Exhibit
4.3


 


AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT


 


This
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made as of September 15, 2021 by and
among Communications Systems, Inc., a Minnesota corporation (the “Company”), and the several purchasers signatory
hereto (each, a “Purchaser” and collectively, the “Purchasers”).


 


RECITALS


 


WHEREAS,
the Company and certain purchasers entered into a Registration Rights Agreement, dated June 28, 2021, pursuant to a Securities
Purchase Agreement, dated as of June 28, 2021 (the “Original Purchase Agreement”), pursuant to which such purchasers
are purchasing shares of capital stock of the Company and warrants to purchase shares of capital stock of the Company;


 


WHEREAS,
on the date hereof, the Company and the Purchasers have entered into an Amended and Restated Securities Purchase Agreement (the
“Purchase Agreement”) that amends and restates the Original Purchase Agreement; and


 


WHEREAS,
in connection with the consummation of the transactions contemplated by the Purchase Agreement, and pursuant to the terms of the
Purchase Agreement, the parties desire to enter into this Agreement in order to grant certain rights to the Purchasers as set
forth below.


 


NOW,
THEREFORE, in consideration of the covenants and promises set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:


 


AGREEMENT


 


1.            Certain
Definitions. Unless the context otherwise requires, the following terms, for all purposes of this Agreement, shall have the
meanings specified in this Section 1. Capitalized terms used herein without definition shall have the meanings ascribed to
such terms in the Purchase Agreement.


 


“Affiliate”
has the meaning set forth in Rule 12b-2 of the rules and regulations promulgated under the Exchange Act; provided, however,
that for purposes of this Agreement, the Purchasers and their Affiliates, on the one hand, and the Company and its Affiliates,
on the other, shall not be deemed to be “Affiliates” of one another.


 


“Allowed
Delay” has the meaning set forth in Section 2.1(b)(ii).


 


“Board”
means the board of directors of the Company.


 


“Common
Stock” means shares of the common stock, par value $0.05 per share, of the Company.


 


“Effective
Date” means the date that a Registration Statement filed pursuant to Section 2.1(a) is first declared
effective by the SEC.


 


“Effectiveness
Deadline” means, with respect to the Shelf Registration Statement, the Closing Date, or any New Registration Statement,
the sixtieth (60th) calendar day following the date of the event which requires additional Registrable Securities to be registered
(or, in the event the SEC reviews and has written comments to the New Registration Statement, the ninetieth (90th) calendar day
following such date); provided, however, that if the Company is notified by the SEC that the New Registration Statement will not
be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such New Registration Statement
shall be the fifth (5th) Business Day following the date on which the Company is so notified if such date precedes the dates otherwise
required above; provided, further, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is
closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.


 






     


     


    

 


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


 


“FINRA”
means the Financial Industry Regulatory Authority.


 


“Form S-3”
means Form S-3 under the Securities Act as in effect on the date hereof or any successor or similar registration form under the
Securities Act subsequently adopted by the Commission that permits inclusion or incorporation of substantial information by reference
to other documents filed by the Company with the Commission.


 


“Free
Writing Prospectus” means a free writing prospectus, as defined in Rule 405 under the Securities Act, relating
to an offer of Registrable Securities.


 


“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.


 


“Holder”
means any Purchaser owning or having the right to acquire Registrable Securities.


 


“Liquidated
Damages” has the meaning set forth in Section 2.1(c).


 


“National
Exchange” means each of the following, together with any successor thereto: the NYSE American, The New York Stock Exchange,
the NASDAQ Global Market, the NASDAQ Global Select Market and the NASDAQ Capital Market.


 


“New
Registration Statement” has the meaning set forth in Section 2.1(a).


 


“Participating
Holder” means with respect to any registration, any Holder of Registrable Securities covered by the applicable Registration
Statement.


 


“Preferred
Stock” means the Series A Convertible Preferred Stock, par value $1.00 per share, of the Company.


 


“Prospectus”
means the prospectus included in any Registration Statement, all amendments and supplements to such prospectus, including pre-
and post-effective amendments to such Registration Statement, and all other material incorporated by reference in such prospectus.


 


“Purchaser
Indemnified Persons” has the meaning set forth in Section 2.6(a).


 


“Purchaser
Representatives” has the meaning set forth in Section 2.4.


 


“Register,”
“registered” and “registration” refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration
statement or document.


 


“Registrable
Securities” means (i) not less than 200% of the Shares and (ii) any Common Stock issued as (or issuable upon the conversion
or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in
exchange for or in replacement of, such Shares. Notwithstanding the foregoing, Shares or any such Common Stock, as applicable,
shall cease to be Registrable Securities for all purposes hereunder upon the earliest to occur of the following: (A) the
sale by any Person of such Shares or any such Common Stock, as applicable, to the public either pursuant to a registration statement
under the Securities Act or under Rule 144 (in which case, only such Shares or any such Common Stock, as applicable, sold
shall cease to be Registrable Securities) or (B) such Shares or any such Common Stock, as applicable, becoming eligible for
sale by the Holder pursuant to Rule 144 without volume or manner-of-sale restrictions and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1).


