Exhibit 10.4


 


EXECUTION
COPY


 


WAIVER
AGREEMENT


 


This
Waiver Agreement (this “Agreement”) is entered into as of the 22nd day of November, 2017, by and between Helios
and Matheson Analytics Inc., a Delaware corporation with offices located at Empire State Building, 350 5th Avenue, New York, New
York 10118 (the “Company”) and the investor signatory hereto (the “Holder”), with reference
to the following facts:


 


A.
Prior to the date hereof, in connection with an offering (the “August Financing”) pursuant to that Securities
Purchase Agreement dated as of August 15, 2017 (as amended, the “August Securities Purchase Agreement”), by
and between the Company and an institutional investor (the “Initial Buyer”), the Company issued, among other
things, (i) senior secured convertible notes, convertible into shares of the Company’s common stock, $0.01 par value per
share (the “Common Stock”), in accordance with the terms thereof (including any senior secured convertible
note issued in exchange therefore, the “August Notes”) and (ii) certain warrants to purchase Common Stock (the
“August Warrants” as exercised, the “August Warrant Shares”).


 


B.
Prior to the date hereof, in connection with an offering (the “November Financing”) pursuant to that Securities
Purchase Agreement dated as of November 6, 2017 (the “November Securities Purchase Agreement”) by and between
the Company, the Holder, the Initial Buyer and the other buyers signatory thereto (collectively, the “Buyers”),
the Company issued to the Buyers senior convertible notes (the “November Notes”), convertible into shares of
Common Stock in accordance with the terms thereof.


 


C.
On November 21, 2017 the Company entered into that certain Fourth Amendment and Exchange Agreement, by and between the Company
and the Initial Buyer (the “Exchange Agreement”) pursuant to which the Company issued the Exchange Warrant
(as defined in the Exchange Agreement) to the Initial Buyer.


 


D.
The Company and MoviePass Inc. (“MoviePass”) are parties to (i) the MoviePass SPA (as defined in the November
Securities Purchase Agreement), as amended from time to time, and (ii) the Investment Option Agreement, dated October 11, 2017
pursuant to which the Company agreed to purchase a majority stake in the capital stock of MoviePass.


 


E.
The Company has been asked by MoviePass to execute a Commercial Guaranty, in the form provided to Kelley Drye & Warren LLP
on or prior to the date hereof (the “Guaranty”) in favor of PayPal, Inc. (“PayPal”) pursuant
to which the Company will guarantee the full and punctual payment and satisfaction of all Indebtedness (as such term is defined
in the Guaranty) (the “MoviePass Indebtedness”) of MoviePass to PayPal whether now existing or hereafter acquired
on a continuing basis.


 


F.
The MoviePass Indebtedness will constitute Indebtedness (as defined in the August Securities Purchase Agreement and the November
Securities Purchase Agreement) and each of the August Notes and the November Notes include provisions that prevent the Company
from guaranteeing any such MoviePass Indebtedness and, if applicable, performing under such guaranty (including, without limitation,
Sections 13(b), 13(c), 13(g) and 13(m) of the August Notes and Sections 14(b), 14(c), 14(g) and 14(m) of the November Notes) (collectively,
the “MoviePass Indebtedness Restrictions”).


 






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G.
The Company desires to obtain the waiver from the Holder of (i) all MoviePass Indebtedness Restrictions with respect to the MoviePass
Indebtedness, (ii) all restrictions, if any, in the Transaction Documents (as defined in the November Notes) and the Transaction
Documents (as defined in the August Notes) (and, together with the Exchange Agreement, the “Prior Transaction Documents”),
in each case, to the issuance of up to 275,000 restricted shares of Common Stock to the Buyers pursuant to the Agreements (as
defined below) (the “Waiver Shares”), (iii) any right that the holders of the November Notes may have to adjust
the Conversion Price (as defined in the November Notes) pursuant to the November Notes as a result of the issuance of the Waiver
Shares; and (iv) any right that the holders of the August Warrants or Exchange Warrant (collectively, the “Warrants”)
may have to adjust the Exercise Price (as defined in the applicable Warrant) and the number of shares of Common Stock issuable
upon exercise of the applicable Warrant as a result of the issuance of the Waiver Shares (collectively, the “Waivers”).


 


H.
Concurrently herewith, the Company is seeking to obtain the waiver of the MoviePass Indebtedness Restrictions from each other
holder of August Notes and/or November Notes, as applicable, (the “Other Holders”) pursuant to agreements in
substantially the form of this Agreement (other than expense reimbursement and proportional changes with respect to the aggregate
principal amount of August Notes and/or November Notes, as applicable, held by the Holder as of the date hereof) (the “Other
Agreements”, and together with this Agreement, the “Agreements”).


