.


 






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(c)
Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, the Company maintains a system
of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. The Company is not aware of any material weaknesses in its internal control
over financial reporting (other than as set forth or incorporated by reference in the Registration Statement and the Prospectus). Except
as set forth or incorporated by reference in the Registration Statement and the Prospectus, since the date of the latest audited financial
statements of the Company included in the 2021 Form 10-K, there has been no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial
reporting. Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, the Company has established
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) that comply with the requirements of the Exchange
Act. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of a date
within 90 days prior to the filing date of the Form 10-K for the fiscal year most recently ended (such date, the “Evaluation
Date”). The Company presented in its Form 10-K for the fiscal year most recently ended the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the most recent Evaluation
Date and, except as set forth in such Form 10-K or any Commission Document filed with the Commission for a period subsequent to the period
covered by such Form 10-K and incorporated by reference in the Registration Statement and the Prospectus, the “disclosure controls
and procedures” are effective.


 


(d)
The Company has timely filed with the Commission and made available via EDGAR all certifications and statements required by (x)
Rule 13a-14 or Rule 15d-14 under the Exchange Act or (y) 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002 (“SOXA”))
with respect to all relevant Commission Documents. The Company is in compliance in all material respects with the provisions of SOXA applicable
to it as of the date hereof. The Company maintains disclosure controls and procedures required by Rule 13a-15 or Rule 15d-15 under the
Exchange Act; such controls and procedures are effective to ensure that all material information concerning the Company and its Subsidiaries
is made known on a timely basis to the individuals responsible for the timely and accurate preparation of the Company’s Commission
filings and other public disclosure documents. As used in this Section 4.6(c), the term “file” shall be broadly construed
to include any manner in which a document or information is furnished, supplied or otherwise made available to the Commission.


 


(e)
 dbbmckennon, whose report on the consolidated balance sheet of the Company as of December 31, 2021, the related statement
of operations, stockholders’ equity (deficit), and cash flows for the year then ended, and the related notes, is filed with the
Commission as part of the 2021 Form 10-K, are and, during the periods covered by their report, were independent public accountants within
the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States). To the Company’s Knowledge,
dbbmckennon is not in violation of the auditor independence requirements of SOXA with respect to the Company.


 


(f)   
There is and has been no failure on the part of the Company or, to the Knowledge of the Company, any of the Company’s directors
or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act
and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal financial officer of the
Company (or each former principal executive officer of the Company and each former principal financial officer of the Company as applicable)
has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms,
statements and other documents required to be filed by it or furnished by it to the Commission during the past 12 months. For purposes
of the preceding sentence, “principal executive officer” and “principal financial officer” shall have the meanings
given to such terms in the Exchange Act Rules 13a-15 and 15d-15.


 






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Section 4.7
Subsidiaries. The 2021 Form 10-K sets forth each Subsidiary of the Company as of the Commencement Date, other than those
that may be omitted pursuant to Item 601 of Regulation S-K, showing its jurisdiction of incorporation or organization, and the Company
does not have any other Subsidiaries as of the Commencement Date. No Subsidiary of the Company is currently prohibited, directly or indirectly,
from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to
the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or
assets to the Company or any other Subsidiary of the Company, except as described or incorporated by reference in, or contemplated by,
the Registration Statement and the Prospectus, or as would not reasonably be expected to have a Material Adverse Effect.


 


Section 4.8 No
Material Adverse Effect. Except as otherwise disclosed or incorporated by reference in the Registration Statement and the
Prospectus, since the end of the Company’s most recent audited fiscal year: (i) the Company has not experienced or suffered
any Material Adverse Effect, and there exists no current state of facts, condition or event which would have a Material Adverse
Effect; (ii) there has not occurred any material adverse change, or any development that would reasonably be expected to result
in a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of
the Company from that disclosed or incorporated by reference in the Registration Statement and the Prospectus, including, without
limitation, as a result of the recent outbreak of COVID-19, or as a result of any measures intended to contain the outbreak of
COVID-19 imposed by any federal, state, local or foreign government or government agency in any country or region in which the
Company, or any of its agents, consultants, advisors or vendors, has assets or properties or conducts business, including, without
limitation, any limitations, curtailments, suspensions or closures of businesses, business offices or establishments, schools,
properties and other public areas due to quarantines, curfews, travel restrictions, workplace controls, “stay-at-home”
orders, social distancing requirements or guidelines or other public gathering restrictions or limitations; (iii) neither the
Company nor any of its Subsidiaries has incurred any material liability or obligation, direct or contingent, nor entered into any
material transaction; (iv) the Company has not purchased any of its outstanding capital stock, nor declared, paid or otherwise
made any dividend or distribution of any kind on its capital stock other than ordinary and customary dividends; and (v) there
has not been any material change in the capital stock, short-term debt or long-term debt of the Company.


 


Section 4.9
No Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any liabilities, obligations, claims
or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be required
to be disclosed on a balance sheet of the Company or any Subsidiary (including the notes thereto) in conformity with GAAP and are not
disclosed or incorporated by reference in the Registration Statement and the Prospectus, other than those incurred in the ordinary course
of the Company’s or its Subsidiaries respective businesses since December 31, 2021 and which, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.


 


Section 4.10
No Undisclosed Events or Circumstances. No event, liability, development or circumstance has occurred or exists, or
is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective businesses, properties,
liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i) would be required to be
disclosed by the Company under applicable securities laws in the Registration Statement or the Prospectus, which has not been disclosed
or incorporated by reference in the Registration Statement and the Prospectus, or (ii) would reasonably be expected to have a Material
Adverse Effect.


 


Section 4.11   Indebtedness.
The Company’s quarterly report on Form 10-Q for the quarterly period ended June 30, 2021 sets forth, as of June 30, 2021, all
outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has
commitments through such date. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities
for borrowed money or amounts owed (other than trade accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements, indemnities and other contingent obligations in respect of Indebtedness of others, whether or not the same
are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present
value of any lease payments due under leases required to be capitalized in accordance with GAAP. There is no existing or continuing
default or event of default in respect of any Indebtedness of the Company or any of its Subsidiaries, except where such defaults
would not result, individually or in the aggregate, in a Material Adverse Effect. The Company has not taken any steps, and does not
currently expect to take any steps, to seek protection pursuant to Title 11 of the United States Code or any similar federal or
state bankruptcy law or law for the relief of debtors, nor does the Company have any Knowledge that its creditors intend to initiate
involuntary bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under Title 11 of the
United States Code or any other federal or state bankruptcy law or any law for the relief of debtors. The Company is financially
solvent and is generally able to pay its debts as they become due.


 






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Section 4.12
Title To Assets. The Company and each of its Subsidiaries have good and marketable title in fee simple to all real property
and good and marketable title to all personal property owned by them which is material to the business of the Company, in each case free
and clear of all liens, encumbrances and defects except such as are described or incorporated by reference in the Registration Statement
and the Prospectus or such as do not materially affect the value of such property and do not interfere with the use made and proposed
to be made of such property by the Company and its Subsidiaries, except as would not, either individually or in the aggregate, reasonably
be excepted to result in a Material Adverse Effect; and any real property and buildings held under lease by the Company and its Subsidiaries
are held by it under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere in any material
respect with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries, in each case except
as described or incorporated by reference in the Registration Statement and the Prospectus and where failure to be in compliance would
not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.


 


Section 4.13
Actions Pending. There are no legal or governmental proceedings pending or, to the Knowledge of the Company, threatened
to which the Company or any Subsidiary is a party or to which any of the properties of the Company or any Subsidiary is subject (i) other
than proceedings accurately described or incorporated by reference in the Registration Statement and the Prospectus and proceedings that
would not have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole, or on the power or ability of the Company
to perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement or (ii) that are required
to be described in the Registration Statement or the Prospectus and are not so described or incorporated by reference therein; and
there are no statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the
Prospectus, or to be filed as exhibits to the Registration Statement or any of the Commission Documents that are incorporated by reference
in the Registration Statement or the Prospectus that are not described or incorporated by reference in the Registration Statement and
the Prospectus, or filed or incorporated by reference as an exhibit to the Registration Statement or any of the Commission Documents that
are incorporated by reference in the Registration Statement or the Prospectus as required.


 


Section 4.14
Compliance With Law. The business of the Company and the Subsidiaries has been and is presently being conducted in compliance
with all applicable federal, state, local and foreign governmental laws, rules, regulations and ordinances, except as set forth or incorporated
by reference in the Registration Statement and the Prospectus and except for such non-compliance which, individually or in the aggregate,
would not have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order
or any statute, ordinance, rule or regulation of any Governmental Entity applicable to the Company or any of its Subsidiaries, except
in all cases for any such violations which could not, individually or in the aggregate, have a Material Adverse Effect.


 


 





Section 4.15 Certain Fees.
Except as set forth in Section 4.15 to the Disclosure Schedule, no brokers, finders or financial advisory fees or commissions is or shall
be payable by the Company or any Subsidiary (or any of their respective affiliates) with respect to the transactions contemplated by
this Agreement. Except as set forth in this Section 4.15 or as disclosed in Section 4.15 of the Disclosure Schedule, there are no contracts,
agreements or understandings between the Company and any person that would give rise to a valid claim against the Company, the Investor
or the Broker-Dealer for a brokerage commission, finder’s fee or other like payment in connection with the transactions contemplated
by this Agreement or, to the Company’s Knowledge, any arrangements, agreements, understandings, payments or issuance with respect
to the Company or any of its officers, directors, stockholders, partners, employees, Subsidiaries or Affiliates that may affect the FINRA’s
determination of the amount of compensation to be received by any FINRA member (including, without limitation, those FINRA members set
forth on Schedule 4.15 of the Disclosure Schedule) or person associated with any FINRA member in connection with the transactions contemplated
by this Agreement. Except as set forth in this Section 4.15 or as disclosed in Section 4.15 of the Disclosure Schedule, no “items
of value” (within the meaning of FINRA Rule 5110) have been received, and no arrangements have been entered into for the future
receipt of any items of value, from the Company or any of its officers, directors, stockholders, partners, employees, Subsidiaries or
Affiliates by any FINRA member (including, without limitation, those FINRA members set forth on Schedule 4.15 of the Disclosure Schedule)
or person associated with any FINRA member, during the period commencing 180 days immediately preceding the Commencement Date and ending
on the date this Agreement is terminated in accordance with Article VII, that may affect the FINRA’s determination of the amount
of compensation to be received by any FINRA member or person associated with any FINRA member in connection with the transactions contemplated
by this Agreement.


 






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Section 4.16
Operation of Business.


 


(a)
The Company and the Subsidiaries possess or have obtained, all licenses, certificates, consents, orders, approvals, permits and
other authorizations issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign Governmental
Entity that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as currently
conducted, as described or incorporated by reference in the Registration Statement and the Prospectus (the “Permits”),
except where the failure to possess, obtain or make the same would not, individually or in the aggregate, have a Material Adverse Effect.
Neither the Company nor any Subsidiary has received written notice of any proceeding relating to revocation or modification of any such
Permit or has any reason to believe that such Permit will not be renewed in the ordinary course, except where the failure to obtain any
such renewal would not, individually or in the aggregate, have a Material Adverse Effect. This Section 4.16(a) does not relate to environmental
matters, such items being the subject of Section 4.17.


 


(b) Except as described or
incorporated by reference in the Registration Statement and the Prospectus, the Company and its Subsidiaries own or possess adequate
enforceable rights to use all patents, patent applications, trademarks (both registered and unregistered), trade names, trademark
registrations, service marks, service mark registrations, Internet domain name registrations, copyrights, copyright registrations,
licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures) (collectively, the “Intellectual Property”), necessary for the conduct of their respective
businesses as conducted as of the date hereof, except to the extent that the failure to own or possess adequate rights to use such
Intellectual Property would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
Company and its Subsidiaries have not received any written notice of any claim of infringement or conflict which asserted
Intellectual Property rights of others, which infringement or conflict, if the subject of an unfavorable decision, would result in a
Material Adverse Effect. There are no pending, or to the Company’s Knowledge, threatened judicial proceedings or interference
proceedings challenging the Company’s or any of its Subsidiaries’ rights in or to or the validity of the scope of any of
the Company’s or its Subsidiaries’ Intellectual Property. No other Person has any right or claim in any of the
Company’s or any of its Subsidiaries’ Intellectual Property by virtue of any contract, license or other agreement
entered into between such Person and the Company or any of its Subsidiaries or by any non-contractual obligation, other than by
written licenses granted by the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries has received any
written notice of any claim challenging the rights of the Company or any of its Subsidiaries in or to any Intellectual Property
owned, licensed or optioned by the Company or any of its Subsidiaries, which claim, if the subject of an unfavorable decision, would
result in a Material Adverse Effect.


 


Section 4.17
Environmental Compliance. The Company and the Subsidiaries (i) are in compliance with any and all applicable federal,
state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment
or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have
received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses as described or incorporated by reference in the Registration Statement and the Prospectus; and (iii) have
not received notice of any actual or potential liability for the investigation or remediation of any disposal or release of hazardous
or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such
failure to comply or failure to receive required permits, licenses, other approvals or liability as would not, individually or in the
aggregate, have a Material Adverse Effect.


 


Section 4.18 Material
Agreements. Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, neither the
Company nor any Subsidiary of the Company is a party to any written or oral contract, instrument, agreement commitment, obligation,
plan or arrangement, a copy of which would be required to be filed with the Commission as an exhibit to an annual report on Form
10-K (collectively, “Material Agreements”). Each of the Material Agreements described the Registration Statement,
the Prospectus, and the Commission Documents filed with or furnished to the Commission and incorporated by reference in the
Registration Statement and the Prospectus, as of the applicable date or time this representation is being made under Article VI
hereof conform in all material respects to the descriptions thereof contained or incorporated by reference therein. Except as set
forth or incorporated by reference in the Registration Statement and the Prospectus, the Company and each of its Subsidiaries have
performed in all material respects all the obligations then required to be performed by them under the Material Agreements, have
received no notice of default or an event of default by the Company or any of its Subsidiaries thereunder and are not aware of any
basis for the assertion thereof, and neither the Company or any of its Subsidiaries nor, to the Knowledge of the Company, any other
contracting party thereto are in default under any Material Agreement now in effect, the result of which would have a Material
Adverse Effect. Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, each of the
Material Agreements is in full force and effect, and constitutes a legal, valid and binding obligation enforceable in accordance
with its terms against the Company and/or any of its Subsidiaries and, to the Knowledge of the Company, each other contracting party
thereto, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and
remedies or by other equitable principles of general application.


 






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Section 4.19
Transactions With Affiliates. Except as set forth or incorporated by reference in the Registration Statement and the
Prospectus, none of the officers or directors of the Company and, to the Knowledge of the Company, none of the Company’s stockholders,
the officers or directors of any stockholder of the Company, or any family member or Affiliate of any of the foregoing, has either directly
or indirectly any interest in, or is a party to, any transaction that is required to be disclosed as a related party transaction pursuant
to Item 404 of Regulation S-K promulgated under the Securities Act.


 


Section 4.20
Securities Act. The Company has complied with all applicable federal and state securities laws in connection with the
offer, issuance and sale of the Securities contemplated by this Agreement.


 


(a)
The Company has prepared and filed with the Commission, in accordance with the provisions of the Securities Act, the Registration
Statement, including a base prospectus relating to the Securities. The Registration Statement was declared effective by order of the Commission
on January 13, 2022. As of the date hereof, no stop order suspending the effectiveness of the Registration Statement has been issued by
the Commission or is continuing in effect under the Securities Act and no proceedings therefor are pending before or, to the Company’s
Knowledge, threatened by the Commission. No order preventing or suspending the use of the Prospectus or any Permitted Free Writing Prospectus
has been issued by the Commission.


 


(b) As of the Commencement
Date, the Company satisfies all of the requirements for the use of Form S-3 under the Securities Act for the offering and sale of
the Securities contemplated by this Agreement (without reliance on General Instruction I.B.6. of Form S-3). As of the close of
trading on the Trading Market on March 31, 2022, the aggregate market value of the outstanding voting and non-voting common equity
(as defined in Rule 405) of the Company held by persons other than affiliates of the Company (pursuant to Rule 144 under the
Securities Act, those that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under
common control with, the Company) (the “Non-Affiliate Shares”), was approximately $231,231,026 (calculated by
multiplying (x) the price at which the common equity of the Company was last sold on the Trading Market on March 9, 2022 by (y) the
number of Non-Affiliate Shares outstanding on March 29, 2022). The Company is not, and has not previously been at any time, a
“shell company” (as such term is defined in Rule 405 under the Securities Act). Commission has not notified the Company
of any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the Securities Act. The
Registration Statement complied in all material respects on the date on which it was declared effective by the Commission, and will
comply in all material respects at each deemed effective date with respect to the Investor pursuant to Rule 430B(f)(2) of the
Securities Act, with the requirements of the Securities Act, and the Registration Statement (including the documents incorporated by
reference therein) did not on the date it was declared effective by the Commission, and shall not at each deemed effective date with
respect to the Investor pursuant to Rule 430B(f)(2) of the Securities Act, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided that
this representation and warranty does not apply to statements in or omissions from the Registration Statement made in reliance upon
and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor
expressly for use therein. The Registration Statement, as of the Commencement Date, meets the requirements set forth in Rule
415(a)(1)(x) under the Securities Act. The Base Prospectus, when taken together with the Initial Prospectus Supplement, complied in
all material respects on its date and on the Commencement Date, and, when taken together with other Prospectus Supplement(s) filed
with the Commission prior thereto, at each Purchase Condition Satisfaction Time and on each VWAP Purchase Settlement Date and on
each Alternative VWAP Purchase Settlement Date, with the requirements of the Securities Act and did not on its date and on the
Commencement Date, and, when taken together with other Prospectus Supplement(s) filed with the Commission prior thereto, shall not
at each Purchase Condition Satisfaction Time and on each VWAP Purchase Settlement Date and on each Alternative VWAP Purchase
Settlement Date, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation and warranty does not apply to statements in or omissions from the Base Prospectus made in reliance upon
and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor
expressly for use therein.


