Exhibit 10.1


 


EXECUTION COPY


 


SECURITIES PURCHASE AGREEMENT


 


This Securities Purchase Agreement
(this “Agreement”) is dated as of June 12, 2020, between KBL Merger Corp. IV, a Delaware corporation (the “Company”),
and the purchasers identified on the signature pages hereto (each, an “Initial Purchaser” and, including their
respective successors and permitted assigns, a “Purchaser”) and Dominion Capital LLC, a Connecticut limited
liability company (“Dominion”), as purchaser agent for the Purchaser Parties (in such capacity, and together
with any successor and replacement named in accordance with this Agreement, the “Purchaser Agent”).


 


WHEREAS, prior to the date hereof,
pursuant to that Securities Purchase Agreement, dated as of July 24, 2019, by and between CannBioRx Life Sciences Corp (“Predecessor”)
and the investors party thereto (including, Kingsbrook Opportunities Master Fund LP, a Delaware limited partnership (“Kingsbrook”),
an Initial Purchaser hereunder) (as the same has been amended, restated, amended and restated, supplemented or otherwise modified
prior to the date hereof, the “2019 Securities Purchase Agreement”), Predecessor issued certain senior secured
notes to such investors (as the same has been amended, restated, amended and restated, supplemented or otherwise modified prior
to the date hereof, the “2019 Notes”), including, without limitation, a 2019 Note issued by Predecessor to Kingsbrook
with original principal amount thereunder as of December 11, 2019 (the “Original Exchange Date”) of $1,405,695.06
(the “2019 Kingsbrook Note”, and such original principal amount thereunder as of the Original Exchange Date,
the “2019 Kingsbrook Note Amount”).


 


WHEREAS, subject to the terms and
conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and/or Rule 506 promulgated thereunder, the Company desires to issue and sell to the Initial Purchasers, and the
Initial Purchasers desire to purchase from the Company for consideration consisting of cash Securities of the Company as defined
and described more fully in this Agreement.


 


NOW, THEREFORE, in consideration
of the representations, warranties and covenants contained in this Agreement, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:


 


ARTICLE I DEFINITIONS


 


1.1 Definitions. In addition to
the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:


 


“Affiliate” means each
Person that controls, is controlled by or is under common control with such Person or any Affiliate of such Person. For purpose
of this definition, “control” and related words are used as such terms are used in and construed under Rule 405 under
the Securities Act. Notwithstanding the foregoing, the Purchaser and its Subsidiaries, on the one hand, and the Company Parties
and their Subsidiaries, on the other hand, shall not be considered “Affiliates” of each other.


 


“AML/CTF Regulation” has the meaning ascribed
to such term in Section 3.1(ll).


 


“BHCA” has the meaning ascribed to such term
in Section 3.1(gg).


 


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


 


“Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States and except any day on which
the Federal Reserve Bank of New York is not open for business.


 


“Business Combination” shall have the meaning
ascribed to such term in Section 2.2.


 






    		1	 



     


    

 


“Capital Lease” means, as applied to
any Person, any lease of, or other arrangement conveying the right to use, any property (whether real, personal or mixed) by
that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of
that Person.


 


“Capital Stock” means
all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership
or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless
of how designated) of or in a Person (other than an individual), whether voting or non-voting.


 


“Certificate of Designations”
means the Certificate of Designations with respect to the Company’s Series A Convertible Preferred Stock, in the form attached
hereto as Exhibit A.


 


“Claim” has the meaning ascribed to such
term in Section 4.11(b).


 


“Closings”
means each of the First Closing pursuant to Section 2.1 and the Second Closing pursuant to Section 2.2.


 


“Closing Dates” means each of the First Closing
Date and the Second Closing.


 


“Collateral” means any
and all “Collateral” as defined in the Security Agreement or any other Transaction Document granting a Lien to the
Collateral Agent, the Purchaser Agent or any other Purchaser Party, as applicable, together with all property and interests in
property and proceeds thereof now owned or hereafter acquired by any Company Party in or upon which a Lien is granted or purported
to be granted pursuant to any Transaction Document.


 


“Collateral Agent” means Dominion as Collateral
Agent under the Collateral Agency Agreement.


 


“Collateral Agency
Agreement” means that certain Collateral Agency Agreement required to be delivered pursuant to Section 2.5, in
the form attached hereto as Exhibit J.


 


“Commission” means the United States Securities
and Exchange Commission.


 


“Commitment Shares”
shall mean, respectively, the Dominion Commitment Shares or KB Commitment Shares as set forth in Section 2.5(a)(iii) or
Section 2.5(a)(iv) .


 


“Common Stock” means
the Common Stock of the Company, par value $0.0001 per share, and any Capital Stock into which such shares of Common Stock shall
have been changed or any share capital resulting from a reclassification of such Common Stock.


 


“Common Stock Equivalents”
means any securities of any Company Party which would entitle the holder thereof to acquire at any time Common Stock, including
whether or not presently convertible, exchangeable or exercisable, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to purchase,
subscribe or otherwise receive, Common Stock.


 


“Company Party” means each of the Company
and its Subsidiaries.


 


“Consents” means any
approval, consent, authorization, notice to, or any other action by, any Person other than any Governmental Authority.


 


“Contractual Obligation”
means, with respect to any Person, any provision of any security or similar instrument issued by such Person or of any agreement,
undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (other than a Transaction Document) to which
such Person is a party or by which it or any of its property is bound or to which any of its property is subject.


 






    		2	 



     


    

 


“Control Agreement”
means amended and restated agreements in form and substance satisfactory to the Purchasers on the First Closing Date, transferring
“control” (as defined under the applicable UCC) from Kingsbrook to the Collateral Agent over the Collateral described
thereunder.


 


“Conversion Price” has the meaning ascribed
to such term in the Notes.


 


“Conversion Shares” has the meaning ascribed
to such term in the Notes.


 


“Currency Agreement”
means any foreign exchange contract, currency swap agreement, futures contract, option contract, synthetic cap or other similar
agreement or arrangement. For purposes of this definition, cryptocurrencies shall be considered currencies.


 


“Derivative” means any
Interest Rate Agreement, Currency Agreement, futures or forward contract, spot transaction, commodity swap, purchase or option
agreement, other commodity price hedging arrangement, cap, floor or collar transaction, any credit default or total return swap,
any other derivative instrument, any other similar speculative transaction and any other similar agreement or arrangement designed
to alter the risks of any Person arising from fluctuations in any underlying variable, including interest rates, currency values,
insurance, catastrophic losses, climatic or geological conditions or the price or value of any other derivative instrument. For
the purposes of this definition, “derivative instrument” means “any derivative instrument” as defined in
Statement of Financial Accounting Standards No. 133 (Accounting for Derivative Instruments and Hedging Activities) of the United
States Financial Accounting Standards Board, and any defined with a term similar effect in any successor statement or any supplement
to, or replacement of, any such statement.


 


“Disclosure Certificate”
means a certificate disclosing detailed information about the Company Parties and the Collateral in form and substance satisfactory
to the Purchasers on the First Closing Date and updated on each other Closing Date, together with any update on the Collateral
or any other information in such certificate required to be given and given in accordance with any Transaction Document.


 


“Disqualification Event” has the meaning
ascribed to such term in Section 3.1(oo).


 


“Dollars” and the sign “$”
each mean the lawful money of the United States of America.


 


“Escrow Agreements means the
Sponsors Pledge and Escrow Agreement, the Sullivan & Worcester Escrow Agreement and the Western Alliance Escrow Agreement.


 


“Evaluation Date” has the meaning ascribed
to such term in Section 3.1(o).


 


“Exchange Act” means the Securities Exchange
Act of 1934.


 


“Exchange Transaction” has the meaning ascribed
to such term in Section 4.11(b).


 


“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors, advisors
or independent contractors of the Company Parties; provided, that such issuance is approved by a majority of the board
of directors of the Company; and provided, further that such issuance shall not exceed in the aggregate 15% of
the outstanding shares of Common Stock without the prior approval of the Purchasers, (b) shares of Common Stock, warrants or
options to advisors or independent contractors of any Company Party for compensatory purposes, (c) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the date hereof, provided, that such
securities have not been amended since the date hereof to increase the number of such securities or to decrease the exercise
price, exchange price or conversion price of such securities, (d) securities issuable pursuant to any contractual
anti-dilution obligations of the Company in effect as of the date hereof, provided, that such obligations have not
been materially amended since the date of hereof, and (e) securities issued pursuant to acquisitions or any other strategic
transactions approved by a majority of the disinterested members of the Board of Directors; provided, that such
acquisitions and other strategic transactions shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.


 






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“Federal Reserve” has the meaning ascribed
to such term in Section 3.1(gg).


 


“First Closing” shall have the meaning ascribed
to such term in Section 2.1.


 


“First Closing Date” shall have the meaning
ascribed to such term in Section 2.1.


 


“GAAP” means United States generally accepted
accounting principles, consistently applied.


 


“Governmental Authority”
means any nation, sovereign or government, any state, province, territory or other political subdivision thereof, any municipality,
any agency, authority or instrumentality thereof and any entity or authority exercising executive, legislative, taxing, judicial,
regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled,
through stock or capital ownership or otherwise, by any of the foregoing, including any central bank stock exchange regulatory
body arbitrator, public sector entity, supra-national entity (including the European Union and the European Central Bank) and any
self-regulatory organization (including the National Association of Insurance Commissioners).


 


“Guaranty” means the
US Guaranty and the Canadian Guaranty by and among, as applicable, the Company Parties the secured parties signatory thereto for
the benefit of, and in form and substance satisfactory to the Purchasers on the First Closing Date respectively in the form attached
hereto as Exhibit F-1 and Exhibit F-2.


 


“Guaranty Obligation”
means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of such Person with respect to any
Indebtedness of another Person, if the purpose or intent of such Person in incurring the Guaranty Obligation is to provide assurance
to the holder of such Indebtedness that such Indebtedness will be paid or discharged, that any agreement relating thereto will
be complied with, or that any holder of such Indebtedness will be protected (in whole or in part) against loss in respect thereof,
including (a) the direct or indirect guaranty, endorsement (other than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by such Person of Indebtedness of another Person and (b) any liability
of such Person for Indebtedness of another Person through any agreement (contingent or otherwise) (i) to purchase, repurchase or
otherwise acquire such Indebtedness or any security therefor or to provide funds for the payment or discharge of such Indebtedness
(whether in the form of a loan, advance, stock purchase, capital contribution or otherwise), (ii) to maintain the solvency or any
balance sheet item, level of income or financial condition of another Person, (iii) to make take-or-pay or similar payments, if
required, regardless of non-performance by any other party or parties to an agreement, (iv) to purchase, sell or lease (as lessor
or lessee) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such
Indebtedness or to assure the holder of such Indebtedness against loss or (v) to supply funds to, or in any other manner invest
in, such other Person (including to pay for property or services irrespective of whether such property is received or such services
are rendered), if in the case of any agreement described under clause (b)(i), (ii), (iii), (iv) or
(v) above the primary purpose or intent thereof is to provide assurance that Indebtedness of another Person will be paid
or discharged, that any agreement relating thereto will be complied with or that any holder of such Indebtedness will be protected
(in whole or in part) against loss in respect thereof. The amount of any Guaranty Obligation shall be equal to the amount of the
Indebtedness so guaranteed or otherwise supported.


 






    		4	 



     


    

 


“Indebtedness” means,
with respect to any Person, without duplication, the following: (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or services other than accounts payable and accrued liabilities
incurred in respect of property or services purchased in the ordinary course of business (provided, that such accounts
payable and accrued liabilities are not overdue by more than 180 days), (c) all obligations of such Person evidenced by notes,
bonds, debentures or similar borrowing or securities instruments, (d) all obligations of such Person created or arising under
any conditional sale or other title retention agreement with respect to property acquired by such Person, (e) all obligations
of such Person as lessee under Capital Leases, (f) all reimbursements and all other obligations of such Person with respect to
(i) letters of credit, bank guarantees or bankers’ acceptances or (ii) surety, customs, reclamation, performance or other
similar bonds, (g) all obligations of such Person secured by Liens on the assets of such Person, (h) all Guaranty Obligations
of such Person, (i) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect
of any Capital Stock, Stock Equivalent (valued, in the case of redeemable preferred stock, at the greater of its voluntary liquidation
preference and its involuntary liquidation preference plus accrued and unpaid dividends) or any warrants, rights or options to
acquire such Capital Stock, (j) after taking into account the effect of any legally-enforceable netting Contractual Obligation
of such Person, all payments that would be required to be made in respect of any Derivative in the event of a termination (including
an early termination) on the date of determination and (k) all obligations of another Person of the type described in clauses
(a) through (j) secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) a Lien on the assets of such Person (whether or not such Person is otherwise liable for such obligations of such other
Person).


 


“Initial Principal Amount”
means, as to any Purchaser, the principal amount of the Note of such Purchaser set forth on Schedule 1.


 


“Intellectual Property Rights”
means, collectively, all copyrights, patents, trademarks, service marks and trade names all applications for any of the foregoing,
together with: (i) all inventions, processes, production methods, proprietary information, know-how and trade secrets; (ii) all
licenses or user or other agreements granted with respect to any of the foregoing, in each case whether now or hereafter owned
or used; (iii) all customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded
knowledge, surveys, engineering reports, test reports, manuals, materials standards, processing standards, performance standards,
catalogs, computer and automatic machinery software and programs; (iv) all field repair data, sales data and other information
relating to sales or service of products now or hereafter manufactured; (v) all accounting information and all media in which or
on which any information or knowledge or data or records may be recorded or stored and all computer programs used for the compilation
or printout of such information, knowledge, records or data; (vi) all applications for any of the foregoing and (vii) all causes
of action, claims and warranties, in each case, now or hereafter owned or acquired in respect of any item listed above.


 


“Intellectual Property
Security Agreement” means that certain Amended and Restated Intellectual Property Security Agreement that may be required
to be delivered pursuant to Section 2.5, in form and substance satisfactory to the Collateral Agent on the First Closing
Date in the form attached hereto as Exhibit E.


 


“Interest Rate Agreement”
means any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging agreement
or other similar agreement or arrangement.


 


“IPO” has the meaning ascribed to such term
in Section 4.11(b).


 


“Issuer Covered Person” has the meaning ascribed
to such term in Section 3.1(oo).


 


“Leak-Out Agreement”
means that certain agreement required to be delivered pursuant to Section 2.5 in form and substance satisfactory to the
Purchasers on the First Closing Date in the form attached hereto as Exhibit M.


 


“Legend Removal Date” has the meaning ascribed
to such term in Section 4.1(c).


 






    		5	 



     


    

 


“Liabilities” means
all amounts, indebtedness, obligations, liabilities, covenants and duties of every type and description owing by any Company Party
from time to time to any Purchaser or any other Purchaser Party, whether direct or indirect, joint or several, absolute or contingent,
due or to become due, liquidated or unliquidated, secured or unsecured, now existing or hereafter arising and however created,
acquired (regardless of whether acquired by assignment), whether or not evidenced by any note or other instrument or for the payment
of money and whether arising under Contractual Obligations, Regulations or otherwise, including, without duplication, (i) the
principal amount due of the Note, (ii) all other amounts, fees, interest (including any prepayment premium), commissions, charges,
costs, expenses, attorneys’ fees and disbursements, indemnities, reimbursement of amounts paid and other sums chargeable
to the Company under the Note, this Agreement or any other Transaction Document (including attorneys’ fees) or otherwise
arising under any Transaction Document and (iii) all interest on any item otherwise qualifying as a “Liability” hereunder,
whether or not accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
or similar proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding.


 


“License Agreement” has the meaning ascribed
to such term in Section 3.1(m).


 


“Lien” means any lien
(statutory or other) mortgage, pledge, hypothecation, assignment, security interest, encumbrance, charge, claim, right of first
refusal, preemptive right, restriction on transfer or similar restriction or other security arrangement of any kind or nature whatsoever,
including any conditional sale or other title retention agreement and any capital or financing lease having substantially the same
economic effect as any of the foregoing.


 


“Losses” means all liabilities,
rights, demands, covenants, duties, obligations (including indebtedness, receivables and other contractual obligations), claims,
damages, Proceedings and causes of actions, settlements, judgments, damages, losses (including reductions in yield), debts, responsibilities,
fines, penalties, sanctions, commissions and interest, disbursements, Taxes, interest, charges, costs, fees and expenses (including
fees, charges, and disbursements of financial, legal and other advisors, consultants and professionals and, if applicable, any
value-added and other taxes and charges thereon), in each case of any kind or nature, whether joint or several, whether now existing
or hereafter arising and however acquired and whether or not known, asserted, direct, contingent, liquidated, due, consequential,
actual, punitive or treble.


 


“Material Adverse Effect”
means material adverse effect on, or change in, (a) the legality, validity or enforceability of any portion of any Transaction
Document, (b) the operations, assets, business, prospects or condition (financial or otherwise) of any Company Party, (c) the ability
of any Company Party to perform on a timely basis its obligations under any Transaction Document, for any reason whatsoever, foreseen
or unforeseen, including due to pandemic, governmental action, interruption of transportation systems, strikes, terrorist activity,
interruption of supply chain, or act of God or (d) the Collateral or the perfection or priority of any Liens granted to any Purchaser
Party under any Transaction Document.