 


NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the Company and the Holder
agree as follows:


 


1.
Waivers; Effective Time. Effective as of the time (the “Effective Time”) on which Agreements
have been executed by such holders representing the Required Holders (as defined in the November Notes) and the Required Holders
(as defined in the August Notes) (collectively, the “Waiver Required Holders”), subject to the irrevocable
issuance of Holder Waiver Shares (as defined below) or Rights (as defined below), as applicable, to the Holder on the books and
records of the Company, the Holder hereby effects the Waivers, which Waivers shall be binding on all existing and future holders
of the August Notes in accordance with Section 16 of the August Notes, on all existing and future holders of the November Notes
in accordance with Section 17 of the November Notes and on all existing and future holders of the August Warrants in accordance
with Section 9 of the applicable Warrants.


 


2.
Issuance of Shares of Common Stock. As consideration for the Waivers, at the Effective Time, the Company shall,
as elected by the Holder on its signature page attached hereto, issue either (i) such aggregate number Waiver Shares to the Holder
as set forth opposite the name of the Holder on Schedule I attached hereto (the “Holder Waiver Shares”) or
(ii) a Right (as defined below) to acquire such Holder Waiver Shares. If the Holder elects to receive Holder Waiver Shares, at
the Effective Time, the Company shall instruct its Transfer Agent to issue a certificate evidencing the Holder Waiver Shares to
the Holder no later than the second Trading Day (as defined in the November Notes) immediately following the Effective Time. If
the Holder elects to receive Rights in lieu of the Holder Waiver Shares, no later than the second Trading Day after the Effective
Time the Company shall deliver evidence to the Holder, reasonably satisfactory to the Holder, that Rights have been issued on
the books and records of the Company. At the Effective Time, the Holder shall be deemed for all corporate purposes to have become
the holder of record of Holder Waiver Shares or the Rights, as applicable, and shall be entitled to exercise all of its rights
with respect thereto, irrespective of the date the Company (or the Transfer Agent) delivers the certificate(s) evidencing the
Holder Waiver Shares or the Rights, as applicable, to the Holder.


 






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3.
Representations and Warranties.


 


3.1.
As of the date hereof, the Company hereby represents and warrants:


 


(a)
Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly
existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority
to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each
of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every
jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material
Adverse Effect (as defined below). As used in this Agreement, “Material Adverse Effect” means any material
adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial
or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated
hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Company or any of its Subsidiaries
to perform any of their respective obligations under any of the Transaction Documents (as defined below). Other than the Persons
(as defined below) listed in the SEC Documents, the Company has no Subsidiaries. “Subsidiaries” means any Person,
other than MoviePass, in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any
equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration
of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.” For purposes
of this Agreement, (x) “Person” means an individual, a limited liability company, a partnership, a joint venture,
a corporation, a trust, an unincorporated organization, any other entity and any Governmental Entity or any department or agency
thereof and (y) “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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(b)
Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and issue the Waiver Shares, the Rights and the Reserved Shares (as defined below) (collectively, the “Securities”)
and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this in
accordance with the terms hereof. The execution and delivery of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Waiver Shares, the issuance
of the Rights and the reservation for issuance and issuance of Reserved Shares issuable upon exercise of the Rights has been duly
authorized by the Company’s Board of Directors and no further filing, consent, or authorization is required by the Company,
its Board of Directors or its stockholders. This Agreement has been duly executed and delivered by the Company, and constitutes
the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms, except
as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies
and except as rights to indemnification and to contribution may be limited by federal or state securities laws.


 


(c)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company
and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.


 


(d)
No Conflict. The execution, delivery and performance of the Agreements by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Holder Waiver Shares and
the reservation for issuance and issuance of Reserved Shares issuable upon exercise of the Rights) will not (i) result in a violation
of the Certificate of Incorporation (as defined below) or any other organizational documents of the Company or any of its Subsidiaries,
any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the
Nasdaq Capital Market (the “Principal Market”) and including all applicable federal laws, rules and regulations)
applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries
is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that would not reasonably
be expected to have a Material Adverse Effect.


 






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(e)
No Consents. Except for the Waivers, neither the Company nor any Subsidiary is required to obtain any consent from, authorization
or order of, or make any filing or registration with (other than the filing with the Securities and Exchange Commission (the “SEC”)
of a Form D with the SEC, any other filings as may be required by any state securities agencies, filing of UCC financing statements
and approval by the Principal Market, if required, of a listing of additional shares application in respect of the Waiver Shares
and the Reserved Shares as required by Section 9 hereof), any court, governmental agency or any regulatory or self-regulatory
agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated
by this Agreement, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings
and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances
which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or
filings contemplated by the Exchange Documents. Except as disclosed in the SEC Documents, the Company is not in violation of the
requirements of the Principal Market and has no knowledge of any facts or circumstances which would reasonably lead to delisting
or suspension of the Common Stock in the foreseeable future.


