Exhibit 10.1


 





KATALYST SECURITIES LLC


630 THIRD AVENUE, 5TH FLOOR


NEW YORK, NY 10017


TEL: 212-400-6993 FAX: 212-247-1059


Member: FINRA & SIPC


 


GP NURMENKARI INC.


64 WALL STREET, SUITE 402


NORWALK, CT. 06850


TEL: 212-447-5550


Member: FINRA & SIPC


 


PLACEMENT AGENCY AGREEMENT


 


May 12, 2017


 


Mr. Wael Fayad


Chairman, President and Chief Executive Officer


Enumeral Biomedical Holdings, Inc.


200 CambridgePark Drive


Suite 2000


Cambridge, MA 02140


 


Re:           Enumeral Biomedical Holdings, Inc.


 


Dear Mr. Fayad:


 


This Placement Agency
Agreement (“Agreement”) sets forth the terms upon which Katalyst Securities LLC (“Katalyst”)
and GP Nurmenkari Inc. (“GPN”), each a registered broker-dealer and member of the Financial Industry
Regulatory Authority (“FINRA”) (hereinafter collectively referred to as the “Placement Agents”),
shall be engaged by Enumeral Biomedical Holdings, Inc., a publicly traded Delaware corporation (hereinafter referred to as the
“Company”), to act as the co-exclusive Placement Agents in connection with the private placement (the
“Offering”) of the securities of the Company referred to below. The initial closing of the Offering will
be conditioned upon and acceptance of subscriptions for the Minimum Amount (as defined below) and the certain other conditions
described herein.


 


1.            Appointment of Placement Agents.


 


(a)               
On the basis of the written and documented representations and warranties of the Company provided herein, and subject to the terms
and conditions set forth herein, the Placement Agents are hereby appointed as the co-exclusive Placement Agents of the Company
during the Offering Period (as defined in Section 1(b) below) to assist the Company in finding qualified subscribers for the Offering.
The Placement Agents may offer the securities through other broker-dealers who are FINRA members (collectively, the “Sub
Agents”) and each Placement Agent may reallow all or a portion of the Broker Compensation (as defined in Section
3(b) below) it receives to such other Sub Agents or pay a finders or consultant fee as allowed by applicable law provided,
however, that the engagement of any such Sub Agent will be subject to the written consent of the Company, which shall not
be unreasonably withheld, conditioned or delayed and shall be provided within two business days of the Company’s receipt
of notice. On the basis of such representations and warranties and subject to such terms and conditions, the Placement Agents hereby
accept such appointment and agree to perform the services hereunder diligently and in good faith and in a professional and businesslike
manner and in compliance with applicable law and to use their reasonable best efforts to assist the Company in finding subscribers
for the securities who qualify as “accredited investors,” as such term is defined in Rule 501 of Regulation
D. The Placement Agents have no obligation to purchase any of the securities or sell any securities. Unless sooner terminated in
accordance with this Agreement, the engagement of the Placement Agents hereunder shall continue until the later of the Termination
Date or the Final Closing (as defined below).


 



    
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The Offering is for
the private placement of a minimum of $500,000 (the “Minimum Offering”) and a maximum of $3,000,000 (the
“Maximum Offering”) of Units of securities (the “Units” or “Securities”),
plus up to an additional $600,000 of Units (the “Over-Allotment”) to cover over-subscriptions, issued
by Enumeral Biomedical Holdings, Inc., a Delaware corporation (the “Company”), at a purchase price of
$1,000 per Unit (the “Purchase Price”). Each Unit consists of (i) one Senior Secured Convertible Promissory
Note of the Company in the face amount of $1,150 (each a “Note” and collectively, the “Notes”)
with a term of twelve (12) months from the initial closing date of the Offering (“Maturity”) bearing
interest at a rate of twelve percent (12%) per annum, and (ii) one warrant, substantially in the form of Exhibit A hereto
(the “Warrant”), representing the right to purchase Eleven Thousand Five Hundred (11,500) shares of the
Company’s common stock, par value $0.001 per share (“Common Stock”), exercisable for a period of
five (5) years from issuance at an exercise price of $0.10 per share. Each Note is convertible into shares of Common Stock (the
“Conversion Shares”) at a conversion price and on the other terms set forth in the Subscription Agreement
(as defined below) included in the Subscription Documents (as defined below). The minimum subscription is Fifty Thousand Dollars
($50,000) (50 Units), provided, however, that subscriptions in lesser amounts may be accepted by the Company in its sole
discretion.


 


(b)              
Placement of the Units by the Placement Agents will be made on a reasonable best efforts basis. The Company agrees and acknowledges
that the Placement Agents are not acting as underwriters with respect to the Offering and the Company shall determine the purchasers
in the Offering in its sole discretion. The Units constituting the Maximum Offering and the Over Allotment will be offered by the
Company to potential subscribers, which may include related parties of the Placement Agents or the Company through May 19, 2017
(the “Initial Offering Period”), which date may be extended by the mutual agreement of the Company and
the Placement Agent, (including extensions, the “Offering Period”). The date on which the Offering is
terminated shall be referred to as the “Termination Date”. The Closing (as defined below) of the Offering
may be held up to ten days after the Termination Date.


 


(c)               
The Company shall only offer Units to and accept subscriptions from or sell Units to, persons or entities that qualify as (or are
reasonably believed to be) “accredited investors,” as such term is defined in Rule 501(a) of Regulation
D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”).


 


(d)              
The offering of Units will be made by the Placement Agents on behalf of the Company solely pursuant to the Subscription Agreement
(as defined below) and the Exhibits to the Subscription Agreement, including, but not limited to, and to the extent applicable,
a Registration Rights Agreement, the Warrant, the Note, a Security Agreement and any documents, agreements, supplements and additions
thereto (collectively, the “Subscription Documents”), which at all times will be in form and substance
reasonably acceptable to the Company and its counsel and the Placement Agents and their counsels and contain such legends and other
information as the Company and its counsel and the Placement Agents and their counsels, may, from time to time, deem necessary
and desirable to be set forth therein.


 


(e)               
With respect to the Offering, the Company shall provide the Placement Agents, on terms set forth herein, the right to offer all
of the available Units being offered during the Offering Period (subject to prior offer and sale of some of the Units, if applicable).
It is understood that no sale shall be regarded as effective unless and until accepted by the Company. The Company may, in its
sole discretion, accept or reject, in whole or in part, any prospective investment in the Units or allot to any prospective subscriber
less than the number of Units that such subscriber desires to purchase. Purchases of Units may be made by each Placement Agent
and any selected sub-dealers and their respective officers, directors, employees and affiliates and by the officers, directors,
employees and affiliates of the Company (collectively, the “Affiliates”) for the Offering and such purchases
will be made by the Affiliates based solely upon the same information that is provided to the investors in the Offering.


 



    
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2.            Representations,
Warranties and Covenants.


 


A.           Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to the Placement Agents
that, except as otherwise set forth in the Company’s SEC Filings (as defined in Section 2(A)(b) below) immediately prior
to the closing of the transactions contemplated hereby, each of the representations and warranties contained in this Section 2
is true in all respects as of the date hereof and will be true in all respects as of the Closing Date and any subsequent Closing
Dates, as defined under Section 4(e). In addition to the representations and warranties set forth herein, the Placement Agents
shall be entitled to rely upon the representations and warranties made or given by the Company to any acquirer of Units in the
Offering in any agreement, certificate, legal opinion or otherwise in connection with an Offering. For purposes of this Section
2(A), the term Company includes all of the Company’s subsidiaries (if any).


 


(a)               
The Subscription Documents have been and/or will be prepared by the Company, in conformity with all applicable laws, and in compliance
with Regulation D and/or Section 4(a)(2) of the Act and the requirements of all other rules and regulations (the “Regulations”)
of the SEC relating to offerings of the type contemplated by the Offering, and the applicable securities laws and the rules and
regulations of those jurisdictions wherein the Placement Agents notify the Company that the Units are to be offered and sold (including
U.S. states). The Units will be offered and sold pursuant to the registration exemption provided by Regulation D and/or Section
4(a)(2) of the Act as a transaction not involving a public offering and the requirements of any other applicable state securities
laws and the respective rules and regulations thereunder in those United States jurisdictions in which the Placement Agents notify
the Company that the Units are being offered for sale. None of the Company, its predecessors or its affiliates, or any person acting
on its or their behalf (other than the Placement Agents, their Affiliates or any person acting on their behalf, in respect of which
no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements of, or that
would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to Rule 506(b) of Regulation
D and/or Section 4(a)(2) of the Act and applicable state securities laws, or knows of any reason why any such exemption would be
otherwise unavailable to it. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances
that would require registration under the Act of the issuance of the Units, Notes, Warrants or Broker Warrants (as hereinafter
defined). None of the Company, its predecessors or affiliates has been subject to any order, judgment or decree of any court of
competent jurisdiction temporarily, preliminarily or permanently enjoining such person for failing to comply with Section 503 of
Regulation D or the equivalent state securities law requirements. The Company has not, for a period of six months prior to the
commencement of the Offering sold, offered for sale or solicited any offer to buy any of its securities in a manner that would
be integrated with the offer and sale of the Units pursuant to this Agreement, would cause the exemption from registration set
forth in Rule 506 of Regulation D and state securities laws to become unavailable with respect to the offer and sale of the Units
in the United States. The Common Stock and the shares issued upon the exercise of the Warrants and Broker Warrants will be quoted
on the OTC Markets, the Nasdaq Stock Market, the NYSE, or such other markets where the Common Stock will be traded (collectively
referred to as the “Principal Market”). The Company has taken no action designed to, or likely to have
the effect of, terminating the quotation of the Common Stock on the Principal Market. The Company, on the Closing Date, will be
in compliance with all of the then-applicable requirements for continued quotation of the Common Stock on the Principal Market.


 



    
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(b)              
The Subscription Documents, as prepared and contemplated by the Company, will not and do not include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. To the knowledge of the Company, none of the statements,
documents, certificates or other items made, prepared or supplied by the Company with respect to the transactions contemplated
hereby contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements contained
therein not misleading in light of the circumstances in which they were made. There is no fact which the Company has not disclosed
in the Subscription Documents or which is not disclosed in the Company’s SEC Filings (as defined herein)of which the Company
is aware that materially adversely affects or that could reasonably be expected to have a material adverse effect on the (i) assets,
liabilities, results of operations, condition (financial or otherwise), or business of the Company or (ii) ability of the Company
to perform its obligations under this Agreement and the other Subscription Documents (the “Company Material Adverse
Effect”). “SEC Filings” shall mean the reports, schedules, forms, statements and other
documents field by the Company with the SEC on or prior to the date hereof or on or prior to the applicable Closing Date. Notwithstanding
anything to the contrary herein, the Company makes no representation or warranty with respect to any estimates, projections and
other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections and other forecasts
and plans) that may have been delivered to the Placement Agents or their respective representatives, except that such estimates,
projections and other forecasts and plans have been prepared in good faith on the basis of assumptions stated therein, which assumptions
were believed to be reasonable at the time of such preparation. Other than the Company’s SEC Filings, the Company has not
distributed and will not distribute prior to the Closing any offering material in connection with the offering and sale of the
Units, unless such offering materials are provided to the Placement Agents prior to or simultaneously with such delivery to the
offerees of the Units.