 


“Maximum Rate” has the meaning ascribed to
such term in Section 6.12.


 


“Notes” mean the Dominion
Senior Secured Convertible Promissory Note, the KB Senior Secured Convertible Promissory Note and Dominion Senior Secured Convertible
Extension Promissory Note, the KB Senior Secured Convertible Extension Promissory Note issuable by the Company at the First Closing,
in the respective Principal Amounts set forth on Schedule 1, due, subject to the terms therein, eight (8) months from the
date of issuance, issued by the Company to the Purchasers hereunder, respectively in the form attached hereto as Exhibit B-1,
Exhibit B-2, Exhibit B-3, and Exhibit B-4. .


 


“Notice of Conversion” has the meaning ascribed
to such term in Section 4.5.


 


“OFAC” has the meaning ascribed to such term
in Section 3.1(ee).


 


“Participation Maximum” has the meaning ascribed
to such term in Section 4.13(a).


 


“Permit” means,
with respect to any Person, any permit, filing, notice, license, approval, variance, exception, permission, concession,
grant, franchise, confirmation, endorsement, waiver, certification, registration, qualification, clearance or other
Contractual Obligation or arrangement with, or authorization by, to or under the authority of, any Governmental Authority or
pursuant to any Regulation, or any other action by any Governmental Authority in each case whether or not having the force of
law and affecting or applicable to or binding upon such Person, its Contractual Obligations or arrangements or other
liabilities or any of its property or to which such Person, its Contractual Obligations or any of its property is or is
purported to be subject.


 






    		6	 



     


    

 


“Person” means an individual,
partnership, corporation, incorporated or unincorporated association, limited liability company, limited liability partnership,
joint stock company, land trust, business trust or unincorporated organization, or a government or agency, department or other
subdivision thereof or other entity of any kind.


 


“Pledged Sponsor Shares”
shall mean the 1,468,750 shares of Common Stock owned by Affiliates of the Sponsor.


 


“Preferred Conversion Shares”
shall mean the shares of Common Stock issuable upon conversion of the shares of the Series A Preferred Stock pursuant to the Certificate
of Designations.


 


“Pre-Notice” has the meaning ascribed to
such term in Section 4.13(b).


 


“Proceeding” against
a Person means an action, suit, litigation, arbitration, investigation, complaint, dispute, contest, hearing, inquiry, inquest,
audit, examination or other proceeding threatened or pending against, affecting or purporting to affect such Person or its property,
whether civil, criminal, administrative, investigative or appellate, in law or equity before any arbitrator or Governmental Authority.


 


“Prohibited Short Sale” has the meaning ascribed
to such term in Section 4.12.


 


“Pro Rata Portion” means,
with respect to a Purchaser and a group of Purchasers as of a particular date, the ratio of (i) the Subscription Amount of Securities
purchased on or prior to such date by such Purchaser (including, for the avoidance of doubt its predecessors and assignors) that
remain outstanding on such date to (ii) the sum of the aggregate Subscription Amounts of Securities purchased by all Purchasers
(including, for the avoidance of doubt, their predecessors and assignors) in such group on or prior to such date and that remain
outstanding on such date.


 


“Public Information Failure” has the meaning
ascribed to such term in Section 4.3(b).


 


“Public Information Failure Payments” has
the meaning ascribed to such term in Section 4.3(b).


 


“Purchaser Party” has the meaning ascribed
to such term in Section 4.9.


 


“Registrable Securities”
means, as of any date of determination, (a) all of the Conversion Shares then issued and issuable upon conversion in full of the
Notes (assuming on such date the Notes are converted in full without regard to any conversion limitations therein), (b) all shares
of Common Stock issued and issuable as interest or principal on the Notes assuming all permissible interest and principal payments
are made in shares of Common Stock and the Notes are held until maturity, (c) any additional shares of Common Stock issued and
issuable in connection with any anti-dilution provisions in the Notes (without giving effect to any limitations on conversion set
forth in the Notes), (d) the Commitment Shares, and (e) any securities issued or then issuable upon any stock split, dividend or
other distribution, recapitalization or similar event with respect to the foregoing.


 


“Registration Rights
Agreement” means that certain Registration Rights Agreement required to be delivered pursuant to Section 2.5,
in the form attached hereto as Exhibit C.


 


“Registration Statement” shall have the meaning
ascribed to such term in Section 2.2.


 






    		7	 



     


    

 


“Regulation” means,
all international, federal, state, provincial and local laws (whether civil or common law or rule of equity and whether U.S. or
non- U.S.), treaties, constitutions, statutes, codes, tariffs, rules, guidelines, regulations, writs, injunctions, orders, judgments,
decrees, ordinances and administrative or judicial precedents or authorities, including, in each case whether or not having the
force of law, the interpretation or administration thereof by any Governmental Authority, all policies, recommendations or guidance
of any Governmental Authority and all administrative orders, directed duties, directives, requirements, requests.


 


“Related Parties” of
any Person means such Person, (i) each Affiliate of such Person, (ii) each Person that, directly or indirectly, owns or controls,
whether beneficially, or as a trustee, guardian or other fiduciary, 5% or more of the Capital Stock having ordinary voting power
in the election of directors of such Person or such Affiliate, (iii) each of such Person’s or such Affiliate’s officers,
managers, directors, joint venture partners, partners and employees (and any other Person with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title or classification as a contractor under employment
Regulations), (iv) any lineal descendants, ancestors, spouse or former spouses (as part of a marital dissolution) of any of the
foregoing, (v) any trust or beneficiary of a trust of which any of the foregoing are the sole trustees or for the benefit of any
of the foregoing. Notwithstanding the foregoing, the Purchaser and its Subsidiaries, on the one hand, and the Company Parties and
their Subsidiaries, on the other hand, shall not be considered “Related Parties” of each other.


 


“Required Purchasers”
means Dominion, so long as Dominion holds any shares of Series A Convertible Preferred Stock, and, if later, so long as Dominion
holds Securities in excess of $150,000 Purchase Price; and, thereafter, each of the Purchasers.


 


“Required Filings”
means (a) any filing required pursuant to Section 4.3 or 4.14, (b) the notice and/or application(s) to each applicable
Trading Market for the issuance and sale of the Securities and the listing of the Conversion Shares for trading thereon in the
time and manner required thereby and (c) the filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws.


 


“Required Minimum” means,
as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant
to the Transaction Documents, including any Conversion Shares issuable upon conversion in full of the Notes, ignoring any conversion
limits set forth therein, and assuming that the Conversion Price is at all times on and after the date of determination 100% of
the then Conversion Price on the Trading Day immediately prior to the date of determination.


 


“Resignation Effective Date” has the meaning
ascribed to such term in Section 5.6(a).


 


“Restricted Payment” means,
for any Person, (a) any dividend, stock split or other distribution, direct or indirect (including by way of spin off, reclassification,
corporate rearrangement, scheme of arrangement or similar transaction), on account of, or otherwise to the holder or holders of,
any shares of any class of Capital Stock of such Person now or hereafter outstanding, (b) any redemption, retirement, sinking fund
or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of
such Person by such Person or any Affiliate thereof now or hereafter outstanding, and (c) any payment made to retire, or to obtain
the surrender of, any Stock Equivalents now or hereafter outstanding; provided, that for the avoidance of doubt, (i) a cashless
exercise of an employee stock option in which options are cancelled to the extent needed such that the “in-the-money”
value of the options (i.e. the excess of market price over exercise price) that are cancelled is utilized to pay the exercise price,
and applicable taxes, shall not be a “Restricted Payment” and (ii) a distribution of rights (including rights
to receive assets) or options shall constitute a “Restricted Payment”.


 


“Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.


 


“Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such
Rule.


 






    		8	 



     


    

 


“Sanctioned Jurisdiction”
means, at any time, a country, territory or geographical region that is subject to, the target of, or purported to be subject to,
Sanctions Laws.


 


“Sanctions Laws” means
all applicable Regulations concerning or relating to economic or financial sanctions, requirements or trade embargoes imposed,
administered or enforced from time to time by OFAC, including the following (together with their implementing regulations, in each
case, as amended from time to time): the International Security and Development Cooperation Act (ISDCA) (22 U.S.C. §23499aa-9
et seq.); the Patriot Act; and the Trading with the Enemy Act (TWEA) (50 U.S.C. §5 et seq.).


 


“Sanctioned Person”
means (a) any Person that is listed in the annex to, or otherwise subject to the provisions of, Executive Order 13224 – Blocking
Property and Prohibiting Transactions with Persons Who Commit and Threaten to Commit or Support Terrorism, effective September
24, 2001; (b) any Person that is named in any Sanctions Laws-related list maintained by OFAC, including the “Specially Designated
National and Blocked Person” list; (c) any Person or individual located, organized or resident or determined to be resident
in a Sanctioned Jurisdiction that is, or whose government is, the target of comprehensive Sanctions Laws; (d) any organization
or Person directly or indirectly owned or controlled by any such Person or Persons described in the foregoing clauses (a) through
(c); and (e) any Person that commits, threatens or conspires to commit or supports “terrorism”," as defined in
applicable United States Regulations.


 


“Second Closing” shall have the meaning ascribed
to such term in Section 2.2.


 


“Second Closing Date” shall have the meaning
ascribed to such term in Section 2.2.


 


“Second Closing Notice” shall have the meaning
ascribed to such term in Section 2.2.


 


“SEC Reports” has the meaning ascribed to
such term in Section 3.1(f).


 


“Securities” mean the
Notes, the shares of Series A Preferred Stock, Conversion Shares, the Preferred Conversion Shares and the Commitment Shares.


 


“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


“Security Agreements”
mean the US Security Agreement, the Canadian Security and Pledge Agreement, the Amended and Restated Security Agreement, the Canadian
Amended and Restated Security and Pledge Agreement by and among, as applicable, the Company Parties and the secured parties signatory
thereto, and for the benefit of, and in form and substance satisfactory on the First Closing Date to, the Collateral Agent respectively
in the form attached hereto as Exhibit D-1, Exhibit D-2, Exhibit D-3, and Exhibit D-1.


 


“Selling Expense” has the meaning ascribed
to such term in Section 4.17.


 


“Shell Company” means an entity that fits
within the definition of “shell company” under Section 12b-2 of the Exchange Act and Rule 144.


 


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


 


“Sponsor” means KBL IV Sponsor LLC, a limited
liability company organized under the laws of the State of Delaware.


  


“Sponsors Pledge and Escrow Agreement”
means the Sponsors Pledge and Escrow Agreement executed by the Company, the holders of the Pledged Sponsor Shares, and the Purchaser,
in the form attached hereto as Exhibit K.


 






    		9	 



     


    

 


“Stock Equivalents” means
all securities and/or Indebtedness convertible into or exchangeable for Capital Stock or any other Stock Equivalent and all warrants,
options, scrip rights, calls or commitments of any character whatsoever, and all other rights or options or other arrangements
(including through a conversion or exchange of any other property) to purchase, subscribe for or acquire, any Capital Stock or
any other Stock Equivalent, whether or not presently convertible, exchangeable or exercisable.


 


“Subordination and Intercreditor
Agreements” means those certain Subordination and Intercreditor Agreements required to be delivered pursuant to Section
2.5, in the form attached hereto as Exhibit I, which shall provide, among other things, that, upon the occurrence of certain Events
(as defined in the Subordination and Intercreditor Agreements), the holders of the Company’s unsecured debt, may offer to
acquire the Purchaser’s Notes for a purchase price at least equal to the then outstanding principal amount of such Notes,
all accrued but unpaid interest thereunder, the “Make Whole Amounts” (as defined in such Notes), and any fees or other
“Obligations” (as defined in such Notes) or other obligations outstanding due and unpaid by the Company, the Target
or any of their Affiliates or Related Parties under such Notes or any other security or other Transaction Document, and shall include
provisions to ensure these purchase rights are distributed ratably amongst such holders wishing to participate in such purchase.


 


“Subscription Amount”
means, as to any Purchaser, the aggregate amount to be paid for the Notes purchased hereunder as specified on Schedule 1.


 


“Subsequent Financing” has the meaning ascribed
to such term in Section 4.13.


 


“Subsequent Financing Notice” has the meaning
ascribed to such term in Section 4.13(b).


 


“Subsidiary” means (a)
any subsidiary of the Company as set forth in, or otherwise required to be set forth in, the SEC Reports, both on or after the
date hereof, and (b) any Person (other than natural persons) the management of which is, directly or indirectly, controlled by,
or of which an aggregate of 50% or more of the outstanding Voting Stock is, at the time, owned or controlled, directly or indirectly,
by such Person or one or more Subsidiaries of such Person.


 


“Sullivan & Worcester
Escrow Agreement” means that certain Escrow Agreement with Sullivan & Worcester LLP required to be delivered pursuant
to Section 2.5, in the form attached hereto as Exhibit G.


 


“Target” means 180 Life Sciences Corp., a
corporation organized under the laws of the State of Delaware.


 


“Taxes” means any present
or future taxes, levies, imposts, duties, fees, assessments, deductions, withholdings or other charges of whatever nature, including
income, receipts, excise, property, sales, use, transfer, license, payroll, withholding, social security and franchise taxes now
or hereafter imposed or levied by the United States or any other Governmental Authority and all interest, penalties, additions
to tax and similar liabilities with respect thereto, but excluding, in the case of any Purchaser, taxes imposed on or measured
by the net income or overall gross receipts of such Purchaser.


 


“Third Party Exchange Transfer” has the meaning
ascribed to such term in Section 4.11(b).


 


“Trading Day” means
a day on which the principal Trading Market for the Common Stock 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 American; the Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market; the New York Stock Exchange;
OTC Markets or the OTC Bulletin Board (or any successors to any of the foregoing).


 






    		10	 



     


    

 


“Transaction
Documents” means this Agreement, the Disclosure Certificate, the Certificate of Designations, the Collateral Agency
Agreement, the Subordination and Intercreditor Agreements, the Western Alliance Bank Escrow Agreement, the Sullivan &
Worcester LLP Escrow Agreement, the Registration Rights Agreement, the Guaranty, the Sponsors Pledge and Escrow Agreement,
the Notes, the Security Agreements, the Intellectual Property Security Agreement, the Deposit Account Control Agreement, the
Transfer Agent Instruction Letters, and any other documents or agreements executed in connection with the transactions
contemplated hereunder.


 


“Transfer Agent” means
Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address of One State
Street Plaza, 30th Floor, New York, New York 10004 and a phone number of (212)
509-4000, attention: Mark Zimkind, and any successor transfer agent of the Company.


 


“Transfer Agent Instruction Letters”
means the letters from the Company to the Transfer Agent on each Closing Date, duly acknowledged and agreed by the Transfer Agent,
which instructs the Transfer Agent to issue the Commitment Shares, Conversion Shares and the Preferred Conversion Shares created
or issued on such Closing Date pursuant to the Transaction Documents, respectively, in the form of Exhibit L-1 and Exhibit-2,
attached hereto, in form and substance satisfactory to the Purchasers on each Closing Date.


 


“Trust Account” has the meaning ascribed
to such term in Section 4.11(b).


 


“UCC” means the Uniform
Commercial Code as from time to time in effect in the State of New York; provided, that in the event that, by reason of
mandatory provisions of any applicable Regulation, any of the attachment, perfection or priority of the Collateral Agent’s
or any other Purchaser Party’s security interest in any Collateral is governed by the Uniform Commercial Code of a jurisdiction
other than the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of the definitions related
to or otherwise used in such provisions.


 


“Variable Rate Transaction” has the meaning
ascribed to such term in Section 4.11(a).


 


“Voting Stock” means
Capital Stock of any Person (i) having ordinary power to vote in the election of any member of the board of directors or any manager,
trustee or other controlling persons of such Person (irrespective of whether, at the time, Capital Stock of any other class or
classes of such entity shall have or might have voting power by reason of the happening of any contingency) and (ii) any Capital
Stock of such Person convertible or exchangeable without restriction at the option of the holder thereof into Capital Stock of
such Person described in clause (i) of this definition.


 


“VWAP” means, for or
as of any date for any Security, the dollar volume-weighted average price for such Security on the Trading Market (or, if the Trading
Market is not the principal trading market for such Security, then on the principal securities exchange or securities market on
which such Security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New
York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does not
apply, the dollar volume-weighted average price of such Security in the over-the-counter market on the electronic bulletin board
for such Security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such Security by Bloomberg for such hours, the average
of the highest closing bid price and the lowest closing ask price of any of the market makers for such Security as reported in
the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such Security
on such date on any of the foregoing bases, the VWAP of such Security on such date shall be the fair market value as mutually determined
by the Company and the Holder. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination, recapitalization or other similar transaction during such period.


 


“Western Alliance Escrow
Agreement” means that certain Escrow Agreement with Western Alliance Bank required to be delivered pursuant to Section
2.5, in the form attached hereto as Exhibit H.