 


(f)
Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein,
the offer and issuance by the Company of the Securities is exempt from registration under the Securities Act pursuant to the exemption
provided by Section 4(a)(2) thereof.


 


(g)
Issuance of Securities. The issuance of the Rights has been duly authorized and upon issuance in accordance with the terms
of this Agreement shall be validly issued, fully paid and non-assessable and free from all Liens. Upon issuance in accordance
herewith or pursuant to the Rights, as applicable, the Holder Waiver Shares and the Reserved Shares, respectively, when issued,
will be validly issued, fully paid and nonassessable and free from all Liens with respect to the issue thereof, with the holders
being entitled to all rights accorded to a holder of Common Stock.


 


(h)
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its
agents or counsel with any information that constitutes or would reasonably be expected to constitute material, non-public information
concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement
and the other Agreements. The Company understands and confirms that the Holder will rely on the foregoing representations in effecting
transactions in securities of the Company. All disclosure provided to the Holder regarding the Company and its Subsidiaries, their
businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the
Company or any of its Subsidiaries is true and correct 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. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months
preceding the date of this Agreement did not at the time of release 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 the light of the
circumstances under which they are made, not misleading. No event or circumstance has occurred or information exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including
results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure
at or before the date hereof or announcement by the Company but which has not been so publicly announced or disclosed.


 






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3.2
As of the date hereof, the Holder hereby represents and warrants:


 


(a)
Organization; Authority. Such Holder is an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder.


 


(b)
No Public Sale or Distribution. The Holder is acquiring the applicable Securities, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws,
except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, such
Holder does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption from registration under the 1933 Act.


 


(c)
Accredited Investor Status. The Holder is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D.


 


(d)
Reliance on Exemptions. The Holder understands that the Securities are being issued in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part
upon the truth and accuracy of, and such Holder’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Holder set forth herein in order to determine the availability of such exemptions and the eligibility
of such Holder to acquire the Securities.


 


(e)
Information. The Holder and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and materials relating to the Securities that have been requested by the Holder. The Holder and
its advisors, if any, have been afforded (i) the opportunity to ask questions of and receive answers from the Company concerning
the terms and conditions of this Agreement and the Securities; and (ii) access to information about the Company and its financial
condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment.
Neither such inquiries nor any other due diligence investigations conducted by such Holder or its advisors, if any, or its representatives
shall modify, amend or affect such Holder’s right to rely on the Company’s representations and warranties contained
herein. The Holder understands that its investment in the Securities involves a high degree of risk. The Holder 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.


 






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(f)
No Governmental Review. The Holder understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of
the acquisition of the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.


 


(g)
Transfer or Resale. The Holder understands that (i) the Securities have not been and are not being registered under the
1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel,
in a form reasonably acceptable to the Company, to the effect that Securities to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable
assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933
Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of Securities made in reliance
on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale
of such Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the
rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation
to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder. Notwithstanding the foregoing, the Securities may be pledged in connection with a bona fide margin account or other
loan or financing arrangement secured by the Securities and such pledge of the Securities shall not be deemed to be a transfer,
sale or assignment of the Securities hereunder, and the Holder effecting a pledge of the Securities shall be required to provide
the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement.


 


(h)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder
and shall constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with
its respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.


 


4.
Right to Issue Holder Warrant Shares.


 


4.1 General.
If elected by the Holder on its signature page attached hereto, at the Effective Time, the Company shall issue to the Holder
rights (the “Rights”) to receive the Holder Waiver Shares (the “Reserved
Shares”), which shall have such terms and conditions as set forth in this Section 4. The Company and the Holder
hereby agree that no additional consideration is payable in connection with the issuance of the Rights or the exercise of the
Rights.


 






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4.2 Exercise
of Right of Issuance of Reserved Shares. Subject to the terms hereof, the exercise of the Rights may be made, in whole or
in part, at any time or times on or after the date hereof by delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books
of the Company) of a duly executed PDF copy of the Notice of Issuance Form annexed hereto as Exhibit A (each, a
“Notice of Issuance”, and the corresponding date thereof, the “Exercise Date”).
Partial exercises of the Rights resulting in issuances of a portion of the total number of Reserved Shares available
thereunder shall have the effect of lowering the outstanding number of Reserved Shares purchasable thereunder in an amount
equal to the applicable number of Reserved Shares issued. The Holder and the Company shall maintain records showing the
number of Reserved Shares issued and the date of such issuances. The Company shall deliver any objection to any Notice of
Issuance Form within one (1) Trading Day of receipt of such notice. The Holder acknowledges and agrees that, by reason of
the provisions of this paragraph, following each exercise of the Rights issued hereunder and the issuance of a portion of the
Reserved Shares pursuant thereto, the number of Reserved Shares available for issuance pursuant to the Rights issued
hereunder at any given time may be less than the amount stated in the recitals hereof.