 


(c)               
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and
is qualified and in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted by
the Company or the property owned or leased by the Company requires such qualification, except to the extent that the failure to
be so qualified or be in good standing would not have a Company Material Adverse Effect. The Company has all requisite corporate
power and authority to conduct its business as presently conducted and as proposed to be conducted (as described in the Subscription
Documents and/or the SEC Filings), has all the necessary and requisite documents and approvals from all state authorities, has
all requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Subscription Agreement,
substantially in the form made part of the Subscription Documents (the “Subscription Agreement”), the
Registration Rights Agreement, substantially in the form made part of the Subscription Documents (the “Registration
Rights Agreement”), the Warrant, substantially in the form made part of the Subscription Documents (the “Warrant”),
the Notes, substantially in the form made part of the Subscription Documents (the “Notes”), the Security
Agreement, substantially in the form made part of the Subscription Documents (the “Security Agreement”)
and the other agreements, if any, contemplated by the Offering (this Agreement, the Subscription Agreement, the Registration Rights
Agreement, the Warrant, the Security Agreement, the Notes and the other agreements contemplated hereby that the Company is required
to execute and deliver are collectively referred to herein as the “Company Transaction Documents”) and
subject to necessary Board and stockholder approvals, to issue, sell and deliver the Notes, the Warrants, the Conversion Shares
and the shares of Common Stock issuable upon exercise of the Warrants and the Broker Warrants (as hereinafter defined in Section
3(b)) (the shares of Common Stock issuable upon exercise of the Warrants and the Broker Warrants are hereinafter referred to collectively
as the “Warrant Shares”) and to make the representations in this Agreement accurate and not misleading.
Prior to the First Closing, as defined under Section 4(e), each of the Company Transaction Documents and the Offering will have
been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes, and each of the other Company
Transaction Documents, upon due execution and delivery, will constitute, valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms (i) except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’
rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers,
and except that no representation is made herein regarding the enforceability of the Company’s obligations to provide indemnification
and contribution remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles
(regardless of whether such enforceability is considered in a proceeding at law or in equity).


 



    
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(d)              
None of the execution and delivery of or performance by the Company under this Agreement or any of the other Company Transaction
Documents or the consummation of the transactions in this Agreement or in the Subscription Documents (including the issuance and
sale of the Notes, the Warrants, the Broker Warrants or the issuance of the Conversion Shares or Warrants Shares conflicts with
or violates, or causes a default under (with our without the passage of time or the giving of notice), or will result in the creation
or imposition of, any lien, charge or other encumbrance upon any of the assets of the Company under any agreement, evidence of
indebtedness, joint venture, commitment or other instrument to which the Company is a party or by which the Company or its assets
may be bound, any statute, rule, law or governmental regulation applicable to the Company, or any term of the Certificate of Incorporation
as in effect on the date hereof or any Closing Date for the Offering (the “Certificate of Incorporation”)
or By-Laws as in effect on the date hereof or any Closing Date for the Offering (the “By-Laws”) of the
Company, or any license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company or any of its assets,
except in the case of a conflict, violation, lien, charge or other encumbrance (except with respect to the Company’s Certificate
of Incorporation or By-Laws) which would not, or could not reasonably be expected to, have a Company Material Adverse Effect. No
consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative
agency, or other governmental body is required for the execution and delivery of this Agreement by the Company and the valid issuance
or sale of the Notes, the Warrants, the Broker Warrants, the Conversion Shares and the Warrant Shares by the Company pursuant to
this Agreement, other than such as have been made or obtained and that remain in full force and effect, and except for the filing
of a Form D or any filings required to be made under state securities laws, which shall be timely filed by the Company.


 


(e)               
The Company’s financial statements, together with the related notes, if any, included in the Company’s SEC Filings,
present fairly, in all material respects, the financial position of the Company as of the dates specified and the results of operations
for the periods covered thereby. Such financial statements and related notes were prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis throughout the periods indicated, except that the unaudited financial
statements omit full notes, and except for normal year-end adjustments. If the financials for the Company are unaudited financial
statements, it states such clearly on the financials. During the period of engagement of the Company’s independent certified
public accountants, there have been no disagreements between the accounting firm and the Company on any matters of accounting principles
or practices, financial statement disclosure or auditing scope or procedures. The Company has made and kept books and records and
accounts which are in reasonable detail and which fairly and accurately reflect the activities of the Company in all material respects,
subject only to year-end adjustments. Except as set forth in such financial statements or otherwise disclosed in the Subscription
Documents, the Company’s senior management has no knowledge of any material liabilities of any kind, whether accrued, absolute
or contingent, or otherwise, and subsequent to the date of the Subscription Documents and prior to the date of the First Closing,
it shall not enter into any material transactions or commitments without promptly thereafter notifying each Placement Agent and
the purchasers in the Offering in writing of any such material transaction or commitment. The other financial and statistical information
with respect to the Company and any pro forma information and related notes included in the SEC Filings present fairly the information
shown therein on a basis consistent with the financial statements of the Company included in the SEC Filings. Except as disclosed
in the Subscription Documents, the Company does not know of any facts, circumstances or conditions which could materially adversely
affect its operations or earnings that have not been fully disclosed in the financial statements appearing in the SEC Filings or
other financial statements appearing in the SEC Filings or other documents or information provided by the Company.


 



    
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(f)               
Immediately prior to the First Closing, the Notes, the Warrants, the Broker Warrants, the Conversion Shares and the Warrants Shares
will have been duly authorized and, when issued and delivered against payment therefor as provided in the Company Transaction Documents,
will be validly issued, fully paid and nonassessable. No holder of any of the Notes, Warrants, Broker Warrants, Conversion Shares
or Warrants Shares will be subject to personal liability solely by reason of being such a holder, and except as described in the
Subscription Documents, none of the Notes, Warrants, Broker Warrants, Conversion Shares or Warrant Shares will be subject to preemptive
or similar rights of any stockholder or security holder of the Company or an adjustment under any antidilution or exercise rights
of any holders of any outstanding shares of capital stock, options, warrants or other rights to acquire any securities of the Company.
Immediately prior to the First Closing, a sufficient number of authorized but unissued shares of Common Stock will have been reserved
for issuance upon the conversion of the Notes and exercise of the Warrants and the Broker Warrants.


 


(g)               
Except as described in the Subscription Documents and/or the Company’s SEC Filings, and as of the date of each Closing: (i)
there will be no outstanding options, stock subscription agreements, warrants or other rights permitting or requiring the Company
or others to purchase or acquire any shares of capital stock or other equity securities of the Company or to pay any dividend or
make any other distribution in respect thereof; (ii) there will be no securities issued or outstanding which are convertible into
or exchangeable for any of the foregoing and there are no binding contracts, commitments or understandings, whether or not in writing,
to issue or grant any such option, warrant, right or convertible or exchangeable security; (iii) no securities of the Company or
other securities of the Company are reserved for issuance for any purpose; (iv) there will be no voting trusts or other binding
contracts, commitments, understandings, arrangements or restrictions of any kind with respect to the ownership, voting or transfer
of shares of stock or other securities of the Company, including, without limitation, any preemptive rights, rights of first refusal,
proxies or similar rights, and (v) no person prior to the execution of this Agreement by the Company holds a right to require the
Company to register any securities of the Company under the Act or to participate in any such registration. Immediately prior to
the First Closing, the issued and outstanding shares of capital stock of the Company will conform in all material respects to all
statements in relation thereto contained in the Company’s SEC Filings and the Company’s SEC Filings describe all material
terms and conditions thereof. All issuances by the Company of its securities have been issued pursuant to either a current effective
registration statement under the 1933 Act or an exemption from registration requirements under the Act, and were issued in accordance
with any applicable Federal and state securities laws.


 


(h)              
Except as described in the Subscription Documents and/or the Company’s SEC Filings, the Company has no subsidiaries and does
not own any equity interest and has not made any loans or advances to or guarantees of indebtedness to any person, corporation,
partnership or other entity and is not a party to any joint venture. The Company’s subsidiaries are duly incorporated or
organized, validly existing and in good standing under the laws of their jurisdiction of incorporation or organization and have
all requisite power and authority to carry on their business as now conducted. Such subsidiaries are duly qualified to transact
business and are in good standing in each jurisdiction in which the failure to so qualify would have a Company Material Adverse
Effect. All of the outstanding capital stock or other voting securities of such subsidiaries are owned by the Company, directly
or indirectly, free and clear of any liens, claims, or encumbrances. The conduct of business by the Company as presently and proposed
to be conducted is not subject to continuing oversight, supervision, regulation or examination by any governmental official or
body of the United States, or any other jurisdiction wherein the Company conducts or proposes to conduct such business, except
as described in the Subscription Documents and/or the Company’s SEC Filings and except as such regulation is applicable to
US public companies and commercial enterprises generally. The Company has obtained all material licenses, permits and other governmental
authorizations necessary to conduct its business as presently conducted, except where the failure to do so would not be reasonably
expected to cause a Company Material Adverse Effect. The Company has not received any notice of any violation of, or noncompliance
with, any federal, state, local or foreign laws, ordinances, regulations and orders (including, without limitation, those relating
to environmental protection, occupational safety and health, securities laws, equal employment opportunity, consumer protection,
credit reporting, “truth-in-lending”, and warranties and trade practices) applicable to its business, the violation
of, or noncompliance with, would have a Company Material Adverse Effect, and the Company knows of no facts or set of circumstances
which could give rise to such a notice.


 



    
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(i)                
Except as described in the Subscription Documents and/or the Company’s SEC Filings, no default by the Company or, to the
knowledge of the Company, any other party, exists in the due performance under any material agreement to which the Company is a
party or to which any of its assets is subject (collectively, the “Company Agreements”), except in the
case of defaults which would not be reasonably expected to cause a Company Material Adverse Effect. The Company Agreements, if
any, disclosed in the Subscription Documents and/or the Company’s SEC Filings are the only material agreements to which the
Company is bound or by which its assets are subject, are accurately described in the Subscription Documents and/or the Company’s
SEC Filings and are in full force and effect in accordance with their respective terms, subject to any applicable bankruptcy, insolvency
or other laws affecting the rights of creditors generally and to general equitable principles and the availability of specific
performance.


 


(j)                
Subsequent to the respective dates as of which information is given in the Subscription Documents, the Company has operated its
business in the ordinary course and, except as may otherwise be set forth in the Subscription Documents or the Company’s
SEC Filings, there has been no: (i) Company Material Adverse Effect; (ii) material transaction otherwise than in the ordinary course
of business consistent with past practice; (iii) issuance of any securities (debt or equity) or any rights to acquire any such
securities other than pursuant to equity incentive plans approved by its Board of Directors; (iv) damage, loss or destruction,
whether or not covered by insurance, with respect to any material asset or property of the Company; or (v) agreement to permit
any of the foregoing.