 






    		11	 



     


    

 


ARTICLE II PURCHASE AND SALE


 


2.1 First Closing. The first closing
of the offer and sale of the Note (the “First Closing”) shall occur at 10:00 am (New York City time) at the
offices of Sullivan & Worcester LLP, 1633 Broadway, New York, New York 10019, on the first (1st)
Trading Day on which the conditions to the First Closing set forth in Section 2.6 hereof are satisfied or waived in writing as
provided elsewhere herein, or on such other date and time as agreed to by the Company and the Purchaser (the “First Closing
Date”)


 


2.2 Second Closing.


 


(a) 
Subject to the satisfaction (or express waiver) of the conditions set forth in this Section 2.2 and Section 2.6, the Company
shall have the right to require the Purchaser to purchase the shares of the Series A Preferred Stock on the Second Closing Date
(as defined herein) by delivering to the Purchaser an irrevocable written notice (the “Second Closing Notice”)
on the Effective Date (as such term is defined in the Registration Rights Agreement) that the Company has exercised its right to
require the Purchaser to purchase the shares of Series A Preferred Stock.


 


(b) The
Second Closing Notice shall state that (i) the registration statement (the “Registration Statement”),
which is the subject of the Registration Rights Agreement has been declared effective by the SEC (and with respect to which
no stop order has been issued); (ii), the date and time of the a second closing (the “Second Closing”),
which shall be at 10:00 a.m. (New York City time), on a date that is no later than the second (2nd)
Trading Day after the Registration Statement has been declared effective by the SEC (the “Second Closing
Date”); and (iii) all the conditions to the Second Closing set forth in this Section 2.2 and Section 2.6 hereof are
satisfied or waived in writing, Subject to compliance with the applicable federal securities laws, the Company and the
Purchaser may mutually agree on such other date and time for the Second Closing. Notwithstanding anything herein to the
contrary, if the Second Closing does not occur by October 9, 2020, the Company’s right to effect a Second Closing
hereunder shall automatically terminate.


 


2.3 Conditions to Purchase of Notes
and Series A Preferred Stock. Subject to the terms and conditions of this Agreement, the Purchaser will at the applicable Closing,
on the applicable Closing Date, purchase from the Company the Notes and shares of Series A Preferred Stock, as applicable, in the
amounts and for the purchase price as set forth on Schedule 1 for such Closing Date (the “Purchase Price”),
provided, that on such Closing Date, (i) no Event of Default (or event that with the passage of time or the giving of notice,
or both, would become an Event of Default), shall have occurred or would result therefrom; and (ii) the applicable conditions in
Section 2.8 hereof have been satisfied.


 


2.4 Purchase Price and Payment of the
Purchase Price for the Notes and Series A Preferred Stock. The Purchase Price for the Notes and shares of Series A Preferred
Stock to be purchased by each Purchaser at the applicable Closing shall be as set forth on Schedule 1 and shall be paid
at the applicable Closing by such Purchaser by wire transfer of immediately available funds to the Company in accordance with the
Company’s written wire instructions and delivery of the 2019 Kingsbrook Note to the Company, against delivery of the Notes
and such shares of Series A Preferred Stock. The Purchase Price for each Note purchased shall be ten (10%) less than (i) the aggregate
principal amount of each such Note purchased, which 10% discount shall constitute original issue discount and (ii) the aggregate
amount of the shares of Series A Preferred Stock purchased.


 


2.5 Deliveries.


 


(a) 
On or prior to the First Closing Date (except as noted), the Company shall deliver or cause to be delivered to each Purchaser
the following:


 


(i) 
this Agreement duly executed by the Company;


 


(ii) 
the specified Notes, having the respective principal amounts set forth on Schedule 1, registered in the name of specified
Purchaser;


 






    		12	 



     


    

 


(iii) 
400,000 Commitment Shares as set forth on Schedule 1, registered in the name of the specified Purchaser, (the “Dominion
Commitment Shares”);


 


(iv) 
250,000 Commitment Shares as set forth on Schedule 1, registered in the name of the specified Purchaser, (the “KB
Commitment Shares”);


 


(v) 
the Pledged Sponsor Shares and accompanying stock powers endorsed in blank, which shares and stock power shall be subject
to the Sponsors Pledge and Escrow Agreement;


 


(vi) 
the Sponsors Pledge and Escrow Agreement executed by the Company and the holders of the Pledged Sponsor Shares;


 


(vii) 
the Certificate of Designations duly executed by the Company;


 


(viii) 
the Collateral Agency Agreement, duly executed by the Company and the Target;


 


(ix) 
Subordination and Intercreditor Agreements duly executed by the Company, the junior creditors of the Company and/or the
Target;


 


(x)  the
West Alliance Escrow Agreement duly executed by the Company and the Escrow Agent;


 


(xi) 
the Sullivan & Worcester Escrow Agreement duly executed by the Company and the Escrow Agent;


 


(xii) 
the Registration Rights Agreement duly executed by the Company;


 


(xiii) 
the Guaranty duly executed by the Target;


 


(xiv) 
the Security Agreement duly executed by the Company and its Subsidiaries, as applicable;


 


(xv) 
the Intellectual Property Security Agreement duly executed by the Company and its Subsidiaries, as applicable;


 


(xvi)  the
Amended and Restated Security Agreement duly executed by the Company, the Target and the Target’s Subsidiaries, as
applicable;


 


(xvii) 
the Canadian Security and Pledge Agreement duly executed by the Target and its Canadian Subsidiaries;


 


(xviii) 
the Canadian Amended and Restated Security and Pledge Agreement duly executed by the Target and the Target’s Subsidiaries,
as applicable;


 


(xix) 
The Canadian Guaranty executed by the Target and its Canadian Subsidiaries;


 


(xx) 
the Leak-Out Agreement;


 


(xxi) 
a Transfer Agent Instruction Letter duly executed by the Company and the Transfer Agent;


 


(xxii) 
an opinion from the Company’s counsel in a form reasonably acceptable to the Purchaser’s counsel;


 






    		13	 



     


    

 


(xxiii)  an
officer’s certificate and compliance certificate, each in a form reasonably acceptable to the Purchaser’s
counsel; and


 


(xxiv) 
such other opinions, certificates, statements, including, without limitation, a closing statement, and agreements as the
Purchasers’ counsel may reasonably require.


 


(b) 
On or prior to the First Closing Date, the Purchaser signatory to the specified agreement shall deliver or cause to be delivered
to the Company, as applicable, the following:


 


(i) 
this Agreement duly executed by such Purchaser;


 


(ii)  the
applicable Purchaser’s Subscription Amount as to the Dominion Senior Secured Convertible Promissory Note or the KB
Senior Secured Convertible Promissory Note and/or each Senior Secured Convertible Extension Promissory Note being purchased
by such Purchaser at the First Closing (A) by wire transfer to the account specified in writing by Sullivan & Worcester
LLP with respect to the Subscription Amounts for the Dominion Senior Secured Convertible Promissory Note and the Senior
Secured Convertible Extension Promissory Notes and (B) by wire transfer to the account specified in writing by the Company
with respect to the Subscription Amount for the $50,000 cash consideration for the KB Senior Secured Convertible Promissory
Note to be paid in accordance with Section 6.2. The Subscription Amounts for the Dominion Senior Secured Convertible
Promissory Note and the Senior Secured Convertible Extension Promissory Notes shall be held in escrow pursuant to the terms
of the Sullivan & Worcester Alliance Escrow Agreement;


 


(iii) 
the Western Alliance Escrow Agreement duly executed by the specified Purchaser;


 


(iv) 
the Sullivan & Worcester Escrow Agreement duly executed by the specified Purchaser;


 


(v) 
the Subordination and Intercreditor Agreements duly executed by the Purchasers;


 


(vi) 
the Collateral Agency Agreement duly executed by the Purchasers;


 


(vii) 
the Sponsors Pledge and Escrow Agreement duly executed by the specified Purchaser;


 


(viii) 
the Registration Rights Agreement duly executed by the Purchasers;


 


(ix) 
the Security Agreements duly executed by the Purchasers, as applicable;


 


(x)  the
Intellectual Property Security Agreement duly executed by the specified Purchaser; and


 


(xi) 
the Leak-Out Agreement executed by the Purchasers.


 


(c) 
On or prior to the Second Closing Date (except as noted), the Company shall deliver or cause to be delivered to the specified
Purchaser the following:


 


(i) 
shares of Series A Preferred Stock, in the amount set forth on Schedule 1, registered in the name of the Purchaser,
which are subject to the customary Securities Act restrictive legend;


 


(ii) 
the Disclosure Certificate, updated as of such Second Closing Date, together with any additional collateral documents necessary
or appropriate, in the Collateral Agent’s sole discretion, because of any changes in such Disclosure Certificate;


 


(iii) 
all documentation relating to the Business Combination, together with evidence of the effectiveness of the Business Combination,
each of which shall be in form and substance acceptable to the Purchasers in their sole discretion;


 






    		14	 



     


    

 


(iv) the Transfer Agent
Instruction Letter duly executed by the Company and the Transfer Agent;


 


(v)  an
opinion from the Company’s counsel in a form reasonably acceptable to the Purchasers’ counsel;


 


(vi)  an
officer’s certificate and compliance certificate, each in a form reasonably acceptable to the Purchasers’
counsel;


 


(vii) 
an officer certificate that the milestones to the Second Closing set forth in the Disclosure Certificate have been achieved,
together with evidence thereof, and the specified Purchaser shall be satisfied in its sole discretion that such milestones have
been achieved and that the Registration Statement (as defined in the Registration Rights Agreement) has been declared effective
and remains effective as of the Second Closing Date; and


 


(viii) 
such other opinions, certificates, statements, including, without limitation, a closing statement, and agreements as the
Purchasers’ counsel may reasonably require.


 


(d) 
On or prior to the Second Closing Date, the Purchaser shall deliver or cause to be delivered on behalf of the Company, the
Purchaser’s Subscription Amount for the shares of Series A Preferred Stock being purchased by the Purchaser at the Second
Closing by wire transfer to the account specified in writing by Western Alliance Bank. The Subscription Amount for the shares of
Series A Preferred Stock shall be held in escrow pursuant to the terms of the Western Alliance Escrow Agreement.


 


2.6 Closing Conditions.


 


(a) 
The obligations of the Company hereunder in connection with each Closing are subject to the following conditions being met:


 


(i) 
the accuracy in all material respects as at the Closing Date for such Closing of the representations and warranties of the
Purchasers contained in any Transaction Document (unless as of a specific date therein in which case they shall be accurate as
of such date);


 


(ii) 
all obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date for
such Closing pursuant to any Transaction Document shall have been performed;


 


(iii)  the
delivery by the specified Purchaser of the items set forth in Section 2.5(b) or 2.5(d), as applicable; and


 


(iv) 
the specified Purchaser’s Subscription Amount being equal to the Purchase Price due and payable at such Closing.


 


(b) 
The respective obligations of the Purchasers hereunder in connection with each Closing are subject to the following conditions
being met:


 


(i) the
accuracy in all material respects when made as to the Closing Date for such Closing of the representations and warranties of
the Company contained herein (unless as of a specific date therein);


 


(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date for such
Closing shall have been performed;


 


(iii)
the delivery by the Company of the items set forth in Section 2.5(a) or 2.5(c), as applicable;


 






    		15	 



     


    




 


(iv) there
is no existing Event of Default (as defined in the Notes or the Certificate of Designations) and no existing event which, with
the passage of time or the giving of notice, would constitute an Event of Default;


 


(v)
there is no breach of an obligations, covenants and agreements under the Transaction Documents and no existing event which,
with the passage of time or the giving of notice, would constitute a breach under the Transaction Documents;


 


(vi)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof;


 


(vii) from
the date hereof to the Closing Date for such Closing, trading in the shares of Common Stock shall not have been suspended by
the Commission or the Company’s principal Trading Market and, at any time prior to such Closing Date, trading in
securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have
been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking
moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any
material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect
on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Purchaser,
and without regard to any factors unique to the Purchaser, makes it impracticable or inadvisable to purchase the Securities
at such Closing;


 


(viii)
the Company meets the current public information requirements under Rule 144 in respect of the Commitment Shares, Pledged
Sponsor Shares, Conversion Shares or Preferred Conversion Shares and any other shares of Common Stock issuable under the
Notes or the Certificate of Designations;


 


(ix) any
other conditions contained herein or the other Transaction Documents, including those set forth in Section 2.5;
and


 


(x) 
the Company has submitted a Listing of Additional Shares Notification Form with the Nasdaq Capital Market with respect to
each issuance of Securities pursuant to this Agreement.


 


ARTICLE III.REPRESENTATIONS
AND WARRANTIES


 


3.1 Representations and Warranties of
the Company Parties. The Company hereby makes the following representations and warranties (and, to the extent provided in
the Security Agreement or any other Transaction Document, each other Company Party makes the following representations and warranties
as, and to the extent applicable to, such Company Party) to each Purchaser as of each Closing Date as to each Company Party, each
subject to the exceptions set forth in the Disclosure Certificate, which Disclosure Certificates is deemed a part hereof and qualifies
any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure
Certificates:


 


(a) Subsidiaries.
All of the direct and indirect Subsidiaries of the Company are set forth on the Disclosure Certificate. The Company owns,
directly or indirectly, all of the Capital Stock and Stock Equivalents of each Subsidiary free and clear of any Liens, other
than as set forth in the SEC Reports, and all of the issued and outstanding shares of Capital Stock of each Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase
securities.


 


(b) Organization
and Qualification. Each Company Party is a Person having the corporate form listed on the Disclosure Certificate, duly
organized, validly existing and in good standing under the laws of its jurisdiction of organization listed on the Disclosure
Certificate and is duly qualified or licensed to transact business in its jurisdiction of organization, the jurisdiction of
its principal place of business, any other jurisdiction where the Purchasers have filed a UCC financing statement or a
mortgage and, except where the failure to do so would not have a Material Adverse Effect, any other jurisdiction where such
qualification is necessary to conduct its business or own the property it purports to own – and no Proceeding exists or
has be instituted or threatened in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or
curtail such power and authority or qualification. Each Company Party has the right, power and authority to enter into and
discharge all of its obligations under each Transaction Document to which it purports to be a party, each of which
constitutes a legal, valid and binding obligation of such Company Party, enforceable against it in accordance with its terms,
subject only to bankruptcy and similar Regulations affecting creditors’ rights generally; and has the power, authority,
Permits and Licenses to own its property and to carry on its business as presently conducted. No Company Party is engaged in
the business of extending credit (which shall not include intercompany credit among the Company Parties) for the purpose of
purchasing or carrying margin stock or any cryptocurrency, token or other blockchain asset.


 






    		16	 



     


    

 


(c) 
Authorization; Enforcement. The execution, delivery, performance by each Company Party of its obligations, and exercise
by such Company Party of its rights under the Transaction Documents, including, if applicable, the sale of Notes and other securities
under this Agreement, (i) have been duly authorized by all necessary corporate actions of such Company Party, (ii) except for the
Required Filings, do not require any Consents or Permits that have not been obtained prior to the date hereof and each such Permit
or Consent is in full force and effect and not subject of any pending or, to the best of any Company Party’s knowledge, threatened,
attack or revocation, (iii) are not and will not be in conflict with or prohibited or prevented by or create a breach under (A)
except for those that do not have a Material Adverse Effect, any Regulation or Permit, (B) any corporate governance document or
resolution or (C) except for those that do not have a Material Adverse Effect, any Contractual Obligation or provision thereof
binding on such Company Party or affecting any property of such Company Party and (iv) will not result in the imposition of any
Lien on the Collateral other than Liens for the benefit of the Purchaser Parties. Upon execution and delivery thereof, each Transaction
Document to which such Company Party purports to be a party shall constitute the legal, valid and binding obligation of such Company
Party, enforceable against such Company Party in accordance with its terms.


 


(d) Issuance of
the Securities. 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 nonassessable, free and clear of all Liens imposed by
the Company other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares, when issued
in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and
clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The
Company has reserved from its duly authorized Capital Stock a number of shares of Common Stock for issuance of the Commitment
Shares, Conversion Shares, and the Preferred Conversion Shares at least equal to the Required Minimum on the date hereof or
as provided for in Section 4.10(a).


 


(e) 
Capitalization. The capitalization of the Company is as set forth on the Disclosure Certificate, which Disclosure
Certificate also includes the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company
as of the date hereof. The Company has not issued any Capital Stock or Stock Equivalent since its most recently filed periodic
report under the Exchange Act except (i) as set forth on the Disclosure Certificate, (ii) for the issuance of shares of Common
Stock to employees pursuant to the Company’s employee stock purchase plans and (iii) pursuant to the conversion and/or exercise
of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act as set
forth on the Disclosure Certificate. No Person has any right of first refusal, preemptive right, right of participation, or any
similar right to participate in, or triggered by, the transactions contemplated by the Transaction Documents (including the issuance
of the Conversion Shares upon conversion of the Notes in accordance with their terms) as set forth on the Disclosure Certificate.
There are no outstanding Stock Equivalents with respect to any shares of Common Stock, and there are no Contractual Obligations
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents
except as set forth on the Disclosure Certificate. The issuance and sale of the Securities will not obligate the Company to issue
shares of Common Stock or any other securities to any Person (other than to any Purchaser) and will not result in a right of any
holder of securities issued by any Company Party to adjust the exercise, conversion, exchange or reset price under any Stock Equivalent,
except as set forth on the Disclosure Certificate. All of the outstanding shares of Capital Stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all securities Regulations, and no such outstanding
share was issued in violation of any preemptive right or similar or other right to subscribe for or purchase securities or any
other existing Contractual Obligation. No further approval or authorization of any stockholder or the Board of Directors, and
no other Permit or Consent, is required for the issuance and sale of the Securities. There are no stockholders’ agreements,
voting agreements or other similar Contractual Obligations with respect to the Company’s Capital Stock or Stock Equivalents
to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders
or other equity investors.


 






    		17	 



     


    

 


(f) 
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 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 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”). As of their respective dates, the SEC Reports complied
in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, 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 the 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 Commission with respect thereto as in effect at the time of filing. Except as
disclosed in footnotes to such financial statements, such financial statements have been prepared in accordance with GAAP 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 customary and immaterial year-end audit adjustments.


 


(g) 
Material Adverse Effects; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date
hereof: (i) there has been no event that has had, or could reasonably be expected to result in, a Material Adverse Effect, (ii)
no Company Party has incurred any Indebtedness or other liability (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required by GAAP to
be reflected in the Company’s financial statements and not required to be disclosed in filings made with the Commission,
(iii) no Company Party has altered its fiscal year or accounting methods; (iv) no Company Party has declared or made any Restricted
Payment or entered in any Contractual Obligation to do so, (v) no Company Party has issued any Capital Stock to any officer, director
or other Affiliate, and (vi) there has been no event, liability, fact, circumstance, occurrence or development has occurred or
exists or is reasonably expected to occur or exist with respect to any Company Party, their Subsidiaries or their respective businesses,
properties, operations, assets or financial condition, that would be required to be disclosed by any Company Party under applicable
securities Regulations at the time this representation is made or deemed made that has not been publicly disclosed at least one
(1) Trading Day prior to the date that this representation is made.


 


(h) 
Litigation. Except as set forth in the SEC Reports, there is no Proceeding against any Company Party of any Subsidiary
of any Company Party or any current or former officer or director of any Company Party or any Subsidiary of any Company Party in
its capacity as such which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities, (ii) involves the Commission or otherwise involves violations of securities Regulations or (iii) could,
assuming an unfavorable result, have or reasonably be expected to result in a Material Adverse Effect, and none of the Company
Parties, their Subsidiaries, or any director or officer of any of them, is or has been the subject of any Proceeding involving
a claim of violation of or liability under securities Regulations or a claim of breach of fiduciary duty. The Commission has not
issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the Exchange Act or the Securities Act.


 






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(i)  Labor
Relations. There is no (i) no unfair labor practice at any Company Party and there is no unfair labor practice complaint
pending against any Company Party or any Subsidiary of any Company Party or, to their knowledge of any Company Party,
threatened against any of them before the National Labor Relations Board and no grievance or arbitration proceeding arising
out of or under any collective bargaining agreement that is so pending against any Company Party or any Subsidiary of any
Company Party or to their knowledge threatened against any of them, (ii) no strike, work stoppage or other labor dispute in
existence or to their knowledge threatened involving any Company Party or any Subsidiary of any Company Party, and (iii) no
union representation question existing with respect to the employees of any Company Party or any Subsidiary of any Company
Party, as the case may be, and no union organization activity that is taking place, except (with respect to any matter
specified in clause (i), (ii) or (iii) above, either individually or in the aggregate) such as could not reasonably likely to
have a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that
relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its
Subsidiaries is a party to a collective bargaining agreement. To the knowledge of the Company, the continued service to the
Company of the executive officers of the Company Parties and their Subsidiaries is not, and is not expected to be, in
violation of any material term of any Contractual Obligation in favor of any third party, and does not subject any Company
Party or any Subsidiary of any Company Party to any Loss with respect to any of the foregoing matters.


 


(j) 
Compliance. No Company Party and no Subsidiary thereof, except as set forth in the SEC Reports or as could not have
or reasonably be expected to result in a Material Adverse Effect: (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 any Company Party or any Subsidiary thereof received notice of a claim that it is in default under or that it is
in violation of, any Contractual Obligation (whether or not such default or violation has been waived); (ii) is in violation of
any judgment, decree or order of any Governmental Authority; (iii) is or has been in violation of any Regulation, and to the knowledge
of each Company Party, no Person has made or threatened to make any claim that such a violation exists (including relating to taxes,
environmental protection, occupational health and safety, product quality and safety, employment or labor matters) or (iv) has
incurred, or could reasonably be expected to incur Losses relating to compliance with Regulations (including clean-up costs under
environmental Regulations), nor have any such Losses been threatened.


 


(k) Permits.
Each Company Party and its Subsidiaries possess all Permits, each issued by the appropriate Governmental Authority, that are
necessary to conduct their respective businesses as described in the SEC Reports and which failure to possess could
reasonably be expected to result in a Material Adverse Effect and no Company Party nor any Subsidiary thereof has received
any notice of proceedings relating to the revocation or modification of any such Permit.


 


(l) 
Title to Assets. Each Company Party and their Subsidiaries have good and marketable title in fee simple to all real
property owned by them and good title in fee simple to all personal property owned or purported to be owned by any of them that
is material to the business of any Company Party or any Subsidiary of any Company Party, in each case free and clear of all Liens
except as set forth in the SEC Reports and except for (i) Liens that do not materially affect the value of any such property and
do not materially interfere with the use made and proposed to be made of such property by the Company Parties and their Subsidiaries
and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by any Company Party or any Subsidiary of the Company Parties (and any personal property if such lease is material to the
business of any Company Party or any Subsidiary of any Company Party) are held by them under valid, subsisting and enforceable
leases with which the Company Parties and their Subsidiaries party thereto are in compliance.


 






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(m) 
Intellectual Property. Except where the failure to do so would not have a Material Adverse Effect, each Company
Party and each Subsidiary of the Company Parties have, or have rights to use, all Intellectual Property Rights they purport to
have or have rights to use, which, in the aggregate for all such Company Party and such Subsidiary, constitute all Intellectual
Property Rights necessary or required for use in connection with the businesses of the Company Parties and their Subsidiary as
presently conducted. No Company Party and no Subsidiary of any Company Party has received a notice (written or otherwise) that
any of the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be
abandoned, within two (2)  years from the date of this Agreement, and, to the knowledge
of each Company Party and its Subsidiaries, no event has occurred that permits, or would permit after notice or passage of time
or both, the revocation, suspension or termination of such rights. No Company Party and no Subsidiary of any Company Party has
received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim,
nor has such a claim been threatened or could reasonably be expected to be made, and no Company Party and no Subsidiary of any
Company Party otherwise has any knowledge that any slogan or other advertising device, product, process, method, substance or
other Intellectual Property or goods or services bearing or using any Intellectual Property Right presently contemplated to be
sold by or employed by Intellectual Property Right of any Company Party or any Subsidiary of any Company Party violate or infringe
upon the rights of any Person, except as could not reasonably be expected to have a Material Adverse Effect. To the knowledge
of each Company Party and its Subsidiaries, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights. Each Company Party 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. As of such Closing Date
, no Company Party and no Subsidiary of any Company Party has any Intellectual Property Right registered, or subject to pending
applications, in the United States Patent and Trademark Office or any similar office or agency in the United States, any State
thereof, any political subdivision thereof or in any other country, other than those set forth on the Disclosure Certificate,
or has granted any licenses with respect thereto other than as set forth on the Disclosure Certificate. The Disclosure Certificate
also sets forth all Contractual Obligations or other arrangements of any Company Party or any Subsidiary of any Company Party
as in effect on the date hereof pursuant to which such Company Party or such Subsidiary has a license or other right to use any
Intellectual Property owned by another Person and the dates of the expiration of such Contractual Obligations or other arrangements
(collectively, together with such Contractual Obligations or other arrangements as may be entered into by any Company Party or
any Subsidiary of any Company Party after the date hereof, the “License Agreements”). As of the date hereof,
all material License Agreements and related rights are in full force and effect, no default or event of default exists with respect
thereto in respect of the obligations of licensor or with respect to any royalty or other payment obligations of any Company Party
or any Subsidiary of any Company Party or any obligation of any Company Party or any Subsidiary of any Company Party with respect
to manufacturing standards, quality control or specifications and each such Company Party or such Subsidiary is in compliance
with the terms thereof in all material respects and no owner, licensor or other party thereto has sent any notice of termination
or its intention to terminate such license or rights.


 


(n) Transactions
with Related Parties. Except as set forth in the SEC Reports, no Company Party and no Subsidiary of any Company Party is
a party to any Contractual Obligation or other transaction with any Related Party that is not a Company Party or Subsidiary
of a Company Party, including (a) Investments by any Company Party or any Subsidiary thereof in any such other Related Party
or Indebtedness owing by or to any such other Related Party and (b) transfers, sales, leases, assignments or other
acquisitions or dispositions of any asset, in each case except for (x) transactions in the ordinary course of business on a
basis no less favorable to the Company Parties and their Subsidiaries as would be obtained in a comparable arm’s length
transaction with a Person not a Related Party and (y) salaries and other director or employee or other staff compensation,
including expense reimbursements and employee benefits, of the Company Parties and their Subsidiaries.


 


(o) Sarbanes-Oxley;
Internal Accounting Controls. The Company and its Subsidiaries are in compliance 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 related Regulations. The Company
Parties and their Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii)  access to assets is permitted only in accordance with
management’s general or specific authorization and (iv)  the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. The Company and its Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and its Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed in the reports the Company is required to file or submit under
the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and
procedures of the Company and its Subsidiaries as of the end of the period covered by the most recently filed periodic report
under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently
filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) that have
materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the
Company and its Subsidiaries.


 






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(p) 
Certain Fees. No brokerage or finder’s fees or commissions or similar fees are or will be payable by any Company
Party or any Subsidiary of any Company Party to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. No Purchaser shall have
any obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section 3.1(p) that may be due in connection with the transactions contemplated by the Transaction
Documents.


 


(q) 
Private Placement. Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section
3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Trading Market.


 


(r) 
Investment Company. No Company Party and no Subsidiary of any Company Party is, or is an Affiliate of (and, immediately
after receipt of payment for the Securities and before and after giving effect to the use of the proceeds thereof, none will be
or be an Affiliate of), an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
Each Company Party and each Subsidiary of any Company Party shall conduct its business in a manner so that it will not become an
“investment company” subject to registration under the Investment Company Act of 1940, as amended.


 


(s) 
Registration Rights. No Person has any right to cause any Company Party or any Subsidiary of any Company Party to
effect the registration under the Securities Act of any securities of any Company Party or any Subsidiary of any Company Party.


 


(t) 
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 Commission is contemplating
terminating such registration. The Company has not, in the twelve (12) months 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. The Company has submitted,
or will submit, as applicable, the Listing of Additional Shares Notification Form with the Nasdaq Capital Market with respect to
the offering of the Securities. In this regard, the Company represents that the issuance of the Commitment Shares, Conversion Shares
and the Preferred Conversion Shares would not exceed the maximum number of shares of Common Stock that may be issued under the
Listing Rules of the Nasdaq Stock Market LLC without obtaining stockholder approval.


 


(u) 
Application of Takeover Protections. The Company and the Board of Directors (or equivalent body) 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 Articles of Incorporation
(or similar charter documents) or the laws of its state of incorporation that is or could become applicable as a result of the
Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including as
a result of the Company’s issuance of the Securities and the ownership of the Securities by any Purchaser or any Affiliate
of any Purchaser.


 


(v) 
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, each Company Party confirms that none of the Company Parties, their Affiliates, or agents or counsel or any other Person
acting on behalf of the foregoing has provided any Purchaser, any Purchaser Party or their agents or counsel with any information
that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that each
Purchaser will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosures
furnished by or on behalf of any Company Party or any Affiliate thereof to any Purchaser regarding the Company Parties and their
Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Certificate, are
true and correct and do 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. The press releases
disseminated by the Company Parties during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made and when made, not misleading. Each Company
Party acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2.


 






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(w) 
No Integrated Offering. Assuming the accuracy of each Purchaser’s representations and warranties set forth
in Section 3.2, no Company Party, 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 cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities
Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.


 


(x) 
No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any
of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only
to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.


 


(y) 
Foreign Corrupt Practices. No Company Party and no Related Party of any Company Party, has done any of the following,
directly or indirectly (including through agents, contractors, trustees, representatives and advisors): (i) made contributions
or payments of, or reimbursement for, gifts, entertainment or other expenses, in each case that could reasonably be viewed as unlawful
under U.S. or other Regulations related to foreign or domestic political activity or (ii) made payments to U.S. or other officials,
judges, employees or other staff members of any Governmental Authority or other Persons viewed as government officials under any
Regulation or to any foreign or domestic political parties, elected or union officials or campaigns in order to obtain, retain
or direct business or obtain any improper advantage, and no part of the proceeds of the Notes will be used, directly or indirectly,
to fund any such payment; (iii) failed to disclose fully any contribution or other payment made by any Company Party or any Subsidiary
of any Company Party (or made by any person acting on the behalf of any of the foregoing) which could reasonably be viewed as in
violation of U.S. or other Regulations; or (iv) any other activity in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended, or any other Regulation sanctioning or purporting to sanction bribery, corruption and other improper payments.


 


(z) Accountants.
The Company’s accounting firm is WithumSmith+Brown, PC. To the knowledge and belief of the Company, such accounting
firm is a registered public accounting firm as required by the Exchange Act.


 


(aa) No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably
anticipated by any Company Party to arise, between the Company and the accountants and lawyers formerly or presently employed
by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the
Company’s ability to perform any of its obligations under any of the Transaction Documents.


 


(bb) Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each Purchaser is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and
any advice given by any Purchaser, Purchaser Party or any of their respective representatives or agents in connection with
the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of
the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this
Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.


 






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(cc) Regulation
M Compliance. The Company has not, and to its knowledge no Company Party, Subsidiary of any Company Party or no one
acting on any of their behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the
stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the
Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or
(iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the
Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in
connection with the placement of the Securities.


 


(dd) Stock
Option Plans. The Company has not knowingly granted, and there is no and has been no Company policy or practice to
knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or
other public announcement of material information regarding the Company or its Subsidiaries or their financial results or
prospects.


 


(ee) Sanctions.
No Company Party and no Related Party of any Company Party, directly or indirectly (including through agents, contractors,
trustees, representatives or advisors) (a) is in violation of any Sanctions Law or engages in, or conspire or attempts to
engage in, any transaction evading or avoiding any prohibition in any Sanction Law, (b) is a Sanctioned Person or derive
revenues from investments in, or transactions with Sanctioned Persons, (c) has any assets located in Sanctioned Jurisdictions
or (d) deals in, or otherwise engages in any transactions relating to, any property or interest in property blocked pursuant
to any Regulation administered or enforced by the U.S. Office of Foreign Assets Control (“OFAC”). The
Borrower will not use, directly or indirectly, any part of the proceeds of any Note hereunder to fund, and none of the
Borrower or its Related Parties, either directly or indirectly (including through agents, contractors, trustees,
representatives or advisors), are engaged in any operations involving, the financing of any investments or activities in, or
any payments to, a Sanctioned Person.


 


(ff) 
U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon any Purchaser’s
request.


 


(gg) 
Bank Holding Company Act and Other Limiting Regulations. No Company Party and no Affiliate of any Company Party is
subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors
of the Federal Reserve System (the “Federal Reserve”). No Company Party and no Subsidiary or Affiliate of any
Company Party owns or controls, directly or indirectly, individually or in the aggregate, five percent (5%) or more of the outstanding
shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject
to the BHCA and to regulation by the Federal Reserve. No Company Party and no Subsidiary or Affiliate of any Company Party, either
individually or in the aggregate, directly or indirectly, exercise or has the ability to exercise a controlling influence over
the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. The Company
is not an “investment company” and is not a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940. The Company is not subject to regulation under the Public Utility Holding
Company Act of 2005, the Federal Power Act, the Interstate Commerce Act or the Investment Company Act of 1940 or to any Regulation
or Permit limiting the Company’s ability to incur indebtedness for borrowed money.


 


(hh)  Promotional
Stock Activities. No Company Party, no Subsidiary of any Company Party and none of their officers, directors, managers,
affiliates or agents have engaged in any stock promotional activity that could give rise to a complaint, inquiry, or trading
suspension by the Securities and Exchange Commission alleging (i)  a violation of
the anti-fraud provisions of the federal securities laws, (ii) violations of the anti-touting provisions, (iii)  improper
“gun-jumping; or (iv) promotion without proper disclosure of compensation.


 


(ii)  Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in
a Material Adverse Effect, the Company Parties (i) have made or filed all United States federal, state and local income and
all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) have paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to
be due on such returns, reports and declarations and (iii)  have set aside on their
respective books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company Parties know of no basis for any such claim.


 






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(jj) Seniority. As of such Closing Date, except for the Indebtedness set forth on the Disclosure Certificate and Indebtedness
having an outstanding principal amount as of the applicable Closing Date not exceeding $50,000, no Indebtedness or other claim
against any Company Party is senior in right of payment to the Notes or the obligations due thereunder or their guaranties, 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)


 


(kk) Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Section 3.2(f) or Section 4.12), it is understood and acknowledged by the Company that: (i) the Purchaser
has not been asked by the Company to agree, nor has the Purchaser agreed, to desist from purchasing or selling Securities of the
Company or from entering into Short Sales or Derivatives based on securities issued by the Company or to hold the Securities for
any specified term, (ii) past or future open market or other transactions by the Purchaser, specifically including Short Sales
or Derivatives , before or after any Closing or the closing of any future private placement transactions, may negatively impact
the market price of the Company’s publicly-traded securities, (iii) the Purchaser, and counter-parties in Derivatives to
which the Purchaser is a party, directly or indirectly, may presently have a “short” position in the shares of Common
Stock and (iv) the Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party
in any Derivative. The Company further understands and acknowledges that (y) the Purchaser may engage in hedging activities at
various times during the period that the Securities are outstanding, including, during the periods that the value of the Commitment
Shares, the Conversion Shares or the Preferred Conversion Shares deliverable with respect to Securities are being determined,
and (z) such hedging activities (if any) could reduce the value of the existing stockholders' equity interests in the Company
at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging
activities and Derivatives do not constitute a breach of any of the Transaction Documents.


 


(ll) 
AML/CTF Regulations. The operations of the Company Parties and their Subsidiaries are and have been conducted at
all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970 and other applicable money laundering and counter-terrorism financing Regulations (collectively, the “AML/CTF
Regulations”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving any Company Party or any Subsidiary of any Company Party with respect to any AML/CTF Regulation is pending
or, to the knowledge of any Company Party or any such Subsidiary, threatened.


 


(mm) 
No Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506(b)
of Regulation D promulgated under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any
director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of twenty
percent (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”) is subject to any of the "Bad Actor" disqualifications
described in Rule 506(d)(1)(i) to (viii) of Regulation D promulgated under the Securities Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) of Regulation D promulgated under the Securities Act. 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) of Regulation D promulgated under
the Securities Act, and has furnished to the Purchaser a copy of any disclosures provided thereunder.


 


(nn) 
Other Covered Persons. To the knowledge of the Company there is no Person (other than any Issuer Covered Person)
that has been or will be paid (directly or indirectly) remuneration for solicitation of the Purchaser in connection with the sale
of any Securities.


 


(oo) 
Notice of Disqualification Events. The Company will notify the Purchaser in writing, prior to such 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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(pp) 
Payments of Cash. Except as disclosed on the Disclosure Certificate, neither the Company, its officers, or any Affiliates
or agents of the Company have withdrawn or paid cash (not including a check or other similar negotiable instrument) to any vendor
in an aggregate amount that exceeds Five Thousand Dollars ($5,000) for any purpose.


 


(qq) 
Subsidiary Rights. Each Company Party has the unrestricted right to vote, and (subject to limitations imposed by
applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by any Company Party
or any Subsidiary of any Company Party.


 


(rr) 
Shell Company Status. The Company has never been, and is not presently, an issuer identified as a “Shell Company”.


 


(ss) 
Full Disclosure. No representation or warranty by any Company Party in any Transaction Document and no statement
contained in the Disclosure Certificate to this Agreement or any certificate or other document furnished or to be furnished to
any Purchaser or any Purchaser Party or their attorneys or advisors pursuant to any Transaction Document contains any untrue statement
of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances
in which they are made, not misleading.


 


3.2 Representations and Warranties of
Each Purchaser. Each Purchaser, severally and not jointly, for itself and for no other Purchaser, hereby represents and warrants
as of the date hereof and as of each Closing Date to the Company as follows (unless as of a specific date therein in which case
they shall be accurate as of such date):


 


(a) 
Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate,
partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated
by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of
the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have
been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the
part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered
by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally;
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.


 


(b) 
Own Account. Such Purchaser 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 (this representation and warranty not limiting such Purchaser’s right to sell the Securities in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course
of its business.


 


(c) 
Purchaser Status. At the time such Purchaser was offered or otherwise purchased or acquired the Securities, it was,
and as of the date hereof it is, and on each date on which it converts the Notes it will be an “accredited investor”
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.


 


(d) 
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able
to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such
investment.


 






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(e) 
General Solicitation. Such Purchaser 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.


 


(f) 
2019 Kingsbrook Note. Kingsbrook owns the 2019 Kingsbrook Note free and clear of any liens and has the requisite
power and authority to enter into and perform its obligations under this Agreement and to transfer the 2019 Kingsbrook Note to
the Company in accordance herewith.


 


(g)  Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, if such Purchaser is a multi-managed investment vehicle (whereby separate portfolio managers manage separate portions
of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets), the representation set forth above in this clause (f) shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).


 


Each Company Party acknowledges and agrees
that the representations and warranties of each Purchaser set forth in Section 3.2 shall not modify, amend or affect any
Purchaser’s right to rely on the representations and warranties of any Company Party contained in this Agreement or in any
other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the
consummation of the transaction contemplated hereby.


 


ARTICLE IVOTHER
AGREEMENTS OF THE PARTIES


 


4.1 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, to the Company or to an Affiliate of a Purchaser
or in connection with a pledge as contemplated in Section 4.1(b), 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, at the Company’s
sole expense in 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 and obligations of
a Purchaser under this Agreement.


 


(b) 
Each Purchaser agrees, severally but not jointly, to the imprinting, for as long as is required by this Section 4.1,
of a legend on all of the Securities in the following form:


 


[NEITHER] THIS SECURITY [NOR THE SECURITIES
INTO WHICH THIS SECURITY IS [CONVERTIBLE][EXERCISABLE]] HAS NOT [HAVE] 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 [CONVERSION] [EXERCISE] OF THIS SECURITY]] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.


 






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The Company acknowledges and agrees that
each Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a
security interest in some or all of its Securities to a financial institution that is an “accredited investor” as defined
in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the
terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a
pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured
party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the Company’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably
request in connection with a pledge or transfer of the Securities.


 


(c)  Certificates
evidencing the Commitment Shares, Conversion Shares or the Preferred Conversion Shares shall not contain any legend (including
the legend set forth in Section 4.1(b)): (i) following any sale of such Commitment Shares, Conversion Shares or Preferred
Conversion Shares pursuant to Rule 144, (ii) if such Commitment Shares, Conversion Shares or Preferred Conversion Shares are eligible
for sale under Rule 144 or (iii) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall, upon request of the Purchaser
and at the Company’s sole expense, cause its counsel (or at the Purchaser’s option exercised in its sole discretion,
counsel selected by the Purchaser) to issue a legal opinion to the Transfer Agent promptly after any of the events described in
(i) through(iii) in the preceding sentence if required by the Transfer Agent to effect the removal of the legend from any certificate
(with a copy to the Purchaser and its broker). If all or any portion of any Note or any shares of Series A Preferred Stock are
converted, as applicable, at a time when such Conversion Shares or Preferred Conversion Shares may be sold under Rule 144 or if
such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission) then such Conversion Shares or Preferred Conversion Shares shall be
issued free of all legends. The Company agrees that following such time as such legend is no longer required under this Section
4.1(c), it will, no later than two (2) Trading Days following the delivery by the Purchaser to the Company or the Transfer
Agent of a certificate representing Commitment Shares, Conversion Shares or Preferred Conversion Shares, as applicable, issued
with a restrictive legend (such second (2nd) Trading Day, the “Legend Removal Date”), instruct the Transfer
Agent to deliver or cause to be delivered to the Purchaser a certificate representing such shares that is free from all restrictive
and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge
the restrictions on transfer set forth in this Section 4.14.1. Certificates for the Commitment Shares, Conversion Shares
or the Preferred Conversion Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser
by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by the Purchaser.


 


(d) 
In addition to such Purchaser’s other available remedies, the Company shall pay to such Purchaser, in cash, as partial
liquidated damages and not as a penalty, $1,000 per Trading Day for each Trading Day after the Legend Removal Date of such Securities
of such Purchaser until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser’s right
to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required by the
Transaction Documents, and each Purchaser shall have, severally and not jointly, the right to pursue all remedies available to
it at law or in equity including a decree of specific performance and/or injunctive relief.


 






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4.2 Acknowledgment of Dilution. The Company
acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which
dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the
Transaction Documents, including its obligation to issue the Conversion Shares pursuant to the Transaction Documents, are
unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the
effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect
that such issuance may have on the ownership of the other stockholders of the Company.


 


4.3 Furnishing
of Information; Public Information.


 


(a) 
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 even if the Company is not then subject to the reporting
requirements of the Exchange Act.


 


(b) 
At any time during the period commencing from the six (6)-month anniversary of the date hereof and ending at such time
that all of the Securities have been sold or may be sold without the requirement for the Company to be in compliance with Rule
144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy
the current public information requirement under Rule 144(c) (a “Public Information Failure”) then, in addition
to any Purchaser’s other available remedies, the Company shall pay to each Purchaser, in cash, as partial liquidated damages
and not as a penalty, by reason of any such delay in or reduction of its ability to sell its Securities, an amount in cash equal
to two percent (2.0%) of the aggregate Subscription Amount of such Purchaser’s Securities on the day of a Public Information
Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the
earlier of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required
for such Purchaser to transfer the Commitment Shares, Conversion Shares, or the Preferred Conversion Shares pursuant to Rule 144. 
The payments to which such Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public
Information Failure Payments.” Public Information Failure Payments shall be paid on the earlier of (i) the last day
of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd)
Business Day after the event or failure giving rise to the Public Information Failure Payments is cured. In the event the Company
fails to make Public Information Failure Payments when required by the preceding sentence, such Public Information Failure Payments
shall bear interest at the rate of 2.0% per month (accruing and due daily and prorated for partial months) until paid in full.
Nothing herein shall limit each Purchaser’s right to pursue actual damages for the Public Information Failure, and each
Purchaser shall have the right to pursue all remedies available to it at law or in equity including a decree of specific performance
and/or injunctive relief and recovery of loss profits.


 


4.4 Integration. The Company shall
not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the Securities for
purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing
of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.


 


4.5 Conversion Procedures. The form
of Notice of Conversion included in any Note or attached to the Certificate of Designations, as applicable, sets forth the totality
of the procedures required of the applicable Purchaser in order to convert such Note or such shares of Series A Preferred Stock.
Without limiting the preceding sentences, no ink-original Notice of Conversion shall be required, nor shall any medallion guarantee
(or other type of guarantee or notarization) of any Notice of Conversion form be required in order to convert the Notes or the
shares of Series A Preferred Stock. No additional legal opinion, other information or Notice of Conversion instructions shall be
required of the Purchaser to convert such Note or such shares of Series A Preferred Stock. The Company shall honor conversions
of any Note or shares of Series A Preferred Stock, and shall deliver Conversion Shares or Preferred Conversion Shares, respectively,
in accordance with the terms, conditions and time periods set forth in the Transaction Documents.


 


4.6 Shareholder Rights Plan. No
claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an
“acquiring person” (or similar or equivalent term) under any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and any Purchaser.


 






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4.7 Material Non-Public Information.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, each Company
Party covenants and agrees that neither it, nor any of its Affiliates, nor any other Person acting on its behalf, will provide
any Purchaser, any Purchaser Party or their respective agents or counsel with any information that any Company Party believes constitutes
material non-public information, unless prior thereto such information is disclosed to the public, or such Purchaser shall have
entered into a written agreement with the Company regarding the confidentiality and use of such information. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.


 


4.8 Use of Proceeds.
The Company Parties shall use the net proceeds as set forth in the Disclosure Certificate.


 


4.9 Indemnification of Each Purchaser
Party. Each Company Party shall, jointly and severally, indemnify against, and hold harmless from, each Purchaser, the Collateral
Agent, the Purchaser Agent, their Related Parties, each Person who controls any of them (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and their agents, contractors, trustees, representatives and advisors (each,
a “Purchaser Party”) any and all Losses that any Purchaser Party may suffer or incur as a result of or relating
to (a) the administration, performance or enforcement by the Purchasers of any of the Transaction Documents or consummation of
any transaction described therein, (b) the existence of, perfection of, a Lien upon or the sale or collection of, or any other
damage, Loss, failure to return or other realization upon any collateral, (c) the failure of any Company Party or any of their
Related Parties (whether directly or through their agents, contractors, trustees, representatives and advisors) to observe, perform
or discharge any of the covenants or duties under any of the Transaction Documents, (d) any Proceeding, whether or not any Purchaser
Party is a party thereto (including Proceedings instituted by any Governmental Authority or any holder of any equity interest
in, or other direct or indirect investor in, the Company who is not an Affiliate of such Purchaser Party) with respect to any
of the Transaction Documents or the transactions contemplated therein. Additionally, if any Taxes (excluding Taxes imposed upon
or measured solely by the net income of the recipient of any payment made under any Transaction Document, but including any intangibles
tax, stamp tax, recording tax or franchise tax) shall be imposed on any Company Party or Purchaser Party, whether or not lawfully
payable, on account of the execution or delivery of this Agreement, or the execution, delivery, issuance or recording of any of
the other Transaction Documents, or the creation or repayment of any of obligations hereunder, by reason of any applicable Regulations
now or hereafter in effect, each Company shall, jointly and severally, pay (or shall promptly reimburse such Purchaser Party for
the payment of) all such Taxes, including any interest, penalties, expenses and other Losses with respect thereto), and will indemnify
and hold the Purchaser Parties harmless from and against all Losses arising therefrom or in connection therewith. The foregoing
indemnities shall not apply to Losses incurred by any Purchaser Party as a result of its own gross negligence or willful misconduct
as determined by a final non-appealable order of a court of competent jurisdiction. Notwithstanding anything to the contrary
in any Transaction Document, the obligations of the Company Parties with respect to each indemnity given by them in this Agreement
or any of the other Transaction Documents in favor of the Purchaser Parties shall survive the payment in full of the Notes and
the termination of this Agreement. The indemnification required by this Section 4.9 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnification
contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against any Company Party
or others and any liabilities any Company Party may be subject to pursuant to any Regulation.


  


4.10 Reservation
and Listing of Securities.


 


(a) 
The Company shall maintain a reserve equal to 5,721,622 shares from its duly authorized shares of Common Stock for issuance
pursuant to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction
Documents. Upon a reverse stock split or increase in the authorized Common Stock of the Company, the Company will immediately instruct
the Transfer Agent to reserve at least two and one-half times (2.5x) the full number of Conversion Shares issuable pursuant to
all of the Notes at the Fixed Conversion Price after giving effect to such stock split or increase. This reserve amount shall be
updated monthly.


 






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(b) 
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 100%
of the Required Minimum on such date, then the Board of Directors shall amend the Company’s Articles of Incorporation (or
equivalent governing document) to increase the number of authorized but unissued shares of Common Stock to 100% of the Required
Minimum at such time, as soon as possible and in any event not later than the 60th
day after such date.


 


(c) 
The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file
with such Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to
the Required Minimum on the date of such application; (ii) take all steps necessary to cause such shares of Common Stock to be
approved for listing or quotation on such Trading Market as soon as possible thereafter; (iii) provide to each Purchaser evidence
of such listing or quotation; and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the
Required Minimum on such date on such Trading Market or another Trading Market.


 


4.11 Subsequent
Equity Sales.


 


(a) 
For so long as any Note or the shares of Series A Preferred Stock remain outstanding, except as provided in any Note, no
Company Party shall effect or enter into an agreement to effect any issuance by any Company Party or any Subsidiary of any Company
Party of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction in which a Person (i) issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive, additional shares of common stock (including Common Stock)
either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading
prices of or quotations for the shares of common stock at any time after the initial issuance of such debt or equity securities
or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance
of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the
business of such Person or the market for the common stock or (ii) enters into any agreement, including an equity line of credit,
whereby such Person may issue securities at a future determined price.