 


4.3 Delivery
of Reserved Shares. The Reserved Shares issued hereunder shall be transmitted by the Transfer Agent to the Holder by
crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit/Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is
an effective registration statement permitting the issuance of the Reserved Shares to or resale of the Reserved Shares by the
Holder or (B) the Reserved Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant
to Rule 144, and otherwise by physical delivery to the address specified by the Holder in the Notice of Issuance by the date
that is two (2) Trading Days after the delivery to the Company of the Notice of Issuance (such date, the “Share
Delivery Deadline”). The Reserved Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become the holder of record of such shares for all purposes, as of the
date the Rights have been exercised.


 


4.4 Charges,
Taxes and Expenses. Issuance of Reserved Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by
the Company, and such certificates shall be issued in the name of the Holder. The Company shall pay all Transfer Agent
fees required for same-day processing of any Notice of Issuance.


 


4.5 Authorized
Shares. The Company covenants that, during the period the Rights are outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance of the Reserved Shares upon the exercise
of the Rights. The Company further covenants that its issuance of the Rights shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the
Reserved Shares upon the due exercise of the Rights. The Company will take all such reasonable action as may be necessary to
assure that such Reserved Shares may be issued as provided herein without violation of any applicable law or regulation, or
of any requirements of the Principal Market upon which the Common Stock may be listed. The Company covenants that all
Reserved Shares which may be issued upon the exercise of the Rights represented by this Agreement will, upon exercise of the
Rights, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, Liens and charges created
by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with
such issue).


 


4.6 Impairment.
Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the
Holder as set forth in this Agreement against impairment. Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Reserved Shares above the amount payable therefor upon such exercise immediately prior
to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and non-assessable Reserved Shares upon the exercise of the Rights and (iii) use
reasonable best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Agreement.


 






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4.7 Authorizations.
Before taking any action which would result in an adjustment in the number of Reserved Shares for which the Rights provides
for, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction thereof.


 


4.8 Limitations
on Exercise. The Company shall not effect the exercise of any Rights, and the Holder shall not have the right to exercise
any portion of any Rights pursuant to the terms and conditions of this Agreement and any such exercise shall be null and void
and treated as if never made, to the extent that after giving effect to such exercise, the Holder together with the
other Attribution Parties collectively would beneficially own in excess of 9.9% (the “Beneficial Ownership
Limitation”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For
purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and the
other Attribution Parties (as defined in the November Notes) shall include the number of shares of Common Stock held by the
Holder and all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of the Rights
issued hereunder with respect to which the determination of such sentence is being made, but shall exclude shares of Common
Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of the Rights beneficially owned by
the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion
of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock
or warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or
exercise analogous to the limitation contained in this Section 4.8. For purposes of this Section 4.8, beneficial ownership
shall be calculated in accordance with Section 13(d) of the 1934 Act (as defined in the November Notes). For purposes of
determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of the Rights without
exceeding the Beneficial Ownership Limitation, the Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on
Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z)
any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common
Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives a Notice of Issuance
from the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding
Share Number, the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to
the extent that such Notice of Issuance would otherwise cause the Holder’s beneficial ownership, as determined pursuant
to this Section 4.8, to exceed the Beneficial Ownership Limitation, the Holder must notify the Company of a reduced number of
shares of Common Stock to be purchased pursuant to such Notice of Issuance. For any reason at any time, upon the written or
oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail
to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including the
Rights, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of the Rights results in the
Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Beneficial
Ownership Limitation of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act),
the number of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial
ownership exceeds the Beneficial Ownership Limitation (the “Excess Shares”) shall be deemed null and void
and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. Upon
delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective
until the sixty-first (61st) day after delivery of such notice) or decrease the Beneficial Ownership Limitation to
any other percentage not in excess of 9.9% as specified in such notice; provided that (i) any such increase in the Beneficial
Ownership Limitation will not be effective until the sixty-first (61st) day after such notice is delivered to the
Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any
other holder of Rights that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock
issuable pursuant to the terms of the Rights hereunder in excess of the Beneficial Ownership Limitation shall not be
deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of
the 1934 Act. No prior inability to exercise any Rights pursuant to this paragraph shall have any effect on the applicability
of the provisions of this paragraph with respect to any subsequent determination of exercisability. The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
4.8 to the extent necessary to correct this paragraph (or any portion of this paragraph) which may be defective or
inconsistent with the intended beneficial ownership limitation contained in this Section 4.8 or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may
not be waived and shall apply to a successor holder of Rights.


 






    	 	9	 



     


    

 


4.9 Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of
the Rights, pursuant to the terms hereof.