 






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(c)
Each Prospectus Supplement required to be filed pursuant to Section 1.4 hereof, when taken together with the Base Prospectus and
any applicable Permitted Free Writing Prospectus, on its date, at each Purchase Condition Satisfaction Time and on each VWAP Purchase
Settlement Date and on each Alternative VWAP Purchase Settlement Date, shall comply in all material respects with the provisions of the
Securities Act and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they are made, not misleading, except that
this representation and warranty does not apply to statements in or omissions from any Prospectus Supplement made in reliance upon and
in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor expressly
for use therein.


 


(d) At the earliest time
after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the
meaning of Rule 164(h)(2) under the Securities Act) relating to the Securities, the Company was not and is not an “ineligible
issuer” (as defined in Rule 405 under the Securities Act). Each Permitted Free Writing Prospectus (a) shall conform in all
material respects to the requirements of the Securities Act on the date of its first use, (b) when considered together with the
Prospectus at each Purchase Condition Satisfaction Time and on each VWAP Purchase Settlement Date and on each Alternative VWAP
Purchase Settlement Date, shall not contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under which they are made, not
misleading, and (c) shall not include any information that conflicts with the information contained in the Registration Statement,
including any document incorporated by reference therein and any Prospectus Supplement deemed to be a part thereof that has not been
superseded or modified. The immediately preceding sentence does not apply to statements in or omissions from any Permitted Free
Writing Prospectus made in reliance upon and in conformity with information relating to the Investor furnished to the Company in
writing by or on behalf of the Investor expressly for use therein.


 


(e)
Prior to the Commencement Date, the Company has not distributed any offering material in connection with the offering and sale
of the Securities. From and after the Commencement Date and prior to the completion of the distribution of the Securities, the Company
shall not distribute any offering material in connection with the offering and sale of the Securities, other than the Registration Statement,
the Base Prospectus as supplemented by any Prospectus Supplement or a Permitted Free Writing Prospectus.


 


Section 4.21
Employees; Labor Laws. No material labor dispute with the employees of the Company exists, except as set forth or incorporated
by reference in the Registration Statement and the Prospectus, or, to the Knowledge of the Company, is imminent; and the Company is not
aware of any existing, threatened or imminent labor disturbance by the employees of any of its principal suppliers, manufacturers or contractors
that would reasonably be expected to have a Material Adverse Effect. Except as set forth or incorporated by reference in the Registration
Statement and the Prospectus ,neither the Company nor any Subsidiary is in violation of or has received notice of any violation with respect
to any federal or state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal or state
wage and hour laws, nor any state law precluding the denial of credit due to the neighborhood in which a property is situated, the violation
of any of which could reasonably be expected to have a Material Adverse Effect.


 


Section 4.22
Use of Proceeds. The proceeds from the sale of the Shares shall be used by the Company and its Subsidiaries as set forth
in the Initial Prospectus Supplement and any other Prospectus Supplement filed pursuant to Section 1.4 or other Commission Document incorporated
by reference in the Initial Prospectus Supplement and any other Prospectus Supplement.


 


Section 4.23
Investment Company Act Status. The Company is not, and as a result of the consummation of the transactions contemplated
by this Agreement and the application of the proceeds from the sale of the Shares as set forth in the Initial Prospectus Supplement and
any other Prospectus Supplement filed pursuant to Section 1.4 or other Commission Document incorporated by reference in the Initial Prospectus
Supplement and any other Prospectus Supplement, shall not be, an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.


 






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Section 4.24 ERISA.
To the Knowledge of the Company: (i) each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered, or contributed to by the Company
or any of its Subsidiaries (other than a Multiemployer Plan, within the meaning of Section 3(37) of ERISA) for employees or former employees
of the Company and any of its Subsidiaries has been maintained in material compliance with its terms and the requirements of any applicable
statutes, orders, rules, and regulations, including ERISA and the Internal Revenue Code of 1986, as amended (the “Code”);
(ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred respecting any such
plan (excluding transactions effected pursuant to a statutory or administrative exemption); and (iii) for each such plan that is subject
to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding
for these purposes accrued but unpaid contributions) equals or exceeds the present value of all benefits accrued under such plan determined
using reasonable actuarial assumptions, other than, in the case of (i), (ii), and (iii) above, as would not reasonably be expected to
have a Material Adverse Effect.


 


Section 4.25
Taxes. The Company and each of its Subsidiaries has filed all federal, state, local and foreign tax returns required
to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect) and have paid all taxes required to be paid thereon (except
for cases in which the failure to file or pay would not reasonably be expected to have a Material Adverse Effect, or, except as currently
being contested in good faith and for which reserves required by GAAP have been created in the financial statements of the Company), and
no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which have had a Material Adverse Effect, nor
does the Company have any notice or Knowledge of any tax deficiency which could reasonably be expected to be determined adversely to the
Company or any of its Subsidiaries and which would reasonably be expected to have a Material Adverse Effect.


 


 


Section 4.26
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged,
including, but not limited to, directors and officers insurance coverage. Except as set forth or incorporated by reference in the Registration
Statement and the Prospectus, the Company has no reason to believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.


 


Section 4.27
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so
long as any of the Securities are held by the Investor, shall not become a U.S. real property holding corporation within the meaning of
Section 897 of the Code.


 


Section 4.28 Listing
and Maintenance Requirements; DTC Eligibility. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act,
and the Company has taken no action designed to, or which to its Knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act, nor has the Company received any notification that the Commission is
contemplating terminating such registration. The Company has not received notice from the Trading Market to the effect that the
Company is not in compliance with the listing or maintenance requirements of the Trading Market. The Common Stock is eligible for
participation in the DTC book entry system and has shares on deposit at DTC for transfer electronically to third parties via DTC
through its Deposit/Withdrawal at Custodian (“DWAC”) delivery system. The Company has not received notice from
DTC to the effect that a suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or
book-entry services by DTC with respect to the Common Stock is being imposed or is contemplated.


 






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Section 4.29
No Unlawful Payments. Neither the Company nor any of its Subsidiaries nor any director or officer, nor, to the Knowledge
of the Company, any employee, agent, representative or Affiliate of the Company, has taken within the past five years any action in furtherance
of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else
of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned
or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of
the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper
advantage (to the extent acting on behalf of or providing services to the Company); and the Company and its Subsidiaries have conducted
their businesses within the past five years in compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”),
any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions, signed December 17, 1997, the U.K. Bribery Act 2010 and other applicable anti-corruption, anti-money laundering and anti-bribery
laws, and have instituted and maintain policies and procedures designed to promote and achieve compliance with such laws and with the
representation and warranty contained herein.


 


Section 4.30 Money
Laundering Laws. The operations of the Company are and have been conducted at all times within the past five years in
material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, and the applicable anti-money laundering statutes, including but not limited
to, applicable federal, state, international, foreign or other laws, regulations or government guidance regarding anti-money
laundering, including, without limitation, Title 18 US. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and
international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial
Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States
representative to the group or organization continues to concur, all as amended, and any Executive order, directive, or regulation
pursuant to the authority of any of the foregoing, or any orders or licenses issued thereunder, of jurisdictions where the Company
conducts business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Entity (collectively, the “Money Laundering Laws”), and no action,
suit or proceeding by or before any court or Governmental Entity, authority or body or any arbitrator involving the Company with
respect to the Money Laundering Laws is pending or, to the Knowledge of the Company, threatened.


 


Section 4.31
OFAC. Neither the Company nor any of its Subsidiaries, nor any director, officer, or employee thereof, nor, to the Company’s
Knowledge, any agent, affiliate or representative of the Company, is a Person that is, or is owned or controlled by a Person that is (i)
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the
United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including,
without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria). Neither the Company nor any of its Subsidiaries will, directly
or indirectly, use the proceeds from the sale of Shares under this Agreement, or lend, contribute or otherwise make available such proceeds
to any Subsidiary, joint venture partner or other Person (a) to fund or facilitate any activities or business of or with any Person or
in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions, or (b) in any other manner
that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter,
advisor, investor or otherwise). Since December 31, 2016, neither the Company nor any of its Subsidiaries have knowingly engaged in, or
are now knowingly engaged in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing
or transaction is or was the subject of Sanctions.


 






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Section
4.32   DisclosureSection
4.33. The Company confirms that neither it nor any other Person acting on its behalf has provided the
Investor or any of its agents, advisors or counsel with any information that constitutes or could reasonably be expected to constitute
material, nonpublic information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated
by this Agreement. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting resales
of Securities under the Registration Statement and the Prospectus. All disclosure provided to Investor regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated by this Agreement (including, without limitation, the representations and warranties
of the Company contained in this Article IV (as modified by the Disclosure Schedule)) furnished in writing by or on behalf of the Company
or any of its Subsidiaries for purposes of or in connection with the transactions contemplated by this Agreement (other than forward-looking
information and projections and information of a general economic nature and general information about the Company’s industry),
taken together, is true and correct in all material respects on the date on which such information is dated or certified, and does not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in the light of the circumstances under which they were made, not misleading at such time.


 


Section 4.33
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so
long as any of the Securities are held by the Investor, shall not become a U.S. real property holding corporation within the meaning of
Section 897 of the Code.


 


Section 4.34 Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or affiliates is subject
to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of
the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or affiliates
owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or
twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal
Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or
policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.


 


Section
4.35   IT SystemsSection
4.36. (i)(x) To the Knowledge of Company, there has been no security breach or other compromise of any
of the Company’s or its Subsidiaries’ information technology and computer systems, networks, hardware, software, data (including
the data of their respective customers, employees, suppliers, vendors and any third party data maintained by or on behalf of them), equipment
or technology (collectively, “IT Systems and Data”) and (y) the Company has not been notified of, and has no knowledge
of any event or condition that would reasonably be expected to result in, any security breach or other compromise to the IT Systems and
Data, except as would not, in the case of this clause (i), individually or in the aggregate, have a Material Adverse Effect; (ii) the
Company is presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any
court or arbitrator or Governmental Entity, internal policies and contractual obligations relating to the privacy and security of IT Systems
and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as
would not, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect; and (iii) the Company has
implemented backup and disaster recovery technology consistent with industry standards and practices.


 






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Section 4.36 Compliance
With Data Privacy LawsSection 4.37. The Company and the Subsidiaries are, and at all prior
times were, in material compliance with all applicable state and federal data privacy and security laws and regulations, including without
limitation the Health Insurance Portability and Accountability Act of 1996, and the European Union General Data Protection Regulation
(EU 2016/679) (collectively, the “Privacy Laws”) except in each case, where such would not, either individually or
in the aggregate, reasonably be expected to result in a Material Adverse Effect. To ensure compliance with the Privacy Laws, the Company
has in place, complies with, and takes appropriate steps to ensure compliance in all material respects with its policies and procedures
relating to data privacy and security and the collection, storage, use, processing, disclosure, handling, and analysis of personal data
and confidential data (the “Policies”). The Company has at all times made all disclosures to users or customers required
by applicable laws and regulatory rules or requirements, and none of such disclosures made or contained in any of its Policies have been
inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect. The Company further certifies
that neither it nor any Subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential
violation of, any of the Privacy Laws, and the Company has no Knowledge of any event or condition that would reasonably be expected to
result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation,
or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation
or liability under any Privacy Law.


 


Section
4.37   Stock Option
PlansSection 4.38. Each stock option granted by the Company was granted (i) in accordance with
the terms of the applicable stock option plan of the Company and (ii) with an exercise price at least equal to the fair market value of
the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under
the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no policy
or practice of the Company to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with,
the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results
or prospects.


 


Section 4.38
No Aggregation. None of the Company or any of its Affiliates, nor any Person acting on
their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to require approval of stockholders of the Company under any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of the Trading Market.


 


Section 4.39
Dilutive Effect. The Company is aware and acknowledges that issuance of the Securities
could cause dilution to existing stockholders and could significantly increase the number of outstanding shares of Common Stock. The Company
further acknowledges that its obligation to issue the Initial Commitment Shares and Additional Commitment Shares at such times and otherwise
in accordance with Section 2.6(a) and Section 2.6(b), respectively, of this Agreement and to issue the Shares pursuant to each VWAP Purchase
Notice and pursuant to each Alternative VWAP Purchase Notice delivered by the Company to the Investor pursuant to this Agreement is, in
each case, absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other
stockholders of the Company.


 


Section 4.40
Manipulation of Price. Neither the Company nor any of its officers, directors or Affiliates
has, and, to the Knowledge of the Company, no Person acting on their behalf has, (i) taken, directly or indirectly, any action designed
or intended to cause or to result in the stabilization or manipulation of the price of any security of the Company, or which caused or
resulted in, or which would in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price
of any security of the Company, in each case to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased,
or paid any compensation for soliciting purchases of, any of the Securities, or (iii) other than to the Person identified on Schedule
5.15 of the Disclosure Schedule engaged by the Company to act as its placement agent in connection with the execution of this Agreement
by the Company and the Investor, paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company. Neither the Company nor any of its officers, directors or Affiliates will during the term of this Agreement, and, to the
Knowledge of the Company, no Person acting on their behalf will during the term of this Agreement, take any of the actions referred to
in the immediately preceding sentence.


 






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Section 4.41 Application
of Takeover ProtectionsSection 4.42. The Company and its Board of Directors have taken all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Charter or
the laws of its state of incorporation that is or could become applicable to the Investor as a result of the Investor and the
Company fulfilling their respective obligations or exercising their respective rights under the Transaction Documents (as
applicable), including, without limitation, as a result of the Company’s issuance of the Securities and the Investor’s
ownership of the Securities.


 


Section 4.42
Acknowledgement Regarding Investor’s Acquisition of Securities. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby.
The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement or the transactions contemplated hereby, and any advice given by the Investor or any of its representatives
or agents in connection with this Agreement or the transactions contemplated hereby is merely incidental to the Investor’s acquisition
of the Securities. The Company further represents to the Investor that the Company’s decision to enter into this Agreement has been
based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives. The Company
acknowledges and agrees that the Investor has not made and does not make any representations or warranties with respect to the transactions
contemplated by this Agreement other than those specifically set forth in Article III of this Agreement.


 


Article
V

COVENANTS


 


The Company covenants with
the Investor, and the Investor covenants with the Company, as follows, which covenants of one party are for the benefit of the other party,
during the Investment Period:


 


Section 5.1 Securities
Compliance. The Company shall notify the Trading Market, as required, in accordance with its rules and regulations, of the
transactions contemplated by this Agreement, and shall take all necessary action, undertake all proceedings and obtain all
registrations, permits, consents and approvals for the legal and valid issuance of the Securities to the Investor in accordance with
the terms of this Agreement. Without limiting the generality of the foregoing, the Company shall take all reasonably necessary
action, undertake all proceedings and obtain all registrations, permits, consents and approvals in order to (i) qualify the
Securities for offering and sale to the Investor, or to obtain an exemption for the Securities to be offered and sold to the
Investor and (ii) qualify the Securities for offer and resale by the Investor, or to obtain an exemption for the Securities to be
offered and resold by the Investor, in each case under the applicable securities laws of such states and other jurisdictions
(domestic or foreign) as the Investor may reasonably designate, and to maintain such qualifications and exemptions in effect for so
long as required for the distribution of the Securities (but in no event for less than one year from the date of this Agreement); provided, however,
that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or
as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing
business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Securities have been so
qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to
continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the
Securities (but in no event for less than one year from the date of this Agreement).


 


Section 5.2
Registration and Listing. The Company shall take all action necessary to cause the Common Stock to continue to be registered
as a class of securities under Section 12(b) or 12(g) of the Exchange Act, shall comply in all material respects with its reporting and
filing obligations under the Exchange Act, and shall not take any action or file any document (whether or not permitted by the Securities
Act or the Exchange Act) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under
the Exchange Act or Securities Act, except as permitted herein. Without limiting the generality of the foregoing, the Company shall file
all reports, schedules, registrations, forms, statements, information and other documents required to be filed by the Company with the
Commission pursuant to the Exchange Act, including all material required to be filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of
the Exchange Act, in each case within the time periods required by the Exchange Act (giving effect to permissible extensions in accordance
with Rule 12b-25 under the Exchange Act). The Company shall use its reasonable best efforts to continue the listing and trading of its
Common Stock and the listing of the Commitment Shares acquired or to be acquired and the Shares to be purchased by the Investor hereunder
on the Trading Market, and shall comply with the Company’s reporting, filing and other obligations under the bylaws, listed securities
maintenance standards and other rules and regulations of FINRA and the Trading Market. The Company shall not take any action which could
reasonably be expected to result in the delisting or suspension of the Common Stock on the Trading Market.


