Exhibit 10.1


 





EXECUTION
VERSION


 


 





SUBSCRIPTION
AGREEMENT


 


This
SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of the last date set forth on the signature page
hereof between GlyEco, Inc., a Nevada corporation (the “Company”), and the undersigned (the “Subscriber”).


 


W
I T N E S S E T H:


 


WHEREAS,
the Company is conducting a private offering (the “Offering”) on a “best efforts” basis,
consisting of up to a maximum of Two Million Five Hundred Thousand Dollars ($2,500,000) in principal amount (the “Maximum
Offering Amount”) of 10% Senior, Unsecured Promissory Notes the (“Notes”), pursuant to
Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506 promulgated
thereunder; and


 


WHEREAS,
in connection with the purchase of the Notes, each Subscriber will receive a three (3)-year warrant (the “Warrant,”
and together with the Notes, collectively, the “Securities”) to purchase such number of shares of common
stock, par value $0.0001 per share, of the Company (the “Common Stock”) equal to 25% of the principal
amount of the Subscriber’s Note divided by $0.05; and


 


WHEREAS,
the Subscriber desires to purchase the Securities on the terms and conditions hereinafter set forth;


 


NOW,
THEREFORE, in consideration of the premises and the mutual representations and covenants hereinafter set forth, the parties hereto
do hereby agree as follows:


 


		I.	SUBSCRIPTION
                                         FOR SECURITIES AND REPRESENTATIONS BY SUBSCRIBER



 


1.1          Subject
to the terms and conditions hereinafter set forth, the Subscriber hereby subscribes for and agrees to purchase from the Company,
and the Company subject to its rights to accept or reject this subscription, agrees to sell to the Subscriber, Notes in the principal
amount set forth on the signature page hereof. The purchase price is payable by check or wire transfer, to be held in escrow until
the conditions to closing are achieved, to Robinson Brog Leinwand Greene Genovese & Gluck P.C., the escrow agent (the “Escrow
Agent”).


 


1.2          The
Securities will be offered for sale until the earlier of (a) the date upon which subscriptions for the Maximum Offering Amount
have been received and accepted by the Company or (b) April 30, 2018 (the “Termination Date”), unless
terminated at an earlier time by the Company, or unless extended by the Company in its sole discretion, without notice to or consent
by prospective investors, to a date not later than May 15, 2018 (the “Final Termination Date”).


 


1.3          The
Company may hold one or more closings (each, a “Closing”) at any time after the date hereof until the
earlier of the (i) date upon which subscriptions for the Maximum Offering Amount have been received and accepted by the Company
or (ii) the Termination Date or Final Termination Date, as applicable. The date of a Closing shall be referred to as the “Closing
Date”. The last Closing of the Offering, occurring on or prior to the Termination Date or Final Termination Date,
as applicable, shall be referred to as the “Final Closing”. Any subscription documents or funds received
after the Final Closing will be returned, without interest or deduction. In the event that a Closing does not occur prior to the
Termination Date or Final Termination Date, as applicable, all amounts paid by the Subscriber shall be returned to the Subscriber,
without interest or deduction.


 






    1 


     


    

 

EXECUTION
VERSION


 

1.4          The
Subscriber recognizes that the purchase of the Securities involves a high degree of risk including, but not limited to, the following:
(a) the Company has a limited operating history and requires substantial funds in addition to the proceeds of the Offering; (b)
an investment in the Company is highly speculative, and only investors who can afford the loss of their entire investment should
consider investing in the Company and the Securities; (c) the Subscriber may not be able to liquidate its investment; (d) transferability
of the Securities is extremely limited; (e) in the event of a disposition, the Subscriber could sustain the loss of its entire
investment; (f) the Company has not paid any dividends since its inception and does not anticipate paying any dividends; and (g)
the other risks associated with the Company’s business, financial condition and the Offering.


 


1.5          At
the time such Subscriber was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises
any Warrants it will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act, and the Subscriber
is able to bear the economic risk of an investment in the Securities.


 


1.6          The
Subscriber hereby acknowledges and represents that (a) the Subscriber has knowledge and experience in business and financial matters,
prior investment experience, including investment in securities that are non-listed, unregistered and/or not traded on a national
securities exchange or the Subscriber has employed the services of a “purchaser representative” (as defined in Rule
501 of Regulation D), attorney and/or accountant to read all of the documents furnished or made available by the Company both
to the Subscriber and to all other prospective investors in the Securities to evaluate the merits and risks of such an investment
on the Subscriber’s behalf; (b) the Subscriber recognizes the highly speculative nature of this investment; and (c) the
Subscriber is able to bear the economic risk that the Subscriber hereby assumes.


 


1.7          The
Subscriber hereby acknowledges receipt and careful review of this Agreement, the Note, the Warrant, and all exhibits thereto or
incorporated by reference therein (collectively referred to as the “Transaction Documents”) and has
had access to the Company’s Annual Report on Form 10-K and the exhibits thereto for the year ended December 31, 2017 and
the exhibits thereto (the “Form 10-K”) as publicly filed with and available at the website of the United
States Securities and Exchange Commission (the “SEC”), and has received any additional information that
the Subscriber has requested from the Company, and has been afforded the opportunity to ask questions of and receive answers from
duly authorized officers or other representatives of the Company concerning the Company and the terms and conditions of the Offering;
provided, however that no investigation performed by or on behalf of the Subscriber shall limit or otherwise affect
its right to rely on the representations and warranties of the Company contained herein.


 






    2 


     


    

 

EXECUTION
VERSION

 


1.8         (a)          In
making the decision to invest in the Securities the Subscriber has relied solely upon the information provided by the Company
in the Transaction Documents and incorporated by reference therein, including the information set forth in the 10-K. To the extent
necessary, the Subscriber has retained, at its own expense, and relied upon appropriate professional advice regarding the investment,
tax and legal merits and consequences of this Agreement and the purchase of the Securities hereunder. The Subscriber disclaims
reliance on any statements made or information provided by any person or entity in the course of Subscriber’s consideration
of an investment in the Securities other than the Transaction Documents.