 


(k)               
Except as set forth in the Subscription Documents and/or the Company’s SEC Filings, there are no actions, suits, claims,
hearings or proceedings pending before any court or governmental authority or, to the knowledge of the Company, threatened, against
the Company, or involving its assets or any of its officers or directors (in their capacity as such) which, (i) if determined adversely
to the Company or such officer or director, could reasonably be expected to have a Company Material Adverse Effect or adversely
affect the transactions contemplated by this Agreement or the Company Transaction Documents (as defined in this Agreement) or the
enforceability hereof or (ii) would be required to be disclosed in the Company’s Annual Report on Form 10-K under the requirements
of Item 103 of Regulation S-K. The Company is not subject to any injunction, judgment, decree or order of any court, regulatory
body, arbitral panel, administrative agency or other government body.


 


(l)                
The Certificate of Incorporation and By-laws of the Company, in each case as filed as exhibits to the SEC Filings or included as
exhibits to the Subscription Documents are true, correct and complete copies of the Certificate of Incorporation and By-laws of
the Company, as in effect on the date hereof. Any subsequent amendments to the Certificate of Incorporation or By-laws will be
provided promptly to the Placement Agents and investors in the Offering. The Company is not: (i) in violation of its Certificate
of Incorporation or By-Laws; (ii) in default of any contract, indenture, mortgage, deed of trust, note, loan agreement, security
agreement, lease, alliance agreement, joint venture agreement or other agreement, license, permit, consent, approval or instrument
to which the Company is a party or by which it is or may be bound or to which any of its assets may be subject, the default of
which could reasonably be expected to have a Company Material Adverse Effect; (iii) in violation of any statute, rule or regulation
applicable to the Company, the violation of which would have a Company Material Adverse Effect; or (iv) in violation of any judgment,
decree or order of any court or governmental body having jurisdiction over the Company and specifically naming the Company, which
violation or violations individually, or in the aggregate, could reasonably be expected to have a Company Material Adverse Effect.


 



    
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(m)            
Except as disclosed in the Subscription Documents and/or the Company’s SEC Filings, as of the date of this Agreement, no
current or former stockholder, director, officer or employee of the Company, nor, to the knowledge of the Company, any affiliate
of any such person is presently, directly or indirectly through his/her affiliation with any other person or entity, a party to
any loan from the Company or any other transaction (other than as an employee) with the Company.


 


(n)              
The Company is not obligated to pay, and has not obligated the Placement Agents to pay, a finder’s or origination fee in
connection with the Offering other than to the Placement Agents under this Agreement, and hereby agrees to indemnify the Placement
Agents from any such claim made by any other person as more fully set forth in Section 8 hereof. Except as set forth in the Subscription
Documents, no other person has any right to participate in any offer, sale or distribution of the Company’s securities to
which the Placement Agents’ rights, described herein, shall apply.


 


(o)              
Until the earlier of (i) the Termination Date or (ii) the Final Closing (as hereinafter defined), the Company will not issue any
press release, grant any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering
without the Placement Agents’ prior written consent, which consent will not unreasonably be withheld, conditioned or delayed,
and subject to any applicable laws and regulations.


 


(p)              
No representation or warranty contained in Section 2A of this Agreement contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements herein not misleading in the context of such representations and warranties.
The Placement Agents shall be entitled to rely on such representations and warranties.


 


(q)              
No consent, authorization or filing of or with any court or governmental authority is required in connection with the issuance
or the consummation of the transactions contemplated herein or in the other Company Transaction Documents, except for required
filings with the SEC and the applicable state securities commissions relating specifically to the Offering (all of which filings
will be duly made by, or on behalf of, the Company), and those which are required to be made after the First Closing (all of which
will be duly made on a timely basis).


 



    
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(r)                
Neither the sale of the Units by the Company nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as
amended, nor any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter
V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company is
not (a) a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September
23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)) or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such person.
The Company and its subsidiaries, if any, are in compliance, in all material respects, with the USA Patriot Act of 2001 (signed
into law October 26, 2001). Each of the Company, and to its knowledge, its affiliates and any of their respective officers, directors,
supervisors, managers, agents, or employees, has not violated, and its participation in the offering will not violate, any of the
following laws: (a) anti-bribery laws, including but not limited to, any applicable law, rule, or regulation of any locality, including
but not limited to any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, signed December 17, 1997, including the U.S. Foreign Corrupt Practices Act of
1977, as amended, or any other law, rule or regulation of similar purposes and scope, (b) anti-money laundering laws, including
but not limited to, applicable federal, state, international, foreign or other laws, regulations or government guidance regarding
anti-money laundering, including, without limitation, Title 18 US. Code section 1956 and 1957, the Bank Secrecy Act, and international
anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task
Force on Money Laundering, of which the United States is a member and with which designation the United States representative to
the group or organization continues to concur, all as amended, and any executive order, directive, or regulation pursuant to the
authority of any of the foregoing, or any orders or licenses issued thereunder or (c) laws and regulations imposing U.S. economic
sanctions measures, including, but not limited to, the International Emergency Economic Powers Act, the United Nations Participation
Act and the Syria Accountability and Lebanese Sovereignty Act, all as amended, and any executive order, directive, or regulation
pursuant to the authority of any of the foregoing, including the regulations of the United States Treasury Department set forth
under 31 CFR, Subtitle B, Chapter V, as amended, or any orders or licenses issued thereunder. Neither the Company nor, to its knowledge,
any director, officer, agent, employee or other person acting on behalf of the Company has, in the course of its actions for, or
on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official
or employee from corporate funds; or (iii) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful
payment to any foreign or domestic government official or employee.


 


(s)               
None of Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company
participating in the Offering, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected
with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together,
“Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i)–(viii) under the Securities Act (a “Disqualification Event”), except
for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) or has been involved in any matter which would be a Disqualification
Event except for the fact that it occurred before September 23, 2013. The Company has exercised reasonable care to determine whether
any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its
disclosure obligations under Rule 506(e), and has furnished to each Placement Agent a copy of any disclosures provided thereunder.


 


(t)                
The Company is not aware of any person (other than any Issuer Covered Person or either Placement Agent Covered Person (as defined
below) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the
sale of any the Units. For purposes of this subsection, Placement Agent Covered Persons shall mean Katalyst, GPN or any of their
respective directors, executive officers, general partners, managing members or other officers participating in the Offering.


 


(u)              
The Company will promptly notify the Placement Agents in writing of (A) any Disqualification Event relating to any Issuer Covered
Person and (B) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.
The Company will notify the Placement Agents in writing, prior to each Closing Date of (i) any Disqualification Event relating
to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Issuer Covered Person.


 



    
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(v)              
The authorized capital stock of the Company as of the First Closing will be set forth in the Subscription Agreement. The Company’s
issued and outstanding capital stock immediately prior to the First Closing will be set forth in the Subscription Agreement. All
issued and outstanding shares of capital stock have been duly authorized and validly issued, are fully paid and nonassessable,
were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities, and, except as
disclosed in the Company’s SEC Filings, have been issued and sold in compliance with the registration requirements of federal
and state securities laws or the applicable statutes of limitation have expired. Except as set forth in the Subscription Agreement
and the Company’s SEC Filings, there are no (i) outstanding rights (including, without limitation, preemptive rights), warrants
or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity
interest in the Company, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company
or its subsidiaries is a party and relating to the issuance or sale of any capital stock or convertible or exchangeable security
of the Company; or (ii) obligations of the Company to purchase redeem or otherwise acquire any of its outstanding capital stock
or any interest therein or to pay any dividend or make any other distribution in respect thereof.


 


(w)             
The Company has ownership or license or legal right to use all patents, copyrights, trade secrets, know-how, trademarks, trade
names, customer lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results
or other proprietary rights used in the business of the Company or its subsidiaries (collectively “Intellectual Property”).
All of such patents, registered trademarks and registered copyrights have been duly registered in, filed in or issued by the United
States Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of other jurisdictions
and have been maintained and renewed in accordance with all applicable provisions of law and administrative regulations in the
United States and all such jurisdictions. The Company believes it has taken all reasonable steps required in accordance with sound
business practice and business judgment to establish and preserve its and its subsidiaries’ ownership of all material Intellectual
Property with respect to their products and technology. To the knowledge of the Company, there is no infringement of the Intellectual
Property by any third party. To the knowledge of the Company, the present business, activities and products of the Company and
its subsidiaries do not infringe any intellectual property of any other person. There is no proceeding charging the Company or
its subsidiaries with infringement of any adversely held Intellectual Property which has been filed and the Company is unaware
of any facts which are reasonably likely to form a basis for any such proceeding. No proceedings have been instituted or are pending
or, to the knowledge of the Company, threatened, which challenge the rights of the Company or its subsidiaries to the use of the
Intellectual Property. The Intellectual Property owned by the Company and its subsidiaries, and to the knowledge of the Company,
the Intellectual Property licensed to the Company and its subsidiaries, has not been adjudged invalid or unenforceable, in whole
or in part. There is no pending or, to the knowledge of the Company, threatened proceeding by others challenging the validity or
scope of any such Intellectual Property, and the Company is unaware of any facts which are reasonably likely to form a basis for
any such claim. Each of the Company and its subsidiaries has the right to use, free and clear of material claims or rights of other
persons, all of its customer lists, designs, computer software, systems, data compilations, and other information that are required
for its products or its business as presently conducted. Neither the Company nor its subsidiaries is making unauthorized use of
any confidential information or trade secrets of any person. The activities of any of the employees on behalf of the Company or
of its subsidiaries do not violate any agreements or arrangements between such employees and third parties which related to confidential
information or trade secrets of third parties or that restrict any such employee’s engagement in business activity of any
nature. Each former and current employee or consultant of the Company or its subsidiaries is a party to a written contract with
the Company or its subsidiaries that assigns to the Company or its subsidiaries, or has received an employee handbook that requires
an employee to assign, all rights to all inventions, improvements, discoveries and information relating to the Company or its subsidiaries,
except for any failure to so do as would not reasonably be expected to result in a Company Material Adverse Effect. All licenses
or other agreements under which (i) the Company or its subsidiaries employs rights in Intellectual Property, or (ii) the Company
or its subsidiaries has granted rights to others in Intellectual Property owned or licensed by the Company or its subsidiaries
are in full force and effect, and there is no default (and there exists no condition which, with the passage of time or otherwise,
would constitute a default by the Company or such subsidiary) by the Company or its subsidiaries with respect thereto.


 



    
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(x)            Friedman LLP, which expressed its opinion with respect to the consolidated financial statements contained in the Company SEC Documents,
has previously advised the Company that it is or was, and to the knowledge of the Company it is or was, a registered independent
public accounting firm as and when required by the Securities Act and the rules and regulations promulgated thereunder.


