Document:

Exhibit

Exhibit 10.39

SEPARATION AGREEMENT

THIS SEPARATION AGREEMENT (this “Agreement”) is made and entered into this 22nd day of April, 2016, by and between PUNEET PAMNANI (“Executive”) and PRGX GLOBAL, INC., a Georgia corporation (“Company”).  Executive and Company are sometimes hereinafter referred to together as the “Parties” and individually as a “Party.”

BACKGROUND:

A.    Executive was employed as the Senior Vice President – M&A and Chief Strategy Officer pursuant to an employment agreement between Executive and Company effective as of February 8, 2012 (“Employment Agreement”).

B.    Executive’s last date of active service was March 29, 2016.

C.    Executive and Company now mutually desire to (i) provide for the end Executive’s employment and (ii) terminate the Employment Agreement effective as of the date hereof.  

D.    Company and Executive wish to avoid any disputes which could arise under the Employment Agreement and have therefore compromised any claims or rights they have or may have under the Employment Agreement by agreeing to the terms of this Agreement.
    
NOW, THEREFORE, FOR AND IN CONSIDERATION of the premises, the mutual promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Termination of Employment.  The Parties agree that (a) the Employment Agreement is hereby terminated as of the date hereof, (b) Executive’s employment with Company shall terminate effective April 28, 2016 (“Termination Date”), and (c) all benefits, privileges and authorities related to Executive’s employment with Company shall hereby cease, except as otherwise specifically set forth in this Agreement.  
2.    No Admission.  The Parties agree that their entry into this Agreement is not and shall not be construed to be an admission of liability or wrongdoing on the part of either Party.
3.    Future Cooperation.  Executive agrees that, notwithstanding the termination of Executive’s employment, Executive upon reasonable notice will make himself available to Company or its designated representatives for the purposes of: (a) providing information regarding the projects and files on which Executive worked for the purpose of transitioning such projects; and (b) providing information regarding any other matter, file, project and/or client with whom Executive was involved while employed by Company.

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4.    Consideration.  
(a)    In consideration for Executive’s agreement to terminate the Employment Agreement, to fully release Company from any and all Claims as described below, and to perform the other duties and obligations of Executive contained herein, Company will, subject to ordinary and lawful deductions and Sections 4(b) and (c) below:

(i)    Pay severance to Executive in the form of salary continuation for the twelve (12) months immediately following the Termination Date (“Severance Period”).  Such payments shall be made in accordance with Company’s standard pay practices in an amount equal to Nine thousand four hundred forty-seven and 31/100 dollars ($9,447.31) per bi-weekly pay period during the Severance Period, except that no payments shall be made during the period that begins immediately after the Termination Date and ends on the earlier of (i) Executive’s death or (ii) six months after the Termination Date.  The payments that would otherwise have been made in such period shall be accumulated and paid, without interest, in a lump sum on the first bi-weekly pay period after the end of such period.  

(ii)    Continue after the Termination Date any health care (medical, dental and vision) plan coverage, other than under a flexible spending account, provided to Executive and Executive’s spouse and dependents at the Termination Date for the Severance Period, on a monthly or more frequent basis, on the same basis and at the same cost to Executive as available to similarly-situated active employees during such Severance Period, provided that such continued coverage shall terminate in the event Executive becomes eligible for any such coverage under another employer’s plans.  

(iii)    Pay an amount equal to Executive's actual earned full-year bonus for 2016, pro-rated based on the number of days Executive was employed for such year on and before the Termination Date, payable at the time Executive's annual bonus for such year otherwise would have been paid had Executive continued employment. Payment of any pro-rated bonus hereunder will be dependent upon the Company’s achievement of certain revenue and adjusted EBITDA performance goals established by the Compensation Committee for 2016 in the same manner as are applicable to similarly-situated executives of the Company who participate in the annual bonus plan for 2016.     

(iv)    Vest in full, effective as of the date upon which the revocation period for the Release described in Section 4(b) below expires without Executive having elected to revoke the Release, all of Executive's outstanding unvested options and restricted stock that would have vested based solely on the continued employment of Executive.  All of Executive's outstanding vested stock options shall remain outstanding until the earlier of (i) one year after the Termination Date or (ii) the original expiration date of the options (disregarding any earlier expiration date provided for in any other agreement, including without limitation any related grant agreement, based solely on the termination of Executive's employment).  Additionally, subject to the expiration of the revocation period for the Release described in Section 4(b) without Executive having elected to revoke the Release, a prorated number of Executive’s outstanding unvested performance-based restricted stock units that 

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were granted as of March 30, 2015 (“Unvested PBUs”) shall remain outstanding and be eligible to become vested and payable in accordance with the terms of such restricted stock units, except Executive shall not be entitled to receive any dividend equivalents with respect to such prorated number of Executive’s restricted stock units after the date Executive’s employment with the Company terminates.  Such prorated number of Unvested PBUs shall be equal to the number of such Unvested PBUs  multiplied by a fraction, the numerator of which is 484 and the denominator of which is (x) the number of days in the two-year period beginning with calendar year 2015 and ending with calendar year 2016 (the “Cumulative Performance Period”) if no Change in Control (as defined in the restricted stock units award agreement) occurs prior to the end of the Cumulative Performance Period or (y) the number of days in the Cumulative Performance Period until the Change in Control occurs if a Change in Control occurs prior to the end of the Cumulative Performance Period.  