 


4.10 Stock
Dividends and Splits. If the Company, at any time while the Rights exist: (i) pays a stock dividend or otherwise makes a
distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues
by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the number of
Reserved Shares issuable upon exercise of the Rights shall be proportionately adjusted. Any adjustment made pursuant to this
Section 4.10 shall become effective immediately upon the record date for the determination of stockholders entitled to
receive such dividend or distribution (provided that if the declaration of such dividend or distribution is rescinded or
otherwise cancelled, then such adjustment shall be reversed upon notice to the Holder of the termination of such proposed
declaration or distribution as to any unexercised portion of the Rights at the time of such rescission or cancellation) and
shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification.


 


4.11 Compensation
for Buy-In on Failure to Timely Deliver Reserved Shares. If the Company shall fail, for any reason or for no reason, on
or prior to the applicable Share Delivery Deadline, either (x) if the Transfer Agent is not participating in the DTC Fast
Automated Securities Transfer Program, to issue and deliver to the Holder (or its designee) a certificate for the number of
shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s
share register or, (y) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, to
credit the balance account of the Holder or the Holder’s designee with DTC for such number of shares of Common Stock to
which the Holder is entitled upon the Holder’s exercise of a Right (a “Delivery Failure”), then, in
addition to all other remedies available to the Holder, (1) the Company shall pay in cash to the Holder on each day after
such Share Delivery Deadline that the issuance of such shares of Common Stock is not timely effected an amount equal to 2% of
the product of (A) the sum of the number of shares of Common Stock not issued to the Holder on or prior to the Share Delivery
Deadline and to which the Holder is entitled, multiplied by (B) any trading price of the Common Stock selected by the Holder
in writing as in effect at any time during the period beginning on the applicable Exercise Date and ending on the applicable
Share Delivery Deadline and (2) the Holder, upon written notice to the Company, may void its Notice of Issuance with respect
to, and retain or have returned (as the case may be) any portion of the rights that has not been exercised pursuant to such
Notice of Issuance, provided that the voiding of a Notice of Issuance shall not affect the Company’s obligations to
make any payments which have accrued prior to the date of such notice pursuant to this Section 4.11 or otherwise. In addition
to the foregoing, if on or prior to the Share Delivery Deadline either (A) if the Transfer Agent is not participating in the
DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver to the Holder (or its designee) a
certificate and register such shares of Common Stock on the Company’s share register or, (B) if the Transfer Agent is
participating in the DTC Fast Automated Securities Transfer Program, the Transfer Agent shall fail to credit the balance
account of the Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is
entitled upon the Holder’s exercise of Rights hereunder or pursuant to the Company’s obligation pursuant to
clause (II) below, and if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock corresponding to all or any portion of the number of shares of Common Stock issuable upon
such exercise that the Holder is entitled to receive from the Company and has not received from the Company in connection
with such Delivery Failure (a “Buy-In”), then, in addition to all other remedies available to the Holder,
the Company shall, within two (2) Business Days after receipt of the Holder’s request and in the Holder’s
discretion, either: (I) pay cash to the Holder in an amount equal to the Holder’s total purchase price
(including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In
Price”), at which point the Company’s obligation to so issue and deliver such certificate (and to issue such
shares of Common Stock) or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC
for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of Rights hereunder
(as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation to so
issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit the balance
account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock to
which the Holder is entitled upon the Holder’s exercise of Rights hereunder (as the case may be) and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common
Stock multiplied by (y) the lowest Closing Sale Price (as defined in the February Note) of the Common Stock on any Trading
Day during the period commencing on the date of the applicable Notice of Issuance and ending on the date of such issuance and
payment under this clause (II) (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of the
Rights as required pursuant to the terms hereof. Notwithstanding anything herein to the contrary, with respect to any
given Delivery Failure, this Section 4.11 shall not apply to the Holder to the extent the Company has already paid such
amounts in full to such Holder with respect to such Delivery Failure, as applicable, pursuant to the analogous sections of
the February Securities Purchase Agreement.


 






    	 	10	 



     


    

 


4.12 Subsequent
Rights Offerings. If Section 4.10 above does not apply, if at any time the Company grants, issues or sells
any Convertible Securities (as defined in the November Notes), Options (as defined in the November Notes) or rights to
purchase stock, warrants, securities or other property pro rata to the record Holders of any class of shares of Common Stock
(the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of
shares of Common Stock acquirable upon complete exercise of the Rights (without regard to any limitations on exercise hereof,
including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record Holders
of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to
the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the
Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent
(or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result
in the Holder exceeding the Beneficial Ownership Limitation).