 


(y)            The Company has filed all material federal, state, local and foreign income and franchise tax returns and have paid or accrued
all taxes shown as due thereon, and, except as set out in the SEC Filings, the Company has no knowledge of a tax deficiency which
has been or might be asserted or threatened against it by any taxing jurisdiction, other than any deficiency which the Company
is contesting in good faith and with respect to which adequate reserves for payment have been established.


 


(z)            The Company maintains and will continue to maintain insurance of the types and in the amounts that the Company reasonably believes
are adequate for its business, including, but not limited to, insurance covering all real and personal property owned or leased
by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly
situated companies, all of which insurance is in full force and effect.


 


(aa)          On each Closing Date, all material stock transfer or other taxes (other than income taxes) that are required to be paid in connection
with the sale and transfer of the Notes, the Warrants and the Broker Warrants will be, or will have been, fully paid or provided
for by the Company and the Company will have complied in all material respects with all laws imposing such taxes.


 


(bb)         The Company (including its subsidiaries) is not an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for an investment
company, within the meaning of the Investment Company Act of 1940 and will not be deemed an “investment company”
as a result of the transactions contemplated by the Offering.


 


(cc)          The books, records and accounts of the Company accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions
of, the assets of, and the operations of, the Company.


 


(dd)         The Company’s statements contained in its most recent Annual Report on Form 10-K for the year ended December 31, 2016 regarding
its (i) disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Securities Exchange Act of 1934 (the
“Exchange Act”)) and (ii) internal accounting controls were and continue to be accurate. The Company
is not aware of any fraud, whether or not material, that involves management or other employees who have a significant role in
the Company’s or its subsidiaries’ internal controls. Except as set forth in the Company’s SEC Filings, since
December 31, 2016, there have been no changes that have materially affected, or are reasonably likely to materially affect, the
Company’s or its subsidiaries’ internal control over financial reporting, including any corrective actions with regard
to significant deficiencies and material weaknesses. There are no material off-balance sheet arrangements (as defined in Item 303
of Regulation S-K), or any other relationships with unconsolidated entities (in which the Company or its control persons have an
equity interest) that may have a material current or future effect on the Company’s or its subsidiaries’ financial
condition, revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures or capital
resources.


 


(ee)          Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has engaged or will engage in any
form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Securities Act) in
connection with the offer or sale of the Units.


 


(ff)           The Company is in compliance in all material respects with any and all applicable requirements of the Sarbanes-Oxley Act of 2002
that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that
are effective as of the date hereof.


 



    
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(gg)         The Company is not a party to any collective bargaining agreement, nor, to the Company’s knowledge, does it employ any member
of a union. The Company believes that its relations with its employees are good. No current executive officer of the Company (as
defined in Rule 501(f) of Regulation D under the Securities Act) has formally notified the Company that such officer intends to
leave the Company or otherwise terminate such officer’s employment with the Company. No executive officer of the Company,
to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each such executive officer does not subject the Company to any liability with respect
to any of the foregoing matters. The Company and its subsidiaries are in compliance with all federal, state, local and foreign
laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and
wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected
to result in a Company Material Adverse Effect.


 


(hh)         None of the Company, its subsidiaries or any executive officer of the Company (as defined in Rule 501(f) of Regulation D under
the Securities Act) has taken and will not take any action designed to or that might reasonably be expected to cause or result
in an unlawful manipulation of the price of the Common Stock to facilitate the sale or resale of the Conversion Shares or the Warrant
Shares. The Company confirms that, to its knowledge, with the exception of the proposed sale of Securities, neither it nor any
other person acting on its behalf has provided any of the potential investors or their agent or counsel with any information that
constitutes or might constitute material, non-public information. The Company understands and confirms that the potential investors
shall be relying on the foregoing representations in effecting transactions in securities of the Company.


 


(ii)            The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Company’s Certificate of Incorporation or the laws of the jurisdiction of its formation which is or could
become applicable to any potential investor as a result of the transactions contemplated by the Offering, including, without limitation,
the Company’s issuance of the Units and any potential investor’s ownership of the Units. The Company has not adopted
a stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of its capital stock or a change
in control of the Company.


 


(jj)            The Company acknowledges that the Placement Agents, any sub agents, legal counsel to the Company and the Placement Agents and/or
their respective affiliates, principals, representatives or employees may now or hereafter own shares of the Company.


 


B.           Representations,
Warranties and Covenants of the Placement Agents.


 


1.             Representations,
Warranties and Covenants of the Placement Agents. Each of the Placement Agents, solely on behalf of itself, hereby represents
and warrants to the Company that the following representations and warranties are true and correct as of the date of this Agreement:


 


(a)            The Placement Agent is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in
which it was formed and has all requisite corporate power and authority to enter into this Agreement and to carry out and perform
its obligations under the terms of this Agreement.


 



    
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(b)            This Agreement has been duly authorized, executed and delivered by the Placement Agents, and upon due execution and delivery by
the Company, this Agreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with
its terms, except as may be limited by principles of public policy and, as to enforceability. subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect
and subject to general equity principles.


 


(c)            The Placement Agent, and to its knowledge, each Sub Agent, if any, is a member of FINRA in good standing and are registered as
a broker-dealer under the Exchange Act and under the securities acts of each state into which it is making offers or sales of the
Units. None of the Placement Agent or its affiliates, or any person acting on behalf of the foregoing, including any Sub-Agents
(other than the Company, its or their affiliates or any person acting on its or their behalf. in respect of which no representation
is made) has taken nor will it take any action that conflicts with the conditions and requirements of, or that would make unavailable
with respect to the Offering, the exemption(s) from registration available pursuant to Rule 506(b) of Regulation D or Section 4(a)(2)
of the Act, or knows of any reason why any such exemption would be otherwise unavailable to it. The Placement Agent will conduct
the Offering in compliance with all applicable securities laws.


 


(d)            The Placement Agent agrees that it has not and will not directly or indirectly solicit offers for, or offer to sell, the Units
(i) by means of general solicitation or advertising (as those terms are used in Regulation D) or in any manner involving a public
offering within the meaning of Section 4(a)(2) of the Securities Act.


 


(e)            To the Placement Agent’s knowledge, and to the knowledge of each Sub Agent, if any, (i) there are no actions, suits, claims,
hearings or proceedings pending before any court or governmental authority or threatened, against the Placement Agents, or any
Sub-Agent, if any and (ii) neither the Placement Agent nor any Sub-Agent is in violation of any judgment, decree or order of any
court or governmental body having jurisdiction over the Placement Agent nor any Sub-Agent Company.


 


(f)             The Placement Agent represents that neither it, nor to its knowledge any of its Sub-Agents or any of its or their respective directors,
executive officers, general partners, managing members or other officers participating in the Offering (each, a “Placement
Agent Covered Person” and, together, “Placement Agent Covered Persons”), is or will be
subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the
Securities Act (a “Disqualification Event”) or has or will have been involved in any matter which
would be a Disqualification Event except for the fact that it occurred before September 23, 2013.


 


(g)            The Placement Agent will notify the Company promptly in writing of any Disqualification Event relating to any Placement Agent Covered
Person not previously disclosed to the Company in accordance with the prior section.


 


(h)            The Placement Agent is not aware of any person (other than any Placement Agent Covered Person) that has been or will be paid (directly
or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Units. The Placement Agent will promptly
notify the Company of any agreement entered into between Placement Agent and such person in connection with such sale.


 


3.            Placement
Agent Compensation.


 


(a)           At each Closing, the Company will pay cash fees (the “Broker Cash Fee”) to the Placement Agents in direct
proportion to the sale of Units made through them, in amounts, equal, in the aggregate, to Ten Percent (10%) of each Closing’s
gross proceeds from the sale of Units. The Broker Cash Fee shall be paid to the Placement Agents in cash by wire transfer from
the escrow account established for the Offering, and as a condition to closing, simultaneous with the distribution of funds to
the Company.


 



    
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(b)           At each Closing, the Company will deliver warrants to purchase Common Stock to the Placement Agents (or their designees), in direct
proportion to the sale of Units made through them, in amounts, equal, in the aggregate, to Ten Percent (10%) of the number of shares
of Common Stock that will result from the conversion of the Notes sold to Subscribers in such Closing based upon the fixed conversion
price of $0.10 per share, which warrants shall have an initial exercise price equal to $0.05 per share of Common Stock (the “Broker
Warrants”). The Broker Cash Fee and the Broker Warrants are sometimes referred to collectively as the “Broker
Compensation”. The Broker Warrants shall have a term of five (5) years from the date of the Closing at which they
are required to be delivered and, to the extent permitted by applicable laws, shall permit unencumbered transfer to the respective
employees and affiliates of the Placement Agents, at a Placement Agent’s request. The Broker Warrants will include customary
anti-dilution provisions covering stock splits, dividends, mergers and similar transactions and will be similar in all material
respective to the Warrants.


 


(c)           To the extent there is more than one Closing, payment of the proportional amount of the Broker Cash Fee will be made out of the
gross proceeds from any sale of Units sold at each Closing and the Company will issue to the respective Placement Agents the corresponding
number of Broker Warrants to which they are entitled. All Broker Cash Fees and Broker Warrants under this Agreement shall be paid
directly by the Company to and in the names provided to the Company by the respective Placement Agents.


 


(d)           Katalyst acknowledges that it and the Company are parties to (i) that certain Placement Agent Agreement, dated as of June 21, 2016
(the “2016 PAA”), and (ii) that certain Warrant Agent Agreement, dated as of October 26, 2016 (the “2016
WAA”); and the Placement Agents further confirm and agree that, notwithstanding anything to the contrary contained
in either the 2016 PAA or the 2016 WAA, with respect to the Offering Katalyst, including present and former registered representatives
of Katalyst, is only entitled to the Broker Compensation contained in this Agreement and that Katalyst, including present and former
registered representatives of Katalyst, is not entitled to compensation under either the 2016 PAA or 2016 WAA in addition to the
Broker Compensation.


 


(e)           A
Placement Agent shall be entitled to the Broker Cash Fee and the Broker Warrants calculated in the manner provided in Sections
3(a) and 3(b) above with respect to any subsequent public or private offering or other financing or capital-raising transaction
of any kind by the Company (a “Subsequent Financing”) to the extent that such Placement Agent is not
participating in the Subsequent Financing and such financing or capital is provided to the Company, or to any Affiliate of the
Company, by investors whom such Placement Agent had “introduced” (as defined below), directly or indirectly,
to the Company during the Offering Period, if such Subsequent Financing is consummated at any time within the twelve (12) month
period (the “Tail Period”) following the earlier of expiration or termination of this Agreement or the
closing of the Offering, if consummated. A party “introduced” by a Placement Agent shall mean an investor
who either (i) participated in the Offering, (ii) met with the Company and/or had a conversation with the Company either in person
or via telephone regarding the Offering or (iii) was provided by such Placement Agent with a copy of materials prepared and/or
approved by the Company in connection with the Offering, in each case based upon such investor expressing an interest, directly
or indirectly, to such Placement Agent in investing in the Offering. An “Affiliate” of an entity shall
mean any individual or entity controlling, controlled by or under common control with such entity and any officer, director, employee,
stockholder, partner, member or agent of such entity.