 






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Section 5.3
Compliance with Laws.


 


(a) The Company shall
comply, and cause each Subsidiary to comply, (a) with all laws, rules, regulations, permits and orders applicable to the business
and operations of the Company and its Subsidiaries, except as would not have a Material Adverse Effect and (b) with all applicable
provisions of the Securities Act and the Exchange Act. Without limiting the foregoing: (A) neither the Company nor any of its
officers or directors (1) will take, directly or indirectly, any action designed or intended to cause or to result in, or which
would in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price of any security of
the Company, in each case to facilitate the sale or resale of any of the Securities, or (2) sell, bid for, purchase, or pay any
compensation for soliciting purchases of, any of the Securities; and (B) neither the Company, nor any of its Subsidiaries, nor to
the Knowledge of the Company, any of their respective directors, officers, agents, employees or any other Persons acting on their
behalf shall, in connection with the operation of the Company’s and its Subsidiaries’ respective businesses, (a) use any
corporate funds for unlawful contributions, payments, gifts or entertainment or to make any unlawful expenditures relating to
political activity to government officials, candidates or members of political parties or organizations, (b) pay, accept or receive
any unlawful contributions, payments, expenditures or gifts, or (c) violate or operate in noncompliance with any applicable export
restrictions, anti-boycott regulations, embargo regulations or other applicable domestic or foreign laws and regulations, including,
without limitation, the FCPA and the Money Laundering Laws. The Company shall conduct its business in such a manner as will ensure
that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the
U.S. Internal Revenue Code of 1986, as amended.


 


(b)
The Investor shall comply with all laws, rules, regulations and orders applicable to the performance by it of its obligations under
this Agreement and its investment in the Securities, except as would not, individually or in the aggregate, prohibit or otherwise interfere
with the ability of the Investor to enter into and perform its obligations under this Agreement in any material respect. Without limiting
the foregoing, the Investor shall comply with all applicable provisions of the Securities Act and the Exchange Act, including Regulation
M thereunder, and any applicable securities laws of any non-U.S. jurisdictions. Neither the Investor nor any of its officers or directors
will take, directly or indirectly, any action designed or intended to cause or to result in, or which would in the future reasonably be
expected to cause or result in, the stabilization or manipulation of the price of any security of the Company, in each case to facilitate
the sale or resale of any of the Securities.


 


Section 5.4
Due Diligence. Subject to the requirements of Section 5.11 of this Agreement, from time
to time during the Investment Period, the Company shall make available for inspection and review by the Investor, customary documentation
allowing the Investor and/or its appointed counsel or advisors to conduct due diligence. The Company shall not be required to reimburse
the Investor or its counsel or advisors in connection with any such due diligence from and after the date of this Agreement.


 


Section 5.5
No Frustration; No Variable Rate Transactions.


 


(a)
No Frustration. The Company shall not enter into, announce or recommend to its stockholders any agreement, plan,
arrangement or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right
of the Company to perform its obligations under this Agreement, including, without limitation, the obligation of the Company to deliver
(i) the Initial Commitment Shares to the Investor as DWAC Shares not later than 4:00 p.m. (New York time) on the Trading Day immediately
following the Commencement Date in accordance with Section 2.6(a), (ii) the Additional Commitment Shares to the Investor as DWAC Shares
not later than 4:00 p.m. (New York time) on the Trading Day immediately following the Trading Day on which the Company shall have received
the Shareholder Approval in accordance with Section 2.6(b), (iii) the Shares to the Investor in respect of a VWAP Purchase not later than
the applicable VWAP Purchase Settlement Date for such VWAP Purchase, and (iv) the Shares to the Investor in respect of an Alternative
VWAP Purchase not later than the applicable Alternative VWAP Purchase Settlement Date for such Alternative VWAP Purchase. For the avoidance
of doubt, nothing in this Section 5.5(a) shall in any way limit the Company’s right to terminate this Agreement in accordance with
Section 7.1 (subject in all cases to Section 7.3).


 






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(b) No Variable Rate
Transactions. The Company shall not effect or enter into an agreement to effect any issuance by the Company or any of its
Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction,
other than (i) in connection with an Exempt Issuance or (ii) the issuance of Common Stock under the Equity Distribution Agreement,
dated as of January 14, 2022, between the Company and Canaccord Genuity LLC (the “Existing Equity Distribution
Agreement”); provided, however, that with respect to this clause (ii), the Company shall not, without the
prior written consent of the Investor (which may be withheld, delayed or conditioned in its sole discretion), issue any Common Stock
or Common Stock Equivalents under the Existing Equity Distribution Agreement (A) during the period commencing on the VWAP Purchase
Exercise Date for each VWAP Purchase under this Agreement and ending on the applicable VWAP Purchase Settlement Date for such VWAP
Purchase (or such later date of full settlement of such VWAP Purchase and the issuance to the Investor of all of the Shares issuable
pursuant thereto in accordance with this Agreement), and (B) during the period commencing on the Alternative VWAP Purchase Exercise
Date for each Alternative VWAP Purchase under this Agreement and ending on the applicable Alternative VWAP Purchase Settlement Date
for such Alternative VWAP Purchase (or such later date of full settlement of such Alternative VWAP Purchase and the issuance to the
Investor of all of the Shares issuable pursuant thereto in accordance with this Agreement). The Investor shall be entitled to seek
injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any
right to collect damages, without the necessity of showing economic loss and without any bond or other security being required.


 


Section 5.6
Stop Orders. The Company shall advise the Investor promptly (but in no event later than 24 hours) and shall confirm
such advice in writing: (i) of the Company’s receipt of notice of any request by the Commission for amendment of or a supplement
to the Registration Statement, the Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the Company’s
receipt of notice of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or prohibiting
or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension of qualification of the Securities for offering
or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; and (iii) of the Company
becoming aware of the happening of any event, which makes any statement of a material fact made in the Registration Statement, the Prospectus
or any Permitted Free Writing Prospectus untrue or which requires the making of any additions to or changes to the statements then made
in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in order to state a material fact required by the
Securities Act to be stated therein or necessary in order to make the statements then made therein (in the case of the Prospectus, in
light of the circumstances under which they were made) not misleading, or of the necessity to amend the Registration Statement or supplement
the Prospectus or any Permitted Free Writing Prospectus to comply with the Securities Act or any other law. The Company shall not be required
to disclose to the Investor the substance or specific reasons of any of the events set forth in clauses (i) through (iii) of the immediately
preceding sentence, but rather, shall only be required to disclose that the event has occurred. The Company shall not issue any VWAP Purchase
Notice or any Alternative VWAP Purchase Notice during the continuation of any of the foregoing events. If at any time the Commission shall
issue any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of the Prospectus
or any Prospectus Supplement, the Company shall use reasonable best efforts to obtain the withdrawal of such order at the earliest possible
time.


 






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Section 5.7 Amendments
to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.


 


(a)
Except as provided in this Agreement and other than periodic and current reports required to be filed pursuant to the Exchange
Act, the Company shall not file with the Commission any amendment to the Registration Statement that relates to the Investor, this Agreement
or the transactions contemplated hereby or file with the Commission any Prospectus Supplement that relates to the Investor, this Agreement
or the transactions contemplated hereby with respect to which (i) the Investor shall not previously have been advised, (ii) the Company
shall not have given the Investor and its counsel a reasonable opportunity to comment on a draft thereof prior to filing with the Commission,
(iii) the Company shall not have given due consideration to any comments thereon received from the Investor or its counsel prior to filing
with the Commission, or (iv) the Investor shall reasonably object after being so advised or after having completed its review (provided,
however, that the failure of the Investor to make such objection shall not relieve the Company of any obligation or liability
under this Agreement or affect the Investor’s right to rely on the representations and warranties made by the Company in this Agreement),
unless the Company reasonably has determined that it is necessary to amend the Registration Statement or make any supplement to the Prospectus
to comply with the Securities Act or any other applicable law or regulation, in which case the Company shall promptly (but in no event
later than 24 hours) so inform the Investor, the Investor shall be provided with a reasonable opportunity to review and comment upon any
disclosure relating to the Investor and the Company shall expeditiously furnish to the Investor an electronic copy thereof (it being acknowledged
and agreed that the provisions of Section 1.4, and not this Section 5.7, shall apply with respect to the Initial Prospectus Supplement).
In addition, for so long as, in the reasonable opinion of counsel for the Investor, the Prospectus (or in lieu thereof, the notice referred
to in Rule 173(a) under the Securities Act) is required to be delivered in connection with any acquisition or sale of Securities by the
Investor, the Company shall not file any (1) Prospectus Supplement with respect to the Securities, without delivering or making available
a copy of such Prospectus Supplement (in the form filed with the Commission), together with the Base Prospectus, to the Investor promptly
after the filing thereof with the Commission, or (2) any amendment to the Registration Statement, without promptly delivering or making
available a copy of such amendment to the Registration Statement (in the form filed with the Commission) to the Investor promptly after
the filing thereof with the Commission, in each case via e-mail in “.pdf” format to an e-mail account designated by the Investor.


 


(b) The Company has not
made, and agrees that unless it obtains the prior written consent of the Investor it will not make, an offer relating to the
Securities that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a Free Writing Prospectus
required to be filed by the Company or the Investor with the Commission or retained by the Company or the Investor under Rule 433
under the Securities Act. The Investor has not made, and agrees that unless it obtains the prior written consent of the Company it
will not make, an offer relating to the Securities that would constitute a Free Writing Prospectus required to be filed by the
Company with the Commission or retained by the Company under Rule 433 under the Securities Act. Any such Issuer Free Writing
Prospectus or other Free Writing Prospectus consented to by the Investor or the Company is referred to in this Agreement as a
“Permitted Free Writing Prospectus.” The Company agrees that (x) it has treated and will treat, as the case may
be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has complied and will comply, as the case
may be, with the requirements of Rules 164 and 433 under the Securities Act applicable to any Permitted Free Writing Prospectus,
including in respect of timely filing with the Commission, legending and record keeping.


 






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Section 5.8
Prospectus Delivery. For so long as, in the reasonable opinion of counsel for the Investor, the Prospectus (or in lieu
thereof, the notice referred to in Rule 173(a) under the Securities Act) is required to be delivered in connection with any acquisition
or sale of Securities by the Investor, the Company will furnish to the Investor and its counsel (at the expense of the Company) copies
of the Base Prospectus and all Prospectus Supplements that are filed with the Commission, in each case, in the form filed with the Commission,
as soon as reasonably practicable via e-mail in “.pdf” format to an e-mail account designated by the Investor and, at the
Investor’s request, will also furnish copies of the Base Prospectus and all Prospectus Supplements, in each case, in the form filed
with the Commission, to each exchange or market on which sales of the Securities may be made and to each Broker-Dealer or other Person
designated by the Investor. The Company consents to the use of the Prospectus (and of any Prospectus Supplement thereto) in accordance
with the provisions of the Securities Act and with the securities or “Blue Sky” laws of the jurisdictions in which the Securities
may be sold by the Investor, in connection with the offering and sale of the Securities and for such period of time thereafter as the
Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required by the Securities Act to be
delivered in connection with sales of the Securities. If during such period of time any event shall occur that in the judgment of the
Company and its counsel is required to be set forth in the Registration Statement or the Prospectus or any Permitted Free Writing Prospectus
or should be set forth therein in order to make the statements made therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading, or if it is necessary to amend the Registration Statement or supplement or amend the Prospectus
or any Permitted Free Writing Prospectus to comply with the Securities Act or any other applicable law or regulation, the Company shall
forthwith prepare and, subject to Section 5.7(a) above, file with the Commission an appropriate amendment to the Registration Statement
or Prospectus Supplement to the Prospectus (or supplement to the Permitted Free Writing Prospectus) and shall expeditiously furnish or
make available to the Investor a copy thereof in accordance with this Section 5.8. The Investor shall comply with any Prospectus delivery
requirements under the Securities Act applicable to it. The Investor acknowledges and agrees that it is not authorized to give any information
or to make any representation not contained in the Prospectus or the documents incorporated by reference or specifically referred to therein
in connection with the offer and sale of the Securities.


 


Section 5.9
Selling Restrictions. The Investor covenants and agrees that commencing upon the execution
of this Agreement on the Commencement Date and ending on the date of any termination of this Agreement pursuant to Section 7.1 or Section
7.2 (the “Restricted Period”), neither the Investor nor any of its Affiliates nor any entity managed or controlled
by the Investor (collectively, the “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted
Person”) shall, directly or indirectly, (i) engage in or effect any Short Sales of Common Stock or (ii) execute any stock pledge,
forward sales contract, option, put, call, swap or similar hedging arrangement (including on a total return basis), which establishes
a net short position with respect to the Common Stock.  In addition to the foregoing, in connection with any resale of Securities
by the Investor, each of the Restricted Persons shall comply in all respects with all applicable laws, rules, regulations and orders,
including, without limitation, the applicable
requirements of the Securities Act and the Exchange Act, including, without limitation, Regulation SHO, and all orders of any regulatory
authority applicable to any Restricted Person.


 




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Section 5.10
Effective Registration Statement. The Company shall use its reasonable best efforts to keep the Registration Statement
effective pursuant to Rule 415 promulgated under the Securities Act, and to keep the Registration Statement and the Prospectus current
and available for issuances and sales of Securities by the Company to the Investor, and for the resale of Securities by the Investor,
at all times during the term of this Agreement and, to the extent the Investor owns any Securities upon the termination of this Agreement,
until the 180th day next following the termination of this Agreement (the “Registration Period”). Without limiting
the generality of the foregoing, during the Registration Period, the Company shall prepare and, subject to Section 5.7(a) above, file
with the Commission, at the Company’s expense, such amendments (including, without limitation, post-effective amendments) to the
Registration Statement and such Prospectus Supplements pursuant to Rule 424(b) under the Securities Act, in each case, as may be necessary
to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act, and to keep the Registration Statement
and the Prospectus current and available for issuances and sales of Securities by the Company to the Investor, and for the resale of Securities
by the Investor, at all times during the Registration Period.


 


Section 5.11
Non-Public Information. Neither the Company or any of its Subsidiaries, nor any of their respective directors, officers,
employees or agents shall disclose any material non-public information about the Company to the Investor, unless a simultaneous public
announcement thereof is made by the Company in the manner contemplated by Regulation FD. In the event of a breach of the foregoing covenant
by the Company or any of its Subsidiaries, or any of their respective directors, officers, employees and agents, on the Cleansing Date
(defined below) and in compliance with the conditions set forth below, the Investor may publicly disclose such information without the
prior approval by the Company, any of its Subsidiaries, or any of their respective directors, officers, employees or agents, to the extent
the Investor (in its reasonable good faith judgment) deems such information to be material non-public information, in the form of a press
release, public advertisement or otherwise; provided, however, prior to exercising this right, the Investor shall provide
the Company with written notice of the Company’s alleged failure to disclose such information, which notice shall (i) include a
description of the disclosure that the Investor intends to make and (ii) provide the Company with at least one (1) business day to cure
such failure (the first business day following such one-business day cure period, the “Cleansing Date”). The Investor
shall not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders
or agents, for any such disclosure.


 


Section 5.12
Broker/Dealer. The Investor shall use one or more broker-dealers to effectuate all sales, if any, of the Securities
that it may acquire or purchase from the Company pursuant to this Agreement which (or whom) shall be unaffiliated with the Investor and
not then currently engaged or used by the Company (collectively, the “Broker-Dealer”). The Investor shall provide the
Company with all information regarding the Broker-Dealer reasonably requested by the Company. The Investor shall be solely responsible
for all fees and commissions of the Broker-Dealer, which shall not
exceed customary brokerage fees and commissions, and shall be responsible for designating only a DTC participant eligible to receive DWAC
Shares.


 




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Section 5.13
Earnings Statement. The Company will make generally available to its security holders as soon as practicable, but in
any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month
period that satisfies the provisions of Section 11(a) of and Rule 158 under the Securities Act. The terms “earnings statement”
and “make generally available to its security holders” shall have the meanings set forth in Rule 158 under the Securities
Act.


 


Section 5.14
Corporate Existence. The Company shall take all steps necessary to preserve and continue the corporate existence of
the Company; provided, however, that, except as provided in Section 5.15, nothing in this Agreement shall be deemed to prohibit
the Company from engaging in any Fundamental Transaction with another Person. For the avoidance of doubt, nothing in this Section 5.14
shall in any way limit the Company’s right to terminate this Agreement in accordance with Section 7.1 (subject in all cases to Section
7.3).


 


Section 5.15
Fundamental Transaction. If a VWAP Purchase Notice or an Alternative VWAP Purchase Notice has been delivered to the
Investor and the transactions contemplated therein have not yet been fully settled in accordance with the terms and conditions of this
Agreement, the Company shall not effect any Fundamental Transaction until the expiration of three (3) Trading Days following the date
of full settlement thereof and the issuance to the Investor of all of the Shares issuable pursuant to the VWAP Purchase to which such
VWAP Purchase Notice relates or pursuant to the Alternative VWAP Purchase to which such Alternative VWAP Purchase Notice relates, as applicable.