 


4.13 Fundamental
Transaction. If, at any time while the Rights remain outstanding, a Fundamental Transaction (as defined in the November
Notes) occurs, then, upon any subsequent exercise of the Rights, the Holder shall have the right to receive, for each
Reserved Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any limitation in Section 4.8 on the exercise of the Right), the
number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration receivable as a result of such Fundamental Transaction by a Holder of one share
of Common Stock. Upon the occurrence of any such Fundamental Transaction, the any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) shall succeed to, and be
substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Agreement referring
to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the
Company and shall assume all of the obligations of the Company under this Agreement with the same effect as if such Successor
Entity had been named as the Company herein.


 


4.14 Notice
to Allow Exercise of Right. If at any time while the Rights remain outstanding, (A) the Company shall declare a dividend
(or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash
dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all Holders of the
Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D)
the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the
assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or
property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the
affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at least 10 calendar days
prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the Holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that Holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to
mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice
with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise the Rights during
the period commencing on the date of such notice to the effective date of the event triggering such notice except as may
otherwise be expressly set forth herein.


 






    	 	11	 



     


    

 


4.15 No
Rights as Stockholder Until Exercise. Each Right does not entitle the Holder to any voting rights, dividends or
other rights as a stockholder of the Company prior to the exercise hereof.


 


4.16 Transferability.
Subject to compliance with any applicable securities laws, the Rights and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon written assignment substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer of this Agreement delivered to the principal office of the Company or its designated
agent. Upon such assignment and, if required, such payment, the Company shall enter into a new agreement with the assignee or
assignees, as applicable, and this Agreement shall promptly be cancelled. Any Right, if properly assigned in accordance
herewith, may be exercised by a new Holder for the issue of Reserved Shares without having a new agreement
executed.


 


4.17
Holding Period. For purposes of Rule 144(d) promulgated under the 1933 Act, as in effect on the date hereof, it is intended
that the Reserved Shares issued upon exercise of the Right shall be deemed to have been acquired by the Holder, and the holding
period for the Reserved Shares shall be deemed to have commenced, as of the Effective Time.


 


5.
Limitation of Waiver. The Waivers set forth in this Agreement constitute a one-time waiver and are limited to the
matters expressly waived herein and should not be construed as an indication that the Holder would be willing to agree to any
future modifications to or waiver of any of the terms of any Prior Transaction Document or Convertible Security (as defined in
the November Securities Purchase Agreement) issued by the Company or any modifications to or waiver of any default that may exist
or occur thereunder.


 


6.
Ratifications. Except as otherwise expressly provided herein, each of the Prior Transaction Documents is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in all respects.


 


7.
Disclosure of Transaction. The Company shall, on or before 8:30 a.m., New York City Time, on or prior to the first
business day after the date of this Agreement, file a Current Report on Form 8-K describing the terms of the transactions contemplated
hereby in the form required by the 1934 Act and attaching the form of this Agreement as an exhibit to such filing (including all
attachments, the “8-K Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed
all material, non-public information (if any) provided up to such time to the Holder by the Company or any of its Subsidiaries
or any of their respective officers, directors, employees or agents. In addition, effective upon the filing of the 8-K Filing,
the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement with respect to
the transactions contemplated by the Exchange Documents or as otherwise disclosed in the 8-K Filing, whether written or oral,
between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents,
on the one hand, and any of the Holder or any of their affiliates, on the other hand, shall terminate. Neither the Company, its
Subsidiaries nor the Holder shall issue any press releases or any other public statements with respect to the transactions contemplated
hereby; provided, however, the Company shall be entitled, without the prior approval of the Holder,
to make a press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K
Filing and contemporaneously therewith or (ii) as is required by applicable law and regulations (provided that in the case of
clause (i) the Holder shall be consulted by the Company in connection with any such press release or other public disclosure prior
to its release). Without the prior written consent of the Holder (which may be granted or withheld in the Holder’s sole
discretion), except as required by applicable law, the Company shall not (and shall cause each of its Subsidiaries and affiliates
to not) disclose the name of the Holder in any filing, announcement, release or otherwise.


 






    	 	12	 



     


    

 


8.
No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their behalf
shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit any offers
to buy any security or take any other actions, under circumstances that would require registration of any of the Holder Waiver
Shares, the Rights or the Reserved Shares under the Securities Act or cause this offering of the Securities to be integrated with
such offering or any prior offerings by the Company for purposes of Regulation D under the Securities Act.


 


9.
Listing. The Company shall maintain the listing or designation for quotation (as applicable) of all of the Holder
Waiver Shares and the Reserved Shares from time to time issuable under the terms of this Agreement upon the Principal Market (subject
to official notice of issuance). The Company shall maintain the Common Stock’s authorization for quotation on the Principal
Market. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in
the delisting or suspension of the Common Stock on the Principal Market. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 9.