 


(b) 
For as long as any Note or the shares of Series A Preferred Stock remain outstanding, no Company Party, no Related Party
of any Company Party will, directly or indirectly (including through agents, contractors, trustees, representatives or advisors):
(a) solicit, initiate, encourage or accept any other inquiries, proposals or offers from any Person relating to any exchange (i)
of any security of any Company Party for any other security of any Company Party, except to the extent consummated pursuant to
the terms of Common Share Equivalents of the Company as in effect as of the date hereof and disclosed in filings with the Commission
prior to the date hereof (without giving effect to any amendment, modification, change or waiver of any terms thereof occurring
on or after the date hereof or not disclosed in a filing by the Company with the Commission prior to the date hereof) or (ii)
of any indebtedness or other securities of, or claim against, any Company Party pursuant to a registration statement files with
the Commission or relying on any exemption under the Securities Act (including Section 3(a)(10) of the Securities Act (any such
transaction described in clauses (i) or (ii), an “Exchange Transaction”); (b) enter into, effect, alter, amend,
announce or recommend to its stockholders any Exchange Transaction with any Person; or (c) participate in any discussions, conversations,
negotiations or other communications with any Person regarding any Exchange Transaction, or furnish to any Person any information
with respect to any Exchange Transaction, or otherwise cooperate in any way, assist or participate in, facilitate or encourage,
any effort or attempt by any Person to seek an Exchange Transaction involving any Company Party. For as long as any Note remains
outstanding, no Company Party and no Related Party of any Company Party, will, either directly or indirectly (including through
agents, contractors, trustees, representatives or advisors), cooperate in any way, assist or participate in, facilitate or encourage
any effort or attempt by any Person to effect any acquisition of securities or indebtedness of, or claim against, the Company
by such Person from an existing holder of such securities, indebtedness or claim in connection with a proposed exchange of such
securities or indebtedness of, or claim against, the Company (whether pursuant to Section 3(a)(9) or 3(a)(10) of the Securities
Act or otherwise) (a “Third Party Exchange Transfer”). The Company Parties and each of their Related Parties
shall immediately cease and cause to be terminated all existing discussions, conversations, negotiations and other communications
with any Persons with respect to any of the foregoing. For all purposes of this Agreement, violations of the restrictions set
forth in this Section 4.11 by any Company Party, or any Subsidiary or Affiliate of any Company Party, or any officer, employee,
director, agent or other representative of any Company Party or any Subsidiary or Affiliates of any Company Party shall be deemed
a direct breach of this Section 4.11 by the Company.


 






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(c)  Except
as specifically provided in this Section 4.11, during the period commencing on the Original Issue Date (as defined in
the Note) through the Second Closing Date, or if there be no Second Closing Date, ninety (90) days from the Original Issue
Date, no Company Party shall, directly or indirectly, issue, offer, sell, grant any option or right to purchase, or otherwise
dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any
equity security or any equity-linked or related security (including any “equity security” (as that term is
defined under Rule 405 promulgated under the Securities Act), any Common Shares or Common Share Equivalents, any debt
securities, any preferred stock or any purchase rights) or otherwise amend, modify, waiver or alter any terms of conditions
of any Common Share Equivalents outstanding as of the date hereof to decrease the exercise, conversion and/or exchange price,
as applicable, thereunder or otherwise increase the aggregate number of Common Shares issuable in connection therewith.
Notwithstanding the foregoing, provided, that the Company is in material compliance with the provisions of this
Agreement and all the other Transaction Documents, the Company, subject to obtaining approval by Board of Directors, of each
such issuance, including, without limitation, the specified use of proceeds, may issue up to an aggregate of $300,000 of
principal amount, unsecured debt that is subordinated in a manner satisfactory to the Purchasers, to cover the
Company’s extension expenses.


 


(d) 
Each Purchaser shall, severally and not jointly, be entitled to obtain injunctive relief against any Company Party to preclude
any such issuance, which remedy shall be in addition to any right to collect damages. Notwithstanding the foregoing, this Section
4.11 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance.


 


(e) 
For so long as any Note or the shares of Series A Preferred Stock remain outstanding, if the Company has, on or prior to
the date of this Agreement, entered into, or shall in the future enter into, any agreement with any purchaser or holder of any
securities of the Company, by providing such purchaser or holder with any terms that are more favorable than the rights made available
to the Purchasers pursuant any terms set out in the Transaction Documents in issue as of the date hereof, the Company shall promptly
notify the Purchasers of such terms in writing and Purchasers shall have the right to elect in writing within thirty (30) days
of the receipt of such notice to elect to have such terms apply to such Transaction Documents.


 


4.12 Certain Transactions;
Obligations of the Company.


 


(a)  Each
Purchaser, severally and not jointly, covenants and agrees that neither it, nor any of its Affiliates acting on its behalf or
pursuant to any understanding with it, will execute (i) any Short Sales of the Common Stock or (ii) any hedging transaction
that establishes a net short position with respect to the Company’s Common Stock, in each case during the period
commencing with the execution of this Agreement and ending on the earlier of the earliest “Maturity Date” of such
Purchaser’s Notes (under and as defined in such Notes) or the full repayment or conversion of all of such
Purchaser’s Notes; provided, that this provision shall not prohibit any sales made where a corresponding Notice
of Conversion is tendered to the Company and the shares received upon such conversion are used to close out such sale (a
“Prohibited Short Sale”); provided, further, that this provision shall not operate to restrict any
Purchaser’s trading under any prior securities purchase agreement containing contractual rights that explicitly
protects such trading in respect of the previously issued securities.


 


(b) 
The Company shall 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 and the Company shall meet the current
public information requirements of Rule 144(c) under the Securities Act as of the end of the period in question.


 


(c) 
The Company’s shares of Common Stock must be eligible for the “Deposit and Withdrawal at Custodian” (DWAC)
service of the Deposit Trust Corporation and not subject to any restriction or limitation imposed by or on behalf of the Deposit
Trust Corporation on any of its services or any other restriction or limitation on the use of the services provided by the Deposit
Trust Corporation (DTC chill).


 






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(d)  The Commitment
Shares, the Conversion Shares, and the Preferred Conversion Shares, as applicable, shall be deemed “freely tradeable”
shares (for the purposes of this Section 4.12(d), if such shares are eligible for resale pursuant to (i) Rule 144 (provided
the Company is compliant with its current public information requirements) promulgated by the Commission pursuant to the Securities
Act or such shares are the subject of a then effective registration statement or (ii) an effective “shelf” or resale
registration statement under the Securities Act, in customary form, is effective under the Securities Act, registering the resale
of such Commitment Shares, Conversion Shares or Preferred Conversion Shares by such security holder and names such holder as a
selling security holder thereunder, and such registration statement is reasonably acceptable such holder).


 


(e) 
The shares of Common Stock are trading on any Trading Market (subject to any volume restrictions set forth in the Notes)
and all of the shares issuable pursuant to the Transaction Documents are listed or quoted for trading on any Trading Market (and
the Company believes, in good faith, that trading of the shares of Common Stock on any Trading Market will continue uninterrupted
for the foreseeable future).


 


(f) 
There has been no public announcement of a pending or proposed Fundamental Transaction or Change of Control Transaction
(as each such term is defined in the Notes) that has not been consummated.


 


(g) 
The Purchaser is not in possession of any information provided by the Company, any of its Subsidiaries, or any of their
officers, directors, employees, agents or Affiliates, that constitutes, or may constitute, material non-public information.


 


4.13 Right
of First Refusal.


 


(a) 
For so long as any of the Notes or the shares of Series A Preferred Stock remain outstanding, upon any issuance by the Company
of Common Stock, Common Stock Equivalents or other Indebtedness or other Securities, whether for cash consideration or a combination
of units thereof, resulting in gross proceeds to the Company in excess of $3,000,000 (a “Subsequent Financing”),
each Purchaser shall have the right to participate up to its Pro Rata Portion (measured against all Purchasers) of a percentage
of such Subsequent Financing equal to, in the aggregate for all Purchasers, 50%, in case of a registered offering, and 50% in case
of any other offering (the “Participation Maximum”) (provided, however, in no event shall the
Participation Maximum exceed the sum of the Principal Amount of the Notes and the Stated Value of the Shares of Preferred Stock)
on the same terms, conditions and price provided for in the Subsequent Financing. To be free from doubt, if a Subsequent Financing
involves an equity line of credit, which has been approved by Dominion, then, in such event, Kingbrook shall not be entitled to
participate under this Section 4.13.


 


(b) 
At least three (3) Trading Days (six (6) hours in case of a Subsequent Financing structured as a public offering or as an
‘overnight’ deal or other similar transaction) prior to the closing of a Subsequent Financing, the Company shall deliver
to each Purchaser of the Senior Secured Convertible Promissory Notes a written notice of its intention to effect a Subsequent Financing
(“Pre-Notice”), which Pre-Notice shall ask such Purchaser if it wants to review the details of such financing
(each additional notice containing such details, a “Subsequent Financing Notice”). Upon the request of any Purchaser
for a Subsequent Financing Notice, and only upon such a request, the Company shall promptly, but no later than one (1) Trading
Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe
in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and
the Persons through or with whom such Subsequent Financing is proposed to be effected, the Pro Rata Portion (as defined below)
of the Participation Maximum of such Purchaser, an inquiry as to whether such Purchaser is willing to participate above their Pro
Rata Portion (and what is the maximum amount such Purchaser is willing to commit), and shall include a term sheet or similar document
relating thereto as an attachment.


 


(c)  If
any such Purchaser desires to participate in such Subsequent Financing, such Purchaser must provide written notice to the
Company within one (1) Trading Day of receipt of the Subsequent Financing Notice (six (6) hours in case of a Subsequent
Financing structured as a public offering or as an ‘overnight’ deal or other similar transaction) that such
Purchaser is willing to participate in the Subsequent Financing, the maximum amount for which such Purchaser would be willing
to participate if it is allocated to it (up to the Participation Maximum), and representing and warranting that the Purchaser
has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice.


 






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(d) 
At first, each such Purchaser shall first have the right to purchase its Pro Rata Portion (measured against all Purchasers)
of the Participation Maximum. If some Purchasers have declined to participate in such Subsequent Financing, and some portion of
the Participation Maximum remains unallocated, each Purchaser having agreed to participate above its current allocation shall be
allocated its Pro Rata Portion (measured against all Purchaser having so agreed) of the next dollar – and so on and so forth
until the Participation Maximum shall be fully allocated or all Purchasers shall have been given their desired allocation in full.


 


(e) 
The transaction documents related to any Subsequent Financing applicable to any Purchaser participating in such Subsequent
Financing shall not include any term or provision whereby such Purchaser shall be required to agree to any restrictions on trading
as to any of the Securities purchased hereunder. In addition, the transaction documents related to the Subsequent Financing shall
not include any requirement to consent to any amendment to or termination of, or grant any waiver, release or other modification
or the like under or in connection with, this Agreement, without the prior written consent of the number of Purchasers required
hereunder to consent to this amendment, termination, waiver, consent, release or other modification.


 


(f) 
Notwithstanding anything to the contrary in this Section 4.13 and unless otherwise agreed to by the applicable Purchaser,
the Company shall either confirm in writing to each Purchaser that the transaction with respect to the Subsequent Financing has
been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in
such a manner such that each Purchaser will not be in possession of any material, non-public information, by the fifth (5h)
Trading Day following delivery of the Subsequent Financing Notice. If by such fifth (5th)
Trading Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice
regarding the abandonment of such transaction has been received by the Purchaser, such transaction shall be deemed to have been
abandoned and the Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the
Company or any of its Subsidiaries.


 


(g) 
Notwithstanding the foregoing, this Section 4.13 shall not apply to an Exempt Issuance or any issuance of “Permitted
Indebtedness” (as defined under any of the Notes).


 


4.14 Securities
Laws Disclosure; Publicity.


 


(a) 
8-K Filing. The Company shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act in connection with the transactions contemplated by the
Transaction Documents. The Company represents to each Purchaser that, from and after the issuance of such Current Report on Form
8-K, it shall have publicly disclosed all material, non-public information delivered to any Purchaser or their Related Parties
(including to their agents, contractors, trustees, representatives and advisors) by any Company Party (including through agents,
contractors, trustees, representatives and advisors) in connection with the transactions contemplated by the Transaction Documents.


 


(b) 
Other Public Disclosures. The Company and the Purchasers shall consult with each other in issuing any other public
disclosure with respect to the transactions contemplated hereby, and none of the Company or any Purchaser shall issue any such
public disclosure nor otherwise make any such public statement without the prior consent of the Company, with respect to any press
release of any Purchaser, or without the prior consent of the Required Purchasers, with respect to any press release of the Company,
which consent shall not unreasonably be withheld or delayed, except if such disclosure is reasonably viewed as required by any
Regulation, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement
or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name, trademark, service mark, symbol,
logo (or any abbreviation, contraction or simulation thereof) of, or otherwise refer to, any Purchaser (including in any filing
with the Commission, regulatory agency or Trading Market, including the 8-K filing referenced above) without the prior consent
of the Purchaser (including in any press release, letterhead, public announcement or marketing material), except, and then only
after consulting with such Purchaser, to the extent required to do so under applicable Regulations (including as required in any
registration statement filed with the Commission). None of the Company Parties and their Affiliates shall represent that any Company
Party or any of its Affiliates, any product or service of the Company Parties or their Affiliates, or any know how or policy or
practice of the Company Parties or their Affiliates has been approved or endorsed by any Purchaser Party.


 






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(c) 
Credit Report and Other Authorizations. Each Company Party authorizes the Purchaser Parties, their agents and representatives
and any credit reporting agency engaged by any Purchaser Party, to (i) investigate any references given or any other statements
or data obtained from or about the Company Parties for the purpose of the Transaction Documents, (ii) obtain consumer business
credit reports on the Company Parties, (iii) contact personal and business references provided by any Company Parties, at any time
now or for so long as any amounts remains unpaid under the Transaction Documents, and (iv) share information regarding the Company
Parties’ performance under this Agreement with affiliates and unaffiliated third parties.


 


(d) 
Credit Inquiries. Each Company Party hereby authorizes the Purchasers (but they shall have no obligation) to respond
to usual and customary credit inquiries from third parties concerning any Company Party.


 


4.15 Form D; Blue Sky Filings. The
Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof,
promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary
in order to obtain an exemption for the sale of the Securities, or to qualify the Securities for sale, to the Purchasers at such
Closing for the sale of such Securities 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 Purchaser.


 


4.16 Waiver. The Purchaser hereby
waives any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of or from
that certain trust account which was established at JPMorgan Chase, N.A. (the “Trust Account”) established by
the Company in which the proceeds of the initial public offering (the “IPO”) (including without limitation the
overallotment securities) and the proceeds of the sale of the units issued in the private placement that occurred in connection
with the IPO, as described in the registration statement and prospectus filed in connection with the IPO, were deposited, and agrees
not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account or distributions therefrom
to the Company’s public stockholders for any reason whatsoever


 


4.17 Subordinated Note. Pursuant
to a separate agreement, the Target had agreed to pay Kingsbrook a fee of $150,000. This obligation is to be evidenced by a subordinated
note of the Company providing for, among other matters, interest accruing at the rate of 15% per annum and a maturity date of August
31, 2021. The Company and Kingsbrook covenant to enter into a mutually satisfactory instrument with the customary provisions within
five Business Days of the First Closing. The parties acknowledge and agree that neither the entering into or the carrying out the
terms of the subordinated note will trigger an Event of Default under any of the Transaction Documents.


 


ARTICLE V PURCHASER AGENT


 


5.1 Appointment. Each Purchaser
hereby irrevocably appoints Dominion, to act on its behalf as the Purchaser Agent hereunder and under the other Transaction Documents
and authorizes the Purchaser Agent to take such actions on its behalf and to exercise such powers as are delegated to the Purchaser
Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions
of this ARTICLE V are solely for the benefit of the Purchaser Agent and the Purchasers, and no Company Party will have any rights
as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent”
herein or in any other Transaction Documents (or any other similar term) with reference to the Purchaser Agent is not intended
to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead,
such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between
contracting parties.


 


5.2 Rights as a Purchaser. The
Person serving as the Purchaser Agent hereunder has the same rights and powers in its capacity as an Initial Purchaser and
Purchaser as any other Initial Purchaser and Purchaser and may exercise the same as though it were not the Purchaser Agent,
and the terms “Initial Purchaser”, “Initial Purchasers,” “Purchaser” or
“Purchasers” will, unless otherwise expressly indicated or unless the context otherwise requires, include the
person serving as the Purchaser Agent hereunder in its individual capacity to the extent such Person is an Initial Purchaser
or, as the case may be, Purchaser. Such Person and its Affiliates may accept payments from, lend money to, own securities of,
and generally engage in any kind of business with, the Company, any Company Party or any other Subsidiaries or Affiliates of
the Company as if such Person were not the Purchaser Agent hereunder and without any duty to account therefor to the
Purchasers.


 






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5.3 Exculpatory
Provisions.


 


(a) 
The Purchaser Agent will not have any duties or obligations except those expressly set forth herein and in the other Transaction
Documents, and its duties hereunder are administrative in nature. Without limiting the generality of the foregoing, the Purchaser
Agent:


 


(i) 
will not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default under the Notes
has occurred and is continuing;


 


(ii) 
will not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights
and powers expressly contemplated hereby or by the other Transaction Documents that the Purchaser Agent is required to exercise
as directed in writing by the Required Holders (or such other number or percentage of the Purchasers as will be expressly provided
for herein or in the other Transaction Documents); provided, that the Purchaser Agent will not be required to take any action
that, in its opinion or the opinion of its counsel, may expose the Purchaser Agent to liability or that is contrary to any Transaction
Document or any applicable statutes, rules, ordinances, regulations guidance documents, contract terms, and other requirements
of all applicable governmental authorities, including any action that may be in violation of the automatic stay under any bankruptcy
or insolvency; and


 


(iii) 
will not, except as expressly set forth herein and in the other Transaction Documents, have any duty to disclose, and will
not be liable for the failure to disclose, any information relating to the Companies or any of its Subsidiaries or Affiliates that
is communicated to or obtained by the Person serving as the Purchaser Agent or any of its Affiliates in any capacity.