 



    
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4.            Subscription
and Closing Procedures.


 


(a)           The Company shall cause to be delivered to the Placement Agents copies of the Subscription Documents and has consented, and hereby
consents, to the use of such copies for the purposes permitted by the Act and applicable securities laws and in accordance with
the terms and conditions of this Agreement, and hereby authorizes the Placement Agents and their agents and employees to use the
Subscription Documents in connection with the sale of the Units until the earlier of (i) the Termination Date or (ii) the Final
Closing, and no person or entity is or will be authorized to give any information or make any representations other than those
contained in the Subscription Documents or to use any offering materials other than those contained in the Subscription Documents
in connection with the sale of the Units, unless the Company first provides the Placement Agents with notification of such information,
representations or offering materials.


 


(b)           The Company shall make available to the Placement Agents and their respective representatives such information, including, but
not limited to, financial information, and other information regarding the Company (the “Information”),
as may be reasonably requested in making a reasonable investigation of the Company and its affairs. The Company shall provide access
to the officers, directors, employees, independent accountants, legal counsel and other advisors and consultants of the Company
as shall be reasonably requested by the Placement Agents. The Company recognizes and agrees that the Placement Agents (i) will
use and rely primarily on the Information and generally available information from recognized public sources in performing the
services contemplated by this Agreement without independently verifying the Information or such other information, (ii) does not
assume responsibility for the accuracy of the Information or such other information, and (iii) will not make an appraisal of any
assets or liabilities owned or controlled by the Company or its market competitors.


 


(c)           Each prospective purchaser will be required to complete and execute the Subscription Documents, Investor Profile, Anti-Money Laundering
Form, Accredited Investor Certification and other documents which will be forwarded or delivered to the respective Placement Agent
at the Placement Agent’s offices at the address set forth in Section 12 hereof or to an address identified in the Subscription
Documents.


 


(d)           Simultaneously with the delivery of Subscription Documents by the subscriber, the subscriber’s check or other good funds
will be forwarded directly by the subscriber to the escrow agent (the “Escrow Agent”) and deposited into
a non interest bearing escrow account (the “Escrow Account”) established for such purpose. All such funds
for subscriptions will be held in the Escrow Account pursuant to the terms of an escrow agreement among the Company, the Placement
Agents and the Escrow Agent. The Company will pay all fees related to the establishment and maintenance of the Escrow Account.
Subject to the receipt of subscriptions for the amount for Closing, the Company will either accept or reject, for any or no reason,
the Subscription Documents in a timely fashion and at each Closing will countersign the Subscription Documents and provide duplicate
copies of such documents to the Placement Agents for distribution to the subscribers. The Company will give notice to the Placement
Agents of its acceptance of each subscription. The Company, or a Placement Agent on the Company’s behalf, will promptly return
to subscribers incomplete, improperly completed, improperly executed and rejected subscriptions. Written notice shall be provided
to all Placement Agents upon such return.


 


(e)           If subscriptions for at least the Minimum Offering Amount for Closing have been accepted prior to May 19, 2017, which date may
be extended in writing by the mutual agreement of the Company and the Placement Agents, the funds therefor have been collected
by the Escrow Agent and all of the conditions set forth elsewhere in this Agreement are fulfilled, a closing shall be held promptly
with respect to the Units sold (the “First Closing”). Thereafter, the Units may continue to be offered
and sold until the earlier of the end of the Initial Offering Period, the Termination Date, or the date on which the Maximum Offering
Amount together with the Over Allotment amount has been sold. Additional Closings (each a “Closing”,
collectively “Closings”) may from time to time be conducted at times mutually agreed to between the Company
and the Placement Agents with respect to additional Units sold, with the final closing (“Final Closing”)
to occur within 10 days after the earlier of the Termination Date and the date on which the Maximum Amount has the Option Amount
has been subscribed for. Delivery of payment for the accepted subscriptions for the Units from the funds held in the Escrow Account
will be made at each Closing at a Placement Agent’s office against delivery of the Units by the Company at the address set
forth in Section 12 hereof (or at such other place as may be mutually agreed upon between the Company and the Placement Agents),
net of amounts agreed upon by the parties herein, including, the Blue Sky counsel as of such Closing. Executed Notes and Warrants
will be in such authorized denominations and registered in such names as the respective Placement Agents may request on or before
the date of each Closing (“Closing Date”). The Notes and Warrants will be forwarded to the subscriber
directly by the Company within seven (7) business days following each Closing.


 



    
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(f)           If Subscription Documents for the Minimum Offering Amount for Closing have not been received and accepted by the Company on or
before the Termination Date for any reason, the Offering will be terminated, no Units will be sold, and the Escrow Agent will,
at the request of the Company and the Placement Agents, cause all monies received from subscribers for the Units to be promptly
returned to such subscribers without interest, penalty, expense or deduction.


 


5.            Further
Covenants. The Company hereby covenants and agrees that:


 


(a)           Except upon prior written notice to the Placement Agents, the Company shall not, at any time prior to the Final Closing, knowingly
take any action which would cause any of the representations and warranties made by it in this Agreement not to be complete and
correct in all material respects on and as of the date of each Closing with the same force and effect as if such representations
and warranties had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier
date).


 


(b)           If, at any time prior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect which as a result
it becomes necessary to amend or supplement the Subscription Documents so that the representations and warranties herein remain
true and correct in all material respects, or in case it shall be necessary to amend or supplement the Subscription Documents to
comply with Regulation D or any other applicable securities laws or regulations, the Company will promptly notify the Placement
Agents and shall, at its sole cost, prepare and furnish to the Placement Agents copies of appropriate amendments and/or supplements
in such quantities as the Placement Agent may reasonably request. The Company will not at any time before the Final Closing prepare
or use any amendment or supplement to the Subscription Documents of which the Placement Agents will not previously have been advised
and furnished with a copy, or which is not in compliance in all material respects with the Act and other applicable securities
laws. As soon as the Company is advised thereof, the Company will advise the Placement Agents and their counsels, and confirm the
advice in writing, of any order preventing or suspending the use of the Subscription Documents, or the suspension of any exemption
for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened institution
of any proceedings for any of such purposes, and the Company will use its best efforts to prevent the issuance of any such order
and, if issued, to obtain as soon as reasonably possible the lifting thereof.


 


(c)           The Company shall comply with the Act, the Exchange Act, the rules and regulations thereunder, all applicable state securities
laws and the rules and regulations thereunder in the states in which the Company’s blue sky (“Blue Sky”)
counsel has advised the Placement Agents and/or the Company that the Units are exempt from qualification or registration, so as
to permit the continuance of the sales of the Units, and will file or cause to be filed with the SEC, and shall promptly thereafter
forward or cause to be forwarded to the Placement Agents, any and all reports on Form D as are required. The Company will reimburse
special counsel to GPN for reasonable attorney’s fees and out of pocket expenses related to the filings for exemption from
such qualifications or registration (“Registration”) with any state securities commissions and any other
regulatory agencies. Such fees will be paid at the time of invoicing, or at the time of Closing, if known, and if not yet invoiced,
funds will remain in escrow to cover the estimated invoice. The Company will pay the invoice or authorize release of the funds
from escrow within five (5) days of receipt of invoice.


 



    
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(d)           The Company shall place a legend on the Notes and the certificates representing the Warrants, the Broker Warrants, the Conversion
Shares and the Warrant Shares that the securities evidenced thereby have not been registered under the Act or applicable state
securities laws, setting forth or referring to the applicable restrictions on transferability and sale of such securities under
the Act and applicable state laws.


 


(e)           The Company shall apply the net proceeds from the sale of the Units for the purposes set forth in the Subscription Documents. Except
as set forth in the Subscription Documents, the Company shall not use any of the net proceeds of the Offering to repay indebtedness
to officers (other than accrued salaries incurred in the ordinary course of business), directors or stockholders of the Company
without the prior written consent of the Placement Agents.


 


(f)            During the Offering Period, the Company shall afford each prospective purchaser of Units the opportunity to ask questions of and
receive answers from an officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain
such other additional information necessary to verify the accuracy of the Subscription Documents to the extent the Company possesses
such information or can acquire it without unreasonable expense.


 


(g)           Except with the prior written consent of the Placement Agents, the Company shall not, at any time prior to the earlier of the Final
Closing or the Termination Date, except as contemplated by the Subscription Documents (i) engage in or commit to engage in any
transaction outside the ordinary course of business as described in the Subscription Documents, (ii) issue, agree to issue or set
aside for issuance any securities (debt or equity) or any rights to acquire any such securities, (iii) incur, outside the ordinary
course of business, any material indebtedness, (iv) dispose of any material assets, (v) make any material acquisition or (vi) change
its business or operations in any material respect; provided, however, that nothing herein shall prohibit the Company
from (1) entering into collaboration and licensing arrangements with third parties, or (2) entering into arrangements for the disposition
of the Company, including definitive merger and acquisition agreements and/or stock or asset purchase agreements related to the
sale of all or substantially all of the Company’s assets, and/or commencing liquidation or bankruptcy proceedings on behalf
of the Company, for which in the event of either (1) or (2) the prior written consent of the Placement Agents will not be required.


 