 






     


     


    




 


“Registration
Statement” means any registration statement of the Company that covers Registrable Securities pursuant to the provisions
of this Agreement filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities
Act, including the related Prospectus, amendments and supplements to such registration statement, including pre- and post-effective
amendments, and all exhibits and all material incorporated by reference in such registration statement.


 


“Rule 144”
means Rule 144 as promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or
any similar successor rule that may be promulgated by the SEC.


 


“SEC”
or “Commission” means the Securities and Exchange Commission or any other federal agency at the time administering
the Securities Act.


 


“SEC
Guidance” means any publicly-available written or oral guidance, comments, requirements or requests of the Commission
staff under the Securities Act.


 


“Securities
Act” means the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations
thereunder, all as the same shall be in effect from time to time.


 


“Shares”
means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock and the shares of Common Stock issued
and issuable upon exercise of the Warrants, ignoring for such purposes any conversion or exercise limitations thereunder, and
any additional shares of Common Stock issued and issuable as a result of any anti-dilution adjustments in the Certificate of Designation
and Warrants.


 


“Shelf
Registration Statement” has the meaning set forth in Section 2.1(a).


 


“Transaction
Documents” means this Agreement, the Purchase Agreement, the Certificate of Designation, the Lock-Up Agreements, the
Warrants, the Side Letter, all exhibits and schedules thereto and hereto and any other documents or agreement executed in connection
with the transactions contemplated hereunder or thereunder.


 


“Warrants”
means the warrants to purchase Common Stock issued pursuant to the Purchase Agreement.


 


2.            Registration
Rights.


 


2.1          Shelf
Registration.


 


(a) Registration
Statements.  Following the date of the filing of the Registration Statement on Form S-4 with respect to the transactions
contemplated by the Merger Agreement, or on such later date as the Company in its discretion believes appropriate, including after
the effective date of such Registration Statement on Form S-4, the Company shall prepare and file with the SEC a Registration
Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of registration statement
as is then available to effect a registration for resale of the Registrable Securities) for the resale of the Registrable Securities
pursuant to an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (the “Shelf
Registration Statement”). Such Shelf Registration Statement shall, subject to the limitations of Form S-3, include
the aggregate amount of Registrable Securities to be registered therein and shall contain (except if otherwise required pursuant
to written comments received from the Commission upon a review of such Shelf Registration Statement) the “Plan of Distribution”
in substantially the form attached hereto as Annex A. To the extent the Company is required to register additional
Registrable Securities after the Effective Date of the Shelf Registration Statement, the Company shall (i) inform each of
the Holders thereof and use its commercially reasonable efforts to file a new Registration Statement covering such additional
Registrable Securities (a “New Registration Statement”), covering the registration of the maximum number of
additional Registrable Securities allowed under SEC Guidance; provided, however, that prior to filing such New Registration Statement
(or any amendments thereto), the Company shall be obligated to use its commercially reasonable efforts to advocate with the SEC
for the registration of all of the Registrable Securities in accordance with the SEC Guidance. Notwithstanding any other provision
of this


 






     


     


    

 


Agreement and subject to the payment of any liquidated damages that may be required to be paid pursuant to Section 2.1(c),
if any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered on a New Registration
Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with the SEC for the
registration of all or a greater number of Registrable Securities), unless otherwise directed in writing by a Holder as to its
Registrable Securities, the number of Registrable Securities to be registered on such New Registration Statement will first be
reduced by Registrable Securities not acquired pursuant to the Purchase Agreement (whether pursuant to registration rights or
otherwise), and second by Registrable Securities represented by Shares (applied, in the case that some Shares may be registered,
to the Holders on a pro rata basis based (at the discretion of each Holder) on the total number of unregistered Shares held by
such Holders, subject to a determination by the SEC that certain Holders must be reduced first based on the number of Shares held
by such Holders). The Company will use its commercially reasonable efforts to file with the SEC, as promptly as allowed by SEC
Guidance provided to the Company or to registrants of securities in general, one or more Registration Statements on Form S-3
or such other form available to register for resale those Registrable Securities that were not registered for resale on the Shelf
Registration Statement or the New Registration Statement.


 


(b) Effectiveness.


 


(i) The
Company shall use commercially reasonable efforts to have the Shelf Registration Statement or New Registration Statement, as applicable,
declared effective as soon as practicable but in no event later than the applicable Effectiveness Deadline (including filing with
the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act),
and shall use its commercially reasonable efforts to keep the Shelf Registration Statement or New Registration Statement, as applicable,
continuously effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered
by such Registration Statement have been publicly sold by the Holders or (ii) the date that all Registrable Securities covered
by such Registration Statement may be sold by non-affiliates without volume or manner-of-sale restrictions pursuant to Rule 144,
without the requirement for the Company to be in compliance with the current public information requirement under Rule 144
as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable
to the Company’s transfer agent (the “Effectiveness Period”). The Company shall notify the Purchasers
by facsimile or e-mail as promptly as practicable, and in any event, within twenty-four (24) hours, after any Registration Statement
is declared effective and shall simultaneously provide the Purchasers with copies of any related Prospectus to be used in connection
with the sale or other disposition of the securities covered thereby.