 


    (b)          The
Subscriber represents that (i) the Subscriber was contacted regarding the sale of the Securities by the Company with whom the
Subscriber had a prior substantial pre-existing relationship and (ii) it did not learn of the offering of the Securities by means
of any form of general solicitation or general advertising, and in connection therewith, the Subscriber did not (A) receive or
review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast
over television or radio, whether closed circuit, or generally available; or (B) attend any seminar meeting or industry investor
conference whose attendees were invited by any general solicitation or general advertising.


 


1.9          The
Subscriber hereby acknowledges that the Offering has not been reviewed by the SEC nor any state regulatory authority since the
Offering is intended to be exempt from the registration requirements of Section 5 of the Securities Act, pursuant to Regulation
D. The Subscriber understands that the Securities have not been registered under the Securities Act or under any state securities
or “blue sky” laws and agrees not to sell, pledge, assign or otherwise transfer or dispose of the Securities unless
they are registered under the Securities Act and under any applicable state securities or “blue sky” laws or unless
an exemption from such registration is available.


 


1.10        The
Subscriber understands that the Securities have not been registered under the Securities Act by reason of a claimed exemption
under the provisions of the Securities Act that depends, in part, upon the Subscriber’s investment intention and investment
qualification. In this connection, the Subscriber hereby represents that the Subscriber is purchasing the Securities for the Subscriber’s
own account for investment and not with a view toward the resale or distribution to others; provided, however, that
nothing contained herein shall constitute an agreement by the Subscriber to hold the Securities for any particular length of time
and the Company acknowledges that the Subscriber shall at all times retain the right to dispose of its property as it may determine
in its sole discretion, subject to any restrictions imposed by applicable law. The Subscriber, if an entity, further represents
that it was not formed for the purpose of purchasing the Securities.


 


1.11        The
Subscriber consents to the placement of a legend on any certificate or other document evidencing the Securities and, when issued,
the shares of Common Stock issuable upon exercise of the Warrant (the “Warrant Shares”) that such securities
have not been registered under the Securities Act or any state securities or “blue sky” laws and setting forth or
referring to the restrictions on transferability and sale thereof contained in this Agreement. The Subscriber is aware that the
Company will make a notation in its appropriate records with respect to the restrictions on the transferability of such Securities
or the Warrant Shares.


 






    3 


     


    

 

EXECUTION
VERSION

 


1.12        The
Subscriber hereby represents that the address of the Subscriber furnished by Subscriber on the signature page hereof is the Subscriber’s
principal residence if Subscriber is an individual or its principal business address if it is a corporation or other entity.


 


1.13        Such
Subscriber understands that the Securities are “restricted securities” and have not been registered under the Securities
Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view
to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state
securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding
the distribution of such Securities in violation of the Securities Act or any applicable state securities law. Furthermore, such
Subscriber is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or any other general solicitation or general advertisement.


 


1.14        The
Subscriber represents that the Subscriber has full power and authority (corporate, statutory and otherwise) to execute and deliver
this Agreement and to purchase the Securities. This Agreement constitutes the legal, valid and binding obligation of the Subscriber,
enforceable against the Subscriber in accordance with its terms.


 


1.15        If
the Subscriber is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement account,
Keogh Plan, or other tax-exempt entity, it is authorized and qualified to invest in the Company and the person signing this Agreement
on behalf of such entity has been duly authorized by such entity to do so.


 


1.16        The
Subscriber acknowledges that if he or she is a Registered Representative of a Financial Industry Regulatory Authority (“FINRA”)
member firm, he or she must give such firm the notice required by the FINRA’s Rules of Fair Practice.


 


1.17        [Intentionally
Omitted]. 


 


1.18        The
Subscriber agrees not to issue any public statement with respect to the Subscriber’s investment or proposed investment in
the Company or the terms of any agreement or covenant between them and the Company without the Company’s prior written consent,
except such disclosures as may be required under applicable law or under any applicable order, rule or regulation.


 


1.19        The
Subscriber understands, acknowledges and agrees with the Company that this subscription may be rejected, in whole or in part,
by the Company, in the sole and absolute discretion of the Company, at any time before any Closing notwithstanding prior receipt
by the Subscriber of notice of acceptance of the Subscriber’s subscription.


 






    4 


     


    

 

EXECUTION
VERSION

 


1.20        The
Subscriber acknowledges that the information contained in the Transaction Documents or otherwise made available to the Subscriber
is confidential and non-public and agrees that all such information shall be kept in confidence by the Subscriber and neither
used by the Subscriber for the Subscriber’s personal benefit (other than in connection with this subscription) nor disclosed
to any third party for any reason, notwithstanding that a Subscriber’s subscription may not be accepted by the Company;
provided, however, that (a) the Subscriber may disclose such information to its affiliates and advisors who may
have a need for such information in connection with providing advice to the Subscriber with respect to its investment in the Company
so long as such affiliates and advisors have an obligation of confidentiality, and (b) this obligation shall not apply to any
such information that (i) is part of the public knowledge or literature and readily accessible at the date hereof, (ii) becomes
part of the public knowledge or literature and readily accessible by publication (except as a result of a breach of this provision)
or (iii) is received from third parties without an obligation of confidentiality (except third parties who disclose such information
in violation of any confidentiality agreements or obligations, including, without limitation, any subscription or other similar
agreement entered into with the Company).


 


1.21        The
Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors,
affiliates and shareholders, and each other person, if any, who controls any of the foregoing from and against any and all loss,
liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever
reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation
whether commenced or threatened) (a “Loss”) arising out of or based upon any representation or warranty
of the Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being
untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the
Subscriber herein or therein.


 


		II.	REPRESENTATIONS
                                         BY AND COVENANTS OF THE COMPANY



 


The
Company hereby represents and warrants to the Subscriber that:


 


2.1          Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Nevada and has full corporate power and authority to own and use its properties and its assets and conduct
its business as currently conducted. Each of the Company’s subsidiaries identified on Schedule 2.1 hereto (the “Subsidiaries”)
is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation with
the requisite corporate power and authority to own and use its properties and assets and to conduct its business as currently
conducted. Neither the Company nor any of its Subsidiaries is in violation of any of the provisions of their respective articles
of incorporation, by-laws or other organizational or charter documents, including, but not limited to the Charter Documents (as
defined below). Each of the Company and its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign
corporation in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, would not result in a direct and/or
indirect (i) material adverse effect on the legality, validity or enforceability of any of the Securities and/or this Agreement,
(ii) material adverse effect on the results of operations, assets, business, condition (financial and other) or prospects of the
Company and its Subsidiaries, taken as a whole, or (iii) material adverse effect on the Company’s ability to perform in
any material respect on a timely basis its obligations under the Transaction Documents (any of (i), (ii) or (iii), a “Material
Adverse Effect”).