    
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(h)           Whether or not the transactions contemplated hereby are consummated, or this Agreement is terminated, the Company shall pay all
reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents and instruments
related to the Offering and the issuance of the Units, Notes, Warrants, Broker Warrants, Conversion Shares, and Warrant Shares
and will also pay for the Company’s expenses for accounting fees, legal fees, printing costs, and other costs involved with
the Offering. The Company will provide at its own expense such quantities of the Subscription Documents and other documents and
instruments relating to the Offering as the Placement Agents may reasonably request. The Company will pay for expenses incurred
in connection with the creation, authorization, issuance, transfer and delivery of the Units, including, without limitation, fees
and expenses of any transfer agent or registrar; the fees and expenses of the Escrow Agent; all fees and expenses of legal, accounting
and other advisers to the Company; and the Form D filings for offer and sale of the Units under the federal securities and Blue
Sky laws, within five (5) days of being invoiced. The Company will pay all such amounts, unless previously paid, at the First Closing,
or, if there is no Closing, within ten (10) days after written request therefor following the Termination Date. In addition to
any fees payable to the Placement Agents hereunder, the Company shall pay the fees of Katalyst’s legal counsel at the time
of each Closing in an amount equal to the 1% of the gross proceeds from such Closing (“Katalyst Legal Fee”).
The aggregate amount of Katalyst Legal Fees payable at all Closings shall be not less than $15,000. Accordingly, at the Final Closing,
should the aggregate payments of Katalyst Legal Fees, including fees to be paid pursuant to the foregoing formula at such Final
Closing, be less than $15,000, an additional payment of Katalyst Legal Fees shall be made at the Final Closing to bring the total
to $15,000. In addition to any fees payable to the Placement Agents hereunder and regardless of whether the Offering is consummated,
the Company hereby agrees to promptly pay the reasonable legal fees and expenses of special counsel to GPN, in an amount not to
exceed Forty Thousand Dollars ($40,000) in legal fees and Three Thousand Dollars ($3,000) in expenses (such special counsel fees
and expenses to be hereinafter referred to as the “Special Counsel Legal Fees”), paid directly from the
escrow account at the time of the each Closing from the gross Offering proceeds and in the event the Offering is terminated prior
to any Closing having taken place, then within five (5) days of the termination of the Offering by wire transfer. A Katalyst Legal
Fee payment in the amount of $15,000 shall be made in the same manner in the event the Offering is terminated prior to any Closing.
The Company also agrees to pay GPN a non-accountable expense allowance as follows: $3,000 shall be paid at the time of the first
Closing, and $7,000 shall be paid at the time of the final Closing. Payment of legal fees and expenses is separate and apart from
the Broker Compensation and other expenses described herein. Such reimbursement and payment obligations are in addition to the
reimbursement of fees and expenses relating to attendance by a Placement Agent at proceedings or to indemnification and contribution
as contemplated elsewhere in this Agreement. In the event a Placement Agent’s personnel must attend or participate in judicial
or other proceedings to which we are not a party relating to the subject matter of this agreement, the Company shall pay such Placement
Agent an additional per diem payment, per person, at its customary rates, together with reimbursement of all out-of-pocket expenses
and disbursements, including reasonable attorneys’ fees and disbursements incurred by it in respect of its preparation for
and participation in such proceedings. The Katalyst Legal Fee and Special Counsel Legal Fees do not include Blue Sky legal fees
and expenses, fees related to other regulatory filings to be made in connection with the Offering and fees related to the preparation
and filing of registration statements.


 


(i)            On each Closing Date, the Company permits the Placement Agents to rely on any representations and warranties made by the
Company to the investors and will cause its counsel to permit the Placement Agents to rely upon any opinion furnished to the investors
in the Private Placement.


 


(j)            The Company will comply with all of its obligations and covenants set forth in its agreements with the investors in the
Offering. If not filed on EDGAR, the Company will promptly deliver to the Placement Agents and their counsels copies of any and
all filings with the SEC and each amendment or supplement thereto, as well as all prospectuses and free writing prospectuses, prior
to the closing of the Offering and six months thereafter. The Placement Agents are authorized on behalf of the Company to use and
distribute copies of any Subscription Documents, including Company’s SEC Filings in connection with the sale of the Units
as, and to the extent, permitted by federal and applicable state securities laws. The Company acknowledges and agrees that the
Placement Agents will be relying, without assuming responsibility for independent verification, on the accuracy and completeness
of all financial and other information that is and will be furnished to them by the Company and the Company will be liable for
any material misstatements or omissions contained therein.


 


6.            Conditions
of Placement Agents’ Obligations. The obligations of the Placement Agents hereunder to affect a Closing are subject
to the fulfillment, at or before each Closing, of the following additional conditions:


 


(a)           Each of the representations and warranties made by the Company shall be true and correct on each Closing Date.


 


(b)           The Company shall have performed and complied in all material respects with all agreements, covenants and conditions required to
be performed, and complied with by it at or before the Closing.


 



    
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(c)           The Subscription Documents and the SEC Filings taken as a whole do not, and as of the date of any amendment or supplement thereto
will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading.


 


(d)           No order suspending the use of the Subscription Documents or enjoining the Offering or sale of the Units shall have been issued,
and no proceedings for that purpose or a similar purpose shall have been initiated or pending, or, to the best of the Company’s
knowledge, be contemplated or threatened.


 


(e)           No holder of any of the Units from the Offering will be subject to personal liability solely by reason of being such a holder,
and except as described in the Subscription Documents, none of the Notes, Warrants, Broker Warrants, Conversion Shares and Warrant
Shares will be subject to preemptive or similar rights of any stockholder or security holder of the Company, or an adjustment under
any antidilution or exercise rights of any holders of any outstanding shares of capital stock, membership units, options, warrants
or other rights to acquire any securities of the Company.


 


(f)            Since the date of the latest balance sheet included in the financial statements contained within the SEC Filings, except as specifically
disclosed herein, in the Subscription Agreement or in SEC Filings, there have been no events, occurrences or developments that
have had or would reasonably be expected to have a Company Material Adverse Effect.


 


(g)           The Placement Agents shall have received a certificate of the Chief Executive Officer of the Company, dated as of each Closing
Date, certifying, as to the fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d), (e) and (f) above.


 


(h)           The Company shall have delivered to the Placement Agents: (i) a good standing certificate dated as of a date within 10 days prior
to the date of the First Closing from the secretary of state of its jurisdiction of incorporation and (ii) resolutions of the Company’s
Board of Directors approving this Agreement and the transactions and agreements contemplated by this Agreement, and the Subscription
Documents, all as certified by the Chief Executive Officer of the Company.


 


(i)            At each Closing, the Company shall have (i) paid to the Placement Agents the Compensation as set forth in Section 3 above in respect
of all Units sold at such Closing, (ii) executed and delivered the Broker Warrants in respect of all Units sold at such Closing
as per the instructions of the respective Placement Agents and (iii) paid all fees, costs and expenses as set forth in Section
5 hereof.


 


(j)            There shall have been delivered to the Placement Agents a signed opinion of counsel to the Company dated as of the first Closing
Date, acceptable to the Placement Agents and their counsels.


 


(k)           All proceedings taken at or prior to the Closing in connection with the authorization, issuance and sale of the Notes and the Warrants
will be reasonably satisfactory in form and substance to the Placement Agents and their counsels, and such counsels shall have
been furnished with all such documents, certificates and opinions as they may reasonably request upon reasonable prior notice in
connection with the transactions contemplated hereby.


 


(l)            If in connection with the Offering, the Placement Agents determine that they or the Company would be required to make a filing
with the FINRA to enable the Placement Agents to act as agent in the Offering, the Company will do the following: The Company will
cooperate with the Placement Agents with respect to all FINRA filings that the Company or the Placement Agents may be required
to make, provide all information and documentation reasonably necessary to make the filings in a timely manner, and pay any FINRA
filing fees.


 



    
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(m)          The Company agrees and understands that this Agreement in no way constitutes a guarantee that the Offering will be successful.
The Company acknowledges that the Company is ultimately responsible for the successful completion of a transaction.


 


7.             Conditions of the Company’s Obligations. The obligations of the Company hereunder are subject to the satisfaction
of each of the following conditions:


 


(a)           The satisfaction or waiver of all conditions to Closing as set forth herein.


 


(b)           As of each Closing, each of the representations and warranties made by Placement Agents herein being true and correct as of the
Closing Date for such Closing.


 


(c)           At each Closing, the Company shall have received the proceeds from the sale of the Units that are part of such Closing less applicable
Broker Cash Fees and other deductions contemplated by this Agreement.


 


(d)           At each Closing, the Company shall have received a copy of Subscription Documents signed by investors delivered by the Placement
Agents.


 


7A.         Mutual Condition.
The obligations of the Placement Agents and the Company hereunder are subject to the execution by each investor of a Subscription
Agreement in form and substance acceptable to the Placement Agents and the Company and deposit by such investor with the escrow
agent of all funds required to be so deposited by such investor.


 


8.            Indemnification.


 


(a)           The Company will: (i) indemnify and hold harmless the Placement Agents, jointly and severally, and their agents and their respective
officers, directors, employees, agents, selected dealers and each person, if any, who controls the respective Placement Agent within
the meaning of the Act and such agents (each an “Indemnitee” or a “Placement Agent Party”)
against, and pay or reimburse each Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever (or
actions or proceedings or investigations in respect thereof (collectively, “Proceedings”), joint or several
(which will, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation
and all reasonable attorneys’ fees, including appeals), to which any Indemnitee may become subject under the Act or otherwise,
in connection with the offer and sale of the Units as a result of the breach of any representation, warranty or covenant made by
the Company herein or the failure of the Company to perform its obligations under the Agreement, regardless of whether such losses,
claims, damages, liabilities or expenses shall result from any claim by any Indemnitee or by any third party; and (ii) reimburse
each Indemnitee for any legal or other expenses reasonably incurred in connection with investigating or defending against any such
loss, claim, action, proceeding or investigation; provided, however, the Company will not be liable in any such case to the extent
that any such claim, damage or liability of a Placement Agent resulted from (A) any untrue statement or alleged untrue statement
of any material fact contained in the Subscription Documents made in reliance upon and in conformity with information contained
in the Subscription Documents relating to the Placement Agent, or an omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, in either case, if made or omitted in
reliance upon and in conformity with written information furnished to the Company by the Placement Agent, specifically for use
in the preparation thereof, (B) any
violations by a Placement Agent of the Act, state securities laws or any rules or regulations of FINRA, which does not result from
a violation thereof by the Company or any of its respective affiliates or (C) a
Placement Agent’s gross negligence or willful misconduct. In addition to the foregoing agreement to indemnify and reimburse,
the Company will indemnify and hold harmless each Indemnitee against any and all losses, claims, damages, liabilities or expenses
whatsoever (or actions or proceedings or investigations in respect thereof), joint or several (which shall, for all purposes of
this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’
fees, including appeals) to which any Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or
liabilities arise out of or are based upon the claim of any person or entity that he or it is entitled to broker’s or finder’s
fees from any Indemnitee in connection with the Offering as a result of the Company obligating itself or any Indemnitee to pay
such a fee, other than fees due to the Placement Agents, their dealers, sub-agents or finders. The foregoing indemnity agreements
will be in addition to any liability the Company may otherwise have. The Indemnitees are intended third party beneficiaries of
this provision.


 



    
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(b)           Each Placement Agent, separately but not jointly, will: (i) indemnify and hold harmless the Company, and its agents and
their respective officers, directors, employees. agents, selected dealers and each person, if any, who controls the Company within
the meaning of the Act and such agents (each a “Company Indemnitee” or a “Company Party”)
against, and pay or reimburse each Company Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever
(or Proceedings, joint or several (which will, for all purposes of this Agreement, include, but not be limited to. all reasonable
costs of defense and investigation and all reasonable attorneys’ fees and expenses, including appeals)), to which any Company Indemnitee
may become subject (a) under the Act or otherwise, in connection with the offer and sale of the Units and (b) which results from
(x) any untrue statement or alleged untrue statement of any material fact contained in the Subscription Documents made in reliance
upon and in conformity with information contained in the Subscription Documents relating to the Placement Agent, or an omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in either case, if made or omitted in reliance upon and in conformity with written information furnished to the
Company by the Placement Agent, specifically for use in the preparation thereof or (y) any violations by the Placement Agent of
the Act or state of foreign securities laws which does not result from a violation thereof by the Company Indemnitees or any of
their respective affiliates, and (ii) reimburse each Company Indemnitee for any legal or other expenses reasonably incurred in
connection with investigating or defending against any such loss, claim, action, proceeding or investigation; provided,
however, in no event (except in the event of gross negligence or willful misconduct by the Placement Agent to the extent
and only to the extent if found in a final judgment by a court of competent jurisdiction) shall a Placement Agent’s indemnification
obligation hereunder exceed the amount of the Broker Cash Fees actually received by such Placement Agent.