 


(ii) For
not more than twenty (20) consecutive days or for a total of not more than forty-five (45) days in any twelve (12) month period,
the Company may suspend the use of any Prospectus included in any Registration Statement contemplated by this Section 2 in
the event that the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of material,
non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Company,
in the best interests of the Company or (B) amend or supplement the Registration Statement or the related Prospectus so that
such Registration Statement or Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus, in light of the
circumstances under which they were made, not misleading (an “Allowed Delay”); provided, that the
Company shall promptly (a) notify each Purchaser in writing of the commencement of and the reasons for an Allowed Delay,
but shall not (without the prior written consent of a Purchaser) disclose to such Purchaser any material, non-public information
giving rise to an Allowed Delay, (b) advise the Purchasers in writing to cease all sales under the Registration Statement
until the end of the Allowed Delay and (c) use commercially reasonable efforts to terminate an Allowed Delay as promptly
as practicable.


 


(c) If:
(i) the Shelf Registration Statement or the New Registration Statement, as applicable, is not declared effective by the SEC (or
otherwise does not become effective) for any reason on or prior to the applicable Effectiveness Deadline, or (ii) after its
Effective Date, (A) such Registration Statement ceases for any reason (including without limitation by reason of a stop order,
or the Company’s failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities
included in such Registration Statement or (B) the Company suspends the use of the Prospectus contained in the Registration
Statement, in either case, for a


 






     


     


    

 


period of more than ten (10) consecutive days or for a total of more than fifteen (15) days in
any twelve (12) month period (any such failure or breach in clauses (i) and (ii) above being referred to as an “Event,”
and the date on which such Event occurs, being referred to as an “Event Date”), then in addition to any other
rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each
such Event Date (if the applicable Event shall not have been cured by such date) until the earlier of (1) the date on which
the applicable Event is cured or (2) the date on which the Registrable Securities are eligible for resale pursuant to Rule 144
without manner of sale or volume restrictions and without the requirement for the Company to be current in its public information,
the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty (“Liquidated
Damages”), equal to two percent (2.0%) of the aggregate purchase price paid by such Holder pursuant to the Purchase
Agreement for any unregistered Registrable Securities then held by such Holder. The parties agree that (1) notwithstanding
anything to the contrary herein or in the Purchase Agreement, no Liquidated Damages shall be payable with respect to any period
after the expiration of the Effectiveness Period (it being understood that this sentence shall not relieve the Company of any
Liquidated Damages accruing prior to the Effectiveness Deadline) and in no event shall, the aggregate amount of Liquidated Damages
payable to a Holder exceed, in the aggregate, ten percent (10.0%) of the aggregate purchase price paid by such Holder pursuant
to the Purchase Agreement. If the Company fails to pay any Liquidated Damages pursuant to this Section 2.1(c) in full
within five (5) Business Days after the date payable, the Company will pay interest thereon at a rate of one percent (1.0%)
per month (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the
date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated Damages
pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except
in the case of the first Event Date. The Effectiveness Deadline for a Registration Statement shall be extended without default
or Liquidated Damages hereunder in the event that the Company’s failure to obtain the effectiveness of such Registration
Statement on a timely basis results from the failure of a Purchaser to timely provide the Company with information requested by
the Company and necessary to complete the Registration Statement in accordance with the requirements of the Securities Act (in
which case the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Purchaser).


 


(d) In
the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company
shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the Holder
and (ii) undertake to register the Registrable Securities on Form S-3 promptly after such form is available, provided that
the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement
on Form S-3 covering the Registrable Securities has been declared effective by the Commission.


 


2.2          Piggyback
Registrations; Prohibition on Filing other Registration Statements


 


(a) If
at any time after the Effective Date of the Shelf Registration Statement and prior to the expiration of the Effectiveness Period,
there is not then an effective registration statement covering all of the Registrable Securities, and the Company determines to
prepare and file with the SEC a registration statement relating to an offering for its own account or the account of others of
any of its equity securities, then the Company shall send to each Holder written notice of such determination and, if within 15
days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such registration
statement all or any part of the Registrable Securities such Holder requests to be registered.


 


(b) The
Company shall have the right, in its sole discretion, to terminate or withdraw any registration initiated by it under this Section 2.2
prior to the effectiveness of such registration whether or not any Holder has elected to include Registrable Securities in such
registration.


 


(c) Prior
to the Effective Date of the Shelf Registration Statement or the expiration of the Effectiveness Period, whichever is the first
to occur, except in connection with the Merger Agreement, neither the Company nor any of its security holders (other than the
Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable
Securities and the Company shall not enter into any agreement providing any such right to any of its security holders. The Company
shall not file with the Commission a registration statement relating to an offering for its own account under the Securities Act
of any of its equity securities other than a registration statement on Form S-8 or, in connection with an acquisition, on
Form S-4 until the earlier of (i) the date that is thirty (30) days after the 


 






     


     


    

 


 Effective Date of the Shelf Registration
Statement or (ii) the date that all Registrable Securities are eligible for resale by non-affiliates without volume or manner
of sale restrictions under Rule 144 and without the requirement for the Company to be in compliance with the current public
information requirements under Rule 144. For the avoidance of doubt and notwithstanding anything to the contrary in the foregoing
provisions of this Section 2.2(c), the Company shall not be prohibited (1) from preparing and filing with the Commission
a registration statement relating to an offering of Common Stock by existing stockholders of the Company under the Securities
Act pursuant to the terms of registration rights held by such stockholder, (2) from filing amendments to registration statements
filed prior to the date of this Agreement or (3) from filing prospectus supplements relating to any offering of securities
of the Company pursuant to any registration statement filed by the Company prior to the date of this Agreement.


 


2.3          Expenses.
All expenses incident to the Company’s performance of or compliance with this Agreement shall be paid by the Company, other
than underwriting discounts or commissions deducted from the proceeds in respect of any Registrable Securities, including (i) all
registration and filing fees, and any other fees and expenses associated with filings required to be made with the SEC, FINRA
or any other regulatory authority and, if applicable, the fees and expenses of any “qualified independent underwriter”
as such term is defined in NASD Rule 2720 (or any successor provision) and of its counsel, (ii) all fees and expenses
in connection with compliance with any securities or “Blue Sky” laws (including fees and disbursements of counsel
for the underwriters in connection with “Blue Sky” qualifications of the Registrable Securities), (iii) all printing,
duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates
for the Registrable Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses and
Free Writing Prospectuses), (iv) all fees and disbursements of counsel for the Company and of all independent certified public
accountants of the Company (including the expenses of any special audit and cold comfort letters required by or incident to such
performance), (v) Securities Act liability insurance or similar insurance if the Company so desires or the underwriters so
require in accordance with then-customary underwriting practice, (vi) all fees and expenses incurred in connection with the
listing of Registrable Securities on any securities exchange or quotation of the Registrable Securities on any inter-dealer quotation
system, (vii) any reasonable fees and disbursements of underwriters customarily paid by issuers of securities, (viii) all fees
and expenses of any special experts or other Persons retained by the Company in connection with any registration, (ix) all
of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or
accounting duties), (x) all expenses related to the “road-show” for any underwritten offering, including all travel,
meals and lodging, and (xii) any other fees and disbursements customarily paid by the issuers of securities. In no event shall
the Company be required to pay any broker or similar commissions of any Purchaser, legal fees or other costs of any Purchaser,
or transfer taxes, if any, attributable to the sale of Registrable Securities.


 


2.4          Company
Obligations. The Company will use commercially reasonable efforts to effect the registration of the Registrable Securities
in accordance with the terms hereof, and pursuant thereto the Company will:


 


(a) prepare
the required Registration Statement including all exhibits and financial statements required under the Securities Act to be filed
therewith, and before filing a Registration Statement, Prospectus or any Free Writing Prospectus, or any amendments or supplements
thereto, (x) furnish to the Participating Holders, if any, copies of all documents prepared to be filed, which documents
shall be subject to the review of such Participating Holders and their respective counsel and (y) except in the case of a
registration under Section 2.2, not file any Registration Statement or Prospectus or amendments or supplements thereto to
which any Participating Holders shall reasonably object in good faith; provided, that, the Company is notified of such objection
in writing no later than five (5) Business Days after the Participating Holders have been so furnished copies of a Registration
Statement or one (1) Business Day after the Holders have been so furnished copies of any related Prospectus or amendments or supplements
thereto;


 


(b) file
with the SEC a Registration Statement relating to the Registrable Securities including all exhibits and financial statements required
by the SEC to be filed therewith, and use commercially reasonable efforts to cause such Registration Statement to become effective
under the Securities Act;


 


(c) prepare
and file with the SEC such pre- and post-effective amendments to such Registration Statement, supplements to the Prospectus and
such amendments or supplements to any Free Writing Prospectus as


 






     


     


    

 


may be (y) reasonably requested by any Participating Holder in
order to make or keep any statements regarding the Participating Holder true and correct or (z) necessary to keep such registration
effective for the period of time required by this Agreement, and comply with provisions of the applicable securities laws with
respect to the sale or other disposition of all securities covered by such Registration Statement during such period in accordance
with the intended method or methods of disposition by the sellers thereof set forth in such Registration Statement;


 


(d) promptly
notify the Participating Holders, and (if requested) confirm such advice in writing and provide copies of the relevant documents,
as soon as reasonably practicable after notice thereof is received by the Company (A) when the applicable Registration Statement
or any amendment thereto has been filed or becomes effective, and when the applicable Prospectus or Free Writing Prospectus or
any amendment or supplement thereto has been filed, (B) of any written comments by the SEC or any request by the SEC for
amendments or supplements to such Registration Statement, Prospectus or Free Writing Prospectus or for additional information,
(C) of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or any order
by the SEC preventing or suspending the use of any preliminary or final Prospectus or any Free Writing Prospectus or the initiation
or threatening of any proceedings for such purposes, (D) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction and (E) of the
receipt by the Company of any notification with respect to the initiation or threatening of any proceeding for the suspension
of the qualification of the Registrable Securities for offering or sale in any jurisdiction;


 


(e) promptly
notify the Participating Holders when the Company becomes aware of the happening of any event as a result of which the Registration
Statement, the Prospectus included in such Registration Statement (as then in effect) or any Free Writing Prospectus contains
any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case
of such Prospectus, any preliminary Prospectus or any Free Writing Prospectus, in light of the circumstances under which they
were made) not misleading, when any Free Writing Prospectus includes information that may conflict with the information contained
in the Registration Statement, or, if for any other reason it shall be necessary during such time period to amend or supplement
such Registration Statement, Prospectus or Free Writing Prospectus in order to comply with the Securities Act and, in either case
as promptly as reasonably practicable thereafter, prepare and file with the SEC and furnish without charge to the Participating
Holders an amendment or supplement to such Registration Statement, Prospectus or Free Writing Prospectus which shall correct such
misstatement or omission or effect such compliance;


 


(f)
promptly incorporate in a Prospectus supplement, Free Writing Prospectus or post-effective amendment to the applicable Registration
Statement such information as the Participating Holders agree should be included therein relating to the plan of distribution
with respect to such Registrable Securities, and make all required filings of such Prospectus supplement, Free Writing Prospectus
or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus
supplement, Free Writing Prospectus or post-effective amendment;


 


(g) furnish
to each Participating Holder, without charge, as many conformed copies as such Participating Holder may reasonably request of
the applicable Registration Statement and any amendment or post-effective amendment thereto, including financial statements and
schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference);


 


(h) deliver
to each Participating Holder, without charge, as many copies of the applicable Prospectus (including each preliminary Prospectus),
any Free Writing Prospectus and any amendment or supplement thereto as such Participating Holder may reasonably request (it being
understood that the Company consents to the use of such Prospectus, any Free Writing Prospectus and any amendment or supplement
thereto by such Participating Holder in connection with the offering and sale of the Registrable Securities thereby) and such
other documents as such Participating Holder may reasonably request in order to facilitate the disposition of the Registrable
Securities by such Participating Holder;


 


(i) on
or prior to the Effective Date, use its commercially reasonable efforts to register or qualify, and cooperate with the Participating
Holders and their respective counsel, in connection with the registration or qualification of such Registrable Securities for
offer and sale under the securities or “Blue Sky” laws of each state and other jurisdiction of the United States as
any Participating Holder or their respective counsel reasonably request


 






     


     


    

 


in writing and do any and all other acts or things reasonably
necessary or advisable to keep such registration or qualification in effect for such period as required by this Agreement, provided that
the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or
to take any action which would subject it to taxation or general service of process in any such jurisdiction where it is not then
so subject;


 


(j) cooperate
with the Participating Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be sold and not bearing any restrictive legends, and enable such Registrable Securities to be in such denominations and registered
in such names as may be requested at least two (2) Business Days prior to any sale of Registrable Securities;


 


(k) use
its commercially reasonable efforts to cause the Registrable Securities covered by the Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof
to consummate the disposition of such Registrable Securities;


 


(l)
make such representations and warranties to the Participating Holders in form, substance and scope as are customarily made by
issuers in secondary underwritten public offerings;


 


(m)
enter into such customary agreements (including underwriting and indemnification agreements) and take all such other actions as
the Purchasers reasonably request in order to expedite or facilitate the registration and disposition of such Registrable Securities;


 


(n)
obtain for delivery to the Participating Holders (i) an opinion or opinions from counsel for the Company dated the Effective Date
or, in the event of an underwritten offering, the date of the closing under the underwriting agreement and (ii) in the event of
any underwritten offering, a “comfort” letter signed by the independent public accountants who have certified the
Company’s financial statements included in, or incorporated by reference into, the Registration Statement, on such date
or dates as may be required under the underwriting agreement, in each case in customary form, scope and substance, which opinions
and auditor comfort letters shall be reasonably satisfactory to such Participating Holders or underwriters, as the case may be,
and their respective counsel;


 


(o)
cooperate with each Participating Holder participating in the disposition of such Registrable Securities and their respective
counsel in connection with any filings required to be made with FINRA or any other securities regulatory authority;


 


(p)
use its commercially reasonable efforts to make available to its security holders, as soon as reasonably practicable, an earnings
statement satisfying the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated thereunder;


 


(q) provide
and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable Registration
Statement from and after a date not later than the Effective Date;


 


(r)
use its commercially reasonable efforts to maintain the listing of all Registrable Securities on each securities exchange on which
the Common Stock is then listed or quoted and on each inter-dealer quotation system on which any of the Common Stock is then quoted;


 


(s)
in the event of an underwritten offering, make available, upon reasonable advance notice during normal business hours, for inspection
and review by the Purchasers and the Purchaser Representatives, such financial and other records and all other corporate documents
and properties of the Company as may be reasonably necessary for the purpose of conducting initial and ongoing due diligence with
respect to the Company and the accuracy of the Registration Statement, and cause the Company’s officers, directors and employees,
within a reasonable time period, to supply all such information reasonably requested by the Purchasers or any such representative,
advisor or underwriter in connection with such Registration Statement (including, without limitation, in response to all questions
and other inquiries reasonably made or submitted by any of them), prior to and from time to time after the filing and effectiveness
of the Registration Statement for the sole purpose of enabling the Purchasers and such representatives, advisors and underwriters
and their respective accountants and attorneys to


 






     


     


    

 


conduct initial and ongoing due diligence with respect to the Company and the
accuracy of such Registration Statement; and


 


(t) with
a view to making available to the Purchasers the benefits of Rule 144 (or its successor rule) and any other rule or
regulation of the SEC that may at any time permit the Purchasers to sell shares of Common Stock to the public without registration,
the Company covenants and agrees to: (i) make and keep public information available, as those terms are understood and defined
in Rule 144, until the earlier of (A) the date as all of the Registrable Securities may be sold without restriction by the holders
thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as all of the Registrable Securities shall have
been resold; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange
Act; and (iii) furnish to each Purchaser upon request, as long as such Purchaser owns any Registrable Securities, (A) a
written statement by the Company that it has complied with the reporting requirements of the Exchange Act, (B) a copy of the Company’s
most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may
be reasonably requested in order to avail such Purchaser of any rule or regulation of the SEC that permits the selling of
any such Registrable Securities without registration.


 


All
such information made available or provided pursuant to this Section 2.4 shall be treated as confidential information and
shall not be disclosed by the Purchasers to any other Person other than such Purchaser’s respective officers, directors,
employees, accountants, consultants, legal counsel, investment bankers, advisors and authorized agents (collectively, the 
“Purchaser Representatives”); provided, that, each such Purchaser Representative shall be informed that such
confidential information is strictly confidential and shall be subject to confidentiality restrictions in favor of the disclosing
Purchaser with respect to the confidential information disclosed by the Purchaser to such Purchaser Representative. Notwithstanding
anything to the contrary herein, the foregoing restrictions shall not prevent the disclosure by a Purchaser of any information
(x) that is required to be disclosed by order of a court of competent jurisdiction, administrative body or other Governmental
Authority, or by subpoena, summons or legal process, or by law, rule or regulation or (y) that is publicly available
(other than by a breach of such Purchaser’s confidentiality obligations to the Company), provided that, to the extent permitted
by law, in the event a Purchaser or Purchaser Representative is required to make a disclosure pursuant to clause (x) hereof,
it shall provide to the Board prompt notice of such disclosure (other than any such disclosure required by any administrative
body or other Governmental Authority in the exercise of its regulatory or other oversight authority with respect to such Purchaser
or Purchaser Representative). The confidentiality obligations herein shall, with respect to any particular Purchaser, expire on
the second (2nd) anniversary of the date on which such Purchaser ceases to hold any Shares.


 


2.5          Obligations
of the Purchasers.


 


(a) Each
Purchaser shall furnish in writing to the Company such information regarding itself, the Registrable Securities held by it and
the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request. At least five (5) Business Days prior to the first anticipated filing date of any Registration Statement, the Company
shall notify each Purchaser of the information the Company requires from such Purchaser if such Purchaser elects to have any of
its Registrable Securities included in the Registration Statement. A Purchaser shall provide such information to the Company at
least two (2) Business Days prior to the first anticipated filing date of such Registration Statement if such Purchaser elects
to have any of its Registrable Securities included in the Registration Statement.


 


(b) Each
Purchaser, by its acceptance of the Registrable Securities agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of a Registration Statement hereunder, unless such Purchaser has notified
the Company in writing of its election to exclude all of its Registrable Securities from such Registration Statement.


 


(c) Each
Purchaser agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed Delay pursuant
to Section 2.1(b) or (ii) the happening of an event pursuant to Section 2.4(d)(C), Section 2.4(d)(D), and
Section 2.4(e) hereof, such Purchaser will immediately discontinue disposition of Registrable Securities pursuant to
the Registration Statement covering such Registrable Securities, until the Purchaser is advised by the Company that such dispositions
may again be made. Notwithstanding anything to the contrary in this Section 2.5(c), the Holder may dispose of shares of Common
Stock and the Company shall


 






     


     


    

 


cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of a Holder
in connection with any sale of Registrable Securities with respect to which such Holder has entered into a contract for sale prior
to the Holder’s receipt of a notice from the Company of the happening of any event of the kind described in subclauses (i)
and (ii) of this Section 2.5(c), and for which such Holder has not yet settled.


 


(d)
The Company may require each Participating Holder to furnish to the Company a certified statement as to the number of shares of
Common Stock beneficially owned by such Participating Holder and, if required by the Commission, the natural persons thereof that
have voting and dispositive control over the shares. During any periods that the Company is unable to meet its obligations hereunder
with respect to the registration of the Registrable Securities solely because any Participating Holder fails to furnish such information
within three (3) Business Days of the Company’s request, any liquidated damages that are accruing at such time as to such
Participating Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended
as to such Holder only, until such information is delivered to the Company.


 


2.6          Indemnification.


 


(a) Indemnification
by the Company. The Company will indemnify and hold harmless each Purchaser and its officers, directors, managers, members,
partners, stockholders, employees and agents, successors and assigns, and each other person, if any, who controls such Purchaser
within the meaning of the Securities Act (collectively, “Purchaser Indemnified Persons”), against any losses,
claims, damages or liabilities, joint or several, to which they may become subject under the Securities Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of any material fact contained in any Registration Statement, any preliminary Prospectus
or final Prospectus, any Free Writing Prospectus, or any amendment or supplement thereto or any omission or alleged omission to
state a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary
Prospectus or final Prospectus or Free Writing Prospectus, in light of the circumstances under which they were made) not misleading;
(ii) the omission or alleged omission to state in a “Blue Sky” application or other document executed by the Company
specifically for that purpose a material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances in which they were made; (iii) any violation by the Company or its agents of any rule or regulation
promulgated under the Securities Act applicable to the Company or its agents and relating to action or inaction required of the
Company in connection with such registration; or (iv) any failure to register or qualify the Registrable Securities included
in any such Registration Statement in any state where the Company or its agents has affirmatively undertaken or agreed in writing
that the Company will undertake such registration or qualification on a Purchaser’s behalf and will reimburse such Purchaser
Indemnified Persons for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable
in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such
Purchaser or any such controlling person in writing specifically for use in such Registration Statement, Prospectus or Free Writing
Prospectus.


 


(b) Indemnification
by the Purchasers. Each Purchaser agrees, severally but not jointly, to indemnify and hold harmless, to the fullest extent
permitted by law, the Company, its directors, officers, employees, stockholders and each person who controls the Company (within
the meaning of the Securities Act) against any losses, claims, damages, liabilities and expense (including reasonable attorney
fees) resulting from any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement,
any preliminary Prospectus or final Prospectus, any Free Writing Prospectus, or any amendment or supplement thereto or any omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the
case of any preliminary Prospectus or final Prospectus or Free Writing Prospectus, in light of the circumstances under which they
were made) not misleading, to the extent, but only to the extent that such untrue statement or alleged untrue statement or omission
or alleged omission is contained in any information furnished in writing by such Purchaser to the Company specifically for inclusion
in such Registration Statement, preliminary Prospectus or final Prospectus, Free Writing Prospectus or amendment or supplement
thereto. In no event shall the liability of a Purchaser be greater in amount than the dollar amount of the proceeds (net of all
expense paid by such Purchaser in connection with any claim relating to this Section 2.6 and the amount of any damages such
Purchaser has otherwise been required to pay by reason of such untrue statement or omission) received by such Purchaser upon


 






     


     


    

 


the
sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.


 


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


 


(d) Contribution.
If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified
party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion
as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant
equitable considerations. No Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the
Securities Act shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation. In no event
shall the contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the proceeds
(net of all expenses paid by such holder in connection with any claim relating to this Section 2.6 and the amount of any
damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.


 


2.7          Termination
of Registration Rights. The registration rights provided to the Holders under Section 2 shall terminate in their entirety
upon the earlier to occur of: (i) the date that is five (5) years from the Effective Date; or (ii) at such time
as there are no Registrable Securities. Notwithstanding the foregoing, Sections 2.1(c), 2.3, 2.6 and 3 shall survive the termination
of such registration rights.


 


3.            Miscellaneous.


 


3.1          Governing
Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of
New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of the state and federal courts located in the State of New York for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Each of the parties hereto
irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in
such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought
in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum. IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY HERETO AGAINST ANY
OTHER PARTY HERETO, THE PARTIES HERETO EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT


 






     


     


    

 


PERMITTED BY APPLICABLE LAW, HEREBY
ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.


 


3.2          Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors and permitted assigns of the parties hereto. The Company may not assign its rights or obligations hereunder
except with the prior written consent of each Holder. Each Holder may assign their respective rights or obligations hereunder
in the manner and to the Persons permitted under the Purchase Agreement.


 


3.3          Entire
Agreement; Amendment. This Agreement and the other Transaction Documents constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof. Any previous agreements among the parties relative
to the specific subject matter hereof are superseded by this Agreement. Neither this Agreement nor any provision hereof may be
amended, changed, waived, discharged or terminated other than by a written instrument signed by the party against who enforcement
of any such amendment, change, waiver, discharge or termination is sought.


 


3.4          Notices.
All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 5.4 of the
Purchase Agreement.


 


3.5          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.


 


3.6          Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.


 


3.7          Counterparts.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.


 


3.8          Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party upon any
breach or default of any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed
to be a waiver of any such breach or default, or any acquiescence therein, or of any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character of any breach or default
under this Agreement, or any waiver of any provisions or conditions of this Agreement must be in writing and shall be effective
only to the extent specifically set forth in writing, and that all remedies, either under this Agreement, by law or otherwise,
shall be cumulative and not alternative.


 


3.9          Consents.
Any permission, consent, or approval of any kind or character under this Agreement shall be in writing and shall be effective
only to the extent specifically set forth in such writing.


 


3.10        SPECIFIC
PERFORMANCE. THE PARTIES HERETO AGREE THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS
AGREEMENT WERE NOT PERFORMED IN ACCORDANCE WITH ITS SPECIFIC INTENT OR WERE OTHERWISE BREACHED. IT IS ACCORDINGLY AGREED THAT
THE PARTIES SHALL BE ENTITLED TO AN


 






     


     


    

 


INJUNCTION OR INJUNCTIONS, WITHOUT BOND, TO PREVENT OR CURE BREACHES OF THE PROVISIONS OF
THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS HEREOF, THIS BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH
THEY MAY BE ENTITLED BY LAW OR EQUITY, AND ANY PARTY SUED FOR BREACH OF THIS AGREEMENT EXPRESSLY WAIVES ANY DEFENSE THAT
A REMEDY IN DAMAGES WOULD BE ADEQUATE.


 


3.11        Construction
of Agreement. No provision of this Agreement shall be construed against either party as the drafter thereof.


 


3.12        Section References.
Unless otherwise stated, any reference contained herein to a Section or subsection refers to the provisions of this Agreement.


 


3.13        Variations
of Pronouns. All pronouns and all variations thereof shall be deemed to refer to the masculine, feminine, or neuter, singular
or plural, as the context in which they are used may require.


 


[Remainder
of Page Intentionally Left Blank; Signature Pages Follow]








 






     


     


    

 


IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed and delivered by their proper
and duly authorized officers as of the day and year first written above.


 


	 	Communications
    Systems, Inc.
	 	 
	 	By:
	                
	 	Name:	 
	 	Title:	 


 


[Signature
Page to Registration Rights Agreement]








 


 






     


     


    

 


IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed and delivered by their proper
and duly authorized officers as of the day and year first written above.


 


	 	[PURCHASERS]:
	 	 
	 	By:	           
	 	Name:	 
	 	Title:	 
	 	 


 


[Signature
Page to Registration Rights Agreement]


 









     


     


    

 


Annex
A


 


PLAN
OF DISTRIBUTION


 


We
are registering the shares of common stock issued to the selling stockholders to permit the resale of these shares of common stock
by the holders of the shares of common stock from time to time after the date of this prospectus. We will not receive any of the
proceeds from the sale by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident
to our obligation to register the shares of common stock.


 


The
selling stockholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from
time to time directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through
underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s
commissions. The shares of common stock may be sold on any national securities exchange or quotation service on which the securities
may be listed or quoted at the time of sale, in the over-the-counter market or in transactions otherwise than on these exchanges
or systems or in the over-the-counter market and in one or more transactions at fixed prices, at prevailing market prices at the
time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions,
which may involve crosses or block transactions. The selling stockholders may use any one or more of the following methods when
selling shares:


 


• ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;


 


• block
trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
as principal to facilitate the transaction;


 


• purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;


 


• an
exchange distribution in accordance with the rules of the applicable exchange;


 


• privately
negotiated transactions;


 


• settlement
of short sales entered into after the effective date of the registration statement of which this prospectus is a part;


 


• broker-dealers
may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;


 


• through
the writing or settlement of options or other hedging transactions, whether such options are listed on an options exchange or
otherwise;


 


• a
combination of any such methods of sale; and


 


• any
other method permitted pursuant to applicable law.


 


The
selling stockholders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144
under the Securities Act, as permitted by that rule, or Section 4(a)(1) under the Securities Act, if available, rather
than under this prospectus, provided that they meet the criteria and conform to the requirements of those provisions.


 


Broker-dealers
engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. If the selling stockholders
effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders
or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal.
Such commissions will be in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case
of an


 






     


     


    

 


agency transaction will not be in excess of a customary brokerage commission in compliance with FINRA Rule 5110.


 


In
connection with sales of the shares of common stock or otherwise, the selling stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares of common stock in
the course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short and if such
short sale shall take place after the date that this registration statement is declared effective by the SEC, the selling stockholders
may deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn
may sell such shares, to the extent permitted by applicable law. The selling stockholders may also enter into option or other
transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require
the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
Notwithstanding the foregoing, the selling stockholders have been advised that they may not use shares registered on this registration
statement to cover short sales of our common stock made prior to the date the registration statement, of which this prospectus
forms a part, has been declared effective by the SEC.


 


The
selling stockholders may, from time to time, pledge or grant a security interest in some or all of the warrants or shares of common
stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may
offer and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling
stockholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees,
pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.


 


The
selling stockholders and any broker-dealer or agents participating in the distribution of the shares of common stock may be deemed
to be “underwriters” within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales.
In such event, any commissions paid, or any discounts or concessions allowed to, any such broker-dealer or agent and any profit
on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
Selling stockholders who are “underwriters” within the meaning of Section 2(a)(11) of the Securities Act will
be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory liabilities of,
including but not limited to, Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Securities Exchange
Act of 1934, as amended, or the Exchange Act.


 


Each
selling stockholder has informed the Company that it is not a registered broker-dealer and does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the common stock. Upon the Company being notified in writing
by a selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of common stock
through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer,
a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing
(i) the name of each such selling stockholder and of the participating broker-dealer(s), (ii) the number of shares involved,
(iii) the price at which such the shares of common stock were sold, (iv) the commissions paid or discounts or concessions
allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation
to verify the information set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction.


 


Under
the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed
brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered
or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.


 


There
can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the
registration statement, of which this prospectus forms a part.


 






     


     


    

 


Each
selling stockholder and any other person participating in such distribution will be subject to applicable provisions of the Exchange
Act, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which
may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholder and any other participating
person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock
to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.


 


We
will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, including,
without limitation, SEC filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however,
that each selling stockholder will pay all underwriting discounts and selling commissions, if any, and any legal expenses incurred
by it. We will indemnify the selling stockholders against certain liabilities, including some liabilities under the Securities
Act, in accordance with the registration rights agreement, or the selling stockholders will be entitled to contribution. We may
be indemnified by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may
arise from any written information furnished to us by the selling stockholders specifically for use in this prospectus, in accordance
with the registration rights agreement, or we may be entitled to contribution.