 






    5 


     


    

 

EXECUTION
VERSION


 

2.2          Capitalization
and Voting Rights. The authorized, issued and outstanding capital stock of the Company is as set forth in Schedule 2.2
hereto and all issued and outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable.
Except as set forth in Schedule 2.2 hereto, (i) there are no outstanding securities of the Company or any of its Subsidiaries
which contain any preemptive, redemption or similar provisions, nor is any holder of securities of the Company or any Subsidiary
entitled to preemptive or similar rights arising out of any agreement or understanding with the Company or any Subsidiary by virtue
of any of the Transaction Documents, and there are no contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (ii) neither
the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar
plan or agreement; and (iii) except as set forth in Schedule 2.2 there are no outstanding options, warrants, agreements,
convertible securities, preemptive rights or other rights to subscribe for or to purchase or acquire, any shares of capital stock
of the Company or any Subsidiary or contracts, commitments, understandings, or arrangements by which the Company or any Subsidiary
is or may become bound to issue any shares of capital stock of the Company or any Subsidiary, or securities or rights convertible
or exchangeable into shares of capital stock of the Company or any Subsidiary. Except as set forth in Schedule 2.2 and
as otherwise required by law, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the
Company pursuant to the Company’s Charter Documents (as defined below) or other governing documents or any agreement or
other instruments to which the Company is a party or by which the Company is bound. All of the issued and outstanding shares of
capital stock of the Company are validly issued, fully paid and nonassessable and the shares of capital stock of the Subsidiaries
are owned by the Company, free and clear of any mortgages, pledges, liens, claims, charges, encumbrances or other restrictions
(collectively, “Encumbrances”). All of such outstanding capital stock has been issued in compliance
with applicable federal and state securities laws. The issuance and sale of the Securities and, upon issuance, the Warrant Shares,
as contemplated hereby will not obligate the Company to issue shares of Common Stock or other securities to any other person (other
than the Subscriber) and, except as set forth in Schedule 2.2, will not result in the adjustment of the exercise, conversion,
exchange or reset price of any outstanding security. The Company does not have outstanding stockholder purchase rights or “poison
pill” or any similar arrangement in effect giving any person the right to purchase any equity interest in the Company upon
the occurrence of certain events.


 






    6 


     


    

 

EXECUTION
VERSION

 


2.3          Authorization;
Enforceability. The Company has all corporate right, power and authority to enter into, execute and deliver this Agreement
and each other agreement, document, instrument and certificate to be executed by the Company in connection with the consummation
of the transactions contemplated hereby, including, but not limited to, the Transaction Documents, and to perform fully its obligations
hereunder and thereunder. All corporate action on the part of the Company, its directors and stockholders necessary to authorize
the (a) execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and (b) the sale,
issuance and delivery of the Securities and the Warrant Shares contemplated hereby has been taken. This Agreement and the other
Transaction Documents have been duly executed and delivered by the Company and each constitutes a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its respective terms, subject to laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief
or other equitable remedies, and to limitations of public policy. The Securities are duly authorized and, when issued and paid
for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and free and clear of
all Encumbrances other than restrictions on transfer provided for in the Transaction Documents. The Warrant Shares, when issued
and paid for in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable and
free and clear of all Encumbrances imposed by the Company other than restrictions on transfer provided for in the Transaction
Documents. The Company has reserved a sufficient number of Warrant Shares for issuance upon the exercise of the Warrants. Except
as set forth on Schedule 2.3 hereto, the issuance and sale of the Securities and Warrant Shares contemplated hereby will
not give rise to any preemptive rights or rights of first refusal on behalf of any person other than the Subscribers.


 


2.4          No
Conflict; Governmental Consents.


 


    (a)          The
execution and delivery by the Company of this Agreement and the other Transaction Documents, the issuance and sale of the Securities
and Warrant Shares and the consummation of the other transactions contemplated hereby or thereby do not and will not (i) result
in the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental
authority to or by which the Company is bound including without limitation all foreign, federal, state and local laws applicable
to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected
to result in a Material Adverse Effect, (ii) conflict with or violate any provision of the Company’s Articles of Incorporation,
as amended, or the Company’s Bylaws, as amended (collectively, the “Charter Documents”), and (iii)
conflict with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with or without
due notice or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration or cancellation
(with or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement, mortgage, security
agreement, trust indenture or other agreement or instrument to which the Company or any Subsidiary is a party or by which any
of them is bound or to which any of their respective properties or assets is subject, nor result in the creation or imposition
of any Encumbrances upon any of the properties or assets of the Company or any Subsidiary.


 


    (b)          No
approval by the holders of Common Stock, or other equity securities of the Company is required to be obtained by the Company in
connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction Documents or
in connection with the authorization, issuance and sale of the Securities and the Warrant Shares, except as has been previously
obtained.


 






    7 


     


    

 

EXECUTION
VERSION

 


   (c)          No
consent, approval, authorization or other order of any governmental authority or any other person is required to be obtained by
the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents or in connection with the authorization, issuance and sale of the Securities and the Warrant Shares, except such post-sale
filings as may be required to be made with the SEC, FINRA and with any state or foreign blue sky or securities regulatory authority,
all of which shall be made when required.


 


2.5          Consents
of Third Parties. No vote, approval or consent of any holder of capital stock of the Company or any other third parties is
required or necessary to be obtained by the Company in connection with the authorization, execution, deliver and performance of
this Agreement and the other Transaction Documents or in connection with the authorization, issuance and sale of the Securities
and the Warrant Shares, except as previously obtained.


 


2.6          SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), including pursuant to Section 13(a) or 15(d) thereof, for the one (1) year preceding the date hereof (or
such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including
the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC
Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or
the footnotes thereto, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.


 


2.7          Licenses.
Except as otherwise set forth on Schedule 2.7, the Company and its Subsidiaries have sufficient licenses, permits and other
governmental authorizations currently required for the conduct of their respective businesses or ownership of properties and are
in all material respects in compliance therewith.


 






    8 


     


    

 

EXECUTION
VERSION

 


2.8          Litigation.
Except as set forth on Schedule 2.8, the Company knows of no pending or threatened legal or governmental proceedings against
the Company or any Subsidiary which could materially adversely affect the business, property, financial condition or operations
of the Company and its Subsidiaries, taken as a whole, or which materially and adversely questions the validity of this Agreement
or the other Transaction Documents or the right of the Company to enter into this Agreement and the other Transaction Documents,
or to perform its obligations hereunder and thereunder. Neither the Company nor any Subsidiary is a party or subject to the provisions
of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which could materially
adversely affect the business, property, financial condition or operations of the Company and its Subsidiaries taken as a whole.
There is no action, suit, proceeding or investigation by the Company or any Subsidiary currently pending in any court or before
any arbitrator or that the Company or any Subsidiary intends to initiate. Neither the Company nor any Subsidiary, nor any director
or officer thereof, is, or since December 31, 2017 has been, the subject of any action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Company’s
knowledge, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director
or officer of the Company.


 


2.9          Compliance.
Except as set forth on Schedule 2.9, neither the Company nor any Subsidiary: (i) is in default under or in violation of
(and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the
Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse
Effect.


 


2.10        Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess
such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of
any Material Permit.


 


2.11        Disclosure.
The information set forth in the Transaction Documents as of the date hereof and as of the date of each Closing contains no untrue
statement of a material fact nor omits to state a material fact necessary in order to make the statements contained therein, in
light of the circumstances under which they were made, not misleading.


 






    9 


     


    

 

EXECUTION
VERSION

 


2.12        Investment
Company. The Company is not an “investment company” within the meaning of such term under the Investment Company
Act of 1940, as amended, and the rules and regulations of the SEC thereunder.


 


2.13        Brokers.
Neither the Company nor any of the Company’s officers, directors, employees or stockholders has employed or engaged any
broker or finder in connection with the transactions contemplated by this Agreement and no fee or other compensation is or will
be due and owing to any broker, finder, underwriter, placement agent or similar person in connection with the transactions contemplated
by this Agreement. The Company is not party to any agreement, arrangement or understanding whereby any person has an exclusive
right to raise funds and/or place or purchase any debt or equity securities for or on behalf of the Company.


 


2.14        Intellectual
Property; Employees.


 


    (a)          The
Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets,
licenses, information and other proprietary rights and processes necessary for its business as now conducted and as presently
proposed to be conducted, without any known infringement of the rights of others as set forth on Schedule 2.14 and which
the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Except as disclosed on Schedule 2.14 or the SEC Reports, there are no material outstanding options, licenses or agreements
of any kind relating to the Intellectual Property Rights, nor is the Company bound by or a party to any material options, licenses
or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information and other proprietary rights and processes of any other person or entity other than such licenses or agreements arising
from the purchase of “off the shelf” or standard products. The Company has not received any written communications
alleging that the Company has violated or, by conducting its business as presently proposed to be conducted, would violate any
Intellectual Property Rights of any other person or entity. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.


 


    (b)          Except
as set forth on Schedule 2.14, the Company is not aware that any of its employees is obligated under any contract (including
licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court
or administrative agency, that would interfere with their duties to the Company or that would conflict with the Company’s
business as presently conducted.


 


    (c)          Neither
the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of the Company,
nor the conduct of the Company’s business as presently conducted, will, to the Company’s knowledge, conflict with
or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument
under which any employee is now obligated.


 






    10 


     


    

 

EXECUTION
VERSION

 


    (d)          To
the Company’s knowledge, no employee of the Company, nor any consultant with whom the Company has contracted, is in violation
of any term of any employment contract, proprietary information agreement or any other agreement and to the Company’s knowledge
the continued employment by the Company of its present employees, and the performance of the Company’s contracts with its
independent contractors, will not result in any such violation. The Company has not received any written notice alleging that
any such violation has occurred. Except as set forth on Schedule 2.14, no employee of the Company has been granted the
right to continued employment by the Company or to any compensation following termination of employment with the Company except
for any of the same which would not have a Material Adverse Effect on the business of the Company. The Company is not aware that
any officer, key employee or group of employees intends to terminate his, her or their employment with the Company, nor does the
Company have a present intention to terminate the employment of any officer, key employee or group of employees.


 


2.15        Title
to Properties and Assets; Liens, Etc. Except as set forth on Schedule 2.15, the Company has good and marketable title
to its properties and assets, including the properties and assets reflected in the most recent balance sheet included in the Company’s
financial statements, and good title to its leasehold estates, in each case subject to no Encumbrances, other than (a) those resulting
from taxes which have not yet become delinquent; and (b) Encumbrances which do not materially detract from the value of the property
subject thereto or materially impair the operations of the Company; and (c) those that have otherwise arisen in the ordinary course
of business, none of which are material. Except as set forth on Schedule 2.15, the Company is in compliance with all material
terms of each lease to which it is a party or is otherwise bound.


 


2.16        Obligations
to Related Parties. Except as set forth on Schedule 2.16, there are no obligations of the Company to officers, directors,
stockholders, or employees of the Company other than (a) for payment of salary or other compensation for services rendered, (b)
reimbursement for reasonable expenses incurred on behalf of the Company and (c) for other standard employee benefits made generally
available to all employees (including stock option agreements outstanding under any stock option plan approved by the Board of
Directors of the Company). Except as set forth on Schedule 2.16, none of the officers or directors of the Company and,
to the Company’s knowledge, none of the employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than as holders of stock options and/or warrants, and for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the Company’s knowledge, any entity in which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.


 


2.17        Material
Changes. Except as set forth on Schedule 2.17, since the date of the latest audited financial statements included within
the SEC Reports (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result
in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed
in filings made with the SEC, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any
equity securities to any officer, director or affiliate, except pursuant to existing Company stock option plans. The Company does
not have pending before the SEC any request for confidential treatment of information.


 






    11 


     


    

 

EXECUTION
VERSION

 


2.18        Sarbanes-Oxley.
The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as amended, and the rules and
regulations thereunder, that are applicable to it, except where such noncompliance could not have or reasonably be expected to
result in a Material Adverse Effect.


 


2.19        No
General Solicitation. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on their
behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities.


 


2.20        No
Integrated Offering. Assuming the accuracy of the Subscriber representations and warranties set forth in Section I
hereunder, none of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would require registration of any of the Securities under the Securities Act or that is likely to cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval
provisions, including without limitation, under the rules and regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates and any
person acting on their behalf has taken any action or steps referred to in the preceding sentence that would require registration
of any of the Securities under the Securities Act or cause the offering of the Securities to be integrated with other offerings.


 


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


 


2.22        Taxes.
Each of the Company and its Subsidiaries has filed all U.S. federal, state, local and foreign tax returns which are required to
be filed by each of them and all such returns are true and correct in all material respects. The Company and each Subsidiary has
paid all taxes whether or not shown on such returns or pursuant to any assessments received by any of them or by which any of
them are obligated to withhold from amounts owing to any employee, creditor or third party. The Company and each Subsidiary has
properly accrued all taxes required to be accrued and/or paid, except where the failure to accrue would not have a Material Adverse
Effect. To the knowledge of the Company, none of the tax returns of the Company nor any of its Subsidiaries is currently being
audited by any state, local or federal authorities. Neither the Company nor any Subsidiary has waived any statute of limitations
with respect to taxes or agreed to any extension of time with respect to any tax assessment or deficiency. The Company has set
aside on its books adequate provision for the payment of any unpaid taxes.


 






    12 


     


    

 

EXECUTION
VERSION

 


2.23        Registration
Rights. Except as set forth on Schedule 2.23, no person has any right to cause the Company to effect the registration
under the Securities Act of any securities of the Company.


 


2.24        Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating terminating
such registration. The Company has not, in the one (1) year preceding the date hereof, received notice from any trading market
on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such trading market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements


 


2.25        Disclosure.
All disclosure furnished by or on behalf of the Company to the Subscriber in the Transaction Documents regarding the Company,
its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement (the “Disclosure
Schedules”, is true and correct and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made,
not misleading.


 


2.26        Seniority.
Except as set forth on Schedule 2.26 hereto, no indebtedness or other claim against the Company is senior to the Notes
in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness
secured by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease
obligations (which is senior only as to the property covered thereby).


 


2.27        Private
Placement. Assuming the accuracy of the Subscribers’ representations and warranties set forth in Section I, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Subscriber as contemplated
hereby.


 






    13 


     


    

 

EXECUTION
VERSION

 


		III.	TERMS
                                         OF SUBSCRIPTION



 


3.1          The
minimum purchase that may be made by any prospective investor shall be Fifty Thousand Dollars ($50,000) in principal amount of
Notes (the “Minimum Investment Amount”). Subscriptions for investment below the Minimum Investment Amount
may be accepted at the sole discretion of the Company. The Company reserves the right to accept or reject any subscription made
hereby, in whole or in part, in its sole discretion. The Company’s agreement with each Subscriber is a separate agreement
and the sale of the Securities to each Subscriber is a separate sale. 


 


3.2          All
funds shall be deposited in the account identified in Section 1.1 hereof.


 


3.3          Certificates
representing the Notes and the Warrants purchased by the Subscriber pursuant to this Agreement will be prepared for delivery to
the Subscriber as soon as practicable (but in no event more than five (5) Trading Days (as defined below) following the Closing
at which such purchase takes place. The Subscriber hereby authorizes and directs the Company to deliver the certificates representing
the Notes and the Warrants purchased by the Subscriber pursuant to this Agreement to the person or entity indicated on the signature
page hereto. “Trading Day” means a day on which the principal
Trading Market is open for trading. “Trading Market” means any of the following markets or exchanges
on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT; the Nasdaq Capital Market; the
Nasdaq Global Market; the Nasdaq Global Select Market; the New York Stock Exchange; the OTCQX, OTCQB, OTCBB or OTC Pink Sheets;
or any successors to any of the foregoing.


 


3.4          In
the event that after the date hereof any new Subscribers (the “New “Subscribers”) offer different
terms with respect to the Notes and Warrants (the “New Terms”), and each Subscriber on the date hereof
deems such New Terms more favorable, then the Company agrees that all Notes or Warrants issued prior to the subscription by the
New Subscribers shall be amended and modified to reflect such New Terms. The Company and all Subscribers agree and acknowledge
that any Notes issued pursuant to this Agreement shall rank pari passu with all other Notes now or hereafter issued under
the terms set forth herein.


 


		IV.	CONDITIONS
                                         TO OBLIGATIONS OF THE SUBSCRIBER



 


4.1          The
Subscriber’s obligation to purchase the Securities at the Closing at which such purchase is to be consummated is subject
to the fulfillment on or prior to such Closing of the following conditions, which conditions may be waived at the option of each
Subscriber to the extent permitted by law:


 


     (a)          Representations
and Warranties; Covenants. The representations and warranties made by the Company in Section 2 hereof shall be true and correct
in all material respects when made and on the Closing Date (unless such representation or warranty expressly speaks as of an earlier
date, in which case such representation or warranty shall be true and correct as of such earlier date); provided, however,
that notwithstanding the foregoing, the Company shall only be required to update the Disclosure Schedules by the delivery to the
Subscribers by the Company of an amended Disclosure Schedule with respect to any information that is of a material nature as of
such proposed Closing Date. All covenants, agreements and conditions contained in this Agreement to be performed by the Company
on or prior to the date of such Closing shall have been performed or complied with in all material respects.


 






    14 


     


    

 

EXECUTION
VERSION

 


    (b)          No
Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions
contemplated by this Agreement.


 


    (c)          No
Law Prohibiting or Restricting Such Sale. There shall not be in effect any law, rule or regulation prohibiting or restricting
such sale or requiring any consent or approval of any person, which shall not have been obtained, to issue the Securities (except
as otherwise provided in this Agreement).


 


    (d)          Required
Consents. The Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or
appropriate for consummation of the purchase and sale of the Securities and the consummation of the other transactions contemplated
by the Transaction Documents, all of which shall be in full force and effect.


 


    (e)          Adverse
Changes. Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably could
have or result in a Material Adverse Effect.