 


(c)           Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding
or investigation (the “Action”), such indemnified party, if a claim in respect thereof is to be made
against the indemnifying party under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission
to so notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party under this
Section 8 unless the indemnifying party has been substantially prejudiced by such omission. The indemnifying party will be entitled
to participate in and, to the extent that it may wish, jointly with any other indemnifying party, to assume the defense thereof
subject to the provisions herein stated, with counsel reasonably satisfactory to such indemnified party. The indemnified party
will have the right to employ separate counsel in any such Action and to participate in the defense thereof, but the fees and expenses
of such counsel will not be at the expense of the indemnifying party if the indemnifying party has assumed the defense of the Action
with counsel reasonably satisfactory to the indemnified party, provided, however, that if the indemnified party shall be requested
by the indemnifying party to participate in the defense thereof or shall have concluded in good faith and specifically notified
the indemnifying party either that there may be specific defenses available to it that are different from or additional to those
available to the indemnifying party or that such Action involves or could have a material adverse effect upon it with respect to
matters beyond the scope of the indemnity agreements contained in this Agreement, then the counsel representing it, to the extent
made necessary by such defenses, shall have the right to direct such defenses of such Action on its behalf and in such case the
reasonable fees and expenses of such counsel in connection with any such participation or defenses shall be paid by the indemnifying
party. No settlement of any Action against an indemnified party will be made without the consent of the indemnifying party and
the indemnified party, which consent shall not be unreasonably withheld, conditioned or delayed in light of all factors of importance
to such party, and no indemnifying party shall be liable to indemnify any person for any settlement of any such claim effected
without such indemnifying party’s consent. Notwithstanding the immediately preceding sentence, if at any time an indemnified
party requests the indemnifying party to reimburse the indemnified party for legal or other expenses in connection with investigating,
responding to or defending any Proceedings as contemplated by this indemnity agreement, the indemnifying party will be liable for
any settlement of any Proceedings effected without its written consent if (i) the proposed settlement is entered into more than
60 days after receipt by the indemnifying party of the request for reimbursement for any amounts that have not been disputed in
good faith by the indemnifying party, (ii) the indemnifying party has not reimbursed the indemnified party within 60 days of such
request for reimbursement, (iii) the indemnified party delivered notice to the indemnifying party of its intention to settle and
the failure to pay within such 60 day period, and (iv) the indemnifying party does not, within 30 days of receipt of the notice
of the intention to settle and failure to pay, reimburse the indemnified party for such legal or other expenses that have not been
disputed in good faith by the indemnifying party and object to the indemnified party’s seeking to settle such Proceedings.


 



    
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9.            Contribution.
To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section
8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification
may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or
indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute
to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and the applicable Placement Agent on the other in connection
with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand
and the applicable Placement Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the
Offering (before deducting expenses) received by the Company bear to the total Placement Agent’s Compensation received by
that Placement Agent. The relative fault, in the case of an untrue statement, alleged untrue statement, omission or alleged omission
will be determined by, among other things, whether such statement, alleged statement, omission or alleged omission relates to information
supplied by the Company or by a Placement Agent and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement, alleged statement, omission or alleged omission. The Company and the Placement Agents agree
that it would be unjust and inequitable if the respective obligations of the Company and the Placement Agents for contribution
were determined by pro rata allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method
or allocation that does not reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent
misrepresentation (within the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not
guilty of such fraudulent misrepresentation. For purposes of this Section 9, each person, if any, who controls the respective Placement
Agent within the meaning of the Act will have the same rights to contribution as the respective Placement Agent, and each person,
if any, who controls the Company within the meaning of the Act will have the same rights to contribution as the Company, subject
in each case to the provisions of this Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be
liable for contribution with respect to the settlement of any claim or action effected without its written consent. This Section
9 is intended to supersede, to the extent permitted by law, any right to contribution under the Act, the Exchange Act or otherwise
available.


 



    
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10.          Termination.


 


(a)           The Offering may be terminated by the Placement Agents at any time prior to the expiration of the Offering Period in the event
that: (i) any of the representations, warranties or covenants of the Company contained herein or in the Subscription Documents
shall prove to have been false or misleading in any material respect when actually made; (ii) the Company shall have failed to
perform any of its material obligations hereunder or under any other Company Transaction Document or any other transaction document;
(iii) there shall occur any event, within the control of the Company that is reasonably likely to materially and adversely affect
the transactions contemplated hereunder or the ability of the Company to perform hereunder; or (iv) the Placement Agents reasonably
determine that it is reasonably likely that any of the conditions to Closing to be fulfilled by the Company set forth herein will
not, or cannot, be satisfied.


 


(b)           This Offering may be terminated by the Company at any time prior to the Termination Date in the event that (i) either of the Placement
Agents shall have failed to perform any of their material obligations hereunder or (ii) on account of a Placement Agent’s
fraud, illegal or willful misconduct or gross negligence. In the event of any termination by the Company, the Placement Agents
shall be entitled to receive, on the Termination Date, all unpaid respective compensation as set forth in Sections 3(a) and 3(b)
herein earned or accrued through the Termination Date and reimbursement of all expenses as provided for in this Agreement, but
shall be entitled to no other amounts whatsoever except as may be due under any indemnity or contribution obligation for provided
herein, at law or otherwise. On such Termination Date, the Company shall pay the Katalyst Legal Fees and the Special Counsel Legal
Fees in connection with the Offering, as provided for herein.


 


(c)           This Offering may be terminated upon mutual agreement of the Company and the Placement Agents at any time prior to the expiration
of the Offering Period.


 


(d)           This Offering and this Agreement may be terminated by the Company at any
time after the end of the Initial Offering Period, in the event that the Company has not formally accepted subscriptions for at
least the Minimum Amount by such date. In the event of any termination by the Company under this clause (d), Katalyst’s legal
counsel and the Special Counsel shall be entitled to receive, on the Termination Date, payment of the legal fees as provided for
in paragraph 5(h) of this Agreement, but the Placement Agents shall be entitled to no other amounts whatsoever except as may be
due under any indemnity or contribution obligation for provided herein, at law or otherwise. 


 


(e)           Except as otherwise provided above, before any termination by the Placement Agents under Section 10(a) or by the Company under
Section 10(b) shall become effective, the terminating party shall give ten (10) day prior written notice to the other party of
its intention to terminate the Offering (the “Termination Notice”). The Termination Notice shall specify
the grounds for the proposed termination. If the specified grounds for termination, or their resulting adverse effect on the transactions
contemplated hereby, are curable, then the other party shall have five (5) days from the Termination Notice within which to remove
such grounds or to eliminate all of their material adverse effects on the transactions contemplated hereby; otherwise, the Offering
shall terminate.


 


(f)            Upon any termination pursuant to this Section 10, the Placement Agents and the Company will instruct the Escrow Agent to cause
all monies received with respect to the subscriptions for Securities not accepted by the Company to be promptly returned to such
subscribers without interest, penalty or deduction.


 



    
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11.          Survival.


 


(a)           The obligations of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided
herein shall survive any termination hereunder. In addition, the provisions of Sections 3, and 8 through 20 shall survive the sale
of the Securities or any termination of the Offering hereunder.


 


(b)          The respective indemnities, covenants, representations, warranties and other statements of the Company and the Placement Agents
set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or
on behalf of, and regardless of any access to information by the Company or the Placement Agents, or any of their officers or directors
or any controlling person thereof, and will survive the sale of the Units or any termination of the Offering hereunder. Notwithstanding
the foregoing, if either party effects a Closing with knowledge that one or more of the other party’s representations and
warranties has become untrue or inaccurate in any material respect or that such other party has failed to comply or satisfy in
any material respect a covenant, condition or agreement of it or them, the party so effecting the Closing shall be deemed to have
waived any claim based on the breach of such inaccurate representation and warranty or the failure to have complied with the specific
covenant or condition


 


12.          Notices.
All notice and other communications which are required or permitted under this Agreement will be in writing and shall be deemed
effectively given to a party by (a) the date of transmission if sent by facsimile or e-mail with confirmation of transmission by
the transmitting equipment if such notice or communication is delivered prior to 5:00 P.M., New York City time, on a business day,
or the next business day after the date of transmission, if such notice or communication is delivered on a day that is not a business
day or later than 5:00 P.M., New York City time, on any business day;; (b) seven days after deposit with the United States Post
Office, by certified mail, return receipt requested, first-class mail, postage prepaid; (c) on the date delivered, if delivered
by hand or by messenger or overnight courier, addressee signature required (costs prepaid), to the addresses below or at such other
address and/or to such other persons as shall have been furnished by the parties:


 





	If to the Company:	Enumeral Biomedical Holdings, Inc.
	 	200 CambridgePark Drive, Suite 2000
	 	Cambridge, MA 02140
	 	Attention:  General Counsel
	 	 
	With a copy to:	Duane Morris LLP
	(which shall not constitute notice)	1540 Broadway
	 	New York, NY 10036
	 	Attention:  Michael D. Schwamm, Esq.
	 	 
	If to Katalyst Securities LLC:	Katalyst Securities, LLC
	 	630 Third Avenue, 5th Floor
	 	New York, NY 10017
	 	Attention: Michael Silverman, Managing Director
	 	 
	With a copy to:	Barbara J. Glenns, Esq.
	(which shall not constitute notice)	Law Office of Barbara J. Glenns, Esq.
	 	30 Waterside Plaza, Suite 25G
	 	New York, NY 10010
	 	 
	If to GP Nurmenkari Inc.:	GP Nurmenkari Inc.
	 	64 Wall Street, Suite 402
	 	Norwalk, CT 06850
	 	Attention: Albert Pezone
	 	 
	With a copy to:	CKR Law LLP
	(which shall not constitute notice)	1330 Avenue of the Americas
	 	14th Floor
	 	New York, NY 10019
	 	Attention:  Scott Rapfogel, Esq.


 



    
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13.          Governing
Law, Jurisdiction. This Agreement shall be deemed to have been made and delivered in New York City and shall be governed
as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State of New York without
regard to principles of conflicts of law thereof.


 


THE
PARTIES HERETO AGREE TO SUBMIT ALL CONTROVERSIES TO THE EXCLUSIVE JURISDICTION OF FINRA ARBITRATION IN ACCORDANCE WITH THE PROVISIONS
SET FORTH BELOW AND UNDERSTAND THAT (A) ARBITRATION IS FINAL AND BINDING ON THE PARTIES, (B) THE PARTIES ARE WAIVING THEIR RIGHTS
TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL, (C) PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT
FROM COURT PROCEEDINGS, (D) THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY
PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULES BY ARBITRATORS IS STRICTLY LIMITED, (E) THE PANEL OF FINRA ARBITRATORS
WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY, AND (F) ALL CONTROVERSIES
WHICH MAY ARISE BETWEEN THE PARTIES CONCERNING THIS AGREEMENT SHALL BE DETERMINED BY ARBITRATION PURSUANT TO THE RULES THEN PERTAINING
TO FINRA. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. JUDGMENT ON ANY AWARD OF ANY SUCH ARBITRATION
MAY BE ENTERED IN THE FEDERAL OR STATE COURT IN THE STATE OF NEW YORK, COUNTY OF NEW YORK. THE PARTIES AGREE THAT THE DETERMINATION
OF THE ARBITRATORS SHALL BE BINDING AND CONCLUSIVE UPON THEM. THE PREVAILING PARTY, AS DETERMINED BY SUCH ARBITRATORS, IN A LEGAL
PROCEEDING SHALL BE ENTITLED TO COLLECT ANY COSTS, DISBURSEMENTS AND REASONABLE ATTORNEY’S FEES FROM THE OTHER PARTY. 
PRIOR TO FILING AN ARBITRATION, THE PARTIES HEREBY AGREE THAT THEY WILL ATTEMPT TO RESOLVE THEIR DIFFERENCES FIRST BY SUBMITTING
THE MATTER FOR RESOLUTION TO A MEDIATOR, ACCEPTABLE TO ALL PARTIES, AND WHOSE EXPENSES WILL BE BORNE EQUALLY BY ALL PARTIES. THE
MEDIATION WILL BE HELD IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, ON AN EXPEDITED BASIS. IF THE PARTIES CANNOT SUCCESSFULLY
RESOLVE THEIR DIFFERENCES THROUGH MEDIATION, THE MATTER WILL BE RESOLVED BY ARBITRATION. THE ARBITRATION SHALL TAKE PLACE IN THE
COUNTY OF NEW YORK, THE STATE OF NEW YORK, ON AN EXPEDITED BASIS. 


 


14.          Miscellaneous.


 


(a)           No provision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.
Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations
hereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;
provided, however, that any such waiver shall be in writing specifically setting forth those provisions waived thereby. No such
waiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this Agreement. Neither party
may assign its rights or obligations under this Agreement to any other person or entity without the prior written consent of the
other party.


 



    
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(b)           Each party shall, without payment of any additional consideration by any other party, at any time on or after the date of any Closings,
take such further action and execute such other and further documents and instruments as the other party may reasonably request
in order to provide the other party with the benefits of this Agreement.


 


(c)           The Parties to this Agreement each hereby confirm that they will cooperate with each other to the extent that it may become necessary
to enter into any revisions or amendments to this Agreement, in the future to conform to any federal or state regulations as long
as such revisions or amendments do not materially alter the obligations or benefits of either party under this Agreement.


 


15.          Entire
Agreement; Severability. This Agreement together with that certain Confidentiality Agreement, dated as of April 5, 2017
between the Company and Katalyst Securities LLC and that certain Confidentiality Agreement, dated as of May 1, 2017 between the
Company and GP Nurmenkari Inc., any other agreement referred to herein, supersedes all prior understandings and written or oral
agreements between the parties with respect to the Offering and the subject matter hereof. If any portion of this Agreement shall
be held invalid or unenforceable, then so far as is reasonable and possible (i) the remainder of this Agreement shall be considered
valid and enforceable and (ii) effect shall be given to the intent manifested by the portion held invalid or unenforceable.


 


16.          Counterparts.
This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall
be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages
by facsimile transmission or in pdf format shall constitute effective execution and delivery of this Agreement as to the parties
and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or in pdf
format shall be deemed to be their original signatures for all purposes.


 


17.           Announcement of Offering. The Placement Agents and their counsels and advisors may, subsequent to the closing of any
Offering, make public their involvement with the Company, including use of the Company’s trademarks and logos. The Placement
Agents’ counsels and advisors are intended third party beneficiaries of this Section.


 


18.          Advice to the Board. The Company acknowledges that any advice given by the Placement Agents to the Company is solely
for benefit and use of the Company’s board of directors and officers, who will make all decisions regarding whether and how
to pursue any opportunity or transaction, including any potential Offering. The Company’s board of directors and management
may consider such advice, but will also base their decisions on the advice of legal, tax and other business advisors and other
factors which they consider appropriate. Accordingly, as an independent contractor, the Placement Agents will not assume the responsibilities
of a fiduciary to the Company or its stockholders in connection with the performance of the services. Any advice provided may not
be used, reproduced, disseminated, quoted or referred to without prior written consent of the providing party. The Placement Agents
do not provide accounting, tax or legal advice. The Company is a sophisticated business enterprise that has retained the Placement
Agents for the limited purposes set forth in this Agreement. The parties acknowledge and agree that their respective rights and
obligations are contractual in nature. Each party disclaims an intention to impose fiduciary obligations on the other by virtue
of the engagement contemplated by this Agreement.


 



    
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19.          Other Investment Banking Services. The Company acknowledges that the Placement Agents and their affiliates, if applicable,
are securities firms engaged in securities trading and brokerage activities and providing investment banking and financial advisory
services. In the ordinary course of business, the Placement Agents and their affiliates may at any time hold long or short positions,
and may trade or otherwise effect transactions, for their own account or the accounts of customers, in the Company’s debt
or equity securities, its affiliates or other entities that may be involved in the transactions contemplated by this Agreement.
In addition, the Placement Agents and their affiliates may from time to time perform various investment banking and financial advisory
services for other clients and customers who may have conflicting interests with respect to the Company or the Offering. The Company
also acknowledges that the Placement Agents and their affiliates have no obligation to use in connection with this engagement or
to furnish the Company, confidential information obtained from other companies. Furthermore, the Company acknowledges the Placement
Agents may have fiduciary or other relationships whereby it or its affiliates may exercise voting power over securities of various
persons, which securities may from time to time include securities of the Company or others with interests in respect of any Offering.
The Company acknowledges that the Placement Agents or such affiliates may exercise such powers and otherwise perform our functions
in connection with such fiduciary or other relationships without regard to the Placement Agents’ relationship to the Company
hereunder. Each Placement Agent acknowledges that the Company has a class of securities traded on the OTC Markets OTCQB
marketplace and is subject to the restrictions imposed by Regulation FD under the Act. Each Placement Agent agrees that (i) it
will not use the Information for the purpose of trading in the Common Stock or any other securities, and will take all steps necessary
to prevent use of the Information for such purpose by its subsidiaries and affiliates and all of their respective officers, directors,
shareholders, employees, agents, advisors, other representatives, actual and prospective institutional lenders, and actual and
prospective financing sources, including, without limitation, their respective accountants, attorneys and financial advisors, and
(ii) it will not disclose such Information to any other party for the purpose of trading in the Common Stock.


 


20.          Successors.
This Agreement shall inure to the benefit of and be binding upon the successors of the respective Placement Agent and of
the Company (including any party that acquires the Company or all or substantially all of its assets or merges with the Company).
Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person or corporation, other than
the parties hereto and parties expressly referred to herein, any legal or equitable right, remedy or claim under or in respect
to this Agreement or any provision hereof. The term “successors” shall not include any purchaser of the
Securities merely by reason of such purchase. No subrogee of a benefited party shall be entitled to any benefits hereunder. Each
party hereto disclaims any an intention to impose any fiduciary obligation on any other party by virtue of the arrangements contemplated
by this Agreement.


 


[Signatures on following page]


 



    
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If the foregoing is
in accordance with your understanding of the agreement among the Company and the Placement Agents, kindly sign and return this
Agreement, whereupon it will become a binding agreement as provided herein, between the Company and the Placement Agents in accordance
with its terms.


 


This Agreement contains
a pre-dispute arbitration provision in paragraph 13.


 


	 	ENUMERAL BIOMEDICAL HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Kevin G. Sarney	 
	 	Name: Kevin G. Sarney
	 	Title:  Vice President of Finance, Chief Accounting Officer and Treasurer
	 	 	 
	 	KATALYST SECURITIES LLC
	 	 	 
	 	By:	/s/ Michael A. Silverman	 
	 	Name:  Michael A. Silverman
	 	Title: Managing Director
	 	 	 
	 	GP NURMENKARI INC.
	 	 	 
	 	By:	/s/ Jeffrey Berman	 
	 	Name:  Jeffrey Berman
	 	Title:  Director
	 	 	 
	 	By:	/s/ Robert Fitzpatrick	 
	 	Name:  Robert Fitzpatrick
	 	Title:  CCO




 



     


     


    

 


AGREEMENT TO EXTEND OFFERING PERIOD


 


Whereas, Enumeral
Biomedical Holdings, Inc. (“ENUM”), GP Nurmenkari Inc. (“GPN”), and Katalyst Securities LLC (“Katalyst”)
entered into that certain Placement Agency Agreement, dated May 12, 2017 (the “PAA”);


 


Whereas, pursuant
to the PAA, ENUM engaged GPN and Katalyst to act as co-exclusive placement agents in connection with the private placement of Units
of ENUM’s securities, each Unit consisting of (a) a 12% Senior Secured Promissory Note, and (b) a warrant to purchase 11,500
shares of ENUM’s common stock, on the terms set forth in the PAA, during an offering period that runs through May 19, 2017
but is subject to an extension of up to 30 additional days if agreed to by ENUM, GPN and Katalyst; and


 


Whereas, each
of ENUM, GPN and Katalyst desire to extend the offering period through and including June 16, 2017.


 


Now therefore,
it is hereby agreed by each of the undersigned that the offering period shall be extended until June 16, 2017.


 


This Agreement to Extend
Offering Period (“Extension Agreement”) may be executed in multiple counterparts, each of which may be executed by
less than all of the parties and shall be deemed to be an original instrument which shall be enforceable against the parties actually
executing such counterparts and all of which together shall constitute one and the same instrument. The exchange of copies of this
Extension Agreement and of signature pages by facsimile transmission or in pdf format shall constitute effective execution and
delivery of this Extension Agreement as to the parties and may be used in lieu of the original Extension Agreement for all purposes.
Signatures of the parties transmitted by facsimile or in pdf format shall be deemed to be their original signatures for all purposes


 


	 	ENUMERAL BIOMEDICAL HOLDINGS, INC.
	 	By:	/s/ Matthew A. Ebert	 
	 	Name:  Matthew A. Ebert
	 	Title:  General Counsel 
	Date:  19 May 2017	 
	 	 
	 	GP NURMENKARI INC.
	 	 	 	 
	 	By:	/s/ Jeffery Berman	 
	Date:  19 May 2017	Name:  Jeffery Berman
	 	Title:  Director
	 	 	 	 
	 	By:	/s/ Robert Fitzpatrick	 
	 	Name:  Robert Fitzpatrick
	 	Title:  CCO
	 	 	 	 
	 	KATALYST SECURITIES LLC 
	 	 	 	 
	Date:  19 May 2017	By:	/s/ Michael Silverman	 
	 	Name:  Michael Silverman
	 	Title:  Managing Director