 


Section 5.16
Disclosure Schedule.


 


(a)
From time to time during the Investment Period, the Company shall be permitted to update the Disclosure Schedule as may be required
to satisfy the condition set forth in Section 6.3(a). For purposes of this Section 5.16, any disclosure made in a schedule to the Compliance
Certificate substantially in the form attached hereto as Exhibit F shall be deemed to be an update of the Disclosure Schedule.
Notwithstanding anything in this Agreement to the contrary, no update to the Disclosure Schedule pursuant to this Section 5.16 shall cure
any prior breach of a representation or warranty of the Company contained in this Agreement and shall not affect any of the Investor’s
rights or remedies with respect thereto.


 


(b)
Notwithstanding anything to the contrary contained in the Disclosure Schedule or in this Agreement, the information and disclosure
contained in any Schedule of the Disclosure Schedule shall be deemed to be disclosed and incorporated by reference in any other Schedule
of the Disclosure Schedule as though fully set forth in such Schedule for which applicability of such information and disclosure is readily
apparent on its face. The fact that any item of information is disclosed in the Disclosure Schedule shall not be construed to mean that
such information is required to be disclosed by this Agreement. Except as expressly set forth in this Agreement, such information and
the thresholds (whether based on quantity, qualitative characterization, dollar amounts or otherwise) set forth herein shall not be used
as a basis for interpreting the terms “material”
or “Material Adverse Effect” or other similar terms in this Agreement.


 




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Section 5.17
Shareholder Approval. The Company shall hold a special meeting of its shareholders at the earliest reasonably practical
date after the date of this Agreement for the purpose of, among other things, obtaining the Shareholder Approval (the “Shareholder
Meeting”), with the recommendation of the Company’s Board of Directors that such proposal for the Shareholder Approval
be approved by the Company’s shareholders at the Shareholder Meeting, and the Company shall solicit proxies from its shareholders
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 for the Shareholder Approval at the Shareholder Meeting. The Company shall use its
reasonable best efforts to obtain the Shareholder Approval at the Shareholder Meeting. If the Company does not obtain the Shareholder
Approval at the first Shareholder Meeting required to be convened pursuant to this Section 5.17, the Company shall convene a special (or
annual) meeting of the Company’s shareholders at least every six (6) months thereafter to seek the Shareholder Approval until the
earlier of (i) the date on which the Shareholder Approval is obtained and (ii) the termination of this Agreement in accordance with Article
VII. For the avoidance of doubt, the Company may not deliver any VWAP Purchase Notice or Alternative VWAP Purchase Notice and may not
sell any Shares to the Investor pursuant to this Agreement unless and until the Company shall have obtained the Shareholder Approval in
accordance with this Section 5.17 and Section 2.4(a) and in accordance with applicable rules of the Trading Market, applicable laws of
the State of Oregon and the Company’s Charter and Bylaws.


 


Article
VI

Conditions to commencement;

CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES


 


Section 6.1
Conditions to Commencement. On the Commencement Date, the Company shall deliver irrevocable instructions to its transfer
agent to electronically transfer the Initial Commitment Shares to the Investor or its designee(s) as DWAC Shares, not later than 4:00
p.m. (New York time) on the Trading Day immediately following the Commencement Date, which Initial Commitment Shares shall be issued pursuant
to the Registration Statement and without any restriction on resale. For the avoidance of doubt, all of the Initial Commitment Shares
shall be fully earned as of the Commencement Date, regardless of whether any VWAP Purchases or Alternative VWAP Purchases are effected
hereunder or any subsequent termination of this Agreement. Simultaneously with the execution and delivery of this Agreement, on the Commencement
Date, the Company shall deliver to the Investor (a) the opinions and negative assurances of outside counsel to the Company, dated the
Commencement Date, in the forms mutually agreed to by the parties hereto, (b) a certificate from the Company, dated the Commencement Date,
in the form of Exhibit E hereto, and (c) a copy of the irrevocable instructions to the transfer agent regarding the Initial Commitment
Shares. On or prior to the Commencement Date, the Company shall have paid by wire transfer of immediately available funds to an account
designated by the Investor’s counsel, the fees and expenses of the Investor’s counsel in accordance with the proviso to the
first sentence of Section 9.1 of this Agreement.


 





 




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Section 6.2 Conditions Precedent
to the Obligations of the Company. The obligation hereunder of the Company to issue and sell the Shares to the Investor under
any VWAP Purchase Notice or under any Alternative VWAP Purchase Notice (as applicable) delivered to the Investor by the Company under
this Agreement on or after the Commencement Date is subject to the satisfaction at the applicable Purchase Condition Satisfaction Time,
or (to the extent permitted by applicable law) the waiver, of each of the conditions set forth in this Section 6.2. These conditions
are for the Company’s sole benefit and (to the extent permitted by applicable law) may be waived by the Company at any time in
its sole discretion, except as expressly provided below.


 


(a)
Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor
contained in this Agreement (i) that are not qualified by “materiality” shall have been true and correct in all material respects
when made and shall be true and correct in all material respects at the applicable Purchase Condition Satisfaction Time with the same
force and effect as if made at such time, except to the extent such representations and warranties are as of another date or time, in
which case, such representations and warranties shall be true and correct in all material respects as of such other date or time and (ii)
that are qualified by “materiality” shall have been true and correct when made and shall be true and correct at the applicable
Purchase Condition Satisfaction Time with the same force and effect as if made at such time, except to the extent such representations
and warranties are as of another date or time, in which case, such representations and warranties shall be true and correct as of such
other date or time.


 


(b)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have
received notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company
shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement which (i) as of the Commencement
Date, is sufficient to issue to the Investor not less than (A) the Total Commitment worth of Common Stock plus (B) the Initial Commitment
Shares and the Additional Commitment Shares, (ii) as of the applicable VWAP Purchase Exercise Date, is sufficient to issue to the Investor
not less than the maximum dollar amount worth of Shares issuable pursuant to the applicable VWAP Purchase Notice, and (iii) as of the
applicable Alternative VWAP Purchase Exercise Date, is sufficient to issue to the Investor not less than the maximum dollar amount worth
of Shares issuable pursuant to the applicable Alternative VWAP Purchase Notice.


 


(c)
Other Commission Filings. The Current Report shall have been filed with the Commission as required pursuant to Section
1.4, and all Prospectus Supplements required to have been filed with the Commission pursuant to Section 1.4 shall have been filed with
the Commission in accordance with Section 1.4. All reports, schedules, registrations, forms, statements, information and other documents
required to have been filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including all
material required to have been filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, shall have been filed with the
Commission and such filings shall have been made within the applicable time period prescribed for such filing under the Exchange Act.
All other material required to be filed by the Company or any other offering participant pursuant to Rule 433(d) under the Securities Act shall have been
filed with the Commission within the applicable time periods prescribed for such filings by Rule 433 under the Securities Act.


 




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(d)
Performance by the Investor. The Investor shall have performed, satisfied and complied in all material respects with
all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or
prior to the applicable Purchase Condition Satisfaction Time.


 


(e)
No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened or endorsed by any court or Governmental Entity of competent jurisdiction which prohibits the consummation of
or which would materially modify or delay any of the transactions contemplated by this Agreement.


 


(f)    
No Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been
suspended by the Commission, the Trading Market or FINRA (except for any suspension of trading of limited duration agreed to by the Company,
which suspension shall be terminated prior to the applicable Purchase Condition Satisfaction Time), the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a date
certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Eligible Market). At any time since the
later of (i) the most recent VWAP Purchase Settlement Date and (ii) the most recent Alternative VWAP Purchase Settlement Date, or if no
prior VWAP Purchase Settlement Date or Alternative VWAP Purchase Settlement Date shall have occurred prior to the applicable Purchase
Condition Satisfaction Time, then at any time since the Commencement Date, none of the events described in clauses (i), (ii) and (iii)
of Section 5.6 shall have occurred (but an event described in clause (iii) of Section 5.6 shall only apply if it has not been cured through
the filing of a report with the Commission on EDGAR).


 


(g)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or Governmental Entity
shall have been commenced and shall be pending, and no inquiry or investigation by any Governmental Entity shall have been commenced and
shall be pending, against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary,
(i) seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking material damages in connection
with such transactions, or (ii) other than as disclosed in Commission Documents filed with the Commission on or prior to the date of this
Agreement, involving any claims or causes of action alleging any violations of any U.S. federal securities laws or rules, including, without
limitation, the Securities Act and the Exchange Act, or any state securities or “Blue Sky” laws, or any U.S federal or state
antifraud laws or rules.


 


(h)
Certain Limitations. The issuance and sale of the Shares issuable pursuant to the applicable VWAP Purchase Notice
or the applicable Alternative VWAP Purchase Notice, as the case may be, shall not (a) exceed the applicable VWAP Purchase Maximum Amount,
in the case of a VWAP Purchase Notice, (b) exceed the applicable Alternative VWAP Purchase Maximum Amount, in the case of an Alternative
VWAP Purchase Notice, (c) cause the Aggregate Limit or the Beneficial Ownership Limitation to be exceeded, or (d) cause the Exchange Cap
(to the extent applicable under Section 2.4) to be exceeded, unless in the case of this clause (d), the Company’s stockholders
have theretofore approved the issuance of Common Stock under this Agreement in excess of the Exchange Cap in accordance with the applicable
rules of the Trading Market.


 




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Section 6.3
Conditions Precedent to the Obligations of the Investor. The obligation hereunder of the Investor to accept a VWAP Purchase
Notice or an Alternative VWAP Purchase Notice timely delivered to the Investor by the Company under this Agreement on or after the Commencement
Date and to acquire and pay for the Shares subject to such VWAP Purchase Notice or such Alternative VWAP Purchase Notice, as applicable,
is subject to the satisfaction at the applicable Purchase Condition Satisfaction Time, or (to the extent permitted by applicable law)
the waiver, of each of the conditions set forth in this Section 6.3. These conditions are for the Investor’s sole benefit and (to
the extent permitted by applicable law) may be waived by the Investor at any time in its sole discretion, except as expressly provided
below.


 


(a)
Accuracy of the Company’s Representations and Warranties. The representations and warranties of the Company
contained in this Agreement, as modified by the Disclosure Schedule (i) that are not qualified by “materiality” or “Material
Adverse Effect” shall have been true and correct in all material respects when made and shall be true and correct in all material
respects at the applicable Purchase Condition Satisfaction Time with the same force and effect as if made at such time, except to the
extent such representations and warranties are as of another date or time, in which case, such representations and warranties shall be
true and correct in all material respects as of such other date or time and (ii) that are qualified by “materiality” or “Material
Adverse Effect” shall have been true and correct when made and shall be true and correct at the applicable Purchase Condition Satisfaction
Time with the same force and effect as if made at such time, except to the extent such representations and warranties are as of another
date or time, in which case, such representations and warranties shall be true and correct as of such other date or time.


 


(b)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have
received notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company
shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement which (i) as of the Commencement
Date, is sufficient to issue to the Investor not less than (A) the Total Commitment worth of Common Stock plus (B) the Initial Commitment
Shares and the Additional Commitment Shares, (ii) as of the applicable VWAP Purchase Exercise Date, is sufficient to issue to the Investor
not less than the maximum dollar amount worth of Shares issuable pursuant to the applicable VWAP Purchase Notice, and (iii) as of the
applicable Alternative VWAP Purchase Exercise Date, is sufficient to issue to the Investor not less than the maximum dollar amount worth
of Shares issuable pursuant to the applicable Alternative VWAP Purchase Notice. As of the Commencement Date and the applicable VWAP Purchase
Exercise Date or the applicable Alternative VWAP Purchase Exercise Date, the Investor shall be permitted to utilize the Prospectus to
resell all of the Securities it then owns or has the right to acquire pursuant to all VWAP Purchase Notices and Alternative VWAP Purchase
Notices delivered by the Company to the Investor pursuant to this Agreement.


 




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(c)  Other Commission
Filings. The Current Report shall have been filed with the Commission as required pursuant to Section 1.4, and all Prospectus
Supplements required to have been filed with the Commission pursuant to Section 1.4 shall have been filed with the Commission in accordance
with Section 1.4. All reports, schedules, registrations, forms, statements, information and other documents required to have been filed
by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including all material required to have
been filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, shall have been filed with the Commission and such filings
shall have been made within the applicable time period prescribed for such filing under the Exchange Act. All other material required
to be filed by the Company or any other offering participant pursuant to Rule 433(d) under the Securities Act shall have been filed with
the Commission within the applicable time periods prescribed for such filings by Rule 433 under the Securities Act.


 


(d)
No Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been
suspended by the Commission, the Trading Market or FINRA (except for any suspension of trading of limited duration agreed to by the Company,
which suspension shall be terminated prior to the applicable Purchase Condition Satisfaction Time), the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a date
certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Eligible Market), nor shall there have
been imposed any suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry
services by DTC with respect to the Common Stock that is continuing, the Company shall not have received any notice from DTC to the effect
that a suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry services
by DTC with respect to the Common Stock is being imposed or is contemplated (unless, prior to such suspension or restriction, DTC shall
have notified the Company in writing that DTC has determined not to impose any such suspension or restriction). At any time since the
later of (i) the most recent VWAP Purchase Settlement Date and (ii) the most recent Alternative VWAP Purchase Settlement Date, or if no
prior VWAP Purchase Settlement Date or Alternative VWAP Purchase Settlement Date shall have occurred prior to the applicable Purchase
Condition Satisfaction Time, then at any time since the Commencement Date, none of the events described in clauses (i), (ii) and (iii)
of Section 5.6 shall have occurred (but an event described in clause (iii) of Section 5.6 shall only apply if it has not been cured through
the filing of a report with the Commission on EDGAR).


 


(e) Performance of
the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the applicable Purchase
Condition Satisfaction Time. The Company shall have delivered to the Investor at or prior to the applicable Purchase Condition Satisfaction
Time the Compliance Certificate substantially in the form attached hereto as Exhibit F.


 


(f) No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened or endorsed by any court or Governmental Entity of competent jurisdiction which (i) prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by this Agreement, (ii) requires the Company or any Subsidiary of the
Company to pay material damages, or (iii) finds or concludes that the Company, any Subsidiary of the Company or any officer, director
or Affiliate of the Company or any Subsidiary of the Company has violated any U.S. federal securities laws or rules, including, without
limitation, any provision of the Securities Act or the Exchange Act, or any state securities or “Blue Sky” laws, or any U.S
federal or state antifraud laws or rules.


 




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(g)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or Governmental Entity
shall have been commenced and shall be pending, and no inquiry or investigation by any Governmental Entity shall have been commenced and
shall be pending, against the Company or any Subsidiary, or any of the officers, directors or Affiliates of the Company or any Subsidiary,
(i) seeking to restrain, prevent or change the transactions contemplated by this Agreement, (ii) seeking material damages from the Company
or any Subsidiary of the Company, or (iii) other than as disclosed in Commission Documents filed with the Commission on or prior to the
date of this Agreement, involving any claim or cause of action alleging any violation of any U.S. federal securities laws or rules, including,
without limitation, any provision of the Securities Act or the Exchange Act, or any state securities or “Blue Sky” laws, or
any U.S federal or state antifraud laws or rules by the Company, any Subsidiary of the Company or any officer, director or Affiliate of
the Company or any Subsidiary of the Company.


 


(h)
Certain Limitations. The issuance and sale of the Shares issuable pursuant to the applicable VWAP Purchase Notice
or the applicable Alternative VWAP Purchase Notice, as the case may be, shall not (a) exceed the applicable VWAP Purchase Maximum Amount,
in the case of a VWAP Purchase Notice, (b) exceed the applicable Alternative VWAP Purchase Maximum Amount, in the case of an Alternative
VWAP Purchase Notice, (c) cause the Aggregate Limit or the Beneficial Ownership Limitation to be exceeded, or (d) cause the Exchange Cap
(to the extent applicable under Section 2.4) to be exceeded, unless in the case of this clause (d), the Company theretofore shall have
obtained the Shareholder Approval in accordance with Section 5.17 and Section 2.4(a), and in accordance with the applicable rules of the
Trading Market, the laws of the State of Oregon and the Company’s Charter and Bylaws.


 


(i)
Shares and Commitment Shares Authorized and Delivered. The Shares issuable pursuant to such VWAP Purchase Notice
or pursuant to such Alternative VWAP Purchase Notice, as the case may be, shall have been duly authorized by all necessary corporate action
of the Company. The Company shall have delivered all Shares relating to all prior VWAP Purchase Notices and all prior Alternative VWAP
Purchase Notices to the Investor or its designee(s) as DWAC Shares. The Company shall have timely delivered (i) all Initial Commitment
Shares to the Investor or its designee(s) as DWAC Shares in accordance with Section 2.6(a) and (ii) all Additional Commitment Shares to
the Investor or its designee(s) as DWAC Shares in accordance with Section 2.6(b).


 


(j) Listing of Securities.
All of the Securities that may be issued pursuant to this Agreement shall have been approved for listing or quotation on the
Trading Market (or on an Eligible Market) as of the Commencement Date, subject only to notice of issuance.