 


    (f)          No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or any
Trading Market (except for any suspensions of trading of not more than one (1) Trading Day solely to permit dissemination of material
information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have
been at all times since such date listed for trading on a Trading Market.


 


    (g)          Disclosure
Schedules. The Company shall have delivered to the Subscriber a copy of its Disclosure Schedules (or amended Disclosure Schedules)
qualifying any of the representations and warranties contained in Section 2 as of the applicable Closing.


 


		V.	COVENANTS
                                         OF THE COMPANY



 


5.1          Transfer
Restrictions.


 


    (a)          The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144 promulgated under the Securities Act, to the Company or
to an affiliate of a Subscriber or in connection with, the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the
terms of this Agreement and shall have the rights of a Subscriber under this Agreement.


 






    15 


     


    

 

EXECUTION
VERSION

 


    (b)          The
Subscriber agrees to the imprinting, so long as is required by this Section 5.1, of a legend on any of the Securities and the
Warrant Shares, in the following form:


 


[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY [AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.


 


    (c)          Certificates
evidencing the Warrant Shares shall not contain any legend (including the legend set forth in Section 5.1(b) hereof): (i) while
a registration statement covering the resale of such security is effective under the Securities Act, or (ii) following any sale
of such Warrant Shares pursuant to Rule 144, or (iii) [reserved] or (iv) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Company shall
cause its counsel, at the Company’s expense, to issue a legal opinion to the Company’s transfer agent promptly (but
in no event later than the requisite share delivery date set forth in the Warrants) if required by the Company’s transfer
agent to effect the removal of the legend hereunder.


 


5.2          Listing
of Securities. The Company agrees it will take all action reasonably necessary to continue the listing and trading of its
Common Stock on a Trading Market and will comply in all material respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of the Trading Market. The Company shall take all steps necessary to cause the Warrant Shares
to be approved for listing and actually listed on the Company’s Trading Market.


 


5.3          Reservation
of Shares. The Company shall at all times while the Warrants are outstanding maintain a reserve from its duly authorized shares
of Common Stock of a number of shares of Common Stock sufficient to allow for the issuance of the Warrant Shares.


 


5.4          Replacement
of Securities. If any certificate or instrument evidencing any Securities or the Warrant Shares is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance
of such replacement securities. If a replacement certificate or instrument evidencing any securities is requested due to a mutilation
thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance
of a replacement.


 






    16 


     


    

 

EXECUTION
VERSION

 


5.5          Furnishing
of Information. Until the time that no Subscriber owns Securities, the Company covenants to maintain the registration of the
Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the
Exchange Act. As long as Subscriber owns Securities, if the Company is not required to file reports pursuant to the Exchange Act,
it will prepare and furnish to Subscriber and make publicly available in accordance with Rule 144(c) such information as is required
for the Subscribers to sell the Securities under Rule 144. The Company further covenants that it will take such further action
as any holder of Securities may reasonably request, to the extent required from time to time to enable such person to sell such
Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.


 


5.6          Securities
Laws; Publicity. Unless otherwise required by applicable law, the Company shall, by 8:30 a.m. (New York City time) on the
second Trading Day immediately following the first and Final Closing hereunder, issue a Current Report on Form 8-K disclosing
the material terms of the transactions contemplated hereby and including the Transaction Documents as exhibits thereto to the
extent required by law. The Company shall not publicly disclose the name of the Subscriber, or include the name of any Subscriber
in any filing with the SEC or any regulatory agency or Trading Market, without the prior written consent of the Subscriber, except:
(a) as required by federal securities law in connection with the filing of final Transaction Documents (including signature pages
thereto) with the SEC; and (b) to the extent such disclosure is required by law, in which case the Company shall provide the Subscriber
with prior notice of such disclosure permitted under this clause (b).


 


5.7          Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D promulgated under the Securities Act and to provide a copy thereof, promptly upon request of the Subscriber. The Company shall
take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the
Securities for, sale to the Subscriber at the Closing under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of such actions promptly upon request of any Subscriber.


 


5.8          Equal
Treatment of Subscribers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the
same consideration is also offered to all of the parties to the Transaction Documents.


 






    17 


     


    

 

EXECUTION
VERSION

 


5.9          Indemnification.


 


(a)          The
Company agrees to indemnify and hold harmless the Subscriber, its affiliates and their respective officers, directors, employees,
agents and controlling persons (collectively, the “Indemnified Parties”) from and against any and all
loss, liability, damage or deficiency suffered or incurred by any Indemnified Party by reason of any misrepresentation or breach
of warranty by the Company or, after any applicable notice and/or cure periods, nonfulfillment of any covenant or agreement to
be performed or complied with by the Company under this Agreement and the other Transaction Documents. The Company will promptly
reimburse the Indemnified Parties for all expenses (including reasonable fees and expenses of legal counsel) as incurred in connection
with the investigation of, preparation for or defense of any pending or threatened claim related to or arising in any manner out
of any of the foregoing, or any action or proceeding arising therefrom (collectively, “Proceedings”),
whether or not such Indemnified Party is a formal party to any such Proceeding.


 


(b)          If
for any reason (other than a final non-appealable judgment finding any Indemnified Party liable for losses, claims, damages, liabilities
or expenses for its fraud, gross negligence or willful misconduct) the foregoing indemnity is unavailable to an Indemnified Party
or insufficient to hold an Indemnified Party harmless, then the Company shall contribute to the amount paid or payable by an Indemnified
Party as a result of such loss, claim, damage, liability or expense in such proportion as is appropriate to reflect not only the
relative benefits received by the Company on the one hand and the Indemnified Party on the other, but also the relative fault
by the Company and the Indemnified Party, as well as any relevant equitable considerations.


 


5.10        
  Non-Public Information. Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company covenants and agrees that neither it, nor any other person acting on
its behalf, will provide Subscriber or its agents or counsel with any information that the Company believes constitutes
material non-public information, unless prior thereto Subscriber shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and confirms that Subscriber shall be relying on the
foregoing covenant in effecting transactions in securities of the Company.


 


 5.11          Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder as set forth on Schedule
5.11 hereto.


 






    18 


     


    

 

EXECUTION
VERSION

 


		VI.	MISCELLANEOUS



 


6.1          Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via
facsimile or by electronic mail at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via facsimile or electronic mail on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date
of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications shall be addressed as follows:


 


if
to the Company, to it at:


 


Glyeco,
Inc.


230
Gill Way


Rock
Hill, SC 29730


Attn:
Ian Rhodes, Chief Executive Officer


Tel:
(866) 960-1539


Fax:


Email:
irhodes@glyeco.com


 


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


 


Robinson
Brog Leinwand Greene Genovese & Gluck P.C.


875
Third Avenue, 9th Floor


New
York, NY 10022

Attn: David E. Danovitch, Esq.


Tel:
(212) 603-6391


Fax:
(212) 956-2164


Email:
ded@robinsonbrog.com


 


if
to the Subscriber, to the Subscriber’s address indicated on the signature page of this Agreement.


 


if
to the Escrow Agent, to it at:


 


Robinson
Brog Leinwand Greene Genovese & Gluck P.C.


875
Third Avenue, 9th Floor


New
York, NY 10022


Attn:
David E. Danovitch, Esq. 


Tel:
(212) 603-6391 


Fax:
(212) 956-2164 


Email:
ded@robinsonbrog.com


 


6.2          Except
as otherwise provided herein, this Agreement shall not be changed, modified or amended except by a writing signed by the parties
to be charged, and this Agreement may not be discharged except by performance in accordance with its terms or by a writing signed
by the party to be charged. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right.


 






    19 


     


    

 

EXECUTION
VERSION

 


6.3          This
Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives,
successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of Subscriber (other than by merger). Subscriber may assign any or all of its rights under this Agreement to any person
to whom Subscriber assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents.


 


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


 


6.5          Upon
the execution and delivery of this Agreement by the Subscriber and the Company, this Agreement shall become a binding obligation
of the Subscriber with respect to the purchase of Securities as herein provided, subject, however, to the right hereby reserved
by the Company to enter into the same agreements with other Subscribers and to reject any subscription, in whole or in part, provided
the Company returns to Subscriber any funds paid by Subscriber with respect to such rejected subscription or portion thereof,
without interest or deduction.


 


6.6          All
questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto
or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding.


 


6.7          In
order to discourage frivolous claims the parties agree that unless a claimant in any proceeding arising out of this Agreement
succeeds in establishing his claim and recovering a judgment against another party (regardless of whether such claimant succeeds
against one of the other parties to the action), then the other party shall be entitled to recover from such claimant all of its/their
reasonable legal costs and expenses relating to such proceeding and/or incurred in preparation therefor.


 






    20 


     


    

 

EXECUTION
VERSION

 


6.8          The
holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect
any other provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement shall be
declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such
provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law and
the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable
to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision
unless so expressed herein.


 


6.9          It
is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be construed, as
a waiver of any subsequent breach by that same party.


 


6.10        The
Company agrees to execute and deliver all such further documents, agreements and instruments and take such other and further action
as may be necessary or appropriate to carry out the purposes and intent of this Agreement.


 


6.11        This
Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which shall together
constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.


 


6.12        Nothing
in this Agreement shall create or be deemed to create any rights in any person or entity not a party to this Agreement.


 


6.13        In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Subscriber
and the Company will be entitled to specific performance under this Agreement. The parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate.


 


[Signature
pages follows]


 



    21 


     


    

 


EXECUTION VERSION


 


To Subscribe for Notes and Warrants in
the Private Offering of


 


GLYECO, INC.


 


		1.	Date and Fill in the principal amount of 10% Senior, Unsecured Promissory Notes (the “Notes”)
and accompanying three (3)-year warrants to purchase common stock (the “Warrants”) being subscribed for
and Complete and Sign the Signature Page attached to this Subscription Agreement.



 


		2.	Initial the Accredited Investor Certification attached to this Subscription Agreement.



 


		3.	Complete and Sign the Signature Page attached to this Subscription Agreement. NOTICE:
Please note that by executing the attached Subscription Agreement, you will be deemed to have agreed to the terms of the Notes
and Warrants, which have been furnished to you.



 


		4.	Complete and Return the attached Investor Questionnaire.



 


		5.	Send all signed original documents to: GlyEco, Inc. at 230 Gill Way, Rock Hill, SC 29730,
Attention: Ian Rhodes, Chief Executive Officer.



 


		6.	Please make your subscription payment by check payable to the order of “___________________”
or by wire transfer to:







 


Bank:
_________________





Address:
_________________





Account
No.:_________________





ABA No.:
_________________





Account
Name: _________________


 


Reference:
[Investor Name]


 




    22


     


    

 


GLYECO, INC.





SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT



 


Principal Amount of the Note: $_____________


 


Purchase Price of the Note: $________________


 


Warrants to Purchase __________________
Shares of Common Stock (NOTE: To be completed by the Subscriber)


 



Date (NOTE: To be completed by the
Subscriber): __________________, 2018


 


 








If the Subscriber is an INDIVIDUAL,
and if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:





		 	 	 	 



 


		Print Name(s)	Social Security Number(s)	 






		 	 	 	 






 


		Print Name(s)	Social Security Number(s)	 






		 	 	 	 






 


		Signature of Subscriber	Signature of Co-Subscriber (if applicable):	 



 


		 	Address:






		 	 	 	 





		 	     Date	 
	 	 	 	 


 


	 	 	 











If the Subscriber is a PARTNERSHIP, CORPORATION,
LIMITED LIABILITY COMPANY or TRUST:





		 	 	 	 
	 	 	 	Federal
Taxpayer	 
	 	Name of Partnership,	 	Identification Number	 
	 	Corporation, Limited	 	 	 
	 	Liability Company or Trust	 	 	 


 


		By:	 	 	 	 
	 	 	Name:	 	State of Organization	 
	 	 	Title:	 	 	 





 


	 	Address:	 	 	 
	 	 	 	 	 






		 	 Date	 	 


 


[Company’s signature page follows]


 




    


     


    

 


EXECUTION VERSION


 


AGREED AND ACCEPTED:


 


GLYECO, INC.


 


	By:	 	 	 	 
	 	Name:	Date:  	 	 
	 	Title:	 	 	 


 




    


     


    

 


EXECUTION
VERSION







  


SCHEDULE 5.11


 


Use of Proceeds


 


Working capital and general corporate purposes.