 


10.
Fees. [INSERT IN HUDSON BAY WAIVER ONLY: The Company shall reimburse Kelley Drye & Warren LLP, counsel to the
Holder, for its fees and expenses in connection with the structuring, documentation, negotiation of this Waiver, and all other
outstanding amounts owed by the Company to Kelley Drye & Warren LLP pursuant to any other agreement by and between the Company
and the Holder, in an aggregate amount equal to $8,000] [OTHERS: [INTENTIONALLY OMITTED].


 


11.
Definitions. For purposes of this Agreement, the term “Transfer Agent” is defined as Computershare,
the Company’s transfer agent, and the term “Business Day” is defined as any day other than Saturday, Sunday
or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the November Notes.


 






    	 	13	 



     


    

 


12.
Legends. The Holder understands that the Securities have been issued (or will be issued in the case of the Reserved
Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and
except as set forth below, the Securities shall bear any legend as required by the “blue sky” laws of any state and
a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock
certificates):


 


[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.


 


13.
Removal of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in
Section 12 above or any other legend (i) while a registration statement covering the resale of such Securities is effective
under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate
of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 (provided that the Holder
provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule
144, which shall not include an opinion of Buyer’s counsel), (iv) in connection with a sale, assignment or other transfer
(other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, in a generally
acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under
the applicable requirements of the 1933 Act or (v) if such legend is not required under applicable requirements of the 1933 Act
(including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not
required pursuant to the foregoing, the Company shall no later than two (2) Trading Days (or such earlier date as required pursuant
to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the date the Holder delivers
such legended certificate representing such Securities to the Company) following the delivery by a Buyer to the Company or the
transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers
attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together
with any other deliveries from the Holder as may be required above in this Section 13, as directed by the Holder, either:
(A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program and
such Securities are Holder Waiver Shares or Reserved Shares, credit the aggregate number of shares of Common Stock to which the
Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal
at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer
Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Securities that is
free from all restrictive and other legends, registered in the name of the Holder or its designee (the date by which such credit
is so required to be made to the balance account of the Holder’s or the Holder’s designee with DTC or such certificate
is required to be delivered to the Holder pursuant to the foregoing is referred to herein as the “Required Delivery Date”,
and the date such shares of Common Stock are actually delivered without restrictive legend to the Holder or the Holder’s
designee with DTC, as applicable, the “Share Delivery Date”). The Company shall be responsible for any transfer
agent fees or DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities
in accordance herewith.


 






    	 	14	 



     


    

 


14.
Failure to Timely Deliver; Buy-In. If the Company fails to, for any reason or for no reason, to issue and deliver
(or cause to be delivered) to the Holder (or its designee) by the Required Delivery Date, either (I) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, a certificate for the number of Holder Waiver Shares
or Reserved Shares (as the case may be) to which the Holder is entitled and register such Holder Waiver Shares or Reserved Shares
(as the case may be) on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with DTC for such number
of Holder Waiver Shares or Reserved Shares (as the case may be) submitted for legend removal by the Holder pursuant to Section
13 above or (II) if a registration statement under the 1933 Act covering the resale of the Holder Waiver Shares or Reserved Shares
(as the case may be) submitted for legend removal by the Holder pursuant to Section 13 above (the “Unavailable Shares”)
is not available for the resale of such Unavailable Shares and the Company fails to promptly (x) so notify the Holder and (y)
deliver the Holder Waiver Shares or Reserved Shares (as the case may be) electronically without any restrictive legend by crediting
such aggregate number of Holder Waiver Shares or Reserved Shares (as the case may be) submitted for legend removal by the Holder
pursuant to Section 13 above to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal
At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a “Notice
Failure” and together with the event described in clause (I) above, a “Delivery Failure”), then,
in addition to all other remedies available to the Holder, the Company shall pay in cash to the Holder on each day after the Share
Delivery Date and during such Delivery Failure an amount equal to 2% of the product of (A) the sum of the number of shares of
Common Stock not issued to the Holder on or prior to the Required Delivery Date and to which the Holder is entitled, and (B) any
trading price of the Common Stock selected by the Holder in writing as in effect at any time during the period beginning on the
date of the delivery by the Holder to the Company of the applicable Holder Waiver Shares or Reserved Shares (as the case may be)
and ending on the applicable Share Delivery Date. In addition to the foregoing, if on or prior to the Required Delivery Date either
(I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to
issue and deliver a certificate to a Buyer and register such shares of Common Stock on the Company’s share register or,
if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, credit the balance account of the
Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder submitted for legend
removal by the Holder pursuant to Section 13 above (ii) below or (II) a Notice Failure occurs, and if on or after such Trading
Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by the Holder of shares of Common Stock submitted for legend removal by the Holder pursuant to Section 3 above that the Holder
is entitled to receive from the Company (a “Buy-In”), then the Company shall, within two (2) Trading Days after
the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any, for the shares of Common Stock
so purchased) (the “Buy-In Price”), at which point the Company’s obligation to so deliver such certificate
or credit the Holder’s balance account shall terminate and such shares shall be cancelled, or (ii) promptly honor its obligation
to so deliver to the Holder a certificate or certificates or credit the balance account of the Holder or the Holder’s designee
with DTC representing such number of shares of Common Stock that would have been so delivered if the Company timely complied with
its obligations hereunder and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product
of (A) such number of shares of Holder Waiver Shares or Reserved Shares (as the case may be) that the Company was required to
deliver to the Holder by the Required Delivery Date multiplied by (B) the lowest Closing Sale Price (as defined in the November
Notes) of the Common Stock on any Trading Day during the period commencing on the date of the delivery by the Holder to the Company
of the applicable Holder Waiver Shares or Reserved Shares (as the case may be) and ending on the date of such delivery and payment
under this clause (ii). Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at
law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such
shares of Common Stock) as required pursuant to the terms hereof.