 


(b) 
The Purchaser Agent will not be liable for any action taken or not taken by it (i) with the consent or at the request of
the Required Purchasers (or such other number or percentage of the Purchasers as will be necessary, or as the Purchaser Agent believes
in good faith will be necessary, under the circumstances), or (ii) in the absence of its own gross negligence or willful misconduct
as determined by a court of competent jurisdiction by final and nonappealable judgment. The Purchaser Agent will be deemed not
to have knowledge of any Event of Default unless and until notice describing such Event of Default is given to the Purchaser Agent
in writing by the Companies or a Purchaser.


 


(c)  The
Purchaser Agent will not be responsible for or have any duty to ascertain or inquire into (i)  any
statement, warranty or representation made in or in connection with this Agreement or any other Transaction Document, (ii)
the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth
herein or therein or the occurrence of any Event of Default, (iv) the validity, enforceability, effectiveness or genuineness
of this Agreement, any other Transaction Document or any other agreement, instrument or document or (v) the satisfaction of
any condition set forth herein, other than to confirm receipt of items expressly required to be delivered to the Purchaser
Agent.


 


5.4 Reliance by Purchaser Agent.
The Purchaser Agent will be entitled to rely upon, and will not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.
The Purchaser Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by
the proper Person, and will not incur any liability for relying thereon. In determining compliance with any condition hereunder
that by its terms must be fulfilled to its satisfaction, the Purchaser Agent may make such determination in its sole discretion,
and in determining compliance with any condition hereunder that by its terms must be fulfilled to the satisfaction of a Purchaser,
the Purchaser Agent may presume that such condition is satisfactory to such Purchaser unless the Purchaser Agent has received
notice to the contrary from such Purchaser prior to the issuance of the Notes. The Purchaser Agent may consult with legal counsel
(who may be counsel for the Companies), independent accountants and other experts selected by it, and will not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.


 






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5.5 Delegation of Duties. The Purchaser
Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Transaction Document
by or through any one or more sub-agents appointed by the Purchaser Agent. The Purchaser Agent and any such sub-agent may perform
any and all of its duties and exercise its rights and powers by or through their respective Affiliates. The exculpatory provisions
of this Section will apply to any such sub-agent and to the Affiliates of the Purchaser Agent and any such sub-agent, and will
apply to their respective activities in connection with the syndication of the facility as well as activities as Purchaser Agent.
The Purchaser Agent will not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court
of competent jurisdiction determines in a final and nonappealable judgment that the Purchaser Agent acted with gross negligence
or willful misconduct in the selection of such sub-agents.


 


5.6 Resignation
of Purchaser Agent.


 


(a)  The
Purchaser Agent may at any time give notice of its resignation to the Purchasers and the Companies, which notice shall set
forth the effective date of such resignation (the “Resignation Effective Date”), such date not to be
earlier than the thirtieth (30th) day following the date of such notice. The Required Purchasers and the Companies shall
mutually agree upon a successor to the Purchaser Agent. If the Required Purchasers and the Companies are unable to so
mutually agree and no successor shall have been appointed within twenty-five (25) days after the retiring Purchaser Agent
gives notice of its resignation, then the retiring Purchaser Agent may (but will not be obligated to), on behalf of the
Purchasers, appoint a successor Purchaser Agent it shall designate (in its reasonable discretion after consultation with the
Companies and the Required Purchasers). Whether or not a successor has been appointed, such resignation will become effective
in accordance with such notice on the Resignation Effective Date.


 


(b) 
With effect from the Resignation Effective Date (i) the retiring Purchaser Agent will be discharged from its duties and
obligations hereunder and under the other Transaction Purchasers under any of the Transaction Documents, the retiring Purchaser
Agent will continue to hold such Collateral until such time as a successor Purchaser Agent is appointed) and (ii) except for any
indemnity payments owed to the retiring Purchaser Agent, all payments, communications and determinations provided to be made by,
to or through the Purchaser Agent will instead be made by or to each Purchaser directly, until such time, if any, as the Required
Purchasers appoint a successor Purchaser Agent as provided for above. Upon the acceptance of a successor’s appointment as
Purchaser Agent hereunder, such successor will succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring Purchaser Agent (other than any rights to indemnity payments owed to the retiring Purchaser Agent), and the retiring
Purchaser Agent will be discharged from all of its duties and obligations hereunder or under the other Transaction Documents. The
fees payable by the Company to a successor Purchaser Agent will be the same as those payable to its predecessor unless otherwise
agreed between the Companies and such successor. After the retiring Purchaser Agent’s resignation hereunder and under the
other Transaction Documents, the provisions of this Article VI will continue in effect for the benefit of such retiring Purchaser
Agent, its sub-agents and their respective Affiliates in respect of any actions taken or omitted to be taken by any of them while
the retiring Purchaser Agent was acting as Purchaser Agent.


 


5.7 Non-Reliance on Purchaser Agent
and Other Purchasers. Each Purchaser acknowledges that it has, independently and without reliance upon the Purchaser Agent
or any other Purchaser or any of their Affiliates and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Purchaser also acknowledges that it will, independently
and without reliance upon the Purchaser Agent or any other Purchaser or any of their Affiliates and based on such documents and
information as it will from time to time deem appropriate, continue to make its own decisions in taking or not taking action under
or based upon this Agreement, any other Transaction Document or any related agreement or any document furnished hereunder or thereunder.


 






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5.8 Purchaser Agent May File Proofs
of Claim. In case of the pendency of any bankruptcy or insolvency proceeding or any other judicial proceeding relative to
the Company, the Purchaser Agent (irrespective of whether the principal of the Notes will then be due and payable as herein expressed
or by declaration or otherwise and irrespective of whether the Purchaser Agent has made any demand on the Company) will be entitled
and empowered (but not obligated), by intervention in such proceeding or otherwise:


 


(a) 
to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Notes and
all other obligations that are owing and unpaid hereunder or under any other Transaction Document and to file such other documents
as may be necessary or advisable in order to have the claims of the Purchasers and the Purchaser Agent (including any claim for
the reasonable compensation, expenses, disbursements and advances of the Purchasers and the Purchaser Agent and their respective
agents and counsel and all other amounts due the Purchasers and the Purchaser Agent under this Agreement or any other Transaction
Document) allowed in such judicial proceeding; and


 


(b) 
to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same.


 


Any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Purchaser to make
any payments of the type described above in this Section 5.8 to the Purchaser Agent and, in the event that the Purchaser
Agent consents to the making of such payments directly to the Purchasers, to pay to the Purchaser Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Purchaser Agent and its agents and counsel, and any other
amounts due the Purchaser Agent under this Agreement or any other Transaction Document.


 


5.9 Indemnification. Each Purchaser
agrees to indemnify the Purchaser Agent and each of its Related Parties (to the extent not reimbursed by the Borrower), from and
against such Purchaser’s aggregate ratable share (based on the principal amount of the Notes held by the Purchasers) of any
and all Losses that may be imposed on, incurred by, or asserted against, the Purchaser Agent or any of its Related Parties in any
way relating to or arising out of this Agreement or the other Transaction Documents or any action taken or omitted by the Purchaser
Agent under this Agreement or the other Transaction Documents; provided, that no Purchaser shall be liable for any portion
of such Losses resulting from the Purchaser Agent’s or such Related Party’s gross negligence or willful misconduct
as finally determined by a court of competent jurisdiction. Without limiting the foregoing, each Purchaser agrees to reimburse
the Purchaser Agent and its Related Parties promptly upon demand for its ratable share of any out-of-pocket expenses (including
fees, expenses and disbursements of financial and legal advisors) incurred by the Purchaser Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of its rights or responsibilities under, this Agreement or the other Transaction Documents,
to the extent that the Purchaser Agent is not reimbursed for such expenses by the Company or another Company Party.


 


5.10 Collateral
Matters; Appointment of Purchaser Agent under other Transaction Documents.


 


(a) 
Without limiting the provisions of Section 5.8, the Purchasers irrevocably agree as follows:


 


(i) 
the Purchaser Agent is authorized, at its option and in its discretion, to release any Lien on any property granted to or
held by the Purchaser Agent under any Transaction Document (A) on the date when all obligations have been satisfied in full in
cash (other than obligations under the Warrant and contingent obligations as to which no claims have been asserted), (B) that is
sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition
permitted under the Transaction Documents, and


 


(ii) 
Upon request by the Purchaser Agent at any time, each Purchaser will confirm in writing the Purchaser Agent’s authority
to release or subordinate its interest in particular types or items of Collateral.


 


(b) 
The Purchaser Agent will not be responsible for or have a duty to ascertain or inquire into any representation or warranty
regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Purchaser Agent’s
lien thereon, or any certificate prepared by any Obligor in connection therewith, nor will the Purchaser Agent be responsible
or liable to the Purchasers for any failure to monitor or maintain any portion of the Collateral.


 






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(c)  Each
Purchaser hereby appoints the Purchaser Agent as its Purchaser Agent under each of the Transaction Documents and agrees that,
in so acting, the Purchaser Agent will have all of the rights, protections, exculpations, indemnities and other benefits
provided to the Purchaser Agent under this Agreement, and hereby authorizes and directs the Purchaser Agent, on behalf of
such Purchaser and all Purchasers, without the necessity of any notice to or further consent from any of the Purchaser, from
time to time to (i) take any action with respect to any collateral or any Transaction Document which may be necessary to
perfect and maintain perfected the liens on the collateral granted pursuant to any such Transaction Document or protect and
preserve the Purchaser Agent’s ability to enforce the liens or realize upon the collateral, (ii) act as Purchaser Agent
for each Purchaser that is a secured party for purposes of acquiring, holding, enforcing and perfecting all Liens created by
the Transaction Documents and all other purposes stated therein, (iii) enter into non-disturbance or similar agreements in
connection with licensing agreements and arrangements permitted by this Agreement and the other Transaction Documents and
(iv)  otherwise to take or refrain from taking any and all action that the
Purchaser Agent shall deem necessary or advisable in fulfilling its role as Purchaser Agent under any of the Transaction
Documents.


 


5.11 Purchaser Agent acting as Collateral
Agent. The Purchaser Agent shall act as Collateral Agent on behalf of the Purchaser Parties under the Collateral Agency Agreements
and may execute the Collateral Agency Agreement on behalf of the Purchaser Parties and exercise any of the rights provided above
in its capacity as Collateral Agent under the Collateral Agency Agreement.


 


ARTICLE VI MISCELLANEOUS


 


6.1 Termination and Survival. This
Agreement may be terminated by each Purchaser, as to the Purchaser’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Purchasers, by written notice to the Company and the other Purchasers, if
the First Closing Date has not occurred on or before June 23, 2020. Termination of this Agreement will not affect the right of
any party to sue for any breach by any other party (or parties) prior to such termination. The representations and warranties,
covenants and other provisions hereof shall survive each Closing and the delivery of the Securities. Notwithstanding any termination
of any Transaction Document, the reimbursement and indemnities to which the Purchaser Parties are entitled under the provisions
of any Transaction Document shall continue in full force and effect and shall protect the Purchaser Parties against events arising
after such termination as well as before.


 


6.2 Fees and Expenses. Whether or
not the transactions contemplated hereby shall be consummated or any Securities shall be purchased, the Company agrees to pay promptly
to the Dominion and its Related Parties and Kingsbrook, or reimburse such Purchaser Party for, the following:


 


(a)  all
the actual and reasonable costs, fees and expenses of negotiation, preparation, execution and closing of the Transaction
Documents and the purchase and sale of the Securities in connection therewith and the consummation of the other transactions
contemplated hereby to be consummated on or about the First Closing Date, including the reasonable fees, expenses and
disbursements of counsel to such Purchaser Party in connection therewith; provided, that such reimbursement obligation
shall not exceed, without duplication, $25,000 for the Purchaser Agent and $25,000 for Dominion and its Related Parties, in
the aggregate; in this regard, the firm of Sullivan & Worcester LLP, counsel to the Purchaser, shall be entitled to
receive out of the proceeds (i) distributed at the First Closing its actual attorneys’ fees not to exceed $85,000 and
(ii) distributed at the Second Closing its actual attorneys’ fees not to exceed $115,000. At the First Closing, Kelley
Drye & Warren LLP, counsel to Kingsbrook, shall be entitled to receive from Kingbrook on behalf of the Company, its
actual attorneys’ fees not to exceed $50,000. To this end, the amount of Kelley Drye & Warren LLP’s fees
shall be added to the KB Senior Secured Convertible Promissory. In the event, the transactions contemplated hereunder are not
consummated in accordance with the terms hereof, the Company, on demand, shall pay the Purchaser and Purchaser’s
counsel fees and expenses in accordance with the terms hereof.


 






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(b) 
all the costs, fees and expenses of preparation, printing and distribution of any registration statement for the Securities
or of the Transfer Agent (including any fees required for same-day processing of any instruction letter delivered by the Company
and any conversion notice delivered by any Purchaser Party) and all other costs and expenses (including stamp taxes and other
taxes and duties levied) incurred in connection with the delivery to or conversion by, any Purchaser of any Securities or the
Conversion Shares;


 


(c) 
all the actual and reasonable costs, fees and expenses of creating and perfecting Liens in favor of such Purchaser Party,
pursuant to any Transaction Document, including costs associated with the Intellectual Property Security Agreement, UCC fees, other
filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees, title insurance premiums and reasonable
fees, expenses and disbursements of counsel to such Purchaser Party;


 


(d) 
all the actual and reasonable costs, fees and expenses of administration of the Transaction Documents and preparation, execution
and closing of any consents, amendments, waivers or other modifications thereto, including the reasonable fees, expenses and disbursements
of counsel to Dominion in connection therewith and in connection with any other documents or matters requested by such Company
Party (including through agents, contractors, trustees, representatives and advisors) or otherwise prepared or delivered in connection
with any Transaction Document;


 


(e) 
all the actual and reasonable costs, fees, expenses and disbursements of any auditors, accountants, consultants or appraisers
used in connection with the Transaction Documents by Dominion;


 


(f) 
all the actual and reasonable costs, fees and expenses (including the reasonable fees, expenses and disbursements of any
appraisers, consultants, advisors and agents employed or retained by Dominion and its counsel) in connection with the inspection,
verification, custody or preservation of any collateral, to the extent required or permitted under any Transaction Document; and


 


(g) 
all costs, fees and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel)
and costs of settlement, incurred by any Purchaser in enforcing any obligation owed hereunder of or in collecting any payments
due from any Company Party hereunder or under the other Transaction Documents (including in connection with the sale of, collection
from, or other realization upon any collateral or the enforcement of any guaranty) or in connection with any negotiations, reviews,
refinancing or restructuring of the credit arrangements provided hereunder, including in the nature of a “work out”
or pursuant to any insolvency or bankruptcy cases or proceedings.


 


The foregoing shall be in addition to,
and shall not be construed to limit, any other provisions of the Transaction Documents regarding indemnification and costs and
expenses to be paid by the Company Parties.


 


6.3 Modifications and Signatures.
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.
Any modification effected in accordance with accordance with this Section 6.3 shall be binding upon each Purchaser and
holder of Securities and the Company.


 


(a) 
Entire Agreement. This Agreement and the other Transaction Documents contain and constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede all prior negotiations, agreements, and understandings,
whether written or oral, of the parties hereto, which the parties acknowledge have been merged into such documents.


 


(b) 
Amendments. No amendment, modification, waiver or termination of any provision of this Agreement or any other Transaction
Document shall be effective without the written consent of the Company and the Required Purchasers (or such other number of Purchasers
as expressly stated in other provisions of the Transaction Documents); provided, that (i) if any amendment, modification
or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of holders of a majority
of the principal amount of the Notes held by such disproportionately impacted Purchaser (or group of Purchasers) shall also be
required and (ii)  this clause (b) may only be modified with the consent of all Purchasers.
No waiver or consent shall be effective against any party unless given in writing and then any such waiver shall then be effective
only in the specific instance and for the specific purpose for which it was given. Where the consent or waiver of the Purchasers
generally (and not each Purchaser) is required, it may be given by the Required Purchasers.


 






    		39	 



     


    

 


(c) 
Successors and Assigns. This Agreement shall bind and inure solely to the benefit of the Company Parties, the Purchaser
Parties, and their respective successors and, if permitted, assigns; provided, that the Company Parties may not assign this
Agreement or any other Transaction Document or any rights or obligations hereunder or thereunder without the Required Purchaser’s
prior written consent and any prohibited assignment shall be absolutely void. Unless otherwise expressly provided in any Transaction
Document, each Purchaser may sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in,
or any right or remedy under, the Securities and the Transaction Documents without the consent of the Company Parties; provided,
that any transferee of the Securities shall agree in writing to be bound, with respect to the transferred Securities, by the provisions
of the Transaction Documents that apply to the “Purchaser” (and any attempt to effect such transfer without securing
such agreement shall be null and void).