 




     


     


    

 


EXECUTION
VERSION


 


FORM OF ACCREDITED INVESTOR CERTIFICATION


 


GLYECO, INC.


 


For Individual Investors Only


 


(All individual investors must INITIAL
where appropriate. Where there are joint investors both parties must INITIAL): 





	 	 
	Initial _______	I certify that I have a “net worth”
    of at least $1 million either individually or through aggregating my individual holdings and those in which I have a joint,
    community property or other similar shared ownership interest with my spouse.  For purposes of calculating net worth
    under this paragraph, (i) the primary residence shall not be included as an asset, (ii) to the extent that the indebtedness
    that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess amount
    shall be included as a liability, and (iii) if the amount of outstanding indebtedness that is secured by the primary residence
    exceeds the amount outstanding sixty (60) days prior to the execution of this Subscription Agreement, other than as a result
    of the acquisition of the primary residence, the amount of such excess shall be included as a liability.
	 	 
	Initial _______	I certify that I have had an annual gross income
    for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income (or joint income, as
    appropriate) to reach the same level in the current year.
	 	 
	For Non-Individual Investors
	 
	(all Non-Individual Investors must INITIAL where appropriate):
	 	 
	Initial _______	The undersigned certifies that it is a partnership,
    corporation, limited liability company or business trust that is 100% owned by persons who meet either of the criteria for
    Individual Investors, above.
	 	 
	Initial _______	The undersigned certifies that it is a partnership,
    corporation, limited liability company or business trust that has total assets of at least $5 million and was not formed for
    the purpose of investing in Company.
	 	 
	Initial _______	The undersigned certifies that it is an employee
    benefit plan whose investment decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is a bank, savings
    and loan association, insurance company or registered investment adviser.
	 	 
	Initial _______	The undersigned certifies that it is an employee
    benefit plan whose total assets exceed $5,000,000 as of the date of the Subscription Agreement.



 






     


     


    

 


EXECUTION
VERSION


	 	 
	Initial _______	The undersigned certifies that it is a self-directed
    employee benefit plan whose investment decisions are made solely by persons who meet either of the criteria for Individual
    Investors, above.
	 	 
	Initial _______	The undersigned certifies that it is a U.S.
    bank, U.S. savings and loan association or other similar U.S. institution acting in its individual or fiduciary capacity.
	 	 
	Initial _______	The undersigned certifies that it is a broker-dealer
    registered pursuant to §15 of the Securities Exchange Act of 1934, as amended.
	 	 
	Initial _______	The undersigned certifies that it is an organization
    described in §501(c)(3) of the Internal Revenue Code, as amended, with total assets exceeding $5,000,000 and not formed
    for the specific purpose of investing in Company.
	 	 
	Initial _______	The undersigned certifies that it is a trust
    with total assets of at least $5,000,000, not formed for the specific purpose of investing in Company, and whose purchase
    is directed by a person with such knowledge and experience in financial and business matters that he is capable of evaluating
    the merits and risks of the prospective investment.
	 	 
	Initial _______	The undersigned certifies that it is a plan
    established and maintained by a state or its political subdivisions, or any agency or instrumentality thereof, for the benefit
    of its employees, and which has total assets in excess of $5,000,000.
	 	 
	Initial _______	The undersigned certifies that it is an insurance
    company as defined in §2(a)(13) of the Securities Act of 1933, as amended, or a registered investment company.







 






     


     


    

 


EXECUTION
VERSION


 


GLYECO, INC. 


Investor Questionnaire 


(Must be completed by Subscriber)


 


Section A - Individual
Subscriber Information


 


EXACT Subscriber Name(s) in which securities are to be issued:


 


________________________________________________________________________________________________________________


 


Individual executing Profile or Trustee:


 


________________________________________________________________________________________________________________


 


Social Security Numbers / Federal I.D. Number:


 


________________________________________________________________________________________________________________


 


Date of Birth: _________________ Marital Status: _________________


 


Joint Party Date of Birth:_________________  


 


Investment Experience (Years): ___________


 


Annual Income: _________________  


 


Liquid Net Worth:_____________


 


Net Worth: ________________


 


Home Street Address:


 


________________________________________________________________________________________________________________


 


Home City, State & Zip Code:


 


________________________________________________________________________________________________________________


 


Home Phone: ________________________ Home Fax: _____________________


 


Home Email: _______________________________


 


Employer:


 


________________________________________________________________________________________________________________


 


Employer Street Address:


 


________________________________________________________________________________________________________________


 


Employer City, State & Zip Code:


 


________________________________________________________________________________________________________________


 


Bus. Phone: __________________________ Bus. Fax: _______________________


 


Bus. Email: ________________________________


 


Type of Business:


 


________________________________________________________________________________________________________________


 


Please
check if you are a FINRA member or affiliate of a FINRA member firm: _______


 






     


     


    

 


EXECUTION
VERSION


 


Section B –
Entity Subscriber Information


 


EXACT Subscriber Name(s) in which securities are to be issued:


 


________________________________________________________________________________________________________________


 


Authorized Individual executing Profile or Trustee:


 


________________________________________________________________________________________________________________


 


Social Security Numbers / Federal I.D. Number:


 


________________________________________________________________________________________________________________


 


Investment Experience (Years): ___________


 


Annual Income: _______________  


 


Net Worth: ________________


 


Was the Trust formed for the specific purpose of purchasing
the Notes?


 


☐ Yes ☐ No


 


Principal Purpose (Trust)______________________________________


 


Type of Business: ________________________________________________________


 


Street Address:


 


________________________________________________________________________________________________________________


 


City, State & Zip Code:


 


________________________________________________________________________________________________________________


 


Phone: ________________________ Fax: ________________________


 


Email: __________________________


 




     


     


    

 


EXECUTION
VERSION


 


Section C – Form of Payment – Check or Wire
Transfer


 


	____	Check payable to “_____________________”







 


	____	Wire transfer from my account according to the section
entitled “To subscribe for the Notes and Warrants in the private offering of GLYECO, INC.”



 


Subscriber Signature(s) _______________________________________ 


Date_______________



 


Joint Subscriber Signature (if applicable):
________________________


Date_______________