 






    	 	15	 



     


    

 


15.
Independent Nature of Holder's Obligations and Rights. The obligations of the Holder under this Agreement are several
and not joint with the obligations of any Other Holder, and the Holder shall not be responsible in any way for the performance
of the obligations of any Other Holder under any Other Agreement. Nothing contained herein or in any Other Agreement, and no action
taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Holders as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Holder and Other Holders are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement
and the Company acknowledges that, to the best of its knowledge, the Holder and the Other Holders are not acting in concert or
as a group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement. The Company
and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby
with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any Other Holder to
be joined as an additional party in any proceeding for such purpose.


 


16.
Miscellaneous Provisions. Section 9 of the November Securities Purchase Agreement is hereby incorporated by reference
herein, mutatis mutandis.


 


[The
remainder of the page is intentionally left blank]


 




    	 	16	 



     


    


 


IN
WITNESS WHEREOF, the Holder and the Company have executed this Agreement as of the date set forth on the first page of this
Agreement.


 


	 	COMPANY:
	 	 
	 	HELIOS
    AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	 
	 		Name:
    Theodore
    Farnsworth
	 		Title:   Chief Executive Officer



 



    	 	17	 



     


    


 


IN
WITNESS WHEREOF, Holder and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.


 


	 	HOLDER:
	 	 
	 	[NAME
    OF HOLDER]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:






	 	 	 
	 	☐	Check here
if requesting Holder Waiver Shares to be issued as Rights


 




    	 	 	 



     


    


 


SCHEDULE
I


 


	Name of Holders	 	Percentage
 of August Notes and
 November Notes*	 	 	Number of Shares to be Issued	 
	Hudson Bay Master Fund Ltd.	 	 	70.178	%	 	 	192,991	 
	Empery Asset Master, LTD	 	 	2.612	%	 	 	7,183	 
	Empery Tax Efficient, LP	 	 	1.295	%	 	 	3,562	 
	Empery Tax Efficient II, LP	 	 	2.541	%	 	 	6,988	 
	CVI Investments, Inc.	 	 	12.896	%	 	 	35,464	 
	Alto Opportunity Master Fund, SPC-Segregated Master Portfolio B	 	 	4.030	%	 	 	11,083	 
	Discover Growth Fund	 	 	6.448	%	 	 	17,732	 
	TOTAL	 	 	100.00	%	 	 	275,000	 



 


*
Excludes such portion of the November Notes corresponding to such portion of the related promissory notes not subject to
mandatory prepayments


 




    	 	 	 



     


    


 


EXHIBIT
A


 


NOTICE
OF ISSUANCE


 


The
undersigned holder hereby exercises the rights (the “Rights”) to receive _________________ of the shares of
Common Stock (the “Reserved Shares”) of Helios and Matheson Analytics Inc., a Delaware corporation with offices
located at Empire State Building, 350 5th Avenue, New York, New York 10118 (the “Company”), established pursuant
to that certain Agreement and Waiver, dated November [ ], 2017, by and between the Company and the investor signatory thereto
(the “Waiver”). Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Waiver.


 


The
Company shall deliver to Holder, or its designee or agent as specified below, __________ Reserved Shares in accordance with the
terms of the Rights. Delivery shall be made to Holder, or for its benefit, as follows:


 


☐     Check
here if requesting delivery as a certificate to the following name and to the following address:


 


	Issue
    to:	 
	 	 
	 	 
	 	 
	 	 


 


☐     Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows:


 


	DTC
    Participant:	 
	 	 
	DTC
    Number:	 
	 	 
	Account
    Number:	 


 


Date:
_____________ __, __


 


________________________


 


Name
of Registered Holder


 


 


	By:	 	 
	 	Name:	 
	 	Title:	 


 


	Tax
    ID:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	E-mail
    Address: