# EDGAR Filing Document

**Accession Number:** 0001378140
**File Stem:** 0001641172-25-022761
**Filing Date:** 2025-8
**Character Count:** 168729
**Document Hash:** a1fc64217f96f8b2866e2bfa81b09a22
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-022761.hdr.sgml**: 20250808

**ACCESSION NUMBER**: 0001641172-25-022761

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20250808

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Termination of a Material Definitive Agreement

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250808

**DATE AS OF CHANGE**: 20250808

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ocean Power Technologies, Inc.
- **CENTRAL INDEX KEY:** 0001378140
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 222535818
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33417
- **FILM NUMBER:** 251198507

**BUSINESS ADDRESS:**
- **STREET 1:** 28 ENGELHARD DRIVE
- **STREET 2:** SUITE B
- **CITY:** MONROE TOWNSHIP
- **STATE:** NJ
- **ZIP:** 08831
- **BUSINESS PHONE:** 609-730-0400

**MAIL ADDRESS:**
- **STREET 1:** 28 ENGELHARD DRIVE
- **STREET 2:** SUITE B
- **CITY:** MONROE TOWNSHIP
- **STATE:** NJ
- **ZIP:** 08831

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Ocean Power Technologies, INc.
- **DATE OF NAME CHANGE:** 20061012

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 8-K**

Current Report Pursuant to Section 13 or 15(d) of

the Securities Act of 1934

Date of Report (Date of earliest event reported): **August 8, 2025**

**Ocean Power Technologies, Inc.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-33417** | **22-2535818** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (I.R.S. Employer<br> Identification No.) |

---

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| | |
|:---|:---|
| **28 Engelhard Drive, Suite B**<br> **Monroe Township** **, New Jersey** | **08831** |
| (Address of principal executive offices) | (Zip Code) |

---

**(609) 730-0400**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol (s) | Name of each exchange on which registered |
| Common Stock, $0.001 Par Value | OPTT | NYSE American |
| Series A Preferred Stock Purchase Right | N/A | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 1.01** | **Entry into a Material Definitive Agreement**. |

---

On August 8, 2025, Ocean Power Technologies, Inc. (the "Company") entered into a sales agreement with Ladenburg Thalmann & Co. Inc. ("Ladenburg"), pursuant to which the Company may offer and sell shares of its common stock, par value $0.001 per share (the "Common Stock"), having an aggregate offering price of up to $40,000,000 (the "Shares"), to or through Ladenburg, as sales agent (the "Sales Agreement"), from time to time, in an "at the market offering" (as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended) of the Shares (the "ATM Offering").

Shares may be sold in the ATM Offering by any method deemed to be an "at the market offering." Under the Sales Agreement, Ladenburg will also be able to sell shares of Common Stock by any other method permitted by law, including in negotiated transactions with the Company's prior written consent. Upon delivery of a placement notice and subject to the terms and conditions of the Sales Agreement, Ladenburg is required to use its commercially reasonable efforts consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations, and the rules of the NYSE American to sell the Shares from time to time based upon the Company's instructions, including any price, time or size limits specified by the Company. Ladenburg is not under any obligation to purchase any of the Shares on a principal basis pursuant to the Sales Agreement, except as otherwise agreed by Ladenburg and the Company in writing and expressly set forth in a placement notice. Ladenburg's obligations to sell the Shares under the Sales Agreement are subject to satisfaction of certain conditions, including customary closing conditions. The Company is not obligated to make any sales of Shares under the Sales Agreement and any determination by the Company to do so will be dependent, among other things, on market conditions and the Company's capital raising needs.

The Company will pay Ladenburg commissions for its services in acting as its sales agent in the sale of the Shares pursuant to the Sales Agreement. Ladenburg is entitled to compensation at a fixed commission rate of 3.00% of the aggregate gross proceeds from the sale of the Shares on the Company's behalf pursuant to the Sales Agreement. The Sales Agreement contains representations, warranties and covenants that are customary for transactions of this type. In addition, the Company has provided Ladenburg with customary indemnification and contribution rights. The Company has also agreed to reimburse Ladenburg for certain specified expenses, including the expenses of counsel to Ladenburg. The offering of the Shares pursuant to the Sales Agreement will terminate upon the termination of the Sales Agreement by Ladenburg or the Company, as permitted therein.

The Shares will be issued pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-275843), filed with the Securities and Exchange Commission (the "SEC") on December 1, 2023, and declared effective by the SEC on December 12, 2023. The Company filed a prospectus supplement, dated August 8, 2025, with the SEC in connection with the offer and sale of the Shares pursuant to the Sales Agreement.

The foregoing description of the Sales Agreement is qualified in its entirety by reference to the full text of the Sales Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein in its entirety by reference. A copy of the legal opinion and consent of Porter Hedges LLP relating to the Shares being offered is attached hereto as Exhibit 5.1.

This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy any shares under the Sales Agreement, nor shall there be any sale of such shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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| | |
|:---|:---|
| **Item 1.02** | **Termination of a Material Definitive Agreement.** |

---

In connection with entering into the Sales Agreement, effective August 8, 2025, the Company terminated its At the Market Offering Agreement with A.G.P/Alliance Global Partners ("AGP") dated March 22, 2024 (the "AGP Agreement"). Under the AGP Agreement, the Company had sold and issued an aggregate of shares of its common stock with an aggregate market value of approximately $18 million. There were no penalties associated with the termination.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits

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| | |
|:---|:---|
| \*5.1 | [Opinion of Porter Hedges LLP.](ex5-1.htm) |
| \*10.1 | [At Market Issuance Sales Agreement, dated August 8, 2025, by and between Ocean Power Technologies, Inc. and Ladenburg Thalmann & Co. Inc.](ex10-1.htm) |
| \*23.1 | [Consent of Porter Hedges LLP (included in Exhibit 5.1).](ex5-1.htm) |
| 104 | Cover Page Interactive Data file (embedded within the Inline XBRL document). |

---

\* Filed herewith.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | **OCEAN POWER TECHNOLOGIES, INC.** |
| Dated: August 8, 2025 | */s/ Philipp Stratmann* |
|  | Philipp Stratmann |
|  | President and Chief Executive Officer |

---

## Exhibit 5.1

**Exhibit 5.1**

1000 Main Street, 36<sup>th</sup> Floor Houston, Texas 77002 Telephone {713} 226-6000 Telecopier {713} 228-1331 porterhedges.com

August 8, 2025

**014660/0011**

Ocean Power Technologies, Inc.

28 Engelhard Drive, Suite B

Monroe Township, New Jersey 08831

Ladies and Gentlemen:

We have acted as counsel to Ocean Power Technologies, Inc., a Delaware corporation (the "***Company***"), in connection with the preparation for filing with the Securities and Exchange Commission (the "***Commission***") of a prospectus supplement (the "***Prospectus Supplement***") under the Securities Act of 1933, as amended (the "***Act***"), related to the Company's shelf registration statement on Form S-3 (Registration No. 333-275843) (as amended, the "***Registration Statement***"). The Prospectus Supplement relates to the issuance by the Company of up to $40,000,000 of shares (the "***Shares***") of common stock, par value $0.001 per share, of the Company (the "***Common Stock***") pursuant to the terms of an At Market Issuance Sales Agreement dated August 8, 2025 between the Company and Ladenburg Thalmann & Co. Inc. (the "***Agreement***"). Capitalized terms used but not defined herein have the meanings given such terms in the Agreement.

For purposes of the opinions we express below, we have examined the originals or copies, certified or otherwise identified, of: (i) the Certificate of Incorporation and Bylaws, each as amended to date, of the Company; (ii) the Registration Statement; (iii) the Prospectus Supplement; and (iv) the corporate records of the Company, including minute books of the Company, certificates of public officials and of representatives of the Company, statutes and other instruments and documents as we considered appropriate for purposes of the opinions hereafter expressed. In giving such opinions, we have relied upon certificates of officers of the Company and of public officials with respect to the accuracy of the material factual matters contained in such certificates. In giving the opinions below, we have assumed that the signatures on all documents examined by us are genuine, that all documents submitted to us as originals are accurate and complete, that all documents submitted to us as copies are true and correct copies of the originals thereof and that all information submitted to us was accurate and complete.

In making our examination, we have assumed and have not verified (i) that all signatures on documents examined by us are genuine, (ii) the legal capacity of all natural persons, (iii) the authenticity of all documents submitted to us as originals and (iv) the conformity to the original documents of all documents submitted to us as copies thereof.

Ocean Power Technologies, Inc.<br>August 8, 2025<br>Page 2<br>

Based on the foregoing, and subject to the assumptions, exceptions and qualifications set forth herein, we are of the opinion that, when (i) the Prospectus Supplement has been delivered and filed as required by such laws; (ii) the board of directors of the Company has taken all necessary corporate action to authorize the issuance of the Shares and related matters; and (iii) the certificates for the Shares have been duly executed by the Company, countersigned by the transfer agent therefor and duly delivered against payment therefor in accordance with the Agreement, then the Shares will be validly issued, fully paid and nonassessable.

The opinions expressed herein are limited to the General Corporation Law of the State of Delaware and the federal securities laws of the United States of America.

We hereby consent to the filing of this opinion as Exhibit 5.1 to the Company's Current Report on Form 8-K. We also consent to the references to our Firm under the heading "Legal Matters" in the Prospectus Supplement. In giving this consent, we do not hereby admit we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

---

| |
|:---|
| Very truly yours, |
| /s/ Porter Hedges LLP |
| PORTER HEDGES LLP |

---

## Exhibit 10.1

**Exhibit 10.1**

**Ocean Power Technologies, Inc.**

**Common Stock**

**(par value $0.001 per share)**

**At Market Issuance Sales Agreement**

August 8, 2025

Ladenburg Thalmann & Co. Inc.

640 Fifth Avenue, 4th Floor

New York, NY 10019

Ladies and Gentlemen:

Ocean Power Technologies, Inc., a Delaware corporation (the "<u>Company</u>"), confirms its agreement (this "<u>Agreement</u>") with Ladenburg Thalmann & Co. Inc. (the "<u>Agent</u>") as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Issuance and Sale of Shares</u>. The Company agrees that, from time to time during the term of this
 Agreement, on the terms and subject to the conditions set forth herein, it may issue and
 sell through the Agent, shares (the " <u>Placement Shares</u> ") of the Company's
 common stock, par value $0.001 per share (the " <u>Common Stock</u> "), *provided however*, that in no event shall the Company issue or sell through the Agent such number
 of Placement Shares that (a) exceeds the dollar amount of shares of Common Stock registered
 on the effective Registration Statement (as defined below) pursuant to which the offering
 is being made, or (b) exceeds the number of shares or dollar amount registered on the Prospectus
 (as defined below), or (c) exceeds the number of authorized but unissued shares of Common
 Stock, (d) exceeds the number or dollar amount of shares of Common Stock that would cause
 the Company or the offering of the Placement Shares to not satisfy the eligibility and transaction
 requirements for use of Form S-3, including, if applicable, General Instruction I.B.6 of
 Registration Statement on Form S-3 or (e) exceeds the number or dollar amount of shares of
 Common Stock that would cause the Company to fail to comply with the terms of that certain
 Securities Purchase Agreement, dated as of May 15, 2025, by and among the Company and the
 investors referred to therein, as amended from time to time (the lesser of (a), (b), (c),
 (d) and (e), the " <u>Maximum Amount</u> "). Notwithstanding anything to the contrary
 contained herein, the parties hereto agree that compliance with the limitations set forth
 in this <u>Section 1</u> on the number of Placement Shares issued and sold under this Agreement
 shall be the sole responsibility of the Company and that the Agent shall have no obligation
 in connection with such compliance. The issuance and sale of Placement Shares through the
 Agent will be effected pursuant to the Registration Statement (as defined below), although
 nothing in this Agreement shall be construed as requiring the Company to use the Registration
 Statement to issue any Placement Shares.

On the date of this Agreement, the Company has filed, or will file, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder (the "<u>Securities Act</u>"), with the Securities and Exchange Commission (the "<u>Commission</u>"), a registration statement on Form S-3 (the "<u>Current Registration Statement</u>"), including a base prospectus (the "<u>Base Prospectus</u>"), relating to certain securities, including the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), and the rules and regulations thereunder. The Company has prepared a prospectus or a prospectus supplement to the base prospectus included as part of the registration statement, which prospectus or prospectus supplement relates to the Placement Shares to be issued from time to time by the Company (the "<u>Prospectus Supplement</u>"). The Company will furnish to the Agent, for use by such Agent, copies of the prospectus included as part of such registration statement, as supplemented, by the Prospectus Supplement, relating to the Placement Shares to be issued from time to time by the Company. The Company may file one or more additional registration statements from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable (which shall be a Prospectus Supplement), with respect to the Placement Shares. Except where the context otherwise requires, such registration statement(s) or any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Actor any subsequent registration statement on Form S-3 filed pursuant to Rule 415(a)(6) under the Securities Act by the Company to cover any securities registered pursuant the Registration Statement, including any Placement Shares, as a result of the end of the three-year period described in Rule 415(a)(5) of the Securities Act, is herein called the "<u>Registration Statement</u>." The base prospectus or base prospectuses with respect to the Placement Shares, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented, if necessary, by the Prospectus Supplement, in the form in which such prospectus or prospectuses and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with the then issued Issuer Free Writing Prospectus(es) (defined below), is herein called the "<u>Prospectus</u>."

Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated or deemed incorporated by reference therein, and any reference herein to the terms "amend," "amendment" or "supplement" with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein (the "<u>Incorporated Documents</u>"). For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, "<u>EDGAR</u>").

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Placements</u>.
 Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a " <u>Placement</u> "),
 it will notify the Agent by email notice (or other method mutually agreed to in writing by
 the parties) of the number of Placement Shares to be sold, the time period during which sales
 are requested to be made, any limitation on the number of Placement Shares that may be sold
 in any one day and any minimum price below which sales may not be made (a " <u>Placement Notice</u> "), the form of which is attached hereto as <u>Schedule 1</u>. The receipt
 of each such Placement Notice shall be promptly acknowledged by the Agent by email confirmation
 to the Company. The Placement Notice shall originate from any of the individuals from the
 Company set forth on <u>Schedule 2</u> (with a copy to each of the other individuals from
 the Company listed on such schedule), and shall be addressed to each of the individuals from
 the Agent set forth on <u>Schedule 2</u>, as such <u>Schedule 2</u> may be amended from time
 to time. Provided that the Company is otherwise in compliance with the terms of this Agreement,
 the Placement Notice shall be effective immediately upon receipt by the Agent unless and
 until (i) the Agent declines to accept the terms contained therein for any reason, in its
 sole discretion, (ii) the entire amount of the Placement Shares thereunder has been sold,
 (iii) the Company suspends or terminates the Placement Notice, or (iv) this Agreement has
 been terminated under the provisions of <u>Section 13</u>. The amount of any discount, commission
 or other compensation to be paid by the Company to the Agent in connection with the sale
 of the Placement Shares shall be calculated in accordance with the terms set forth in <u>Schedule 3</u>. It is expressly acknowledged and agreed that neither the Company nor the Agent will
 have any obligation whatsoever with respect to a Placement or any Placement Shares unless
 and until the Company delivers a Placement Notice to the Agent and the Agent does not decline
 such Placement Notice pursuant to the terms set forth above, and then only upon the terms
 specified therein and herein. In the event of a conflict between the terms of <u>Sections 2</u> or <u>3</u> of this Agreement and the terms of a Placement Notice, the terms of the
 Placement Notice will control.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Sale of Placement Shares by the Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subject
 to the terms and conditions of this Agreement, for the period specified in a Placement Notice,
 the Agent will use its commercially reasonable efforts consistent with its normal trading
 and sales practices and applicable state and federal laws, rules and regulations and the
 rules of the NYSE American, to sell the Placement Shares up to the amount specified in, and
 otherwise in accordance with the terms of, such Placement Notice. The Agent will provide
 written confirmation to the Company no later than the opening of the Trading Day (as defined
 below) immediately following the Trading Day on which it has made sales of Placement Shares
 hereunder setting forth the number of Placement Shares sold on such day, the compensation
 payable by the Company to the Agent pursuant to <u>Section 2</u> with respect to such sales,
 and the Net Proceeds (as defined below) payable to the Company, with an itemization of the
 deductions made by the Agent (as set forth in <u>Section 5(b)</u>) from the gross proceeds
 that it receives from such sales. Subject to the terms of a Placement Notice, the Agent agrees
 that all sales of the Placement Shares by the Agent will be made only by methods permitted
 by law and deemed to be an "at the market offering" as defined in Rule 415(a)(4)
 of the Securities Act. Subject to the terms of a Placement Notice, the Agent may also sell
 Placement Shares by any other method permitted by law, including but not limited to privately
 negotiated transactions or sales made directly on or through the NYSE American (the " <u>Exchange</u> "),
 or any other existing trading market for the Common Stock, in negotiated transactions at
 market prices prevailing at the time of sale or at prices related to such prevailing market
 prices and/or any other method permitted by law with the Company's consent. " <u>Trading Day</u> " means any day on which Common Stock is purchased and sold on the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
such time as the Agent is actively offering Placement Shares pursuant to this Agreement, the Agent shall not for its own account engage
in (i) any short sale of any security of the Company, (ii) any sale of any security of the Company that the Agent does not own for the
account of the Agent or any sale which is consummated by the delivery of a security of the Company borrowed by, or for the account of,
the Agent, or (iii) any market making, bidding, purchasing, stabilization or other trading activity with regard to the Common Stock or
related derivative securities, or attempting to induce another person to do any of the foregoing, if such activity would be prohibited
under Regulation M or other anti-manipulation rules under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Suspension of Sales</u>. The Company or the Agent may, upon notice to the other party in writing (including
 by email correspondence to each of the individuals of the other party set forth on <u>Schedule 2</u>, if receipt of such correspondence is actually acknowledged by any of the individuals
 to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately
 by verifiable facsimile transmission or email correspondence to each of the individuals of
 the other party set forth on <u>Schedule 2</u>), suspend any sale of Placement Shares (a
 " <u>Suspension</u> "); *provided*, *however*, that such suspension shall
 not affect or impair any party's obligations with respect to any Placement Shares sold
 hereunder prior to the receipt of such notice. While a Suspension is in effect, any obligation
 under <u>Sections 7(l)</u>, <u>7(m)</u>, and <u>7(n)</u> with respect to the delivery of
 certificates, opinions, or comfort letters to the Agent, shall be waived. Each of the parties
 agrees that no such notice under this <u>Section 4</u> shall be effective against any other
 party unless it is made to one of the individuals named on <u>Schedule 2</u> hereto and acknowledged
 in accordance with this <u>Section 4</u>, as such Schedule may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Sale and Delivery to the Agent; Settlement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Sale of Placement Shares</u>. On the basis of the representations and warranties herein contained
 and subject to the terms and conditions herein set forth, upon the Agent's acceptance
 of the terms of a Placement Notice, and unless the sale of the Placement Shares described
 therein has been declined, suspended, or otherwise terminated in accordance with the terms
 of this Agreement, the Agent, for the period specified in the Placement Notice, will use
 its commercially reasonable efforts consistent with its normal trading and sales practices
 and applicable state and federal laws, rules and regulations and the rules of the Exchange
 to sell such Placement Shares up to the amount specified in, and otherwise in accordance
 with the terms of, such Placement Notice. The Company acknowledges and agrees that (i) there
 can be no assurance that the Agent will be successful in selling Placement Shares, (ii) the
 Agent will incur no liability or obligation to the Company or any other person or entity
 if it does not sell Placement Shares for any reason other than a failure by the Agent to
 use its commercially reasonable efforts consistent with its normal trading and sales practices
 and applicable law and regulations and the rules of the Exchange to sell such Placement Shares
 as required under this Agreement and (iii) the Agent shall be under no obligation to purchase
 Placement Shares on a principal basis pursuant to this Agreement, except as otherwise agreed
 by the Agent and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Settlement of Placement Shares</u>. Unless otherwise specified in the applicable Placement Notice, settlement
 for sales of Placement Shares will occur on the first (1<sup>st</sup>) Trading Day (or such
 earlier day as is industry practice for regular-way trading) following the date on which
 such sales are made (each, a " <u>Settlement Date</u> "). The amount of proceeds
 to be delivered to the Company on a Settlement Date against receipt of the Placement Shares
 sold (the " <u>Net Proceeds</u> ") will be equal to the aggregate sales price received
 by the Agent, after deduction for (i) the Agent's commission, discount or other compensation
 for such sales payable by the Company pursuant to <u>Section 2</u> hereof, and (ii) any transaction
 fees imposed by any governmental or self-regulatory organization in respect of such sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Delivery of Placement Shares</u>. On or before each Settlement Date, the Company will, or will cause
 its transfer agent to, electronically transfer the Placement Shares being sold by crediting
 the Agent's or its designee's account (provided that the Agent shall have given
 the Company written notice of such designee at least one Trading Day prior to the Settlement
 Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System
 (" <u>DWAC</u> ") or by such other means of delivery as may be mutually agreed
 upon by the parties hereto which in all cases shall be freely tradable, transferable, registered
 shares in good deliverable form. On each Settlement Date, the Agent will deliver the related
 Net Proceeds in same day funds to an account designated by the Company on, or prior to, the
 Settlement Date. The Agent will be responsible for providing DWAC instructions or instructions
 for delivery by other means with respect to the transfer of the Placement Shares being sold.
 The Company agrees that if the Company, or its transfer agent (if applicable), defaults in
 its obligation to deliver Placement Shares on a Settlement Date through no fault of the Agent,
 then in addition to and in no way limiting the rights and obligations set forth in <u>Section 11(a)</u> hereto, it will (i) hold the Agent harmless against any loss, claim, damage, or
 expense (including reasonable and documented legal fees and expenses), as incurred, arising
 out of or in connection with such default by the Company or its transfer agent (if applicable)
 and (ii) pay to the Agent (without duplication) any commission, discount, or other compensation
 to which it would otherwise have been entitled absent such default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Limitations on Offering Size</u>. Under no circumstances shall the Company cause or request the offer
 or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares,
 the gross sales proceeds or aggregate number of Placement Shares sold pursuant to this Agreement
 would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement,
 the Maximum Amount, (B) the amount available for offer and sale under the currently effective
 Registration Statement and (C) the amount authorized from time to time to be issued and sold
 under this Agreement by the Company's board of directors, a duly authorized committee
 thereof or a duly authorized executive committee, and notified to the Agent in writing. Under
 no circumstances shall the Company cause or request the offer or sale of any Placement Shares
 pursuant to this Agreement at a price lower than the minimum price authorized from time to
 time by the Company's board of directors, a duly authorized committee thereof or a
 duly authorized executive committee, and notified to the Agent in writing. Further, under
 no circumstances shall the Company cause or permit the aggregate offering amount of Placement
 Shares sold pursuant to this Agreement to exceed the Maximum Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Sales Through Agent</u>. The Company agrees that any offer to sell, any solicitation of an offer
 to buy, or any sales of Common Stock or any other equity security of the Company shall only
 be effected by or through the Agent, and only the Agent, on any single given date; provided
 however that (i) the foregoing limitation shall not apply to (A) exercise of any option,
 warrant, right or any conversion privilege set forth in the instruction governing such securities
 or (B) sales solely to employees, directors, consultants or security holders of the Company
 or its Subsidiaries, or to a trustee or other person acquiring such securities for the accounts
 of such person and (ii) such limitation shall not apply (A) on any day during which no sales
 are made pursuant to this Agreement or (B) during a period in which the Company has notified
 the Agent that it will not sell Common Stock under this Agreement and (1) no Placement Notice
 is pending or (2) after a Placement Notice has been withdrawn.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Representations and Warranties of the Company</u>. Except as disclosed in the Registration Statement or Prospectus
 (including the Incorporated Documents), or except as specifically disclosed in a subsequent
 SEC Report (but excluding any disclosures of risks set forth under the heading "Risk
 Factors," disclosures of risks set forth in any "forward-looking statements"
 disclaimer or in any other statements that are similarly cautionary or predictive in nature),
 the Company represents and warrants to, and agrees with the Agent that as of the date of
 this Agreement and as of each Applicable Time (as defined below), unless such representation,
 warranty or agreement specifies a different date or time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Registration Statement and Prospectus</u>. The Company and the transactions contemplated by this Agreement,
 meet the requirements for and comply with the applicable conditions for the use of Form S-3
 under the Securities Act. The Registration Statement has been filed, or will be filed, with
 the Commission, and (i) as of the date of this Agreement, the Company has no reason to believe
 that it shall not be declared effective under the Securities Act, or (ii) as of any Applicable
 Time after the date of this Agreement, has been declared effective under the Securities Act.
 The Prospectus Supplement names Ladenburg Thalmann & Co. Inc. as the Agent in the section
 entitled "Plan of Distribution." The Company has not received, and has no notice
 of, any order of the Commission preventing or suspending the use of the Registration Statement,
 or threatening or instituting proceedings for that purpose. The Registration Statement and
 the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule
 415 under the Securities Act, at the time it becomes effective, and as of each Applicable
 Time, if any, will comply in all material respects with said Rule. Any statutes, regulations,
 contracts or other documents that are required to be described in the Registration Statement
 or the Prospectus or to be filed as exhibits to the Registration Statement have been so described
 or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or
 supplements and all documents incorporated by reference therein that were filed with the
 Commission on or prior to the date of this Agreement have been delivered, or are available
 through EDGAR, to the Agent and its counsel. The Company has not distributed and, prior to
 the later to occur of each Settlement Date and completion of the distribution of the Placement
 Shares, will not distribute, any offering material in connection with the offering or sale
 of the Placement Shares other than the Registration Statement (once effective) and the Prospectus
 and any Issuer Free Writing Prospectus (as defined below) to which the Agent has consented,
 any such consent not to be unreasonably withheld, conditioned or delayed. The Common Stock
 is currently listed on the Exchange under the trading symbol "OPTT." The Company
 has not received notice from the Exchange to the effect that the Company is not in compliance
 with the listing or maintenance requirements of the Exchange. The Company 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>No Misstatement or Omission</u>. The Registration Statement, when it became or becomes effective,
 and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus
 or amendment or supplement, conformed and will conform in all material respects with the
 requirements of the Securities Act. At each Settlement Date, the Registration Statement and
 the Prospectus, as of such date, will conform in all material respects with the requirements
 of the Securities Act. The Registration Statement, did not, and will not, contain an untrue
 statement of a material fact or omit to state a material fact required to be stated therein
 or necessary to make the statements therein not misleading. The Prospectus and any amendment
 and supplement thereto, on the date thereof and at each Applicable Time (defined below),
 did not or will not include an untrue statement of a material fact or omit to state a material
 fact necessary to make the statements therein, in light of the circumstances under which
 they were made, not misleading. The documents incorporated by reference in the Prospectus
 or any Prospectus Supplement did not, and any further documents filed and incorporated by
 reference therein will not, when filed with the Commission, contain an untrue statement of
 a material fact or omit to state a material fact required to be stated in such document or
 necessary to make the statements in such document, in light of the circumstances under which
 they were made, not misleading. The foregoing shall not apply to statements in, or omissions
 from, any such document made in reliance upon, and in conformity with the Agent's Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Conformity with Securities Act and Exchange Act</u>. The Registration Statement, the Prospectus, any
 Issuer Free Writing Prospectus or any amendment or supplement thereto, and the Incorporated
 Documents, when such documents were or are filed with the Commission under the Securities
 Act or the Exchange Act or became or become effective under the Securities Act, as the case
 may be, conformed or will conform in all material respects with the requirements of the Securities
 Act and the Exchange Act, as applicable. No stop order suspending the effectiveness of the
 Registration Statement, or the use of the Prospectus has been issued, and no proceeding for
 any such purpose is pending or has been initiated or, to the Company's knowledge, is
 threatened by the Commission. For purposes of this Agreement, " <u>free writing prospectus</u> "
 has the meaning set forth in Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Subsidiaries</u>.
 None of the Subsidiaries (as defined in <u>Section 25</u> below) is a "significant
 subsidiary" as defined in Rule 1-02(w) of Regulation S-X promulgated under the Securities
 Act. If the Company has no "significant subsidiaries", all other references,
 except as set forth in this Section 6(d), to the Subsidiaries or any of them in this Agreement
 shall be disregarded. No Subsidiary owns any material assets or incurs any material liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Organization and Qualification</u>. The Company and each of the Subsidiaries is an entity duly incorporated
 or otherwise organized, validly existing and in good standing under the laws of the jurisdiction
 of its incorporation or organization, with the requisite power and authority to own and use
 its properties and assets and to carry on its business as currently conducted. Neither the
 Company nor any Subsidiary is in violation nor default of any of the provisions of its respective
 certificate or articles of incorporation, bylaws or other organizational or charter documents.
 Each of the Company and the Subsidiaries is duly qualified to conduct business and is in
 good standing as a foreign corporation or other entity in each jurisdiction in which the
 nature of the business conducted or property owned by it makes such qualification necessary,
 except where the failure to be so qualified or in good standing, as the case may be, could
 not have or reasonably be expected to result in a Material Adverse Effect (as defined in <u>Section 25</u> below) and no proceeding has been instituted in any such jurisdiction revoking,
 limiting or curtailing or seeking to revoke, limit or curtail such power and authority or
 qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into
 and to consummate the transactions contemplated by this Agreement and otherwise to carry
 out its obligations hereunder. The execution and delivery of this Agreement by the Company
 and the consummation by it of the transactions contemplated hereby have been duly authorized
 by all necessary action on the part of the Company and no further action is required by the
 Company, the board of directors or the Company's stockholders in connection herewith
 or therewith other than in connection with the Required Approvals (as defined below). This
 Agreement and each other Incorporated Document to which the Company is a party has been (or
 upon delivery will have been) duly executed by the Company and, when delivered in accordance
 with the terms hereof and thereof, will constitute the valid and binding obligation of the
 Company enforceable against the Company 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>No Conflicts</u>. Except as set forth in the SEC Reports (as defined below), the Registration
 Statement or the Prospectus, the execution, delivery and performance by the Company of this
 Agreement, the issuance and sale of the Placement Shares and the consummation by it of the
 transactions contemplated hereby do not and will not (i) conflict with or violate any provision
 of the Company's or any Subsidiary's certificate or articles of incorporation,
 bylaws or other organizational or charter documents, or (ii) conflict with, or constitute
 a default (or an event that with notice or lapse of time or both would become a default)
 under, result in the creation of any Lien (as defined in <u>Section 25</u> below) upon any
 of the properties or assets of the Company or any Subsidiary, or give to others any rights
 of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation
 (with or without notice, lapse of time or both) of, any agreement, credit facility, debt
 or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
 to which the Company or any Subsidiary is a party or by which any property or asset of the
 Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
 conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
 decree or other restriction of any court or governmental authority to which the Company or
 a Subsidiary is subject (including federal and state securities laws and regulations), or
 by which any property or asset of the Company or a Subsidiary is bound or affected; except
 in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected
 to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Filings, Consents and Approvals</u>. The Company is not required to obtain any consent, waiver, authorization
 or order of, give any notice to, or make any filing or registration with, any court or other
 federal, state, local or other governmental authority or other person, as such term is defined
 in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a " <u>Person</u> ")
 in connection with the execution, delivery and performance by the Company of this Agreement,
 other than such as have been obtained or made by the Company and are in full force and effect
 under the Securities Act and such as may be required under applicable state securities or
 blue sky laws, FINRA or the Trading Market (as defined in <u>Section 25</u> below) (collectively,
 the " <u>Required Approvals</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Issuance of Placement Shares</u>. The Placement Shares are duly authorized and, when issued and paid
 for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable,
 free and clear of all Liens imposed by the Company. The holders of the Placement Shares will
 not be subject to personal liability by reason of being such holders. The Placement Shares
 are not and will not be subject to the preemptive rights of any holders of any security of
 the Company or similar contractual rights granted by the Company. All corporate action required
 to be taken for the authorization, issuance and sale of the Placement Shares has been duly
 and validly taken. The Placement Shares conform in all material respects to all statements
 with respect thereto contained in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>Capitalization</u>.
 The capitalization of the Company is as set forth in the SEC Reports. Except as set forth
 in the SEC Reports, the Company has not issued any capital stock other than pursuant to the
 exercise of employee stock options under the Company's stock option plans, the issuance
 of shares of Common Stock to employees pursuant to the Company's employee stock purchase
 plans and pursuant to the conversion and/or exercise of Common Stock Equivalents (as defined
 in <u>Section 25</u> below) outstanding as of such date. Except as set forth in the Registration
 Statement and the SEC Reports, no Person has any right of first refusal, preemptive right,
 right of participation, or any similar right to participate in the transactions contemplated
 by this Agreement, except for such rights as have been waived. Except as a result of the
 purchase and sale of the Placement Shares and as otherwise set forth in the Registration
 Statement and the SEC Reports, there are no outstanding options, warrants, scrip rights to
 subscribe to, calls or commitments of any character whatsoever relating to, or securities,
 rights or obligations convertible into or exercisable or exchangeable for, or giving any
 Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
 understandings or arrangements 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
 in the Registration Statement and Prospectus, the issuance and sale of the Placement Shares
 will not obligate the Company to issue shares of Common Stock or other securities to any
 Person. Except as set forth in the SEC Reports, the Registration Statement or the Prospectus,
 there are no outstanding securities or instruments of the Company or any Subsidiary with
 any provision that adjusts the exercise, conversion, exchange or reset price of such security
 or instrument upon an issuance of securities by the Company or any Subsidiary. 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 federal and state securities
 laws, and none of such outstanding shares was issued in violation of any preemptive rights
 or similar rights to subscribe for or purchase securities. The authorized shares of the Company
 conform in all material respects to all statements relating thereto contained in the Registration
 Statement and the Prospectus. The offers and sales of the Company's securities were
 at all relevant times either registered under the Securities Act and the applicable state
 securities or Blue Sky laws or, based in part on the representations and warranties of the
 purchasers, exempt from such registration requirements. No further approval or authorization
 of any stockholder, the board of directors or others is required for the issuance and sale
 of the Placement Shares. Except as set forth in the Registration Statement and the SEC Reports,
 there are no stockholders agreements, voting agreements or other similar agreements with
 respect to the Company's capital stock to which the Company is a party or, to the knowledge
 of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>SEC Reports; Financial Statements</u>. 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 preceding two
 years (or such shorter period as the Company was required by law or regulation to file such
 material) (the foregoing materials, including the exhibits thereto and documents incorporated
 by reference therein, together with the Prospectus and any Prospectus Supplement, being collectively
 referred to herein as the " <u>SEC Reports</u> ") on a timely basis or has received
 a valid extension of such time of filing and has filed any such SEC Reports prior to the
 expiration of any such extension, except as could not have or reasonably be expected to result
 in a Material Adverse Effect. 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 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. Such financial
 statements have been prepared in accordance with United States generally accepted accounting
 principles applied on a consistent basis during the periods involved (" <u>GAAP</u> "),
 except as may be otherwise specified in such financial statements or the notes thereto and
 except that unaudited financial statements may not contain all footnotes required by 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 normal,
 immaterial, year-end audit adjustments. The agreements and documents described in the Registration
 Statement, the Prospectus, any Prospectus Supplement and the SEC Reports conform to the descriptions
 thereof contained therein and there are no agreements or other documents required by the
 Securities Act and the rules and regulations thereunder to be described in the Registration
 Statement, the Prospectus, any Prospectus Supplement or the SEC Reports or to be filed with
 the Commission as exhibits to the Registration Statement, that have not been so described
 or filed. Each agreement or other instrument (however characterized or described) to which
 the Company is a party or by which it is or may be bound or affected and (i) that is referred
 to in the Registration Statement, the Prospectus, or the SEC Reports, or (ii) is material
 to the Company's business, has been duly authorized and validly executed by the Company,
 is in full force and effect in all material respects and is enforceable against the Company
 and, to the Company's knowledge, the other parties thereto, in accordance with its
 terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization
 or similar laws affecting creditors' rights generally, (y) as enforceability of any
 indemnification or contribution provision may be limited under the federal and state securities
 laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable
 relief may be subject to the equitable defenses and to the discretion of the court before
 which any proceeding therefore may be brought. None of such agreements or instruments has
 been assigned by the Company, and neither the Company nor, to the best of the Company's
 knowledge, any other party is in default thereunder and, to the best of the Company's
 knowledge, no event has occurred that, with the lapse of time or the giving of notice, or
 both, would constitute a default thereunder. To the best of the Company's knowledge,
 performance by the Company of the material provisions of such agreements or instruments will
 not result in a violation of any existing applicable law, rule, regulation, judgment, order
 or decree of any governmental agency or court, domestic or foreign, having jurisdiction over
 the Company or any of its assets or businesses, including, without limitation, those relating
 to environmental laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest
 audited financial statements included within the SEC Reports, except as specifically disclosed
 in a subsequent SEC Report, (i) there has been no event, occurrence or development that has
 had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the
 Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables
 and accrued expenses incurred in the ordinary course of business consistent with past practice
 and (B) liabilities not required to be reflected in the Company's financial statements
 pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has
 not altered its method of accounting, (iv) the Company has not declared or made any dividend
 or distribution of cash or other property to its stockholders or purchased, redeemed or made
 any agreements to purchase or redeem any shares of its capital stock, (v) the Company has
 not issued any equity securities to any officer, director or Affiliate, except pursuant to
 existing Company stock option plans and (vi) no officer or director of the Company has resigned
 from any position with the Company. The Company does not have pending before the Commission
 any request for confidential treatment of information. Except for the issuance of the Placement
 Shares contemplated by this Agreement, no event, liability, fact, circumstance, occurrence
 or development has occurred or exists or is reasonably expected to occur or exist with respect
 to the Company or its Subsidiaries or their respective businesses, prospects, properties,
 operations, assets or financial condition that would be required to be disclosed by the Company
 under applicable securities laws 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. Unless otherwise disclosed in an SEC Report, the Company has not:
 (i) issued any securities or incurred any liability or obligation, direct or contingent,
 for borrowed money; or (ii) declared or paid any dividend or made any other distribution
 on or in respect of its capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>Litigation</u>.
 Except as specifically disclosed in a subsequent SEC Report, there is no action, suit, inquiry,
 notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
 threatened against or affecting the Company, any Subsidiary or any of their respective properties
 before or by any court, arbitrator, governmental or administrative agency or regulatory authority
 (federal, state, county, local or foreign) (collectively, an " <u>Action</u> ")
 which (i) adversely affects or challenges the legality, validity or enforceability of any
 of the Agreement or the issuance of the Placement Shares or (ii) could, if there were an
 unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.
 Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been
 the subject of any Action involving a claim of violation of or liability under federal or
 state securities laws or a claim of breach of fiduciary duty. There has not been, and to
 the knowledge of the Company, there is not pending or contemplated, any investigation by
 the Commission involving the Company or any current or former director or officer of the
 Company. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>Labor Relations</u>. No labor dispute exists or, to the knowledge of the Company, is imminent with
 respect to any of the employees of the Company, which could reasonably be expected to result
 in 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, and the Company and its Subsidiaries believe that their relationships
 with their employees are good. To the knowledge of the Company, no executive officer of the
 Company or any Subsidiary, is, or is now expected to be, in violation of any material term
 of any employment contract, confidentiality, disclosure or proprietary information agreement
 or non-competition agreement, or any other contract or agreement or any restrictive covenant
 in favor of any third party, and the continued employment of each such executive officer
 does not subject the Company or any of its Subsidiaries to any liability with respect to
 any of the foregoing matters. The Company and its Subsidiaries are in compliance with all
 U.S. federal, state, local and foreign laws and regulations relating to employment and employment
 practices, terms and conditions of employment and wages and hours, except where the failure
 to be in compliance could not, individually or in the aggregate, reasonably be expected to
 have a Material Adverse Effect.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. <u>Regulatory Permits</u>. The Company and the Subsidiaries possess all licenses, certificates, authorizations,
 registrations and permits issued by, and have made all declarations and filings with, the
 appropriate federal, state, local or foreign governmental or regulatory authorities that
 are necessary to conduct their respective businesses as described in the SEC Reports, except
 where the failure to possess such permits could not reasonably be expected to result in a
 Material Adverse Effect (each, a " <u>Material Permit</u> "), and neither the Company
 nor any Subsidiary has received any notice of proceedings relating to the revocation, suspension,
 modification, invalidation or termination of any Material Permit. The disclosures in the
 Registration Statement concerning the effects of Federal, State, local and all foreign regulation
 on the Company's business as currently contemplated are correct in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. <u>Title to Assets</u>. The Company and the Subsidiaries have good and marketable title in fee simple
 to, or have valid and marketable rights to lease or otherwise use, all real property and
 all personal property that is material to the business of the Company and the Subsidiaries,
 in each case free and clear of all Liens, except for (i) Liens as do not materially affect
 the value of such property and do not materially interfere with the use made and proposed
 to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment
 of federal, state or other taxes, for which appropriate reserves have been made 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 the Company and the Subsidiaries are held by
 them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries
 are in compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. <u>Intellectual Property</u>. The Company and the Subsidiaries have, or have rights to use, all patents,
 patent applications, trademarks, trademark applications, service marks, trade names, trade
 secrets, inventions, copyrights, licenses and other intellectual property rights and similar
 rights necessary or required for use in connection with their respective businesses as described
 in the SEC Reports and which the failure to do so could have a Material Adverse Effect (collectively,
 the " <u>Intellectual Property Rights</u> "). None of, and neither the Company
 nor any Subsidiary 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. For clarity and avoidance
 of doubt, an application that is abandoned in favor of a continuation or divisional application
 pursuing the same of similar subject matter as the parent application shall not be considered
 an abandonment or termination of Intellectual Property Rights. Neither the Company nor any
 Subsidiary has received, since the date of the latest audited financial statements included
 within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the
 Intellectual Property Rights violate or infringe upon the rights of any Person. To the knowledge
 of the Company, all such Intellectual Property Rights are enforceable and there is no existing
 infringement by another Person of any of the Intellectual Property Rights. The Company and
 its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
 and value of all of their intellectual properties, except where failure to do so could not,
 individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s. <u>Insurance</u>.
 The Company and the Subsidiaries are insured by insurers of recognized financial responsibility
 against such losses and risks and in such amounts as are prudent and customary in the businesses
 in which the Company and the Subsidiaries are engaged, including, but not limited to, directors
 and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to
 believe that it will not be able to renew its existing insurance coverage as and when such
 coverage expires or to obtain similar coverage from similar insurers as may be necessary
 to continue its business without a significant increase in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t. <u>Transactions With Affiliates and Employees</u>. Except as set forth in the SEC Reports, none of the officers
 or directors of the Company or any Subsidiary and, to the knowledge of the Company, none
 of the employees of the Company or any Subsidiary is presently a party to any transaction
 with the Company or any Subsidiary (other than for services as employees, officers and directors),
 including any contract, agreement or other arrangement providing for the furnishing of services
 to or by, providing for rental of real or personal property to or from, providing for the
 borrowing of money from or lending of money to or otherwise requiring payments to or from,
 any officer, director or such employee or, to the knowledge of the Company, any entity in
 which any officer, director, or any such employee has a substantial interest or is an officer,
 director, trustee, stockholder, member or partner, in each case in excess of $120,000 other
 than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
 for expenses incurred on behalf of the Company and (iii) other employee benefits, including
 stock option agreements under any stock option plan of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;u. <u>Sarbanes-Oxley; Internal Accounting Controls</u>. The Company is in compliance in all material respects with
 any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective
 as of the date hereof, and any and all applicable rules and regulations promulgated by the
 Commission thereunder that are effective as of the date hereof and as of the Applicable Time.
 Except as set forth in the Registration Statement and Prospectus, the Company maintains 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. Except as set forth in the
 Registration Statement and Prospectus, the Company has established disclosure controls and
 procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
 designed such disclosure controls and procedures to ensure that information required to be
 disclosed by the Company in the reports it files or submits 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 as of the end of the period covered
 by the most recently filed periodic report under the Exchange Act (such date, the " <u>Evaluation Date</u> "). 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) of the Company that have materially
 affected, or are reasonably likely to materially affect, the internal control over financial
 reporting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Certain Fees</u>. Except as set forth in the Prospectus, no brokerage or finder's fees or commissions
 are or will be payable by the Company, or any Subsidiary or Affiliate of the Company to any
 broker, financial advisor or consultant, finder, placement agent, investment banker, bank
 or other Person with respect to the transactions contemplated by this Agreement. To the Company's
 knowledge, there are no other arrangements, agreements or understandings of the Company or,
 to the Company's knowledge, any of its stockholders that may affect the Agent's
 compensation, as determined by FINRA. The Company has not made any direct or indirect payments
 (in cash, securities or otherwise) to: (i) any person, as a finder's fee, consulting
 fee or otherwise, in consideration of such person raising capital for the Company or introducing
 to the Company persons who raised or provided capital to the Company; (ii) any FINRA member;
 or (iii) any person or entity that has any direct or indirect affiliation or association
 with any FINRA member, within the twelve months prior to the Execution Date. None of the
 net proceeds of the Placement Shares will be paid by the Company to any participating FINRA
 member or its affiliates, except as specifically authorized herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;w. <u>Investment Company</u>. The Company is not, and is not an Affiliate of, and immediately after receipt
 of payment for the Securities will not be or be an Affiliate of, an "investment company"
 within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct
 its affairs in such a manner so as to reasonably ensure that it will not be or become, at
 any time prior to the termination of this Agreement, an "investment company,"
 as such term is defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. <u>Registration Rights</u>. Except as noted in the SEC Reports, no Person has any right to cause the Company
 to effect the registration under the Securities Act of any securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;y. <u>Listing and Maintenance Requirements</u>. The Common Stock is registered pursuant to Section 12(b)
 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. Except as set forth in the Registration Statement or the Prospectus,
 the Company has not, in the 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. Except as set forth in the Registration Statement or the Prospectus, 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 Common Stock is currently
 eligible for electronic transfer through DTC or another established clearing corporation
 and the Company is current in payment of the fees of DTC (or such other established clearing
 corporation) in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;z. <u>Application of Takeover Protections</u>. The Company and the board of directors have taken all necessary
 action, if any, in order to render inapplicable any control share acquisition, business combination,
 poison pill (including any distribution under a rights agreement) or other similar anti-takeover
 provision under the Company's certificate of incorporation (or similar charter documents)
 or the laws of its state of incorporation that is or could become applicable as a result
 of the Agent and the Company fulfilling their obligations or exercising their rights under
 this Agreement.

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|:---|:---|
| aa. | <u>Disclosure; 10b-5</u>. The Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, if any, at the time it became effective, including any information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430A under the Securities Act, complied in all material respects with the Securities Act and the Exchange Act and the applicable rules and regulations under the Securities Act and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as of its respective date, complies in all material respects with the Securities Act and the Exchange Act and the applicable rules and regulations. The Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The SEC Reports incorporated by reference in the Prospectus, if any, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the applicable rules and regulations, and none of such documents, if any, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Prospectus, if any, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the applicable rules and regulations, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required to be described in the Prospectus, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required. |

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|:---|:---|
| bb. | <u>No Integrated Offering</u>. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Placement Shares to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cc. <u>Solvency</u>.
 Based on the consolidated financial condition of the Company as of the Applicable Time, after
 giving effect to the receipt by the Company of the proceeds from the sale of the Placement
 Shares hereunder, (i) the fair saleable value of the Company's assets exceeds the amount
 that will be required to be paid on or in respect of the Company's existing debts and
 other liabilities (including known contingent liabilities) as they mature, (ii) the Company's
 assets do not constitute unreasonably small capital to carry on its business as now conducted
 and as proposed to be conducted including its capital needs taking into account the particular
 capital requirements of the business conducted by the Company, consolidated and projected
 capital requirements and capital availability thereof, and (iii) the current cash flow of
 the Company, together with the proceeds the Company would receive, were it to liquidate all
 of its assets, after taking into account all anticipated uses of the cash, would be sufficient
 to pay all amounts on or in respect of its liabilities when such amounts are required to
 be paid. The Company does not intend to incur debts beyond its ability to pay such debts
 as they mature (taking into account the timing and amounts of cash to be payable on or in
 respect of its debt). The Company has no knowledge of any facts or circumstances which lead
 it to believe that it will file for reorganization or liquidation under the bankruptcy or
 reorganization laws of any jurisdiction within one year from the date hereof. The SEC Reports
 sets forth all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
 or for which the Company or any Subsidiary has commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dd. <u>Tax Status</u>. 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 and its Subsidiaries
 each (i) has 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) has 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) has set aside on its 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 or of any Subsidiary know of no basis
 for any such claim. The provisions for taxes payable, if any, shown on the financial statements
 filed with or as part of the Registration Statement are sufficient for all accrued and unpaid
 taxes, whether or not disputed, and for all periods to and including the dates of such consolidated
 financial statements. The term "taxes" mean all federal, state, local, foreign,
 and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise,
 profits, license, lease, service, service use, withholding, payroll, employment, excise,
 severance, stamp, occupation, premium, property, windfall profits, customs, duties or other
 taxes, fees, assessments, or charges of any kind whatsoever, together with any interest and
 any penalties, additions to tax, or additional amounts with respect thereto. The term "returns"
 means all returns, declarations, reports, statements, and other documents required to be
 filed in respect to taxes.

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|:---|:---|
| ee. | <u>Foreign Corrupt Practices</u>. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended (the "<u>FCPA</u>"). The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with the FCPA. |

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|:---|:---|
| ff. | <u>Accountants</u>. To the knowledge and belief of the Company, the Company Auditor is an independent registered public accounting firm as required by the Exchange Act. The Company Auditor has not, during the periods covered by the financial statements included in the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act. "<u>Company Auditor</u>" means Baker Tilly US, LLP, with offices located at 14555 Dallas Parkway, Suite 300, Dallas, Texas 75254. |

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gg. <u>Reserved</u>.

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|:---|:---|
| hh. | <u>Office of Foreign Assets Control</u>. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>U.S. Real Property Holding Corporation</u>. 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 the Agent's request.

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|:---|:---|
| jj. | <u>Bank Holding Company Act</u>. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "<u>BHCA</u>") and to regulation by the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) 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. Neither the Company nor any of its Subsidiaries or Affiliates exercises 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. |

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|:---|:---|
| kk. | <u>Money Laundering</u>. The operations of the Company and its 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, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the "<u>Money Laundering Laws</u>"), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ll. <u>FINRA Affiliation</u>. To its knowledge, no officer, director or any beneficial owner of 5% or
 more of the Company's unregistered securities has any direct or indirect affiliation
 or association with any FINRA member (as determined in accordance with the rules and regulations
 of FINRA) that is participating in the Offering. The Company will advise the Agent and counsel
 for the Agent if it learns that any officer, director or owner of 5% or more of the Company's
 outstanding shares of Common Stock or Common Stock Equivalents is or becomes an affiliate
 or associated person of a FINRA member firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;mm. <u>Board of Directors</u>. The board of directors is comprised of the persons set forth in the SEC
 Reports. The qualifications of the persons serving as board members and the overall composition
 of the board of directors comply with the Sarbanes-Oxley Act of 2002 and the rules promulgated
 thereunder applicable to the Company and the rules of the Trading Market. At least one member
 of the board of directors qualifies as a "financial expert" as such term is defined
 under the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder and the rules of
 the Trading Market. In addition, at least a majority of the persons serving on the board
 of directors qualify as "independent" as defined under the rules of the Trading
 Market.

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|:---|:---|
| nn. | <u>Compliance with Privacy Laws; Cybersecurity</u>. Except as would not reasonably be expected to have a Material Adverse Effect, the Company (i) has operated its business in a manner compliant with all United States federal, state, and local, and non-United States, privacy, data security, and data protection laws and regulations applicable to the Company's collection, use, transfer, protection, disposal, disclosure, handling, storage, and analysis of data that is defined as "personal data" under applicable law ("<u>Personal Data</u>"), (ii) has been and is in compliance with its internal policies and procedures designed to ensure the integrity and security of the Personal Data collected, handled or stored by the Company in connection with its business, (iii) has been and is in compliance with its internal policies and procedures designed to ensure compliance with, to the extent applicable to the Company, health care laws that govern privacy and data security and takes, and has taken, reasonably appropriate steps designed to assure its compliance with such policies and procedures. Except as would not reasonably be expected to have a Material Adverse Effect, the Company has taken reasonable steps to maintain the confidentiality of its Personal Data, protected health information, consumer information, and other confidential information of the Company and any third parties in the possession and control of the Company ("<u>Sensitive Company Data</u>"). Except as would not reasonably be expected to have a Material Adverse Effect, the Company's tangible or digital information technology systems (including computers, screens, servers, workstations, routers, hubs, switches, networks, data communications lines, technical data and hardware), software, websites, applications and telecommunications systems (the "<u>Company IT Assets</u>") are adequate in capacity and operation for, in accordance with their documentation and functional specifications, the business of the Company as now operated as described in the Registration Statement and the Prospectus, free and clear of all Trojan horses, time bombs, malware, and other bugs, errors, or defects that, in each case, create material risk of a security breach with respect to such Company IT Assets or Sensitive Company Data processed thereon. Except as would not reasonably be expected to have a Material Adverse Effect, the Company has used reasonable efforts to establish, and has established, commercially reasonable disaster recovery and security plans, procedures and facilities for the business of the Company consistent with industry standards and practices, including, without limitation, for the Company IT Assets and Sensitive Company Data held or used by the Company. Except as would not reasonably be expected to have a Material Adverse Effect, (i) to the Company's knowledge, the Company has not suffered or incurred any security breaches, compromises or incidents with respect to any Company IT Asset or Sensitive Company Data and (ii) to the Company's knowledge, there has been no unauthorized or illegal use of, or access to, any Company IT Asset or Sensitive Company Data by any unauthorized third party. Except as would not reasonably be expected to have a Material Adverse Effect, to the Company's knowledge, the Company has not been required to notify any individual of any information security breach, compromise or incident involving Sensitive Company Data. |

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oo. <u>Underwriter Agreements</u>. The Company is not a party to any agreement with an agent or underwriter for any other "at the market" or continuous equity transaction.

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|:---|:---|
| pp. | <u>Margin Rules</u>. Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System. |

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qq. <u>Reserved</u>.

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|:---|:---|
| rr. | <u>Environmental Laws</u>. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "<u>Hazardous Materials</u>") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder ("<u>Environmental Laws</u>"); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. |

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ss. <u>Reserved</u>.

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|:---|:---|
| tt. | <u>Consents and Permits</u>. The Company and the Subsidiaries have made all filings, applications and submissions required by, and possess and are operating in compliance in all material respects with all approvals, licenses, certificates, certifications, clearances, consents, grants, exemptions, marks, notifications, orders, permits and other authorizations issued by, the appropriate federal, state or foreign Governmental Authority necessary for the ownership or lease of their respective properties or to conduct their businesses as described in the Registration Statement or the Prospectus (collectively, "<u>Permits</u>"), except for such Permits the failure of which to possess, obtain or file would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; the Company and the Subsidiaries are in compliance with the terms and conditions of all such Permits, except where the failure to be in compliance would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; all of the Permits are valid and in full force and effect, except where any invalidity would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; and neither the Company nor any of the Subsidiaries has received any notice relating to the limitation, revocation, cancellation, suspension, modification or non-renewal of any such Permit which, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, or has any reason to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course. The Company and each Subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, and neither the Company nor any Subsidiary has received, or has any reason to believe that it will receive, any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit which, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company has not applied for "approved enterprise", "benefited enterprise" or "preferred enterprise" status with respect to any of the Company's facilities or operations. |

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|:---|:---|
| uu. | <u>Regulatory Filings</u>. Neither the Company nor any of the Subsidiaries has failed to file with the applicable Governmental Authority any required filing, declaration, listing, registration, report or submission, except for such failures that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. All such filings, declarations, listings, registrations, reports or submissions were in substantial compliance with applicable Laws when filed and no deficiencies have been asserted by any applicable regulatory authority with respect to any such filings, declarations, listings, registrations, reports or submissions, except for any deficiencies that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vv. <u>Reserved</u>.

ww. <u>Reserved</u>.

Any certificate signed by an officer of the Company and delivered to the Agent or to counsel for the Agent pursuant to or in connection with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the Agent as to the matters set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Covenants of the Company</u>. The Company covenants and agrees with the Agent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Registration Statement Amendments</u>. After the date of this Agreement and during any period in which
 a prospectus relating to any Placement Shares is required to be delivered by the Agent under
 the Securities Act (including in circumstances where such requirement may be satisfied pursuant
 to Rule 172 under the Securities Act) (the " <u>Prospectus Delivery Period</u> "),
 (i) the Company will notify the Agent promptly of the time when any subsequent amendment
 to the Registration Statement, other than documents incorporated by reference or amendments
 not related to any Placement, has been filed with the Commission and/or has become effective
 or any subsequent supplement to the Prospectus has been filed and of any request by the Commission
 for any amendment or supplement to the Registration Statement or Prospectus related to the
 Placement or for additional information related to the Placement, (ii) the Company will prepare
 and file with the Commission, promptly upon the Agent's request, any amendments or
 supplements to the Registration Statement or Prospectus that, in the Agent's reasonable
 opinion, may be necessary or advisable in connection with the distribution of the Placement
 Shares by the Agent (*provided*, *however*, that the failure of the Agent to make
 such request shall not relieve the Company of any obligation or liability hereunder, or affect
 the Agent's right to rely on the representations and warranties made by the Company
 in this Agreement and provided, further, that the only remedy the Agent shall have with respect
 to the failure to make such filing shall be to cease making sales under this Agreement until
 such amendment or supplement is filed); (iii) the Company will not file any amendment or
 supplement to the Registration Statement or Prospectus relating to the Placement Shares (other
 than an Incorporated Document) unless a copy thereof has been submitted to the Agent within
 a reasonable period of time before the filing and the Agent has not reasonably objected thereto
 within two (2) Business Days (as defined below) (*provided*, *however*, that (A)
 the failure of the Agent to make such objection shall not relieve the Company of any obligation
 or liability hereunder, or affect the Agent's right to rely on the representations
 and warranties made by the Company in this Agreement and (B) the Company has no obligation
 to provide the Agent any advance copy of such filing or to provide the Agent an opportunity
 to object to such filing if the filing does not name the Agent or does not relate to the
 transaction herein provided; and *provided, further*, that the only remedy the Agent
 shall have with respect to the failure by the Company to obtain such consent shall be to
 cease making sales under this Agreement) and the Company will furnish to the Agent at the
 time of filing thereof a copy of any document that upon filing is deemed to be incorporated
 by reference into the Registration Statement or Prospectus, except for those documents available
 via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus
 to be filed with the Commission as required pursuant to the applicable paragraph of Rule
 424(b) of the Securities Act or, in the case of any document to be incorporated therein by
 reference, to be filed with the Commission as required pursuant to the Exchange Act, within
 the time period prescribed (the determination to file or not file any amendment or supplement
 with the Commission under this <u>Section 7(a)</u>, based on the Company's reasonable
 opinion or reasonable objections, shall be made exclusively by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Notice of Commission Stop Orders</u>. The Company will advise the Agent, promptly after it receives
 notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission
 of any stop order suspending the effectiveness of the Registration Statement, of the suspension
 of the qualification of the Placement Shares for offering or sale in any jurisdiction, or
 of the initiation or threatening of any proceeding for any such purpose; and it will promptly
 use its reasonable best efforts to prevent the issuance of any stop order or to obtain its
 withdrawal if such a stop order should be issued. The Company will advise the Agent promptly
 after it receives any request by the Commission for any amendments to the Registration Statement
 or any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or
 for additional information related to the offering of the Placement Shares or for additional
 information related to the Registration Statement, the Prospectus or any Issuer Free Writing
 Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Delivery of Prospectus; Subsequent Changes</u>. During the Prospectus Delivery Period, the Company
 will use its commercially reasonable efforts to comply with all requirements imposed upon
 it by the Securities Act, as from time to time in force, and to file on or before their respective
 due dates all reports and any definitive proxy or information statements required to be filed
 by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other
 provision of or under the Exchange Act. If the Company has omitted any information from the
 Registration Statement pursuant to Rule 430A under the Securities Act, it will use its commercially
 reasonable efforts to comply with the provisions of and make all requisite filings with the
 Commission pursuant to said Rule 430A and to notify the Agent promptly of all such filings.
 If during the Prospectus Delivery Period any event occurs as a result of which the Prospectus
 as then amended or supplemented would include an untrue statement of a material fact or omit
 to state a material fact necessary to make the statements therein, in the light of the circumstances
 then existing, not misleading, or if during such Prospectus Delivery Period it is necessary
 to amend or supplement the Registration Statement or Prospectus to comply with the Securities
 Act, the Company will promptly notify the Agent to suspend the offering of Placement Shares
 during such period and the Company will promptly amend or supplement the Registration Statement
 or Prospectus (at the expense of the Company) so as to correct such statement or omission
 or effect such compliance; *provided*, *however*, that the Company may delay the
 filing of any amendment or supplement, if in the judgment of the Company, it is in the best
 interest of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Listing of Placement Shares</u>. During the Prospectus Delivery Period, the Company will use its
 reasonable best efforts to cause the Placement Shares to be listed on the Exchange and to
 qualify the Placement Shares for sale under the securities laws of such jurisdictions in
 the United States as the Agent reasonably designates and to continue such qualifications
 in effect so long as required for the distribution of the Placement Shares; *provided*, *however*, that the Company shall not be required in connection therewith to qualify
 as a foreign corporation or dealer in securities or file a general consent to service of
 process in any jurisdiction. The Company will reserve, from its duly authorized capital stock
 the maximum number of shares of Common Stock issuable pursuant to this Agreement based on
 the assumed price per share in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Delivery of Registration Statement and Prospectus</u>. The Company will furnish to the Agent and its
 counsel (at the reasonable expense of the Company) copies of the Registration Statement,
 the Prospectus (including all documents incorporated by reference therein) and all amendments
 and supplements to the Registration Statement or Prospectus that are filed with the Commission
 during the Prospectus Delivery Period (including all documents filed with the Commission
 during such period that are deemed to be incorporated by reference therein), in each case
 as soon as reasonably practicable and in such quantities as the Agent may from time to time
 reasonably request and, at the Agent's request, will also furnish copies of the Prospectus
 to each exchange or market on which sales of the Placement Shares may be made; *provided*, *however*, that the Company shall not be required to furnish any document (other than
 the Prospectus) to the Agent to the extent such document is available on EDGAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Earnings Statement</u>. The Company will make generally available to its security holders as soon
 as practicable, but in any event not later than 15 months after the end of the Company's
 current fiscal quarter, an earnings statement covering a 12-month period that satisfies the
 provisions of Section 11(a) and Rule 158 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>Use of Proceeds</u>. The Company will use the Net Proceeds as described in the Prospectus in
 the section entitled "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Notice of Other Sales</u>. Without the prior written consent of the Agent, the Company will not,
 directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
 otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to
 this Agreement) or securities convertible into or exchangeable for Common Stock, warrants
 or any rights to purchase or acquire, Common Stock during the period beginning on the date
 on which any Placement Notice is delivered to the Agent hereunder and ending on the second
 (2nd) Trading Day immediately following the final Settlement Date with respect to Placement
 Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated
 or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the
 date of such suspension or termination); and will not directly or indirectly in any other
 "at the market" or continuous equity transaction offer to sell, sell, contract
 to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the
 Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable
 for Common Stock, warrants or any rights to purchase or acquire, Common Stock prior to the
 termination of this Agreement; *provided*, *however*, that such restrictions will
 not be required in connection with the Company's issuance or sale of (i) Common Stock,
 restricted stock units, options to purchase Common Stock or Common Stock issuable upon the
 exercise of options or conversion of restricted stock units pursuant to any employee or director
 stock or benefits plan, stock ownership plan or dividend reinvestment plan (but not Common
 Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the
 Company whether now in effect or hereafter implemented; (ii) Common Stock issuable upon conversion
 of securities or the exercise of warrants, options or other rights in effect or outstanding,
 and disclosed in filings by the Company available on EDGAR or otherwise in writing to the
 Agent; (iii) Common Stock, or securities convertible into or exercisable for Common Stock,
 offered and sold in a privately negotiated transaction to vendors, customers, strategic partners
 or potential strategic partners or other investors conducted in a manner so as not to be
 integrated with the offering of Common Stock hereby; and (iv) Common Stock in connection
 with any acquisition, strategic investment or other similar transaction (including any joint
 venture, strategic alliance or partnership).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Change of Circumstances</u>. The Company will, at any time during the pendency of a Placement Notice,
 advise the Agent promptly after it shall have received notice or obtained knowledge thereof,
 of any information or fact that would alter or affect in any material respect any opinion,
 certificate, letter or other document required to be provided to the Agent pursuant to this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>Due Diligence Cooperation</u>. During the term of this Agreement, the Company will cooperate
 with any reasonable due diligence review conducted by the Agent or its representatives in
 connection with the transactions contemplated hereby, including, without limitation, providing
 information and making available documents and senior corporate officers, during regular
 business hours and at the Company's principal offices, as the Agent may reasonably
 request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>Required Filings Relating to Placement of Placement Shares</u>. To the extent that the filing of a
 prospectus supplement with the Commission with respect to a placement of Placement Shares
 becomes required under Rule 424(b) under the Securities Act, the Company agrees that on such
 dates as the Securities Act shall require, the Company will (i) file a prospectus supplement
 with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act
 (each and every filing under Rule 424(b), a " <u>Filing Date</u> "), which prospectus
 supplement will set forth, within the relevant period, the amount of Placement Shares sold
 through the Agent, the Net Proceeds to the Company and the compensation payable by the Company
 to the Agent with respect to such Placement Shares, and (ii) deliver such number of copies
 of each such prospectus supplement to each exchange or market on which such sales were effected
 as may be required by the rules or regulations of such exchange or market; provided that
 the Company may satisfy its obligations under this Section 7(k) by making a filing in accordance
 with the Exchange Act including such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>Representation Dates; Certificate</u>. Each time during the term of this Agreement that the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amends
 or supplements (other than a prospectus supplement relating solely to an offering of securities
 other than the Placement Shares) the Registration Statement or the Prospectus relating to
 the Placement Shares by means of a post-effective amendment, sticker, or supplement but not
 by means of incorporation of documents by reference into the Registration Statement or the
 Prospectus relating to the Placement Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) files
 an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing
 amended financial information or a material amendment to the previously filed Form 10-K);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) files
 its quarterly reports on Form 10-Q under the Exchange Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) files
 a current report on Form 8-K containing amended financial information (other than information
 "furnished" pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure
 pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties
 as discontinued operations in accordance with Statement of Financial Accounting Standards
 No. 144) under the Exchange Act.

Each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a "<u>Representation Date</u>"), the Company shall furnish the Agent (but in the case of clause (iv) above only if the Agent reasonably determines that the information contained in such Form 8-K is material) with a certificate, in the form attached hereto as <u>Exhibit 7(l)</u>. The requirement to provide a certificate under this <u>Section 7(l)</u> shall be waived for any Representation Date occurring at a time at which no Placement Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, (i) upon the delivery of the first Placement Notice hereunder and (ii) if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with a certificate under this <u>Section 7(l)</u>, then before the Agent sells any Placement Shares, the Company shall provide the Agent with a certificate, in the form attached hereto as <u>Exhibit 7(l)</u>, dated the date of the Placement Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>Legal Opinions</u>. On or prior to the date of the first Placement Notice given hereunder, the
 Company shall cause to be furnished to the Agent a legal opinion and a negative assurance
 letter of Porter Hedges LLP (" <u>Company Counsel</u> "), or other counsel reasonably
 satisfactory to the Agent, in form and substance reasonably satisfactory to the Agent. Thereafter,
 within five (5) Trading Days of each Representation Date with respect to which the Company
 is obligated to deliver a certificate in substantially the form attached hereto as <u>Exhibit 7(l)</u> for which no waiver is applicable, and not more than once per calendar quarter,
 the Company shall cause to be furnished to the Agent written opinions and a negative assurance
 letter of Company Counsel in form and substance previously agreed, modified, as necessary,
 to relate to the Registration Statement and the Prospectus as then amended or supplemented; *provided that*, in lieu of such opinions and negative assurance for subsequent periodic
 filings under the Exchange Act, Company Counsel may furnish the Agent with a Reliance Letter
 to the effect that the Agent may rely on the opinions and negative assurance letter previously
 delivered under this Section 7(m) to the same extent as if it were dated the date of such
 letter (except that statements in such prior letter shall be deemed to relate to the Registration
 Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>Comfort Letter</u>. On or prior to the date of the first Placement Notice given hereunder and within
 five (5) Trading Days after each subsequent Representation Date, other than pursuant to <u>Section 7(l)(iii)</u>, the Company shall cause its independent accountant to furnish the Agent letters
 (the " <u>Comfort Letters</u> "), dated the date the Comfort Letter is delivered,
 which shall meet the requirements set forth in this <u>Section 7(n)</u>; provided, that if
 requested by the Agent, the Company shall cause a Comfort Letter to be furnished to the Agent
 within five (5) Trading Days of such request following the date of occurrence of any restatement
 of the Company's financial statements. The Comfort Letter from the Company's
 independent accountants shall be in a form and substance reasonably satisfactory to the Agent,
 (i) confirming that they are an independent public accounting firm within the meaning of
 the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and findings
 of such firm with respect to the financial information and other matters ordinarily covered
 by accountant's "comfort letters" to underwriters in connection with registered
 public offerings (the first such letter, the " <u>Initial Comfort Letter</u> ")
 and (iii) updating the Initial Comfort Letter with any information that would have been included
 in the Initial Comfort Letter had it been given on such date and modified as necessary to
 relate to the Registration Statement and the Prospectus, as amended and supplemented to the
 date of such letter. In addition, on or prior to the date of the first Placement Notice given
 hereunder and within five (5) Trading Days after each subsequent Representation Date, the
 Company shall cause its Chief Financial Officer to furnish the Agent a certificate of its
 Chief Financial Officer in form and substance satisfactory to the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. <u>Market Activities</u>. The Company will not, directly or indirectly, (i) take any action designed
 to cause or result in, or that constitutes or would reasonably be expected to constitute,
 the stabilization or manipulation of the price of any security of the Company to facilitate
 the sale or resale of Common Stock or (ii) sell, bid for, or purchase Common Stock in violation
 of Regulation M, or pay anyone any compensation for soliciting purchases of the Placement
 Shares other than the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. <u>Investment Company Act</u>. The Company will conduct its affairs in such a manner so as to reasonably
 ensure that it will not be or become, at any time prior to the termination of this Agreement,
 an "investment company," as such term is defined in the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. <u>No Offer to Sell</u>. Other than an Issuer Free Writing Prospectus approved in advance by the
 Company and the Agent in their capacity as agent hereunder pursuant to <u>Section 23</u>,
 neither of the Agent nor the Company (including its agents and representatives, other than
 the Agent in their capacity as such) will make, use, prepare, authorize, approve or refer
 to any written communication (as defined in Rule 405), required to be filed with the Commission,
 that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. <u>Sarbanes-Oxley Act</u>. The Company will maintain and keep accurate books and records reflecting its assets
 and maintain internal accounting controls in a manner designed to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with GAAP and including those policies and procedures
 that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly
 reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable
 assurance that transactions are recorded as necessary to permit the preparation of the Company's
 consolidated financial statements in accordance with GAAP, (iii) that receipts and expenditures
 of the Company are being made only in accordance with management's and the Company's
 directors' authorization, and (iv) provide reasonable assurance regarding prevention
 or timely detection of unauthorized acquisition, use or disposition of the Company's
 assets that could have a material effect on its financial statements. The Company will use
 commercially reasonable efforts to maintain such controls and other procedures, including,
 without limitation, those required by Sections 302 and 906 of the Sarbanes-Oxley Act, and
 the applicable regulations thereunder that are designed to ensure that information required
 to be disclosed by the Company in the reports that it files or submits under the Exchange
 Act is recorded, processed, summarized and reported, within the time periods specified in
 the Commission's rules and forms, including, without limitation, controls and procedures
 designed to ensure that information required to be disclosed by the Company in the reports
 that it files or submits under the Exchange Act is accumulated and communicated to the Company's
 management, including its principal executive officer and principal financial officer, or
 persons performing similar functions, as appropriate to allow timely decisions regarding
 required disclosure and to ensure that material information relating to the Company is made
 known to them by others within those entities, particularly during the period in which such
 periodic reports are being prepared.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Representations and Covenants of the Agent</u>. The Agent represents and warrants that it is duly registered
 as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and regulations
 of each state in which the Placement Shares will be offered and sold, except such states
 in which the Agent is exempt from registration or such registration is not otherwise required.
 The Agent shall continue, for the term of this Agreement, to be duly registered as a broker-dealer
 under FINRA, the Exchange Act and the applicable statutes and regulations of each state in
 which the Placement Shares will be offered and sold, except such states in which it is exempt
 from registration or such registration is not otherwise required, during the term of this
 Agreement. The Agent shall comply with all applicable law and regulations, including but
 not limited to Regulation M, in connection with the transactions contemplated by this Agreement,
 including the issuance and sale through the Agent of the Placement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payment of Expenses</u>. The Company will pay all expenses incident to the performance of its obligations
 under this Agreement, including (i) the preparation, filing, including any fees required
 by the Commission, and printing of the Registration Statement (including financial statements
 and exhibits) as originally filed and of each amendment and supplement thereto and each Free
 Writing Prospectus, in such number as the Agent shall deem reasonably necessary, (ii) the
 printing and delivery to the Agent of this Agreement and such other documents as may be reasonably
 required in connection with the offering, purchase, sale, issuance or delivery of the Placement
 Shares, (iii) the preparation, issuance and delivery of the certificates, if any, for the
 Placement Shares to the Agent, including any stock or other transfer taxes and any capital
 duties, stamp duties or other duties or taxes payable upon the sale, issuance or delivery
 of the Placement Shares to the Agent, (iv) the fees and disbursements of the counsel, accountants
 and other advisors to the Company, (v) the fees and disbursements of counsel to the Agent
 of: (1) up to $50,000 payable upon execution of this Agreement, (2) up to $25,000 for any
 program "refresh" executed pursuant to this Agreement (which shall mean the filing
 of a new registration statement, prospectus or prospectus supplement relating to the Placement
 Shares and/or an amendment of this Agreement), and (3) up to $3,500 for each calendar quarter
 for expenses associated with ongoing due diligence; provided no such payment shall be required
 in any calendar quarter in which amounts pursuant to subsection (v)(2) of this Section 9
 have been paid by the Company; (vi) the fees and expenses of the transfer agent and registrar
 for the Common Stock, (vii) the filing fees incident to any review by FINRA of the terms
 of the sale of the Placement Shares, and (viii) the fees and expenses incurred in connection
 with the listing of the Placement Shares on the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Conditions to the Agent's Obligations</u>. The obligations of the Agent hereunder with respect
 to a Placement will be subject to the continuing accuracy and completeness of the representations
 and warranties made by the Company herein (other than those representations and warranties
 made as of a specific date or time), to the due performance in all material respects by the
 Company of its obligations hereunder, to the completion by the Agent of a due diligence review
 satisfactory to it in its reasonable judgment, and to the continuing reasonable satisfaction
 (or waiver the Agent in its sole discretion) of the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Registration Statement Effective</u>. The Registration Statement shall have become effective and shall
 be available for the sale of all Placement Shares contemplated to be issued by any Placement
 Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>No Material Notices</u>. None of the following events shall have occurred and be continuing:
 (i) receipt by the Company of any request for additional information from the Commission
 or any other federal or state governmental authority during the period of effectiveness of
 the Registration Statement, the response to which would require any post-effective amendments
 or supplements to the Registration Statement or the Prospectus which have not, as of the
 time of such Placement, been so made; (ii) the issuance by the Commission or any other federal
 or state governmental authority of any stop order suspending the effectiveness of the Registration
 Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company
 of any notification with respect to the suspension of the qualification or exemption from
 qualification of any of the Placement Shares for sale in any jurisdiction or the initiation
 or threatening of any proceeding for such purpose; or (iv) the occurrence of any event that
 makes any material statement made in the Registration Statement or the Prospectus or any
 material document incorporated or deemed to be incorporated therein by reference untrue in
 any material respect or that requires the making of any changes in the Registration Statement,
 the Prospectus or documents so that, in the case of the Registration Statement, it will not
 contain any materially untrue statement of a material fact or omit to state any material
 fact required to be stated therein or necessary to make the statements therein not misleading
 and, that in the case of the Prospectus, it will not contain any materially untrue statement
 of a material fact or omit to state any material fact required to be stated therein or necessary
 to make the statements therein, in the light of the circumstances under which they were made,
 not misleading, which changes shall not as of the time of such Placement have been so made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>No Misstatement or Material Omission</u>. The Agent shall not have advised the Company that
 the Registration Statement or Prospectus, or any amendment or supplement thereto, contains
 an untrue statement of fact that in the Agent's reasonable opinion is material, or
 omits to state a fact that in the Agent's reasonable opinion is material and is required
 to be stated therein or is necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Material Changes</u>. Except as contemplated in the Prospectus, or disclosed in the Company's
 reports filed with the Commission, there shall not have been any Material Adverse Effect,
 or any development that would reasonably be expected to cause a Material Adverse Effect,
 or a downgrading in or withdrawal of the rating assigned to any of the Company's securities
 (other than asset backed securities) by any rating organization or a public announcement
 by any rating organization that it has under surveillance or review its rating of any of
 the Company's securities (other than asset backed securities), the effect of which,
 in the case of any such action by a rating organization described above, in the reasonable
 judgment of the Agent (without relieving the Company of any obligation or liability it may
 otherwise have), is so material as to make it impracticable or inadvisable to proceed with
 the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Legal Opinions</u>. The Agent shall have received the opinions and negative assurances of Company
 Counsel required to be delivered pursuant to <u>Section 7(m)</u> on or before the date on
 which such delivery of such opinions are required pursuant to <u>Section 7(m)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Comfort Letter</u>. The Agent shall have received the Comfort Letter required to be delivered pursuant <u>Section 7(n)</u> on or before the date on which such delivery of such letter is required
 pursuant to <u>Section 7(n)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>Representation Certificate</u>. The Agent shall have received the certificate required to be delivered pursuant
 to <u>Section 7(l)</u> on or before the date on which delivery of such certificate is required
 pursuant to <u>Section 7(l)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Secretary's Certificate</u>. The Agent shall have received a certificate, signed on behalf of the Company
 by its corporate Secretary, in form and substance satisfactory to the Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>CFO Certificate</u>. The Agent shall have received a certificate, signed on behalf of the Company
 by its Chief Financial Officer, in form and substance satisfactory to the Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>No Suspension</u>. Trading in the Common Stock shall not have been suspended on the Exchange
 and the Common Stock shall not have been delisted from the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>Other Materials</u>. On each date on which the Company is required to deliver a certificate pursuant
 to <u>Section 7(l)</u>, the Company shall have furnished to the Agent such appropriate further
 information, certificates and documents as the Agent may reasonably request and which are
 usually and customarily furnished by an issuer of securities in connection with a securities
 offering of the type contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>Securities Act Filings Made</u>. All filings with the Commission required by Rule 424 under the Securities
 Act to have been filed prior to the issuance of any Placement Notice hereunder shall have
 been made within the applicable time period prescribed for such filing by Rule 424.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>Approval for Listing</u>. The Placement Shares shall either have been approved for listing on the
 Exchange, subject only to notice of issuance, or the Company shall have filed an application
 for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any
 Placement Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>No Termination Event; Insurance</u>. There shall not have occurred any event that would permit
 the Agent to terminate this Agreement pursuant to <u>Section 13(a)</u>. The Company and its
 Subsidiaries shall maintain, or caused to be maintained, insurance in such amounts and covering
 such risks as is reasonable and customary for the business in which it is engaged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. <u>FINRA</u>.
 The Agent shall have received a letter from the Corporate Financing Department of FINRA confirming
 that such department has determined to raise no objection with respect to the fairness or
 reasonableness of the terms and arrangements related to the sale of the Placement Shares
 pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;11. Indemnification
 and Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Company Indemnification</u>. The Company agrees to indemnify and hold harmless the Agent, their partners,
 members, managers, directors, officers, employees and agents and each person, if any, who
 controls the Agent within the meaning of Section 15 of the Securities Act or Section 20 of
 the Exchange Act as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against
 any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or
 several, arising out of or based upon any untrue statement or alleged untrue statement of
 a material fact contained in the Registration Statement (or any amendment thereto), or the
 omission or alleged omission therefrom of a material fact required to be stated therein or
 necessary to make the statements therein not misleading, or arising out of any untrue statement
 or alleged untrue statement of a material fact included in any related Issuer Free Writing
 Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or
 alleged omission therefrom of a material fact necessary in order to make the statements therein,
 in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against
 any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or
 several, to the extent of the aggregate amount paid in settlement of any litigation, or any
 investigation or proceeding by any governmental agency or body, commenced or threatened,
 or of any claim whatsoever based upon any such untrue statement or omission, or any such
 alleged untrue statement or omission; provided that (subject to <u>Section 11(d)</u> below)
 any such settlement is effected with the written consent of the Company, which consent shall
 not unreasonably be delayed or withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) against
 any and all expense whatsoever, as incurred (including the reasonable and documented out-of-pocket
 fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending
 against any litigation, or any investigation or proceeding by any governmental agency or
 body, commenced or threatened, or any claim whatsoever based upon any such untrue statement
 or omission, or any such alleged untrue statement or omission, to the extent that any such
 expense is not paid under (i) or (ii) above, *provided*, *however*, that this indemnity
 agreement shall not apply to any loss, liability, claim, damage or expense to the extent
 arising out of any untrue statement or omission or alleged untrue statement or omission made
 in the Registration Statement (or any amendment thereto) or in any related Issuer Free Writing
 Prospectus or the Prospectus (or any amendment or supplement thereto) solely in reliance
 upon and in conformity with the Agent's Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Indemnification by the Agent</u>. The Agent agrees to indemnify and hold harmless the Company and its directors
 and each officer of the Company who signed the Registration Statement, and each person, if
 any, who (i) controls the Company within the meaning of Section 15 of the Securities Act
 or Section 20 of the Exchange Act or (ii) is controlled by or is under common control with
 the Company against any and all loss, liability, claim, damage and expense described in the
 indemnity contained in <u>Section 11(a)</u>, as incurred, but only with respect to untrue
 statements or omissions, made in the Registration Statement (or any amendments thereto) or
 in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement
 thereto) in reliance upon and in conformity with the Agent's Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Procedure</u>.
 Any party that proposes to assert the right to be indemnified under this <u>Section 11</u> will, promptly after receipt of notice of commencement of any action against such party in
 respect of which a claim is to be made against an indemnifying party or parties under this <u>Section 11</u>, notify each such indemnifying party of the commencement of such action,
 enclosing a copy of all papers served, but the omission so to notify such indemnifying party
 will not relieve the indemnifying party from (i) any liability that it might have to any
 indemnified party otherwise than under this <u>Section 11</u> and (ii) any liability that
 it may have to any indemnified party under the foregoing provision of this <u>Section 11</u> unless, and only to the extent that, such omission results in the forfeiture or material
 impairment of substantive rights or defenses by the indemnifying party. If any such action
 is brought against any indemnified party and it notifies the indemnifying party of its commencement,
 the indemnifying party will be entitled to participate in and, to the extent that it elects
 by delivering written notice to the indemnified party promptly after receiving notice of
 the commencement of the action from the indemnified party, jointly with any other indemnifying
 party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory
 to the indemnified party, and after notice from the indemnifying party to the indemnified
 party of its election to assume the defense, the indemnifying party will not be liable to
 the indemnified party for any legal or other expenses except as provided below and except
 for the reasonable costs of investigation subsequently incurred by the indemnified party
 in connection with the defense. Each indemnified party will have the right to employ its
 own counsel in any such action, but the fees, expenses and other charges of such counsel
 will be at the expense of such indemnified party unless (1) the employment of counsel by
 the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified
 party has reasonably concluded (based on advice of counsel) that there may be legal defenses
 available to it or other indemnified parties that are different from or in addition to those
 available to the indemnifying party, (3) a conflict or potential conflict of interest exists
 (based on advice of counsel to the indemnified party) between the indemnified party and the
 indemnifying party (in which case the indemnifying party will not have the right to direct
 the defense of such action on behalf of the indemnified party) or (4) the indemnifying party
 has not in fact employed counsel to assume the defense of such action within a reasonable
 time after receiving notice of the commencement of the action, in each of which cases the
 reasonable and documented out-of-pocket fees, disbursements and other charges of counsel
 will be at the expense of the indemnifying party or parties. It is understood that the indemnifying
 party or parties shall not, in connection with any proceeding or related proceedings in the
 same jurisdiction, be liable for the reasonable and documented out-of-pocket fees, disbursements
 and other charges of more than one separate firm admitted to practice in such jurisdiction
 at any one time for an indemnified party. All such fees, disbursements and other charges
 will be reimbursed by the indemnifying party promptly after the indemnifying party receives
 a written invoice relating to fees, disbursements and other charges in reasonable detail.
 An indemnifying party will not, in any event, be liable for any settlement of any action
 or claim effected without its written consent. No indemnifying party shall, without the prior
 written consent of each indemnified party, settle or compromise or consent to the entry of
 any judgment in any pending or threatened claim, action or proceeding relating to the matters
 contemplated by this <u>Section 11</u> (whether or not any indemnified party is a party thereto),
 unless such settlement, compromise or consent (1) includes an unconditional release of each
 indemnified party from all liability arising out of such litigation, investigation, proceeding
 or claim and (2) does not include a statement as to or an admission of fault, culpability
 or a failure to act by or on behalf of any indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Contribution</u>.
 In order to provide for just and equitable contribution in circumstances in which the indemnification
 provided for in the foregoing paragraphs of this <u>Section 11</u> is applicable in accordance
 with its terms but for any reason is held to be unavailable from the Company or the Agent,
 the Company and the Agent will contribute to the total losses, claims, liabilities, expenses
 and damages (including any investigative, legal and other expenses reasonably incurred in
 connection with, and any amount paid in settlement of, any action, suit or proceeding or
 any claim asserted, but after deducting any contribution received by the Company from persons
 other than the Agent, such as persons who control the Company within the meaning of the Securities
 Act or the Exchange Act, officers of the Company who signed the Registration Statement and
 directors of the Company, who also may be liable for contribution) to which the Company and
 the Agent may be subject in such proportion as shall be appropriate to reflect the relative
 benefits received by the Company on the one hand and the Agent on the other hand. The relative
 benefits received by the Company on the one hand and the Agent on the other hand shall be
 deemed to be in the same proportion as the total Net Proceeds from the sale of the Placement
 Shares (before deducting expenses) received by the Company bear to the total compensation
 received by the Agent (before deducting expenses) from the sale of Placement Shares on behalf
 of the Company. If, but only if, the allocation provided by the foregoing sentence is not
 permitted by applicable law, the allocation of contribution shall be made in such proportion
 as is appropriate to reflect not only the relative benefits referred to in the foregoing
 sentence but also the relative fault of the Company, on the one hand, and the Agent, on the
 other hand, with respect to the statements or omission that resulted in such loss, claim,
 liability, expense or damage, or action in respect thereof, as well as any other relevant
 equitable considerations with respect to such offering. Such relative fault shall be determined
 by reference to, among other things, whether the untrue or alleged untrue statement of a
 material fact or omission or alleged omission to state a material fact relates to information
 supplied by the Company or the Agent, the intent of the parties and their relative knowledge,
 access to information and opportunity to correct or prevent such statement or omission. The
 Company and the Agent agree that it would not be just and equitable if contributions pursuant
 to this <u>Section 11(d)</u> were to be determined by pro rata allocation or by any other
 method of allocation that does not take into account the equitable considerations referred
 to herein. The amount paid or payable by an indemnified party as a result of the loss, claim,
 liability, expense, or damage, or action in respect thereof, referred to above in this <u>Section 11(d)</u> shall be deemed to include, for the purpose of this <u>Section 11(d)</u>, any legal
 or other expenses reasonably incurred by such indemnified party in connection with investigating
 or defending any such action or claim to the extent consistent with <u>Section 11(c)</u> hereof. Notwithstanding the foregoing provisions of this <u>Section 11(d)</u>, the Agent
 shall not be required to contribute any amount in excess of the commissions received by it
 under this Agreement and no person found guilty of fraudulent misrepresentation (within the
 meaning of <u>Section 11(f)</u> of the Securities Act) will be entitled to contribution from
 any person who was not guilty of such fraudulent misrepresentation. For purposes of this <u>Section 11(d)</u>, any person who controls a party to this Agreement within the meaning
 of the Securities Act or the Exchange Act, and any officers, directors, partners, employees
 or agents of the Agent, will have the same rights to contribution as that party, and each
 officer and director of the Company who signed the Registration Statement will have the same
 rights to contribution as the Company, subject in each case to the provisions hereof. Any
 party entitled to contribution, promptly after receipt of notice of commencement of any action
 against such party in respect of which a claim for contribution may be made under this <u>Section 11(d)</u>, will notify any such party or parties from whom contribution may be sought, but
 the omission to so notify will not relieve that party or parties from whom contribution may
 be sought from any other obligation it or they may have under this <u>Section 11(d)</u> except
 to the extent that the failure to so notify such other party materially prejudiced the substantive
 rights or defenses of the party from whom contribution is sought. Except for a settlement
 entered into pursuant to the last sentence of Section 11(c) hereof, no party will be liable
 for contribution with respect to any action or claim settled without its written consent
 if such consent is required pursuant to <u>Section 11(c)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Representations and Agreements to Survive Delivery</u>. The indemnity and contribution agreements contained
 in Section 11 of this Agreement and all representations and warranties of the Company herein
 or in certificates delivered pursuant hereto shall survive, as of their respective dates,
 regardless of (i) any investigation made by or on behalf of the Agent, any controlling persons,
 or the Company (or any of their respective officers, directors or controlling persons), (ii)
 delivery and acceptance of the Placement Shares and payment therefor or (iii) any termination
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Agent may terminate this Agreement, by written notice to the Company, as hereinafter specified
 at any time (1) if there has been, since the time of execution of this Agreement or since
 the date as of which information is given in the Prospectus, any Material Adverse Effect,
 or any development that is reasonably likely to have a Material Adverse Effect or, in the
 reasonable judgment of the Agent, is material and adverse and makes it impractical or inadvisable
 to market the Placement Shares or to enforce contracts for the sale of the Placement Shares,
 (2) if there has occurred any material adverse change in the financial markets in the United
 States or the international financial markets, any outbreak of hostilities or escalation
 thereof or other calamity or crisis or any change or development involving a prospective
 change in national or international political, financial or economic conditions, in each
 case the effect of which is such as to make it, in the reasonable judgment of the Agent,
 impracticable or inadvisable to market the Placement Shares or to enforce contracts for the
 sale of the Placement Shares, (3) if trading in the Common Stock has been suspended or limited
 by the Commission or the Exchange, or if trading generally on the Exchange has been suspended
 or limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension
 of trading of any securities of the Company on any exchange or in the over-the-counter market
 shall have occurred and be continuing, (5) if a major disruption of securities settlements
 or clearance services in the United States shall have occurred and be continuing, or (6)
 if a banking moratorium has been declared by either U.S. Federal or New York authorities.
 Any such termination shall be without liability of any party to any other party except that
 the provisions of <u>Section 9</u> (Payment of Expenses), <u>Section 11</u> (Indemnification
 and Contribution), <u>Section 12</u> (Representations and Agreements to Survive Delivery), <u>Section 18</u> (Governing Law and Time; Waiver of Jury Trial) and <u>Section 19</u> (Consent
 to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
 If the Agent elects to terminate this Agreement as provided in this <u>Section 13(a)</u>,
 the Agent shall provide the required notice as specified in Section 14 (Notices).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
 Company shall have the right, by giving two (2) days written notice as hereinafter specified,
 to terminate this Agreement in its sole discretion at any time after the date of this Agreement.
 Any such termination shall be without liability of any party to any other party except that
 the provisions of <u>Section 9</u> (Payment of Expenses), <u>Section 11</u> (Indemnification
 and Contribution), <u>Section 12</u> (Representations and Agreements to Survive Delivery), <u>Section 18</u> (Governing Law and Time; Waiver of Jury Trial) and <u>Section 19</u> (Consent
 to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The
 Agent shall have the right, by giving two (2) days written notice as hereinafter specified,
 to terminate this Agreement in its sole discretion at any time after the date of this Agreement.
 Any such termination shall be without liability of any party to any other party except that
 the provisions of <u>Section 9</u> (Payment of Expenses), <u>Section 11</u> (Indemnification
 and Contribution), <u>Section 12</u> (Representations and Agreements to Survive Delivery), <u>Section 18</u> (Governing Law and Time; Waiver of Jury Trial) and <u>Section 19</u> (Consent
 to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Unless
 earlier terminated pursuant to this <u>Section 13</u>, this Agreement shall automatically
 terminate upon the issuance and sale of all of the Placement Shares through the Agent on
 the terms and subject to the conditions set forth herein except that the provisions of <u>Section 9</u> (Payment of Expenses), <u>Section 11</u> (Indemnification and Contribution), <u>Section 12</u> (Representations and Agreements to Survive Delivery), <u>Section 18</u> (Governing
 Law and Time; Waiver of Jury Trial) and <u>Section 19</u> (Consent to Jurisdiction) hereof
 shall remain in full force and effect notwithstanding such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. This
 Agreement shall remain in full force and effect unless terminated pursuant to <u>Sections 13(a)</u>, <u>(b)</u>, <u>(c)</u>, or <u>(d)</u> above or otherwise by mutual agreement of
 the parties; *provided*, *however*, that any such termination by mutual agreement
 shall in all cases be deemed to provide that <u>Section 9</u> (Payment of Expenses), <u>Section 11</u> (Indemnification and Contribution), <u>Section 12</u> (Representations and Agreements
 to Survive Delivery), <u>Section 18</u> (Governing Law and Time; Waiver of Jury Trial) and <u>Section 19</u> (Consent to Jurisdiction) shall remain in full force and effect. Upon termination
 of this Agreement, the Company shall not have any liability to the Agent for any discount,
 commission or other compensation with respect to any Placement Shares not otherwise sold
 by the Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Any
 termination of this Agreement shall be effective on the date specified in such notice of
 termination; *provided*, *however*, that such termination shall not be effective
 until the close of business on the date of receipt of such notice by the Agent or the Company,
 as the case may be. If such termination shall occur prior to the Settlement Date for any
 sale of Placement Shares, such Placement Shares shall settle in accordance with the provisions
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Notices</u>.
 All notices or other communications required or permitted to be given by any party to any
 other party pursuant to the terms of this Agreement shall be in writing, unless otherwise
 specified, and if sent to the Agent, shall be delivered to:

Ladenburg Thalmann & Co. Inc.

640 5th Avenue, 4th Floor

New York, NY 10019

Attention: General Counsel

with a copy to:

Blank Rome LLP

1271 Avenue of the Americas

New York, NY 10020

Attention: Leslie Marlow or Brad Shiffman

E-mail: leslie.marlow@blankrome.com and <u>brad.shiffman@blankrome.com</u>

and if to the Company, shall be delivered to:

Ocean Power Technologies, Inc.

28 Engelhard Drive, Suite B

Monroe Township, NJ 08831Attention: Robert Powers

Chief Financial Officer

Email: <u>rpowers@oceanpowertech.com</u>

with a copy to:

Porter Hedges LLP

1000 Main Street, 35<sup>th</sup> Floor

Houston, Texas 77002

Attention: Kevin Poli

E-mail: <u>kpoli@porterhedges.com</u>

Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally, by email, or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, "<u>Business Day</u>" shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.

An electronic communication ("<u>Electronic Notice</u>") shall be deemed written notice for purposes of this <u>Section 14</u> if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives confirmation of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form ("<u>Nonelectronic Notice</u>") which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the Company
 and the Agent and their respective successors and the affiliates, controlling persons, officers
 and directors referred to in <u>Section 11</u> hereof. References to any of the parties contained
 in this Agreement shall be deemed to include the successors and permitted assigns of such
 party. Nothing in this Agreement, express or implied, is intended to confer upon any party
 other than the parties hereto or their respective successors and permitted assigns any rights,
 remedies, obligations or liabilities under or by reason of this Agreement, except as expressly
 provided in this Agreement. Neither party may assign its rights or obligations under this
 Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Adjustments for Stock Splits</u>. The parties acknowledge and agree that all share- related numbers contained
 in this Agreement shall be adjusted to take into account any share consolidation, stock split,
 stock dividend, corporate domestication or similar event effected with respect to the Placement
 Shares.

&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Entire Agreement; Amendment; Severability</u>. This Agreement (including all schedules and exhibits
 attached hereto and Placement Notices issued pursuant hereto) constitutes the entire agreement
 and supersedes all other prior and contemporaneous agreements and undertakings, both written
 and oral, among the parties hereto with regard to the subject matter hereof. Neither this
 Agreement nor any term hereof may be amended except pursuant to a written instrument executed
 by the Company and the Agent. In the event that any one or more of the provisions contained
 herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable
 as written by a court of competent jurisdiction, then such provision shall be given full
 force and effect to the fullest possible extent that it is valid, legal and enforceable,
 and the remainder of the terms and provisions herein shall be construed as if such invalid,
 illegal or unenforceable term or provision was not contained herein, but only to the extent
 that giving effect to such provision and the remainder of the terms and provisions hereof
 shall be in accordance with the intent of the parties as reflected in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;18. <u>GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
 IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF
 CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. THE COMPANY HEREBY
 IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
 TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
 THE TRANSACTIONS CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;19. <u>CONSENT TO JURISDICTION</u>. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION
 OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR
 THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED
 HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING,
 ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH
 SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH
 SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE
 OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
 MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY
 AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE
 SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED
 HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
 BY LAW.

&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Use of Information</u>. The Agent may not use any information gained in connection with this
 Agreement and the transactions contemplated by this Agreement, including due diligence, to
 advise any party with respect to transactions not expressly approved by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Counterparts</u>.
 This Agreement may be executed in two or more counterparts, each of which shall be deemed
 an original, but all of which together shall constitute one and the same instrument. Delivery
 of an executed Agreement by one party to the other may be made by facsimile transmission.

&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Effect of Headings</u>. The section and Exhibit headings herein are for convenience only and shall
 not affect the construction hereof.

&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Permitted Free Writing Prospectuses</u>. The Company represents, warrants and agrees that, unless it
 obtains the prior consent of the Agent, which shall not be unreasonably withheld, conditioned
 or delayed, and the Agent represents, warrants and agrees that, unless it obtains the prior
 consent of the Company, which shall not be unreasonably withheld, conditioned or delayed,
 it has not made and will not make any offer relating to the Placement Shares that would constitute
 an Issuer Free Writing Prospectus, or that would otherwise constitute a "free writing
 prospectus," as defined in Rule 405, required to be filed with the Commission. Any
 such free writing prospectus consented to by the Agent or by the Company, as the case may
 be, is hereinafter referred to as a "Permitted Free Writing Prospectus." The
 Company represents and warrants that it has treated and agrees that it will treat each Permitted
 Free Writing Prospectus as an "issuer free writing prospectus," as defined in
 Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to
 any Permitted Free Writing Prospectus, including timely filing with the Commission where
 required, legending and record keeping. For the purposes of clarity, the parties hereto agree
 that all free writing prospectuses, if any, listed in <u>Exhibit 23</u> hereto are Permitted
 Free Writing Prospectuses.

&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Absence of Fiduciary Relationship</u>. The Company acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Agent is acting solely as agent in connection with the public offering of the Placement Shares
 and in connection with each transaction contemplated by this Agreement and the process leading
 to such transactions, and no fiduciary or advisory relationship between the Company or any
 of its affiliates, stockholders (or other equity holders), creditors or employees or any
 other party, on the one hand, and the Agent, on the other hand, has been or will be created
 in respect of any of the transactions contemplated by this Agreement, irrespective of whether
 or not the Agent has advised or is advising the Company on other matters, and the Agent has
 no obligation to the Company with respect to the transactions contemplated by this Agreement
 except the obligations expressly set forth in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. It
 is capable of evaluating and understanding, and understands and accepts, the terms, risks
 and conditions of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. No
 Agent has provided any legal, accounting, regulatory or tax advice with respect to the transactions
 contemplated by this Agreement and it has consulted its own legal, accounting, regulatory
 and tax advisors to the extent it has deemed appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. It
 is aware that the Agent and its respective affiliates are engaged in a broad range of transactions
 which may involve interests that differ from those of the Company and the Agent has no obligation
 to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory
 or agency relationship or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. It
 waives, to the fullest extent permitted by law, any claims it may have against the Agent
 for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale
 of Placement Shares under this Agreement and agrees that the Agent shall not have any liability
 (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary
 duty claim or to any person asserting a fiduciary duty claim on its behalf or in right of
 it or the Company, employees or creditors of Company, other than in respect of the Agent's
 obligations under this Agreement and to keep information provided by the Company to the Agent
 and its counsel confidential to the extent not otherwise publicly-available.

&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Definitions</u>.
 As used in this Agreement, the following terms have the respective meanings set forth below:

"<u>Agent's Information</u>" means the information in the eighth paragraph of the "Plan of Distribution" section of the Prospectus Supplement.

"<u>Applicable Time</u>" means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.

"<u>Common Stock Equivalents</u>" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, 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 receive, Common Stock.

"<u>Issuer Free Writing Prospectus</u>" means any "issuer free writing prospectus," as defined in Rule 433, relating to the Placement Shares that (1) is required to be filed with the Commission by the Company, (2) is a "road show" that is a "written communication" within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g) under the Securities Act.

"<u>Lien</u>" means a lien, charge, pledge, securities interest, encumbrance, right of first refusal, preemptive right or other restriction.

"<u>Material Adverse Effect</u>" means (i) a material adverse effect on the legality, validity or enforceability of any Incorporated Document or the Agreement, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Incorporated Document or the Agreement.

"<u>Rule 172</u>," "<u>Rule 405</u>," "<u>Rule 415</u>," "<u>Rule 424</u>," "<u>Rule 424(b)</u>," "<u>Rule 430B</u>," and "<u>Rule 433</u>" refer to such rules under the Securities Act.

"<u>Subsidiary</u>" means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

"<u>Trading Market</u>" 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, or the New York Stock Exchange (or any successors to any of the foregoing).

All references in this Agreement to financial statements and schedules and other information that is "contained," "included" or "stated" in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information that is incorporated by reference in the Registration Statement or the Prospectus, as the case may be.

All references in this Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to "supplements" to the Prospectus shall include, without limitation, any supplements, "wrappers" or similar materials prepared in connection with any offering, sale or private placement of any Placement Shares by the Agent outside of the United States.

[Remainder of the page intentionally left blank]

If the foregoing correctly sets forth the understanding between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Agent.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| OCEAN POWER TECHNOLOGIES, INC. | OCEAN POWER TECHNOLOGIES, INC. |
| By: | */s/ Philipp Stratmann* |
| Name: | Philipp Stratmann |
| Title: | Chief Executive Officer |

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| | |
|:---|:---|
| **ACCEPTED as of the date first-above written:** | **ACCEPTED as of the date first-above written:** |
| LADENBURG THALMANN & CO. INC. | LADENBURG THALMANN & CO. INC. |
| By | */s/ Adam Cabibi* |
| Name: | Adam Cabibi |
| Title: | Managing Director Investment Banking |

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