 




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(k)
 No Termination Event. There shall not have occurred any event that would permit the Investor to terminate this Agreement
pursuant to Section 7.2.


 


(l)
Bring Down Deliverables. Each time the Company (i) files a Prospectus Supplement relating to the Securities pursuant
to Section 1.4 (other than the Initial Prospectus Supplement), (ii) amends or supplements the Registration Statement or the Prospectus
relating to the Securities by means of a post-effective amendment, sticker, or supplement, but not by means of incorporation of document(s)
by reference to the Registration Statement or the Prospectus relating to the Securities (other than as set forth in clauses (iii) and
(iv) hereof); (iii) files an Annual Report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial
information or a material amendment to the previously filed Form 10-K); or (iv) a current report on Form 8-K that contains amended material
financial information (or a restatement of material financial information) or an amendment to other material information contained or
incorporated by reference in the Registration Statement or any Prospectus Supplement (each date of filing of one or more of the documents
referred to in clauses (i) through (iv) shall be a “Representation Date”),
the Company shall furnish the Investor, within three (3) Trading Days after each filing date thereof, (x) a certificate from the Company,
dated the Commencement Date, in the form of Exhibit E hereto, and (y) the opinions and negative assurance “bring down”
from outside counsel to the Company, in the forms mutually agreed to by the parties hereto prior to the date hereof. The requirement to
provide the deliverables referenced in clauses (x) and (y) under this Section 6.3(l) shall be waived for any Representation Date referred
to in clause (iv) above with respect to a fiscal quarter during which no Shares were sold hereunder, which waiver shall continue until
the earlier to occur of (A) the next VWAP Purchase Exercise Date and (B) the next Alternative VWAP Purchase Exercise Date (which for such
calendar quarter shall be considered a Representation Date) and the next occurring Representation Date. Notwithstanding the foregoing,
if the Company subsequently decides to deliver a VWAP Purchase Notice or an Alternative VWAP Purchase Notice to the Investor following
a Representation Date when the Company relied on such waiver and did not provide the Investor with the deliverables referenced in clauses
(x) and (y) under this Section 6.3(l), then before the Company delivers the VWAP Purchase Notice or Alternative VWAP Purchase Notice,
as the case may be, to the Investor, the Company shall provide the Investor with the deliverables referenced in clauses (x) and (y) under
this Section 6.3(l), dated the date of the VWAP Purchase Exercise Date or Alternative VWAP Purchase Exercise Date (as applicable).


 


(m)
Shareholder Approval. The Company shall have obtained the Shareholder Approval in accordance with Section 5.17 and
Section 2.4(a) and in accordance with applicable rules of the Trading Market, applicable laws of the State of Oregon and the Company’s
Charter and Bylaws, prior to the delivery of any VWAP Purchase Notice or Alternative VWAP Purchase Notice by the Company to the Investor
directing the Investor to purchase any Shares pursuant to such VWAP Purchase Notice or Alternative VWAP Purchase Notice under this Agreement.


 





 




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Article
VII

TERMINATION


 


Section 7.1 Automatic
Termination; Termination by Mutual Consent; Termination by the Company. Unless earlier terminated as provided hereunder,
this Agreement shall terminate automatically on the earliest to occur of (i) the first day of the month next following the 24-month
anniversary of the Commencement Date, (ii) the date on which the Investor shall have purchased the Total Commitment worth of Shares
pursuant to this Agreement, (iii) the date on which the Common Stock shall have failed to be listed or quoted on the Trading Market
or any Eligible Market, (iv) the thirtieth (30th) Trading Day next following the date on which, pursuant to or within the
meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, in
each case that is not discharged or dismissed prior to such thirtieth (30th) Trading Day, and (v) the date on which,
pursuant to or within the meaning of any Bankruptcy Law, a Custodian is appointed for the Company or for all or substantially all of
its property, or the Company makes a general assignment for the benefit of its creditors. Subject to Section 7.3, this Agreement may
be terminated at any time by the mutual written consent of the parties, effective as of the date of such mutual written consent
unless otherwise provided in such written consent. Subject to Section 7.3, the Company may terminate this Agreement, at any time and
in its sole discretion, effective upon five (5) Trading Days’ prior written notice to the Investor delivered in accordance
with Section 9.4; provided, however, that (i) the Company shall have issued (A) all Initial Commitment Shares to the
Investor in accordance with Section 2.6(a) and (B) if required to have been issued to the Investor under Section 2.6(b), the Company
shall have issued all Additional Commitment Shares to the Investor in accordance with Section 2.6(b), in each case prior to such
termination, (ii) the Company shall have paid all fees and amounts to the Investor’s counsel required to be paid pursuant to
Section 9.1 of this Agreement prior to such termination, and (iii) prior to issuing any press release, or making any public
statement or announcement, with respect to such termination, the Company shall consult with the Investor and shall obtain the
Investor’s consent to the form and substance of such press release or other disclosure, which consent shall not be
unreasonably delayed or withheld.


 


Section 7.2 Other
Termination. Subject to Section 7.3, the Investor shall have the right to terminate this Agreement effective upon five (5)
Trading Days’ prior written notice to the Company in accordance with Section 9.4, if: (a) any condition, occurrence, state of
facts or event constituting a Material Adverse Effect has occurred and is continuing; (b) a Fundamental Transaction shall have
occurred; (c) the effectiveness of the Registration Statement, or any post-effective amendment thereto, lapses for any reason
(including, without limitation, the issuance of a stop order by the Commission) or the Registration Statement or any post-effective
amendment thereto, or any Prospectus Supplement otherwise becomes unavailable to the Investor for the sale of all of the Securities
included therein, and such lapse or unavailability continues for a period of thirty (30) consecutive Trading Days or for more than
an aggregate of ninety (90) Trading Days in any 365-day period, other than due to acts of the Investor; (d) trading in the Common
Stock on the Trading Market (or if the Common Stock is then listed on an Eligible Market, trading in the Common Stock on such
Eligible Market) shall have been suspended and such suspension continues for a period of three (3) consecutive Trading Days; (e) the
Company is in material breach or default of this Agreement, and, if such breach or default is capable of being cured, such breach or
default is not cured within ten (10) Trading Days after notice of such breach or default is delivered to the Company pursuant to
Section 10.4; (f) the Company shall not have obtained the Shareholder Approval on or prior to June 30, 2023; (g) a final statute,
rule, regulation, order, decree, writ, ruling or injunction shall have been issued, enacted, entered or promulgated by a court or
Governmental Entity of competent jurisdiction that prohibits, enjoins materially modifies or materially delays any of the
transactions contemplated by this Agreement, or that requires the Company or any Subsidiary of the Company to pay material damages,
or finds or concludes that the Company, any Subsidiary of the Company or any officer, director or Affiliate of the Company or any
Subsidiary of the Company has violated any U.S. federal securities laws or rules, including, without limitation, any provision of
the Securities Act or the Exchange Act, or any state securities or “Blue Sky” laws, or any U.S federal or state
antifraud laws or rules; or (h) other than as disclosed in Commission Documents filed with the Commission on or prior to the date of
this Agreement, an action, suit or proceeding before an arbitrator or a court or Governmental Entity of competent jurisdiction shall
have been commenced, or a formal investigation by a Governmental Entity of competent jurisdiction shall have been commenced against
the Company, any Subsidiary of the Company, or any officer, director or Affiliate of the Company or any Subsidiary of the Company,
either seeking to restrain, prevent or materially modify or materially delay any of the transactions contemplated by this Agreement
or involving any claim or cause of action alleging any violation of any U.S. federal securities laws or rules, including, without
limitation, any provision of the Securities Act or the Exchange Act, or any state securities or “Blue Sky” laws, or any
U.S federal or state antifraud laws or rules by the Company, any Subsidiary of the Company or any officer, director or Affiliate of
the Company or any Subsidiary of the Company, in each case, which has not been dismissed with prejudice within 120 days after
commencement thereof by final and non-appealable order, decree, writ, ruling or judgment of such arbitrator, court or Governmental
Entity of competent jurisdiction, without prohibiting, enjoining, materially modifying or materially delaying any of the
transactions contemplated by this Agreement, or finding or concluding that the Company, any Subsidiary of the Company or any
officer, director or Affiliate of the Company or any Subsidiary of the Company has violated any U.S. federal securities laws or
rules, including, without limitation, any provision of the Securities Act or the Exchange Act, or any state securities or
“Blue Sky” laws, or any U.S federal or state antifraud laws or rules. Unless notification thereof is required elsewhere
in this Agreement (in which case such notification shall be provided in accordance with such other provision), the Company shall
promptly (but in no event later than 24 hours) notify the Investor (and, if required under applicable law, including, without
limitation, Regulation FD promulgated by the Commission, or under the applicable rules and regulations of the Trading Market, the
Company shall publicly disclose such information in accordance with Regulation FD and the applicable rules and regulations of the
Trading Market) upon becoming aware of any of the events set forth in the immediately preceding sentence.


 




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Section 7.3 Effect
of Termination. In the event of termination by the Company or the Investor pursuant to Section 7.1 or 7.2, as applicable,
written notice thereof shall forthwith be given to the other party as provided in Section 9.4 and the transactions contemplated by
this Agreement shall be terminated without further action by either party. If this Agreement is terminated as provided in Section
7.1 or 7.2 herein, this Agreement shall become void and of no further force and effect, except that (a) the provisions of Article
VIII (Indemnification), Section 9.1 (Fees and Expenses), Section 9.2 (Specific Enforcement, Consent to Jurisdiction, Waiver of Jury
Trial), Section 9.4 (Notices), Section 9.8 (Governing Law), Section 9.9 (Survival), Section 9.11 (Publicity), Section 9.12
(Severability) and this Article VII (Termination) shall remain in full force and effect notwithstanding such termination, (b) if the
Investor owns any Securities at the time of such termination, the covenants and agreements of the Company and the Investor, as
applicable, contained in Section 5.1(a) (Securities Compliance), Section 5.3 (Compliance with Laws), Section 5.6 (Stop Orders),
Section 5.7 (Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses), Section 5.8 (Prospectus
Delivery), Section 5.10 (Effective Registration Statement), Section 5.11 (Non-Public Information) and Section 5.12 (Broker/Dealer)
shall remain in full force and effect notwithstanding such termination for a period of six (6) months following such termination,
and (c) if the Investor or its designee(s) own any Securities at the time of such termination, the covenants and agreements of the
Company contained in Section 5.2 (Registration and Listing) shall remain in full force and effect notwithstanding such termination
for a period of thirty (30) days following such termination. Notwithstanding anything in this Agreement to the contrary, no
termination of this Agreement by any party shall (i) become effective prior to the fifth (5th) Trading Day immediately
following (x) the applicable VWAP Purchase Settlement Date related to any pending VWAP Purchase Notice that has not been fully
settled in accordance with the terms and conditions of this Agreement (it being hereby acknowledged and agreed that no termination
of this Agreement shall limit, alter, modify, change or otherwise affect any of the Company’s or the Investor’s rights
or obligations under this Agreement with respect to any pending VWAP Purchase, and that the parties shall fully perform their
respective obligations with respect to any such pending VWAP Purchase under this Agreement) and (y) the applicable Alternative VWAP
Purchase Settlement Date related to any pending Alternative VWAP Purchase Notice that has not been fully settled in accordance with
the terms and conditions of this Agreement (it being hereby acknowledged and agreed that no termination of this Agreement shall
limit, alter, modify, change or otherwise affect any of the Company’s or the Investor’s rights or obligations under this
Agreement with respect to any pending Alternative VWAP Purchase, and that the parties shall fully perform their respective
obligations with respect to any such pending Alternative VWAP Purchase under this Agreement), (ii) affect any cash fees paid to the
Investor’s counsel pursuant to Section 9.1, all of which fees shall be non-refundable when paid on or prior to the
Commencement Date pursuant to Section 9.1, regardless of whether any VWAP Purchases or Alternative VWAP Purchases are effected
hereunder or any subsequent termination of this Agreement, (iii) affect any Initial Commitment Shares previously issued or delivered
under Section 2.6(a), or any rights of any holder thereof, it being hereby acknowledged and agreed that all of the Initial
Commitment Shares shall be fully earned as of the Commencement Date, regardless of whether any VWAP Purchases or Alternative VWAP
Purchases are effected hereunder or any subsequent termination of this Agreement, and (iv) affect any Additional Commitment Shares
previously issued or delivered or that have become issuable and deliverable to the Investor under Section 2.6(b) (as applicable), or
any rights of any holder thereof, it being hereby acknowledged and agreed that all of the Additional Commitment Shares shall be
fully earned as of the Trading Day on which the Company shall have obtained the Shareholder Approval, regardless of whether any VWAP
Purchases or Alternative VWAP Purchases are effected hereunder or any subsequent termination of this Agreement. Nothing in this
Section 7.3 shall be deemed to release the Company or the Investor from any liability for any breach or default under this
Agreement, or to impair the rights of the Company and the Investor to compel specific performance by the other party of its
obligations under this Agreement.


 




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Article
VIII

INDEMNIFICATION


 


Section 8.1
General Indemnity.


 


(a) Indemnification by
the Company. The Company shall indemnify and hold harmless the Investor, each of its directors, officers, partners,
employees, investment managers, investment advisors and Affiliates, and each Person, if any, who controls the Investor within the
meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act from and against all losses, claims, damages,
liabilities and expenses (including reasonable costs of defense and investigation and all reasonable attorneys’ fees) to which
the Investor and each such other Person may become subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages, liabilities and expenses arise out of or are based upon (i) any violation of United States federal or state securities laws
or the rules and regulations of the Trading Market in connection with the transactions contemplated by this Agreement by the Company
or any of its Subsidiaries, affiliates, officers, directors or employees, (ii) any untrue statement or alleged untrue statement of a
material fact contained, or incorporated by reference, in the Registration Statement or any amendment thereto or any omission or
alleged omission to state therein, or in any document incorporated by reference therein, a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (iii) any untrue statement or alleged untrue statement of a
material fact contained, or incorporated by reference, in the Prospectus, any Issuer Free Writing Prospectus, or in any amendment
thereof or supplement thereto, or in any “issuer information” (as defined in Rule 433 under the Securities Act) of the
Company, which “issuer information” is required to be, or is, filed with the Commission or otherwise contained in any
Free Writing Prospectus, or any amendment or supplement thereto, or any omission or alleged omission to state therein, or in any
document incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading; provided, however, that (A) the Company
shall not be liable under this Section 8.1(a) to the extent that a court of competent jurisdiction shall have determined by a final
judgment (from which no further appeals are available) that such loss, claim, damage, liability or expense resulted directly and
solely from any such acts or failures to act, undertaken or omitted to be taken by the Investor or such Person through its bad faith
or willful misconduct, (B) the foregoing indemnity shall not apply to any loss, claim, damage, liability or expense to the extent,
but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Investor
expressly for use in the Current Report or any Prospectus Supplement or Permitted Free Writing Prospectus, or any amendment thereof
or supplement thereto, and (C) with respect to the Prospectus, the foregoing indemnity shall not inure to the benefit of the
Investor or any such Person from whom the Person asserting any loss, claim, damage, liability or expense purchased Common Stock, if
copies of all Prospectus Supplements required to be filed pursuant to Section 1.4, together with the Base Prospectus, were timely
delivered or made available to the Investor pursuant hereto and a copy of the Base Prospectus, together with a Prospectus Supplement
(as applicable), was not sent or given by or on behalf of the Investor or any such Person to such Person, if required by law to have
been delivered, at or prior to the written confirmation of the sale of the Common Stock to such Person, and if delivery of the Base
Prospectus, together with a Prospectus Supplement (as applicable), would have cured the defect giving rise to such loss, claim,
damage, liability or expense.


 


The Company shall reimburse
the Investor and each such controlling Person promptly upon demand (with accompanying presentation of documentary evidence) for all legal
and other costs and expenses reasonably incurred by the Investor or such indemnified Persons in investigating, defending against, or preparing
to defend against any such claim, action, suit or proceeding with respect to which it is entitled to indemnification.


 




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(b)
 Indemnification by the Investor. The Investor shall indemnify and hold harmless the Company, each of its directors,
officers, employees and Affiliates, and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Exchange Act from and against all losses, claims, damages, liabilities and expenses (including reasonable
costs of defense and investigation and all reasonable attorneys’ fees) to which the Company and each such other Person may become
subject, under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities and expenses arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact contained in the Current Report, the Registration Statement
or any Prospectus Supplement or Permitted Free Writing Prospectus, or in any amendment thereof or supplement thereto, or any omission
or alleged omission to state therein 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, in each case, to the extent, but only to the extent, the untrue statement,
alleged untrue statement, omission or alleged omission was made in reliance upon, and in conformity with, written information furnished
by the Investor to the Company expressly for inclusion in the Current Report, the Registration Statement or such Prospectus Supplement
or Permitted Free Writing Prospectus, or any amendment thereof or supplement thereto.


 


The Investor shall reimburse
the Company and each such director, officer or controlling Person promptly upon demand for all legal and other costs and expenses reasonably
incurred by the Company or such indemnified Persons in investigating, defending against, or preparing to defend against any such claim,
action, suit or proceeding with respect to which it is entitled to indemnification.


 


Section 8.2 Indemnification
Procedures. Promptly after a Person receives notice of a claim or the commencement of an action for which the Person intends
to seek indemnification under Section 8.1, the Person will notify the indemnifying party in writing of the claim or commencement of
the action, suit or proceeding; provided, however, that failure to notify the indemnifying party will not relieve the
indemnifying party from liability under Section 8.1, except to the extent it has been materially prejudiced by the failure to give
notice. The indemnifying party will be entitled to participate in the defense of any claim, action, suit or proceeding as to which
indemnification is being sought, and if the indemnifying party acknowledges in writing the obligation to indemnify the party against
whom the claim or action is brought, the indemnifying party may (but will not be required to) assume the defense against the claim,
action, suit or proceeding with counsel satisfactory to it. After an indemnifying party notifies an indemnified party that the
indemnifying party wishes to assume the defense of a claim, action, suit or proceeding, the indemnifying party will not be liable
for any legal or other expenses incurred by the indemnified party in connection with the defense against the claim, action, suit or
proceeding except that if, in the opinion of counsel to the indemnifying party, one or more of the indemnified parties should be
separately represented in connection with a claim, action, suit or proceeding, the indemnifying party will pay the reasonable fees
and expenses of one separate counsel for the indemnified parties. Each indemnified party, as a condition to receiving
indemnification as provided in Section 8.1, will cooperate in all reasonable respects with the indemnifying party in the defense of
any action or claim as to which indemnification is sought. No indemnifying party will be liable for any settlement of any action
effected without its prior written consent. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have
requested (by written notice provided in accordance with Section 9.4) an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated hereby effected without its written consent if (a) such settlement is entered into more than 45 days after receipt by such
indemnifying party of the aforesaid request, (b) such indemnifying party shall have received written notice of the terms of such settlement
at least 30 days prior to such settlement being entered into and (c) such indemnifying party shall not have reimbursed such indemnified
party in accordance with such request prior to the date of such settlement. No indemnifying party will, without the prior written consent
of the indemnified party, effect any settlement of a pending or threatened action with respect to which an indemnified party is, or is
informed that it may be, made a party and for which it would be entitled to indemnification, unless the settlement includes an unconditional
release of the indemnified party from all liability and claims which are the subject matter of the pending or threatened action.


 


If for any reason the indemnification
provided for in this Agreement is not available to, or is not sufficient to hold harmless, an indemnified party in respect of any loss
or liability referred to in Section 8.1 as to which such indemnified party is entitled to indemnification thereunder, each indemnifying
party shall, in lieu of indemnifying the indemnified party, contribute to the amount paid or payable by the indemnified party as a result
of such loss or liability, (i) in the proportion which is appropriate to reflect the relative benefits received by the indemnifying party,
on the one hand, and by the indemnified party, on the other hand, from the sale of Securities which is the subject of the claim, action,
suit or proceeding which resulted in the loss or liability or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above, but also the relative
fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the statements or omissions
which are the subject of the claim, action, suit or proceeding that resulted in the loss or liability, as well as any other relevant equitable
considerations.


 


The remedies provided for
in Section 8.1 and this Section 8.2 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any
indemnified Person at law or in equity.


 






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Article
IX

MISCELLANEOUS


 


Section 9.1 Fees and
Expenses. Each party shall bear its own fees and expenses related to the transactions contemplated by this Agreement; provided, however,
that the Company shall pay, on or prior to the Commencement Date, by wire transfer of immediately available funds to an account
designated by the Investor on or prior to the date of this Agreement, an aggregate amount up to $75,000 (which includes $25,000
previously paid to the Investor as an initial deposit) as reimbursement for the Investor’s reasonable out-of-pocket expenses
(including the Investor’s legal fees and expenses), in connection with the preparation, negotiation, execution and delivery of
this Agreement, legal due diligence of the Company and review of the Registration Statement, the Initial Prospectus Supplement, the
Current Report, any Permitted Free Writing Prospectus and all other related transaction documentation. The Company shall pay all
U.S. federal, state and local stamp and other similar transfer and other taxes and duties levied in connection with issuance of the
Securities pursuant hereto. For the avoidance of doubt, all of the fees payable to the Investor or its counsel pursuant to this
Section 9.1 shall be non-refundable, regardless of whether any VWAP Purchases or Alternative VWAP Purchases are made or settled
hereunder or any subsequent termination of this Agreement.


 


Section 9.2
Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.


 


(a)
The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that
either party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the
other party and to enforce specifically the terms and provisions hereof (without the necessity of showing economic loss and without any
bond or other security being required), this being in addition to any other remedy to which either party may be entitled by law or equity.


 


(b)
Each of the Company and the Investor (i) hereby irrevocably submits to the jurisdiction of the U.S. District Court and other courts
of the United States sitting in the State of New York for the purposes of any suit, action or proceeding arising out of or relating to
this Agreement, and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of
the suit, action or proceeding is improper. Each of the Company and the Investor consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 9.2 shall affect or limit
any right to serve process in any other manner permitted by law.


 


(c)
EACH OF THE COMPANY AND THE INVESTOR HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR DISPUTES RELATING HERETO. EACH OF THE COMPANY AND THE INVESTOR (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.2.


 


Section 9.3
Entire Agreement; Amendment. This Agreement, together with the exhibits referred to herein and the Disclosure Schedule,
represents the entire agreement of the parties with respect to the subject matter hereof, and there are no promises, undertakings, representations
or warranties by either party relative to subject matter hereof not expressly set forth herein. No provision of this Agreement may be
amended other than by a written instrument signed by both parties hereto. The Disclosure Schedule and all exhibits to this Agreement are hereby incorporated by
reference in, and made a part of, this Agreement as if set forth in full herein.


 




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Section 9.4
Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery or electronic mail delivery at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
of such mailing, whichever shall first occur. The address for such communications shall be:


 


If to the Company:


 


Arcimoto, Inc.


2034 West 2nd Avenue


Eugene, Oregon 97402


Telephone Number: (541) 683-6293


		Email:	jesse@arcimoto.com



doug@arcimoto.com


johnd@arcimoto.com


		Attention:	Chief Executive Officer



			Chief Financial Officer



 


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


 


Nelson Mullins Riley & Scarborough LLP


4140 Parklake Avenue, Suite 200


Raleigh, North Carolina 27612

Telephone Number: (919) 329-3800


Email: david.mannheim@nelsonmullins.com

Attention: W. David Mannheim


 


and


 


Morrison & Foerster LLP


250 West 55th Street


New York, NY 10019-9601


Telephone: (212) 468-8062


Email: sklein@mofo.com


Attention: Spencer D. Klein


 


If to the Investor:


 


Tumim Stone Capital LLC


140 Broadway, 38th Floor





New York, NY 10005

Telephone Number: (646) 845-0040


Email: mjtarlow@3ifund.com


Attention: Maier Joshua Tarlow


 



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


 


Dorsey & Whitney
LLP


51 West 52nd
Street


New York, NY 10019


Telephone Number:
(212) 415-9214


Email: marsico.anthony@dorsey.com


Attention: Anthony J. Marsico, Esq.


 


Either party hereto may from time to time change
its address for notices by giving at least five (5) days’ advance written notice of such changed address to the other party hereto.


 


Section 9.5
Waivers. No waiver by either party 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 other provisions, condition or requirement hereof nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it
thereafter. No provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement
of such waiver is sought.


 


Section 9.6
Headings; Construction. The article, section and subsection headings in this Agreement are for convenience only and
shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.
Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall
be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found. The
parties agree that each of them and their respective counsel has reviewed and had an opportunity to revise this Agreement and, therefore,
the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement. In addition, each and every reference to share prices (including the Threshold Price) and number
of shares of Common Stock in this Agreement shall, in all cases, be subject to adjustment for any stock splits, stock combinations, stock
dividends, recapitalizations, reorganizations and other similar transactions that occur on or after the date of this Agreement. Any reference
in this Agreement to “Dollars” or “$” shall mean the lawful currency of the United States of America. Any references
to “Section” or “Article” in this Agreement shall, unless otherwise expressly stated herein, refer to the applicable
Section or Article of this Agreement.


 


Section 9.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors. Neither the Company nor the Investor may assign this Agreement
or any of their respective rights or obligations hereunder to any Person.


 




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Section 9.8
Governing Law. This Agreement shall be governed by and construed in accordance with the internal procedural and substantive
laws of the State of New York, without giving effect to the choice of law provisions of such state that would cause the application of
the laws of any other jurisdiction.


 


Section 9.9
Survival. The representations, warranties, covenants and agreements of the Company and the Investor contained in this
Agreement shall survive the execution and delivery hereof until the termination of this Agreement; provided, however, that (a) the provisions
of Article VII (Termination), Article VIII (Indemnification), Section 9.1 (Fees and Expenses), Section 9.2 (Specific Enforcement, Consent
to Jurisdiction, Waiver of Jury Trial), Section 9.4 (Notices), Section 9.8 (Governing Law), Section 9.11 (Publicity), Section 9.12 (Severability)
and this Section 9.9 (Survival) shall remain in full force and effect notwithstanding such termination, (b) if the Investor owns any Securities
at the time of such termination, the covenants and agreements of the Company and the Investor, as applicable, contained in Section 5.1(a)
(Securities Compliance), Section 5.3 (Compliance with Laws), Section 5.6 (Stop Orders), Section 5.7 (Amendments to the Registration Statement;
Prospectus Supplements; Free Writing Prospectuses), Section 5.8 (Prospectus Delivery), Section 5.10 (Effective Registration Statement),
Section 5.11 (Non-Public Information) and Section 5.12 (Broker/Dealer) shall remain in full force and effect notwithstanding such termination
for a period of six (6) months following such termination, and (c) if the Investor owns any Securities at the time of such termination,
the covenants and agreements of the Company contained in Section 5.2 (Registration and Listing) shall remain in full force and effect
notwithstanding such termination for a period of thirty (30) days following such termination.


 


Section 9.10
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file, including any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.


 


Section 9.11
Publicity. The Company shall afford the Investor and its counsel with a reasonable opportunity to review and comment
upon, shall consult with the Investor and its counsel on the form and substance of, and shall give reasonable consideration to all such
comments from the Investor or its counsel on, any press release, Commission filing or any other public disclosure made by or on behalf
of the Company relating to the Investor, its purchases hereunder or any aspect of this Agreement or the transactions contemplated hereby,
prior to the issuance, filing or public disclosure thereof. For the avoidance of doubt, the Company shall not be required to submit for
review any such disclosure (i) contained in periodic reports filed with the Commission under the Exchange Act if it shall have previously
provided the same disclosure to the Investor or its counsel for review in connection with a previous filing or (ii) any Prospectus Supplement
if it contains disclosure that does not reference the Investor, its purchases hereunder or any aspect of this Agreement
or the transactions contemplated hereby. The Company agrees and acknowledges that its failure to comply with this provision in all material
respects constitutes a Material Adverse Effect for purposes of Section 6.3(k).


 


Section 9.12
Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction
shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision or part of a provision of this Agreement, and this Agreement shall be reformed and construed as if such invalid or illegal or
unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.


 


Section 9.13
No Third Party Beneficiaries. Except as expressly provided in Article VIII, this Agreement is intended only for the
benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person.


 


Section 9.14
Further Assurances. From and after the date of this Agreement, upon the request of the Investor or the Company, each
of the Company and the Investor shall execute and deliver such instrument, documents and other writings as may be reasonably necessary
or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.


 


[Signature Page Follows]


 




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IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed by their respective authorized officer as of the date first above written.


 


	 	ARCIMOTO, INC.:  
	 	 
	 	 
	 	By:	/s/ Douglas M. Campoli
	 	 	Name: 	 Douglas M. Campoli  
	 	 	Title: 	Chief Financial Officer  


 


	 	TUMIM STONE CAPITAL LLC:
	 	 
	 	By: 3i Management, LLC, its Manager
	 	 
	 	By:	/s/ Maier J. Tarlow
	 	 	Name: 	 Maier J. Tarlow
	 	 	Title:	 Manager


 




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ANNEX I TO THE

COMMON STOCK PURCHASE AGREEMENT

DEFINITIONS


 


“Additional Commitment
Shares” means 386,369 shares of duly authorized, validly issued, fully paid and non-assessable shares of Common Stock which,
on the Trading Day on which the Company shall have obtained the Shareholder Approval, the Company shall cause its transfer agent to issue
and deliver to the Investor not later than 4:00 p.m. (New York City time) on the Trading Day immediately following the Trading Day on
which the Company shall have obtained the Shareholder Approval, pursuant to and in accordance with Section 2.6(b).


 


“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control
with a Person, as such terms are used in and construed under Rule 144.


 


“Aggregate Limit”
shall have the meaning assigned to such term in Section 1.1.


 


“Agreement”
shall have the meaning assigned to such term in the Preamble.


 


“Alternative VWAP
Purchase” shall have the meaning assigned to such term in Section 2.2.


 


“Alternative VWAP
Purchase Commencement Time” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, 9:30:01 a.m.,
New York City time, on the Trading Day immediately following the applicable Alternative VWAP Purchase Exercise Date, or such other time
publicly announced by the Trading Market as the official open (or commencement) of trading on the Trading Market on such Trading Day.


 


“Alternative VWAP
Purchase Confirmation” shall have the meaning assigned to such term in Section 2.2.


 


“Alternative VWAP
Purchase Exercise Date” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, the Trading Day on
which the Investor receives, after 4:00 p.m., New York City time, but prior to 6:30 p.m., New York City time, on such Trading Day, a valid
Alternative VWAP Purchase Notice for such Alternative VWAP Purchase in accordance with this Agreement.


 


“Alternative VWAP
Purchase Maximum Amount” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, a number of
shares of Common Stock equal to the lowest of: (i) 500% of the average daily trading volume in the Common Stock on the Trading
Market for the five (5) consecutive Trading Day period ending on (and including) the Trading Day immediately preceding the
applicable Alternative VWAP Purchase Exercise Date for such Alternative VWAP Purchase (or, in the event the Common Stock is then
listed on an Eligible Market, the average daily trading volume in the Common Stock on such Eligible Market during such period); (ii)
100% of the daily trading volume in the Common Stock on the Trading Market (or Eligible Market, as applicable) on the applicable
Alternative VWAP Purchase Exercise Date for such Alternative VWAP Purchase; and (iii) the quotient (rounded up or down to the
nearest whole number) obtained by dividing (A) $25,000,000 by (B) the VWAP on the Trading Market (or Eligible Market, as applicable)
on the applicable Alternative VWAP Purchase Exercise Date for such Alternative VWAP Purchase (in each case
to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar
transaction during the applicable period), provided, however, the Company and the Investor can mutually agree in writing
to increase the maximum number of shares of Common Stock to be purchased in connection with a particular Alternative VWAP Purchase (relative
to the Alternative VWAP Purchase Maximum Amount calculated in accordance with clauses (i), (ii) and (iii) of this sentence), which mutual
written agreement shall be executed by the Company and the Investor and delivered to the other party via email correspondence (receipt
of which shall be confirmed by verifiable email correspondence by such party to the other party on such Alternative VWAP Purchase Exercise
Date), at any time prior to the Company’s delivery to the Investor of an Alternative VWAP Purchase Notice reflecting the increased
Alternative VWAP Purchase Maximum Amount for such Alternative VWAP Purchase.


 




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“Alternative VWAP
Purchase Notice” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, an irrevocable written notice
delivered by the Company to the Investor on an Alternative VWAP Purchase Exercise Date directing the Investor to purchase an Alternative
VWAP Purchase Share Amount (such specified Alternative VWAP Purchase Share Amount subject to adjustment as set forth in Section 2.2 as
necessary to give effect to the Alternative VWAP Purchase Maximum Amount), at the applicable Alternative VWAP Purchase Price therefor
in accordance with this Agreement.


 


“Alternative VWAP
Purchase Price” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, the purchase price per Share
to be purchased by the Investor in such Alternative VWAP Purchase, which shall equal the product obtained by multiplying (i) the average
of the daily VWAPs for the applicable Alternative VWAP Purchase Valuation Period for such Alternative VWAP Purchase by (ii) 0.95 (in each
case to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other
similar transaction during the applicable period).


 


“Alternative VWAP
Purchase Settlement Date” shall have the meaning assigned to such term in Section 2.2.


 


“Alternative VWAP
Purchase Share Amount” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, the number of Shares
to be purchased by the Investor in such Alternative VWAP Purchase as specified by the Company in the applicable Alternative VWAP Purchase
Notice, which number of Shares shall not exceed the applicable Alternative VWAP Purchase Maximum Amount.


 


“Alternative VWAP
Purchase Termination Time” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, 4:00 p.m., New
York City time, on the third (3rd) consecutive Trading Day immediately following the applicable Alternative VWAP Purchase Exercise
Date, or such other time publicly announced by the Trading Market as the official close of trading on the Trading Market on such third
(3rd) consecutive Trading Day immediately following the applicable Alternative VWAP Purchase Exercise Date.


 


“Alternative VWAP
Purchase Valuation Period” means, with respect to an Alternative VWAP Purchase made pursuant to Section 2.2, the three (3) consecutive
Trading-Day Period immediately following the applicable Alternative VWAP Purchase Exercise Date for such Alternative VWAP Purchase, beginning at the Alternative
VWAP Purchase Commencement Time for such Alternative VWAP Purchase and ending at the applicable Alternative VWAP Purchase Termination
Time for such Alternative VWAP Purchase.


 




    46


     


    

 


“Average Price”
means a price per Share (rounded to the nearest tenth of a cent) equal to the quotient obtained by dividing (i) the aggregate gross purchase
price paid by the Investor for all Shares purchased pursuant to this Agreement, by (ii) the aggregate number of Shares issued pursuant
to this Agreement.


 


“Bankruptcy Law”
means Title 11, U.S. Code, or any similar U.S. federal or state law for the relief of debtors.


 


“Base Prospectus”
shall mean the Company’s prospectus, dated January 13, 2022, a preliminary form of which is included in the Registration Statement,
including the documents incorporated by reference therein.


 


“Base Price”
means a price per Share equal to the sum of (i) the Minimum Price and (ii) $0.12 (subject to adjustment for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction that occurs on or after the date of this Agreement).


 


“Beneficial Ownership
Limitation” shall have the meaning assigned to such term in Section 2.4.


 


“BHCA”
shall have the meaning assigned to such term in Section 4.34.


 


“Bloomberg”
means Bloomberg, L.P.


 


“Broker-Dealer”
shall have the meaning assigned to such term in Section 5.12.


 


“Bylaws”
shall have the meaning assigned to such term in Section 4.3.


 


“Charter”
shall have the meaning assigned to such term in Section 4.3.


 


“Cleansing Date”
shall have the meaning assigned to such term in Section 5.11.


 


“Closing Sale Price”
means, for the Common Stock as of any date, the last closing trade price for the Common Stock on the Trading Market (or if the Common
Stock is then traded on an Eligible Market, on such Eligible Market), as reported by Bloomberg, or, if the Trading Market (or such Eligible
Market, as applicable) begins to operate on an extended hours basis and does not designate the closing trade price for the Common Stock,
then the last trade price for the Common Stock prior to 4:00 p.m., New York City time, as reported by Bloomberg, or, if the foregoing
do not apply, the last trade price for the Common Stock in the over-the-counter market on the electronic bulletin board for the Common
Stock as reported by Bloomberg, or, if no last trade price is reported for the Common Stock by Bloomberg, the average of the bid prices,
or the ask prices, respectively, of any market makers for such security as reported by OTC Markets Group Inc. All such determinations
shall be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions
during such period.


 




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“Code”
shall have the meaning assigned to such term in Section 4.24.


 


“Commencement”
shall have the meaning assigned to such term in Section 2.1.


 


“Commencement Date”
shall have the meaning assigned to such term in Section 2.1.


 


“Commission”
means the U.S. Securities and Exchange Commission or any successor entity.


 


“Commission Documents”
shall mean (1) all reports, schedules, registrations, forms, statements, information and other documents filed with or furnished to the
Commission by the Company pursuant to the reporting requirements of the Exchange Act, including all material filed with or furnished to
the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, since December 31, 2021, including, without limitation,
the Annual Report on Form 10-K filed by the Company for its fiscal year ended December 31, 2021 (the “2021 Form 10-K”),
and which hereafter shall be filed with or furnished to the Commission by the Company during the Investment Period, including, without
limitation, the Current Report, (2) the Registration Statement, as the same may be amended from time to time, the Prospectus and each
Prospectus Supplement, and each Permitted Free Writing Prospectus and (3) all information contained in such filings and all documents
and disclosures that have been and heretofore shall be incorporated by reference therein.


 


“Commitment Shares”
means, collectively, the Initial Commitment Shares and the Additional Commitment Shares.


 


“Common Stock”
shall have the meaning assigned to such term in the Recitals.


 


“Common Stock Equivalents”
means any securities of the Company or its Subsidiaries which entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. For the avoidance of doubt, “Common Stock
Equivalents” includes any Senior Secured Convertible Notes and Warrants to Purchase Common Stock that are issued pursuant to the
Securities Purchase Agreement, dated August 31, 2022, by and among the Company and the investors party thereto (the “Securities
Purchase Agreement”).


 


“Company”
shall have the meaning assigned to such term in the Preamble.


 


“Cover Price”
shall have the meaning assigned to such term in Section 2.3.


 


“Current Report”
shall have the meaning assigned to such term in Section 1.4.


 


“Custodian”
shall mean any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.


 


“Disclosure Schedule”
shall have the meaning assigned to such term in Article IV.


 


“DTC” means
The Depository Trust Company, a subsidiary of The Depository Trust & Clearing Corporation, or any successor thereto.


 




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“DWAC”
shall have the meaning assigned to such term in Section 4.28.


 


“DWAC Shares”
means shares of Common Stock issued pursuant to this Agreement that are (i) issued in electronic form, (ii) freely tradable and transferable
and without restriction on resale and without stop transfer instructions maintained against the transfer thereof and (iii) timely credited
by the Company to the Investor’s or its designated Broker-Dealer at which the account or accounts to be credited with the Securities
being purchased or acquired by Investor are maintained specified DWAC account with DTC under its Fast Automated Securities Transfer (FAST)
Program, or any similar program hereafter adopted by DTC performing substantially the same function.


 


“EDGAR”
shall have the meaning assigned to such term in Section 4.3.


 


“Eligible Market”
means the New York Stock Exchange, The Nasdaq Capital Market, The Nasdaq Global Select Market or the NYSE American (or any nationally
recognized successor to any of the foregoing).


 


“Environmental Laws”
shall have the meaning assigned to such term in Section 4.17.


 


“ERISA”
shall have the meaning assigned to such term in Section 4.24.


 


“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.


 


“Existing Equity
Distribution Agreement” shall have the meaning assigned to such term in Section 5.5(b).


 


“Evaluation Date”
shall have the meaning assigned to such term in Section 4.6(c).


 


“Exchange Cap”
shall have the meaning assigned to such term in Section 2.3(a).


 


“Exempt Issuance”
means the issuance of (a) Common Stock, options or other equity incentive awards to employees, officers, directors or vendors of the Company
pursuant to any equity incentive plan duly adopted for such purpose, by the Company’s Board of Directors or a majority of the members
of a committee of the Board of Directors established for such purpose, (b) (1) any Securities issued to the Investor pursuant to this
Agreement, (2) any securities issued to any one or more Affiliates of the Investor pursuant to the Securities Purchase Agreement, (3)
any securities issued upon the exercise or exchange of or conversion of any shares of Common Stock or Common Stock Equivalents held by
the Investor or any of its Affiliates at any time (including, without limitation, Common Stock or Common Stock Equivalents purchased or
acquired by any one or more Affiliates of the Investor pursuant to the Securities Purchase Agreement), or (4) any securities issued upon
the exercise or exchange of or conversion of any Common Stock Equivalents issued and outstanding on the date of this Agreement, provided
that such securities referred to in this clause (4) have not been amended since the date of this Agreement to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities, or (c) securities issued pursuant
to acquisitions, divestitures, licenses, partnerships, collaborations or strategic transactions approved by the Company’s Board
of Directors or a majority of the members of a committee of directors established for such purpose, which acquisitions,
divestitures, licenses, partnerships, collaborations or strategic transactions can have a Variable Rate Transaction component, provided
that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries,
an operating company or an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary business is investing in securities.


 




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“FCPA”
shall have the meaning assigned to such term in Section 4.29.


 


“Federal Reserve”
shall have the meaning assigned to such term in Section 4.24


 


“FINRA”
means the Financial Industry Regulatory Authority.


 


“Free Writing Prospectus”
shall mean a “free writing prospectus” as defined in Rule 405 promulgated under the Securities Act.


 


“Fundamental Transaction”
means that (i) the Company shall, directly or indirectly, in one or more related transactions, (1) consolidate or merge with or into (whether
or not the Company is the surviving corporation) another Person, with the result that the holders of the Company’s capital stock
immediately prior to such consolidation or merger together beneficially own less than 50% of the outstanding voting power of the surviving
or resulting corporation, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company to another Person, or (3) take action to facilitate a purchase, tender or exchange offer by another
Person that is accepted by the holders of more than 50% of the outstanding shares of Common Stock (excluding any shares of Common Stock
held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender
or exchange offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination), or (5) reorganize, recapitalize or reclassify its Common Stock, or (ii) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by
issued and outstanding Common Stock.


 


“GAAP”
shall have the meaning assigned to such term in Section 4.6(b).


 


“Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature,
federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national
organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police,
regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing,
including any entity or enterprise owned or controlled by a government or a public international organization or any of the foregoing.


 




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“Indebtedness”
shall have the meaning assigned to such term in Section 4.11.


 


“Initial Commitment
Shares” means 386,369 shares of duly authorized, validly issued, fully paid and non-assessable shares of Common Stock which,
concurrently with the execution and delivery of this Agreement on the Commencement Date, the Company has caused its transfer agent to
issue and deliver to the Investor not later than 4:00 p.m. (New York City time) on the Trading Day immediately following the Commencement
Date, pursuant to and in accordance with Section 2.6(a).


 


“Initial Prospectus
Supplement” shall have the meaning assigned to such term in Section 1.4.


 


“Intellectual Property”
shall have the meaning assigned to such term in Section 4.16(b).


 


“Investment Period”
means the period commencing on the Commencement Date and expiring on the date this Agreement is terminated pursuant to Article VII.


 


“Investor”
shall have the meaning assigned to such term in the Preamble.


 


“Issuer Free Writing
Prospectus” shall mean an “issuer free writing prospectus,” as defined in Rule 433 promulgated under the Securities
Act, relating to the Shares that (i) is required to be filed with the Commission by the Company or (ii) is exempt from filing pursuant
to Rule 433(d)(5)(i) under the Securities Act, in each case, in the form filed or required to be filed with the Commission or, if not
required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act.


 


“IT Systems and Data”
shall have the meaning assigned to such term in Section 4.35.


 


“Knowledge”
means the actual knowledge of any of (i) the Company’s President and Chief Executive Officer, (ii) the Company’s Chief Operating
Officer, (iii) the Company’s Chief Financial Officer and (iv) the Company’s General Counsel, in each case after reasonable
inquiry of all officers, directors and employees of the Company and its Subsidiaries under such Person’s direct supervision who
would reasonably be expected to have knowledge or information with respect to the matter in question.


 


“Material Adverse
Effect” means (i) any condition, occurrence, state of facts or event having, or insofar as reasonably can be foreseen would
likely have, any material adverse effect on the legality, validity or enforceability of this Agreement or the transactions contemplated
hereby, (ii) any condition, occurrence, state of facts or event having, or insofar as reasonably can be foreseen would likely have, any
effect on the business, operations, properties or financial condition of the Company that is material and adverse to the Company and its
Subsidiaries, taken as a whole, and/or (iii) any condition, occurrence, state of facts or event that would, or insofar as reasonably can
be foreseen would likely, prohibit or otherwise materially interfere with or delay the ability of the Company to perform any of its obligations
under this Agreement.


 




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“Material Agreements”
shall have the meaning assigned to such term in Section 4.18.


 


“Minimum Price”
means $1.29, representing the Nasdaq official closing price of the Common Stock on the Trading Market (as reflected on Nasdaq.com) on
the Trading Day immediately preceding the date of this Agreement (subject to adjustment for any reorganization, recapitalization, non-cash
dividend, stock split, reverse stock split or other similar transaction that occurs on or after the date of this Agreement).


 


“Money Laundering
Laws” shall have the meaning assigned to such term in Section 4.30.


 


“Non-Affiliate Shares”
shall have the meaning assigned to such term in Section 4.20(b).


 


“Permits”
shall have the meaning assigned to such term in Section 4.16(a).


 


“Permitted Free Writing
Prospectus” shall have the meaning assigned to such term in Section 5.7(b).


 


“Person”
means any person or entity, whether a natural person, trustee, corporation, partnership, limited partnership, limited liability company,
trust, unincorporated organization, business association, firm, joint venture, governmental agency or authority.


 


“Policies”
shall have the meaning assigned to such term in Section 4.36.


 


“Privacy Laws”
shall have the meaning assigned to such term in Section 4.36.


 


“Prospectus”
shall mean the Base Prospectus, as supplemented by any Prospectus Supplement, including the documents incorporated by reference therein,
together with any Permitted Free Writing Prospectus.


 


“Prospectus Supplement”
shall mean any prospectus supplement to the Base Prospectus (including the Initial Prospectus Supplement) relating to the offer and sale
of the Securities filed with the Commission pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by
reference therein.


 


“Purchase Condition
Satisfaction Time” means, (i) with respect to any VWAP Purchase made pursuant to Section 2.1, 9:00 a.m., New York City time,
on the Trading Day immediately following the applicable VWAP Purchase Exercise Date on which the VWAP Purchase Commencement Time for such
VWAP Purchase shall occur, and (ii) with respect to any Alternative VWAP Purchase made pursuant to Section 2.2, 9:00 a.m., New York City
time, on the Trading Day immediately following the applicable Alternative VWAP Purchase Exercise Date on which the Alternative VWAP Purchase
Commencement Time for such Alternative VWAP Purchase shall occur.


 


“Registration Period”
shall have the meaning assigned to such term in Section 5.10.


 


“Registration Statement”
shall mean the registration statement on Form S-3, Commission File Number 333-261955, filed by the Company with the Commission under the
Securities Act for the registration of the Securities, as such Registration Statement may be amended and supplemented from time to time
(including any related abbreviated registration statement to register additional shares of Common Stock filed
by the Company pursuant to Rule 462(b) under the Securities Act), including all documents filed as part thereof or incorporated by reference
therein, and including all information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430B under the Securities
Act, including any comparable successor registration statement filed by the Company with the Commission under the Securities Act for the
registration of shares of its Common Stock, including the Shares.


 




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“Representation Date”
shall have the meaning assigned to such term in Section 6.3(l).


 


“Restricted Period”
shall have the meaning assigned to such term in Section 5.9.


 


“Restricted Person”
shall have the meaning assigned to such term in Section 5.9.


 


“Restricted Persons”
shall have the meaning assigned to such term in Section 5.9.


 


“Securities”
shall mean, collectively, the Shares and the Commitment Shares.


 


“Securities Act”
shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder.


 


“Securities Purchase
Agreement” shall have the meaning assigned to such term in the definition of “Common Stock Equivalents”.


 


“Shares”
shall mean the shares of Common Stock that may be purchased by the Investor under this Agreement pursuant to one or more VWAP Purchase
Notices or one or more Alternative VWAP Purchase Notices, but not including the Commitment Shares.


 


“Shareholder Approval”
shall mean such approval from the shareholders of the Company as may be required by the applicable rules of The Nasdaq Stock Market, LLC
(or any successor entity), including, without limitation, Nasdaq Listing Rule 5635(d), to enable the Company to issue such number of shares
of Common Stock in excess of the Exchange Cap as may be necessary for the Company to receive aggregate gross proceeds equal to the Total
Commitment from the sale of Shares to the Investor pursuant to VWAP Purchases and/or Alternative VWAP Purchases that may be effected by
the Company, in its discretion, from time to time during the Investment Period pursuant to this Agreement.


 


“Short Sales”
means “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act.


 


“SOXA”
shall have the meaning assigned to such term in Section 4.6(c).


 


“Subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other Persons performing similar functions are at the time
owned directly or indirectly by the Company and/or any of its other Subsidiaries.


 


“Threshold Price”
means $1.00, which shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar
transaction and, effective upon the consummation of any such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction,
the “Threshold Price” shall mean the lower of (i) such adjusted price and (ii) $1.00.


 




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“Total Commitment”
shall have the meaning assigned to such term in Section 1.1.


 


“Trading Day”
shall mean a full trading day, beginning at 9:30:01 a.m., New York time, or such other time publicly announced by the Trading Market (or
if the Common Stock is listed on an Eligible Market, by such Eligible Market), as the official open (or commencement) of trading on the
Trading Market (or on such Eligible Market), and ending at 4:00:00 p.m., New York time, or such other time publicly announced by the Trading
Market (or if the Common Stock is listed on an Eligible Market, by such Eligible Market), as the official close of trading on the Trading
Market (or on such Eligible Market).


 


“Trading Market”
means The Nasdaq Global Market (or any nationally recognized successor thereto).


 


“Variable Rate Transaction”
means a transaction, other than any transaction between the Company and the Investor or any one or more Affiliates of the Investor, in
which the Company (i) issues or sells any equity or debt securities (other than any securities issued pursuant to the Securities Purchase
Agreement or pursuant to any Common Stock Equivalents issued pursuant to the Securities Purchase Agreement) that are convertible into,
exchangeable or exercisable for, or include the right to receive additional shares of Common Stock or Common Stock Equivalents either
(A) at a conversion price, exercise price, exchange rate or other price that is based upon and/or varies with the trading prices of or
quotations for the Common Stock at any time after the initial issuance of such equity or debt securities, or (B) with a conversion, exercise
or exchange price that is subject to being reset at some future date after the initial issuance of such equity or debt security or upon
the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common
Stock (including, without limitation, any “full ratchet” or “weighted average” anti-dilution provisions, but not
including any standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock split or other similar
transaction), (ii) issues or sells any equity or debt securities, including without limitation, Common Stock or Common Stock Equivalents
(other than any securities issued pursuant to the Securities Purchase Agreement or pursuant to any Common Stock Equivalents issued pursuant
to the Securities Purchase Agreement), either (A) at a price that is subject to being reset at some future date after the initial issuance
of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business
of the Company or the market for the Common Stock (other than standard anti-dilution protection for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction), or (B) that are subject to or contain any put, call, redemption, buy-back,
price-reset or other similar provision or mechanism (including, without limitation, a “Black-Scholes” put or call right, other
than in connection with a “fundamental transaction”) that provides for the issuance of additional equity securities of the
Company or the payment of cash by the Company, or (iii) enters into, or issues or sells any Common Stock or Common Stock Equivalents (other
than any securities issued pursuant to the Securities Purchase Agreement or pursuant to any Common Stock Equivalents issued pursuant to
the Securities Purchase Agreement) pursuant to, any agreement, including, but not limited to, an “equity line of credit” (other
than with the Investor or an Affiliate of the Investor) or “at the market offering” or other continuous offering or similar offering of Common Stock or Common
Stock Equivalents, whereby the Company may sell Common Stock or Common Stock Equivalents at a future determined price.


 




    54


     


    




 


“VWAP”
means, for the Common Stock as of any Trading Day, the dollar volume-weighted average price for the Common Stock on the Trading Market
(or, if the Common Stock is then listed on an Eligible Market, on such Eligible Market) during the period beginning at 9:30:01 a.m., New
York City time, or such other time publicly announced by the Trading Market (or by such Eligible Market, as applicable) as the official
open (or commencement) of trading on the Trading Market (or on such Eligible Market, as applicable) on such Trading Day, and ending at
4:00 p.m., New York City time, or such other time publicly announced by the Trading Market (or by such Eligible Market, as applicable)
as the official close of trading on the Trading Market (or on such Eligible Market, as applicable) on such Trading Day, as reported by
Bloomberg through its “AQR” function. All such determinations shall be appropriately adjusted for any stock dividend, stock
split, stock combination, recapitalization or other similar transaction during such period.


 


“VWAP Purchase”
shall have the meaning assigned to such term in Section 2.1.


 


“VWAP Purchase Commencement
Time” means, with respect to a VWAP Purchase made pursuant to Section 2.1, 9:30:01 a.m., New York City time, on the Trading
Day immediately following the applicable VWAP Purchase Exercise Date, or such other time publicly announced by the Trading Market as the
official open (or commencement) of trading on the Trading Market on such Trading Day.


 


“VWAP Purchase Confirmation”
shall have the meaning assigned to such term in Section 2.1.


 


“VWAP Purchase Exercise
Date” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the Trading Day on which the Investor receives, after
4:00 p.m., New York City time, but prior to 6:30 p.m., New York City time, on such Trading Day, a valid VWAP Purchase Notice for such
VWAP Purchase in accordance with this Agreement.


 


“VWAP Purchase Maximum
Amount” means, with respect to a VWAP Purchase made pursuant to Section 2.1, a number of shares of Common Stock equal to the
lowest of: (i) 100% of the average daily trading volume in the Common Stock on the Trading Market for the five (5) consecutive Trading
Day period ending on (and including) the Trading Day immediately preceding the applicable VWAP Purchase Exercise Date for such VWAP Purchase
(or, in the event the Common Stock is then listed on an Eligible Market, the average daily trading volume in the Common Stock on such
Eligible Market during such period); (ii) 20% of the daily trading volume in the Common Stock on the Trading Market (or Eligible Market,
as applicable) on the applicable VWAP Purchase Exercise Date for such VWAP Purchase; and (iii) the quotient (rounded up or down to the
nearest whole number) obtained by dividing (A) $10,000,000 by (B) the VWAP on the Trading Market (or Eligible Market, as applicable) on
the applicable VWAP Purchase Exercise Date for such VWAP Purchase (in each case to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction during the applicable period), provided, however,
the Company and the Investor can mutually agree in writing to increase the maximum number of shares of Common Stock to be purchased in
connection with a particular VWAP Purchase (relative to the VWAP Purchase Maximum Amount calculated in accordance
with clauses (i), (ii) and (iii) of this sentence), which mutual written agreement shall be executed by the Company and the Investor and
delivered to the other party via email correspondence (receipt of which shall be confirmed by verifiable email correspondence by such
party to the other party on such VWAP Purchase Exercise Date), at any time prior to the Company’s delivery to the Investor of a
VWAP Purchase Notice reflecting the increased VWAP Purchase Maximum Amount for such VWAP Purchase.


 




    55


     


    

 


“VWAP Purchase Notice”
means, with respect to a VWAP Purchase made pursuant to Section 2.1, an irrevocable written notice delivered by the Company to the Investor
on a VWAP Purchase Exercise Date directing the Investor to purchase a VWAP Purchase Share Amount (such specified VWAP Purchase Share Amount
subject to adjustment as set forth in Section 2.1 as necessary to give effect to the VWAP Purchase Maximum Amount), at the applicable
VWAP Purchase Price therefor in accordance with this Agreement.


 


“VWAP Purchase Price”
means, with respect to a VWAP Purchase made pursuant to Section 2.1, the purchase price per Share to be purchased by the Investor in such
VWAP Purchase, which shall equal the product obtained by multiplying (i) the average of the daily VWAPs for the applicable VWAP Purchase
Valuation Period for such VWAP Purchase by (ii) 0.95 (in each case to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction during the applicable period).


 


“VWAP Purchase Settlement
Date” shall have the meaning assigned to such term in Section 2.1.


 


“VWAP Purchase Share
Amount” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the number of Shares to be purchased by the Investor
in such VWAP Purchase as specified by the Company in the applicable VWAP Purchase Notice, which number of Shares shall not exceed the
applicable VWAP Purchase Maximum Amount.


 


“VWAP Purchase Termination
Time” means, with respect to a VWAP Purchase made pursuant to Section 2.1, 4:00:00 p.m., New York City time, on the third (3rd)
consecutive Trading Day immediately following the applicable VWAP Purchase Exercise Date, or such other time publicly announced by the
Trading Market as the official close of trading on the Trading Market on such third (3rd) consecutive Trading Day immediately
following the applicable VWAP Purchase Exercise Date.


 


“VWAP Purchase Valuation
Period” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the three (3) consecutive Trading-Day Period immediately
following the applicable VWAP Purchase Exercise Date for such VWAP Purchase, beginning at the VWAP Purchase Commencement Time for such
VWAP Purchase and ending at the applicable VWAP Purchase Termination Time for such VWAP Purchase.


 






    56


     


    

 


EXHIBIT A TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF VWAP PURCHASE NOTICE


 


	To:	 	 	 
	E-mail:	 	 	 


 


Reference is made to the Common
Stock Purchase Agreement dated as of October 4, 2022, (the “Purchase Agreement”) between Arcimoto, Inc., an Oregon
corporation (the “Company”), and Tumim Stone Capital LLC, a Delaware limited liability company. Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement.


 


In accordance with and pursuant
to Section 2.1 of the Purchase Agreement, the Company hereby issues this VWAP Purchase Notice to exercise a VWAP Purchase for the VWAP
Purchase Share Amount indicated below.


 


	 	VWAP Purchase Share Amount (number of Shares):	 
	 	VWAP Purchase Exercise Date:	 
	 	VWAP Purchase Period start date:	 
	 	VWAP Purchase Period end date:	 
	 	VWAP Purchase Settlement Date:	 
	 	Dollar Amount of Common Stock Currently Available under the Total Commitment:	 



 	 	Dated:______________________	ARCIMOTO, INC.
	 	 	 	 
	 	 	By:	      
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	Address:	 
	 	 	Email:	 





 


AGREED AND ACCEPTED:


 


TUMIM STONE CAPITAL LLC


 


By: 3i Management, LLC, its Manager


 


	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 





 



    A-1


     


    

 


EXHIBIT B TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF VWAP Purchase CONFIRMATION


 


	To:	 	 	 
	E-mail	 	 	 


 


Reference is made to the Common
Stock Purchase Agreement dated as of October 4, 2022, (the “Purchase Agreement”) between Arcimoto, Inc., an Oregon
corporation (the “Company”), and Tumim Stone Capital LLC, a Delaware limited liability company. Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement.


 


In accordance with and pursuant
to Section 2.1 of the Purchase Agreement, the Investor hereby issues this VWAP Purchase Confirmation for the VWAP Purchase Share Amount
indicated below.


 


	 	VWAP Purchase Share Amount (number of Shares):	 
	 	VWAP Purchase Exercise Date:	 
	 	VWAP Purchase Period start date:	 
	 	VWAP Purchase Period end date:	 
	 	VWAP Purchase Settlement Date:	 
	 	Average of the daily VWAPs during VWAP Purchase Period:	 
	 	VWAP Purchase Price (per Share):	 
	 	Total Aggregate VWAP Purchase Price:	 


 


	 	Dated:______________________	TUMIM STONE CAPITAL LLC
	 	 	By: 3i Management, LLC, its Manager
	 	 	 	 
	 	 	By:	      
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	Address:	 
	 	 	Email:	 


 


AGREED AND ACCEPTED:


 


ARCIMOTO, INC.


 


	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 


 






    B-1


     


    

 


EXHIBIT C TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF ALTERNative VWAP PURCHASE NOTICE


 


	To:	 	 	 
	E-mail:	 	 	 


 


Reference is made to the Common
Stock Purchase Agreement dated as of October 4, 2022, (the “Purchase Agreement”) between Arcimoto, Inc., an Oregon
corporation (the “Company”), and Tumim Stone Capital LLC, a Delaware limited liability company. Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement.


 


In accordance with and pursuant
to Section 2.2 of the Purchase Agreement, the Company hereby issues this Alternative VWAP Purchase Notice to exercise an Alternative VWAP
Purchase for the Alternative VWAP Purchase Share Amount indicated below.


 


	 	Alternative VWAP Purchase Share Amount (number of Shares):	 
	 	Alternative VWAP Purchase Exercise Date:	 
	 	Alternative VWAP Purchase Period start date:	 
	 	Alternative VWAP Purchase Period end date:	 
	 	Alternative VWAP Purchase Settlement Date:	 
	 	Dollar Amount of Common Stock Currently Available under the Total Commitment:	 


 


	 	Dated:______________________	ARCIMOTO, INC.
	 	 	 	 
	 	 	By:	     
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	Address:	 
	 	 	Email:	 


 


AGREED AND ACCEPTED:


 


TUMIM STONE CAPITAL LLC


 


By: 3i Management, LLC, its Manager


 


	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title	 	 


 




    C-1


     


    


 


EXHIBIT D TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF ALTERNATIVE VWAP Purchase CONFIRMATION


 


	To:	 	 	 
	E-mail	 	 	 


 


Reference is made to the Common
Stock Purchase Agreement dated as of October 4, 2022, (the “Purchase Agreement”) between Arcimoto, Inc., an Oregon
corporation (the “Company”), and Tumim Stone Capital LLC, a Delaware limited liability company. Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement.


 


In accordance with and pursuant
to Section 2.2 of the Purchase Agreement, the Investor hereby issues this Alternative VWAP Purchase Confirmation for the Alternative VWAP
Purchase Share Amount indicated below.


 


	 	Alternative VWAP Purchase Share Amount (number of Shares):	 
	 	Alternative VWAP Purchase Exercise Date:	 
	 	Alternative VWAP Purchase Period start date:	 
	 	Alternative VWAP Purchase Period end date:	 
	 	Alternative VWAP Purchase Settlement Date:	 
	 	Average of the daily VWAPs during Alternative VWAP Purchase Period:	 
	 	Alternative VWAP Purchase Price (per Share):	 
	 	Total Aggregate Alternative VWAP Purchase Price:	 


 


	 	Dated:______________________	TUMIM STONE CAPITAL LLC
	 	 	 
	 	 	By: 3i Management, LLC, its Manager
	 	 	 	 
	 	 	By:	       
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	Address:	 
	 	 	Email:	 


 


AGREED AND ACCEPTED:


 


ARCIMOTO, INC.


 


	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 


 




    D-1


     


    


 


EXHIBIT E TO THE

COMMON STOCK PURCHASE AGREEMENT

CERTIFICATE OF THE COMPANY

Commencement CERTIFICATE


 


_________, 2022


 


The undersigned, the [●]
of Arcimoto, Inc., an Oregon corporation (the “Company”), delivers this certificate in connection with the Common Stock
Purchase Agreement, dated as of October 4, 2022 (the “Agreement”), by and between the Company and Tumim Stone Capital
LLC, a Delaware limited liability company (the “Investor”), and hereby certifies on the date hereof that (capitalized
terms used herein without definition have the meanings assigned to them in the Agreement):


 


1. Attached
hereto as Exhibit A is a true, complete and correct copy of the Articles of Incorporation of the Company as amended through, and
as in full force and effect on, the date hereof. The Articles of Incorporation of the Company have not been further amended or restated,
and no action has been taken by the Company in contemplation of any such amendment or the dissolution, merger or consolidation of the
Company.


 


2. Attached
hereto as Exhibit B is a true and complete copy of the Bylaws of the Company, as amended and restated through, and as in full force
and effect on, the date hereof, and no proposal for any amendment, repeal or other modification to the Bylaws of the Company has been
taken or is currently pending before the Board of Directors or stockholders of the Company.


 


3. The
Board of Directors of the Company has approved the transactions contemplated by the Agreement; said approval has not been amended, rescinded
or modified and remains in full force and effect as of the date hereof.


 


4. Each
person who, as an officer of the Company, or as attorney-in-fact of an officer of the Company, signed (i) the Agreement and (ii) any other
document delivered prior hereto or on the date hereof in connection with the transactions contemplated by the Agreement, was duly elected,
qualified and acting as such officer or duly appointed and acting as such attorney-in-fact, and the signature of each such person appearing
on any such document is his genuine signature.


 


IN WITNESS WHEREOF,
I have signed my name as of the date first above written.


 


	 	 
	 	Print Name:	 
	 	Title:	 



 



    E-1


     


    

 


EXHIBIT F TO THE

COMMON STOCK PURCHASE AGREEMENT

COMPLIANCE CERTIFICATE


 


In connection with the issuance
of shares of Common Stock of Arcimoto, Inc., an Oregon corporation (the “Company”), pursuant to the [Alternative] VWAP
Purchase Notice, which [a VWAP Purchase Exercise Date] [an Alternative VWAP Purchase Exercise Date] of [●], 202[●], delivered
by the Company to Tumim Stone Capital LLC, a Delaware limited liability company (the “Investor”), pursuant to Article
II of the Common Stock Purchase Agreement, dated as of October 4, 2022, by and between the Company and the Investor (the “Agreement”),
the undersigned hereby certifies as follows, in each case, as of 9:00 a.m., New York City time, on [insert Trading Day immediately following
the applicable VWAP Purchase Exercise Date or Alternative VWAP Purchase Exercise Date]:


 


1. The
undersigned is the duly elected [●] of the Company.


 


2. [Except
as set forth in the attached Disclosure Schedule, t] [T]he representations and warranties of the Company set forth in Article IV of the
Agreement (i) that are not qualified by “materiality” or “Material Adverse Effect” are true and correct in all
material respects as of the date hereof and as of [insert Purchase Condition Satisfaction Time] with the same force and effect as if made
on such date and at such time, except to the extent such representations and warranties are as of another date or time, in which case,
such representations and warranties are true and correct in all material respects as of such other date or time and (ii) that are qualified
by “materiality” or “Material Adverse Effect” are true and correct with the same force and effect as if made on
such date and at such time, except to the extent such representations and warranties are as of another date or time, in which case, such
representations and warranties are true and correct as of such other date or time.


 


3. The
Company has performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Agreement
to be performed, satisfied or complied with by the Company at or prior to


 


4.
(i) the Registration Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein not misleading, (ii) the Prospectus did not and does not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading and (iii) no event has occurred as a result
of which it is necessary to amend or supplement the Registration Statement or the Prospectus in order to make the statements therein not
untrue or misleading for clauses (i) and (ii) above, respectively, to be true and correct.


 


5. The
Company did not and does not possess any material non-public information.


 


Capitalized terms used but
not otherwise defined herein shall have the meanings assigned to them in the Agreement.


 


The undersigned has executed
this Certificate this [●] day of [●], 20[●].


 


	 	 
	 	Print Name:	 
	 	Title:	 


 






    F-1


     


    

 


DISCLOSURE SCHEDULE

RELATING TO THE COMMON STOCK

PURCHASE AGREEMENT, DATED AS OF OCTOBER 4, 2022

BETWEEN Arcimoto, Inc. AND Tumim Stone Capital LLC


 


This disclosure schedule is
made and given pursuant to Article IV of the Common Stock Purchase Agreement, dated as of October 4, 2022 (the “Agreement”),
by and between Arcimoto, Inc., an Oregon corporation (the “Company”), and Tumim Stone Capital LLC, a Delaware limited
liability company. Unless the context otherwise requires, all capitalized terms are used herein as defined in the Agreement. The numbers
below correspond to the section numbers of representations and warranties in the Agreement most directly modified by the below exceptions.