 


(d) 
No Waiver by Course of Dealing. No notice to or demand on any Company Party, whether or not in any Proceeding,
pursuant to any Transaction Document shall entitle any Company Party to any other or further notice (except as specifically required
hereunder or under any other Transaction Document) or demand in similar or other circumstances. The failure by any Purchaser Party
at any time or times to require strict performance by any Company Party of any provision of this Agreement or any of the other
Transaction Documents or the granting of any waiver or indulgence shall not waive, affect or otherwise diminish any right of any
Purchaser Party thereafter to demand strict compliance and performance with such provision, shall not affect or be a waiver under
any other provision of any Transaction Document except as specifically mentioned and shall not constitute a course of dealing by
such Purchaser Party at variance with the terms of this Agreement or any other Transaction Document (and therefore, among other
things, shall not require further notice by such Purchaser Party of its intent to require strict adherence to the terms of such
Transaction Document in the future). Any such actions shall not in any way affect the ability of each Purchaser Party, in its discretion,
to exercise any rights available to it under this Agreement, the other Transaction Documents or under applicable Regulations.


 


(e) 
Execution in Counterparts. This Agreement may be executed in counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and both of which, when taken together, shall constitute
but one and the same Agreement. In proving this Agreement in any judicial proceedings, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom such enforcement is sought.


 


(f) 
Electronic Signatures. Each party agrees that the electronic signatures, whether digital or encrypted, of
the parties included in this Agreement or any other Transaction Document are intended to authenticate this writing and to have
the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to
or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile
or email electronic signatures. The Borrower expressly agrees that this Agreement and all other Transaction Documents are “transferable
records” as defined in applicable Regulations relating to electronic transaction and that it may be created, authenticated,
stored, transmitted and transferred in a manner consistent with and permitted by such applicable Regulations.


 


6.4 Notices.


 


(a) 
All notices, requests, demands, and other communications to either party hereto or given under any Transaction Document
shall be in writing (including electronic mail transmission or similar writing) and shall be given to such party at the physical
address or send to the electronic mailing address set forth in the signature pages hereof or at such other physical address or
electronic mailing address as such party may hereafter specify for the purpose of notice to the Purchasers and the Company in accordance
with the provisions of this Section 6.4.


 






    		40	 



     


    

 


(b)  Each
such notice, request or other communication shall be effective (i) if given by mail, three (3) Trading Days after such
communication is deposited in the U.S. Mail with first class postage pre-paid, addressed to the noticed party at the address
specified herein, (ii) if by nationally recognized overnight courier, when delivered with receipt acknowledged in writing by
the noticed party, (iii) if given by personal delivery, when duly delivered with receipt acknowledged in writing by the
noticed party or (iv) if given by electronic mail, when delivered (receipt by the sender of a receipt using the “return
receipt” function or receipt of a reply email being presumptive evidence of receipt thereof); provided, that if
such electronic mail is not sent prior to the last trading hour of the principal Trading Market of the Securities on a
Trading Day, such electronic mail shall be deemed to have been sent at the opening of trading on the next Trading Day for
such principal Trading Market. Any written notice, request or demand that is not sent in conformity with the provisions
hereof shall nevertheless be effective on the date that such notice, request or demand is actually received by the individual
to whose attention at the noticed party such notice, request or demand is required to be sent.


 


6.5 Set-Off. In addition to any
rights now or hereafter granted under applicable Regulations and not by way of limitation of any such rights, each Purchaser Party
is hereby authorized by the Company Parties at any time or from time to time, without notice or demand to any Company Party or
to any other Person, any such notice or demand being hereby expressly waived, to set off and to appropriate and to apply any and
all deposits (general or special, time or demand, provisional or final, including indebtedness evidenced by certificates of deposit,
whether matured or unmatured, but not including trust accounts) and any other indebtedness or other amounts at any time held or
owing by such Company Party to or for the credit or the account of any Company Party or any of their Related Parties against and
on account of any amounts due by any Company Party or any of their Related Parties to any Purchaser Party under any Transaction
Documents (including from the Purchase Price to be disbursed hereunder), irrespective of whether or not (a) such Purchaser Party
shall have made any demand hereunder or (b) the principal of or the interest on the Notes or any other Obligation shall have become
due and payable and although such obligations and liabilities, or any of them, may be contingent or unmatured. If, as a result
of such set off, appropriate or application, such Purchaser Party receives more than it is owed under any Transaction Document,
it shall hold such amounts in trust for the other Purchaser Parties and transfer such amounts to the other Purchaser Parties ratably
according to the amounts they are owed on the date of receipt.


 


6.6 Governing
Law.


 


(a) 
Except as otherwise expressly provided in any other Transaction Document, this Agreement, the other Transaction Documents
and all claims, Proceedings and matters arising hereunder or thereunder or related hereto or thereto are governed by, and construed
and enforced in accordance with, the laws of the State of New York.


 


(b)  Any Proceeding
with respect to any Transaction Document may be brought exclusively in the New York State courts sitting in New York County or
the federal courts of the United States of America for the Southern District of New York and sitting in New York County. Each
Company Party (i) accepts for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction
of such courts, (ii) irrevocably waives any objection, including any objection to the laying of venue, based on the grounds of
forum non conveniens or that such jurisdiction is improper or otherwise that such party is not subject to the jurisdiction
of such courts, that it may now or hereafter have to the bringing of any Proceeding in those jurisdictions, (iii) irrevocably
consents to the service of process of any court referred to above in any Proceeding by the mailing of copies of the process to
the parties hereto as provided in Section 6.4 and (iv) agrees that a final judgment in any such Proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Service
effected as provided in this manner will become effective ten (10) calendar days after the mailing of the process. Notwithstanding
the foregoing, nothing contained in any Transaction Document shall affect the right of any Purchaser Party to serve process in
any other manner permitted by applicable Regulations or commence Proceedings or otherwise proceed against the Borrower in any
other jurisdiction.


 


6.7 Severability. Any provision
of any Transaction Document being held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such
provision not held illegal, invalid or unenforceable, any other provision of any Transaction Document or any part of such provision
in any other jurisdiction, so long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner adverse to any party. In addition, upon any determination that any such term or other provision is invalid, illegal
or incapable of being enforced, the parties hereto will negotiate in good faith to modify the relevant Transaction Document so
as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.


 






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6.8 Rescission and Withdrawal Right.
Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction
Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw,
in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or
in part without prejudice to its future actions and rights; provided, that in the case of a rescission of a conversion of
any Note, such Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion notice.


 


6.9 Replacement of Securities. If
any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause
to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), 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. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.


 


6.10 Remedies.


 


(a) 
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each
Purchaser (severally and not jointly) and the Company will be entitled to specific performance under the Transaction Documents.
The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any
such obligation the defense that a remedy at law would be adequate.


 


(b) 
If any Company Party shall fail to discharge any covenant, duty or obligation hereunder or under any of the other Transaction
Documents, each Purchaser may, in its discretion at any time, for the account and at the expense of the Company Parties jointly
and severally, pay any amount or do any act required of such Company Party hereunder or under any of the other Transaction Documents
or otherwise lawfully requested by any Purchaser (including buying-in Securities in the principal Trading Market of the Securities
in case of failure by the Company to deliver Convertible Securities). All costs and expenses incurred by any Purchaser in connection
with the taking of any such action shall be reimbursed to such Purchaser by the Company Party on demand with interest at the highest
interest rate applicable to amounts due under the Notes of such Purchaser from the date such payment is made or such costs or
expenses are incurred to the date of payment thereof. Any payment made or other action taken by any Purchaser under this clause
(b) shall be without prejudice to any right to assert, and without waiver of, any breach of any Transaction Document and without
prejudice to any Purchaser Party’s right to proceed thereafter as provided herein or in any of the other Transaction Documents.


 


(c) 
The remedies provided in this Agreement and all other Transaction Documents shall be cumulative and in addition to all other
remedies available under any Transaction Document, whether at law or in equity (including a decree of specific performance and/or
other injunctive relief).


 


(d) 
Nothing in any Transaction Document shall limit the Purchaser Party’s rights to pursue actual and consequential damages
for any failure by any Company Party to comply with the terms of this Agreement or any other Transaction Document.


 


(e) 
An Event of Default will cause irreparable harm to the Purchasers and that the remedy at law for any such breach may be
inadequate. Therefore, in the event of any such Event of Default, the Purchasers shall be entitled, in addition to all other available
remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic
loss and without any bond or other security being required.


 






    		42	 



     


    

 


6.11 Marshaling; Payment Set Aside.
No Purchaser Party shall be under any obligation to marshal any property in favor of any Company Party or any other party or against
or in payment of any amount due under any Transaction Document. To the extent that any Company Party makes a payment or payments
to any Purchaser pursuant to any Transaction Document or any Purchaser Party enforces or exercises its rights thereunder, and
such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to any Company Party, a trustee, receiver or any other Person under any law (including any bankruptcy law, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or setoff had not occurred.


 


6.12 Usury. To the extent it may
lawfully do so, each Company Party hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist
any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter
in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order to enforce any right
or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document,
it is expressly agreed and provided, that the total liability of each Company Party under the Transaction Documents for
payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”) and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them,
when aggregated with any other sums in the nature of interest that any Company Party may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to
the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from
the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by any Company Party to any Purchaser Party with respect to indebtedness evidenced
by the Transaction Documents, such excess shall be applied by such Purchaser Party to the unpaid principal balance of any
such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Purchaser’s election.


 


6.13 Liquidated Damages. The Company’s
obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation
of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding
the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable
shall have been canceled.


 


6.14 Further Assurances. The Company
Parties agree to take such further actions as each Purchaser shall reasonably request from time to time in connection herewith
to evidence, give effect to or carry out this Agreement and the other Transaction Documents and any of the transactions contemplated
hereby or thereby.


 






    		43	 



     


    

 


6.15 Interpretation. The
parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the
Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of any Transaction Document. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for
reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that
occur after the date of this Agreement. Except as otherwise expressly provided in any Transaction Document, if the last or
appointed day for the taking of any action or the expiration of any right required or granted under any Transaction Document
shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day. As used in any Transaction Document, references to the singular will include the plural and vice versa and references to
the masculine gender will include the feminine and neuter genders and vice versa, as appropriate. When used in any
Transaction Document, unless otherwise expressly provided in such Transaction Document, (a) the words
“hereof,” “herein” and “hereunder” and words of similar import refer
to such Transaction Document as a whole and not to any particular provision of such Transaction Document, (b) recital,
article, section, subsection, schedule and exhibit references are references with respect to such Transaction Document unless
otherwise specified, (c) any reference to any agreement shall include a reference to all recitals, appendices, exhibits and
schedules to such agreement and, unless the prior written consent of any party is required hereunder and is not obtained,
shall be a reference to such agreement as waived, amended, restated, supplemented or otherwise modified and (d) any reference
to a specific Regulation shall be to such Regulation, as modified from time to time, together with any successor or
replacement Regulation, in each case as in effect at the time of determination. Unless the context otherwise requires, when
used in any Transaction Document, the following terms have the following meaning: (u) “execution,”
“signed,” “signature” and words of like import shall be deemed to include electronic
signatures and the keeping of records in electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable Regulation, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act and any other similar state Regulation based on the
Uniform Electronic Transactions Act, (v) “incur” means incur, create, make, issue, assume or otherwise
become or remain directly or indirectly liable in respect of or responsible for, in each case whether directly or indirectly,
as primary obligor or guarantor or endorser, and the terms “incurrence” and “incurred”
and similar derivatives shall have correlative meanings, (w) “knowledge” of the any Company Party means
the best knowledge of any officer, director or employee of such Company Party after due inquiry, (x)
“including” means “including, without limitation,” (y) “asset” and
“property” have the same meaning and mean, “collectively, all rights and interests in tangible and
intangible assets and properties, whether real, personal or mixed and including cash, capital stock, revenues, accounts,
leasehold interests, contract rights and other rights under Permits and Contractual Obligations” and (z)  “documents”
and “documentation” have the same meaning and mean “collectively, all documents, drafts,
instruments, agreements, indentures, certificates, forms, opinions, powers of attorney, notices, summons, reports, financial
statements and other writings, however evidenced, whether in physical or electronic form.” The headings in this
Agreement are included for convenience of reference only and will not affect in any way the meaning or interpretation of this
Agreement. All references in this Agreement or any other Transaction Document to statutes and regulations shall include all
amendments of same and implementing regulations and any successor statutes and regulations; to any instrument or agreement
(including any of the Transaction Documents) shall include any and all modifications and supplements thereto and any and all
restatements, extensions or renewals thereof to the extent such modifications, supplements, restatements, extensions or
renewals of any such documents are permitted by the terms hereof and thereof. A Default or an Event of Default (as defined in
the Notes) shall be deemed to exist at all times during the period commencing on the date that such Default or Event of
Default occurs to the date on which such Default or Event of Default is waived in writing pursuant to the relevant Note or,
with respect to any Default, is cured within any period of cure expressly provided in the relevant Note. Whenever in any
provision of any Transaction Document, any Purchaser is authorized to take or decline to take any action (including making
any determination) in the exercise of its “discretion,” such provision shall be understood to mean that
such Purchaser may take or refrain to take such action in its sole discretion. References to times of the day in any
Transaction Document shall refer to Eastern Time. In the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including,” the words “to”
and “until” each mean “to but excluding” and the word “through” means
“to and including.” Time is of the essence of this Agreement and the other Transaction Documents. No provision of
this Agreement or any of the other Transaction Documents shall be construed against or interpreted to the disadvantage of any
party hereto by any Governmental Authority by reason of such party having or being deemed to have structured, drafted or
dictated such provision. “month” (but not calendar month) means each period from a day (including a
Closing Date) in a calendar month to the next such numerically-corresponding day in the next calendar month (provided,
that, if such calendar month does not have any such numerically-corresponding day, such numerically-corresponding day
shall be deemed to be the last day of such calendar month).


 


6.16 Waiver of Jury
Trial and Certain Other Rights.


 


(a) 
The parties hereto hereby irrevocably and unconditionally waive, to the fullest extent permitted by applicable Regulations,
any right that they may have to trial by jury of any claim or cause of action or in any Proceeding, directly or indirectly based
upon or arising out of this Agreement or any Transaction Document (whether based on contract, tort or any other theory). Each party
(a) certifies that no representative, agent, or attorney of any other party has represented, expressly or otherwise, that such
other parties would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the
other parties have been induced to enter into this Agreement and the other Transaction Documents by, among other things, the mutual
waivers and certifications in this section.


 


(b) 
Each Company Party acknowledges and agrees that the foregoing waivers are a material inducement to the Purchasers to enter
into and accept this Agreement. Each Company Party has reviewed the foregoing waivers with its legal counsel and has knowingly
and voluntarily waived its jury trial rights following consultation with such legal counsel. In the event of litigation, this
Agreement may be filed as a written consent to a trial by the court. This Section 6.16 shall not restrict a party from
exercising remedies under the UCC or from exercising pre-judgment remedies under applicable Regulations.


 


[Signature Pages Follow]


 






    		44	 



     


    

  


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


 


	KBL
    MERGER CORP. IV	 	Address
    for Notice:
	 	 	KBL
    Merger Corp. IV
	By:	 /s/ Marlene Krauss	 	30
    Park Place, Suite 45E
	 	Name: Marlene Krauss, M.D.	 	New
    York, NY 10007
	 	Title: Chief Executive Officer	 	 


 


	 	Fax:
    _____________
	 	 
	 	Email:
    mkrauss@kblvc.com


 


The
undersigned, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby agrees to
by bound by the applicable provisions of Section 2.5.


 





	180 Life Sciences Corp.	 
	 	 
	By:	/s/ Lawrence Pemble	 
	 	Name: Lawrence Pemble	 
	 	Title: Director	 


 


[Signature
Pages for Purchaser Follow]


 




    		45	 



     


    

 


IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.


 


	Name
    of Purchaser:	 	 
	 	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/
    Mikhail Gurevich	 
	 	 	 
	Name:	Mikhail
    Gurevich	 
	 	 	 
	Title:	Managing
    Member	 


 


	Address
    for Notice to Purchaser:	 
	 	 
	Email:	 
	Facsimile
    Number:	 
	EIN
    Number: _______________________	 


 


The
Purchase Price/Subscription Amount of the Securities for the specified Closing set forth on Schedule 1


 


SECURITIES
PURCHASE AGREEMENT FOR KBLM


 




    		46	 



     


    

 


IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.


 


	Name
    of Purchaser:	 	 
	 	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/
    Adam Chill	 
	 	 	 
	Name:	Adam
    Chill	 
	 	 	 
	Title:	Managing
    Member of general partner	 


 


	Address
    for Notice to Purchaser:	 
	 	 
	Email:	 
	Facsimile
    Number:	 
	EIN
    Number: _______________________	 


 


The
Purchase Price/Subscription Amount of the Securities for the specified Closing set forth on Schedule 1


 


SECURITIES
PURCHASE AGREEMENT FOR KBLM


 


 


		47