(v)    Payment of one year of outplacement services from Executrak or an outplacement service provider of Executive's choice, limited to $20,000 in total.  This outplacement services benefit will be forfeited if Executive does not begin using such services within 60 days after the Termination Date.  

(b)    Notwithstanding anything else contained herein to the contrary, no payments shall be made or benefits delivered under this Agreement (other than payments required to be made by Company pursuant to Section 5 below) unless, within thirty (30) days after the Termination Date:  (i) Executive has signed and delivered to Company a Release in the form attached hereto as Exhibit A (the “Release”); and (ii) the applicable revocation period under the Release has expired without Executive having elected to revoke the Release.  Executive agrees and acknowledges that Executive would not be entitled to such consideration absent execution of the Release and expiration of the applicable revocation period without Executive having revoked the Release.  Any payments to be made, or benefits to be delivered, under this Agreement (other than the payments required to be made by Company pursuant to Section 5 below and the vesting of outstanding unvested options, restricted stock and restricted stock units as set forth in Section 4(a)(iv) above) within the thirty (30) days after the Termination Date shall be accumulated and paid in a lump sum, or as to benefits continued at Executive’s expense subject to reimbursement, reimbursement shall be made, on the first bi-weekly pay period occurring more than thirty (30) days after the Termination Date, provided Executive delivers the signed Release to Company and the revocation period thereunder expires without Executive having elected to revoke the Release.  

(c)    As a further condition to receipt of the payments and benefits in Section 4(a) above, Executive also waives any and all rights to any other amounts payable to him upon the termination of his employment relationship with Company, other than those specifically set forth in this Agreement, including without limitation any severance, notice rights, payments, benefits and other amounts to which Executive may be entitled under the laws of any jurisdiction and/or his Employment Agreement, and Executive agrees not to pursue or claim any of such payments, benefits or rights.    
    

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5.    Other Benefits.
Nothing in this Agreement or the Release shall:

(a)    alter or reduce any vested, accrued benefits (if any) Executive may be entitled to receive under any 401(k) plan established by Company; 

(b)    affect Executive’s right (if any) to elect and (subject to Section 4(a)(ii) above) pay for continuation of Executive’s health insurance coverage under Company’s health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (C.O.B.R.A.), as amended; 

(c)    affect Executive’s right (if any) to receive (i) any base salary that has accrued through the Termination Date and is unpaid, (ii) any reimbursable expenses that Executive has incurred before the Termination Date but are unpaid (subject to Company’s expense reimbursement policy) and (iii) any unused paid time off days to which Executive will be entitled to payment, all of which shall be paid as soon as administratively practicable (and in any event within thirty (30) days) after the Termination Date; or 

(d)    affect Executive’s right to continue to receive his base salary and benefits through the Termination Date, as in effect as of the date hereof, which base salary and benefits will continue through the Termination Date, except with respect to any changes in benefits that are applicable generally to the other executives of Company.  

6.    Confidentiality of Agreement Terms.  Except as otherwise expressly provided in this Section 6, Executive agrees that this Agreement and the terms, conditions and amount of consideration set forth in this Agreement are and shall be deemed to be confidential and hereafter shall not be disclosed by Executive to any other person or entity.   The only disclosures excepted by this paragraph are (a) as may be required by law; (b) Executive may tell prospective employers the dates of Executive’s employment, positions held, evaluations received, Executive’s duties and responsibilities and salary history with Company; (c) Executive may disclose the terms and conditions of this Agreement to Executive’s attorneys and tax advisers; and (d) Executive may disclose the terms of this Agreement to Executive’s spouse, if any; provided, however, that any spouse, attorney or tax adviser learning about the terms of this Agreement must be informed about this confidentiality provision, and Executive will be responsible for any breaches of this confidentiality provision by his spouse, attorneys or tax advisers to the same extent as if Executive had directly breached this Agreement.  
7.    Restrictive Covenants.
(a)    Definitions.  For purposes of this Agreement, the following terms shall have the following respective meanings:

(i)    “Business of Company” means services to (A) identify clients’ erroneous or improper payments to vendors and assist clients in the recovery of monies 

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owed to clients as a result of overpayments and overlooked discounts, rebates, allowances and credits, (B) identify and assist clients in recovering amounts owed to them by other third parties, including amounts owed to clients due to non-compliance with applicable contracts, course of dealing or usual and customary terms, (C) assist clients in efforts to organize, manage and analyze their purchasing and payment data, and (D) assist clients in analyzing and managing vendor-related risks.

(ii)    “Confidential Information” means any information about Company or its subsidiaries and their employees, customers and/or suppliers which is not generally known outside of Company, which Executive learned in connection with Executive's employment with Company, and which would be useful to competitors or the disclosure of which would be damaging to Company or any subsidiary of Company.  Confidential Information includes, but is not limited to:  (A) business and employment policies, marketing methods and the targets of those methods, finances, business plans, promotional materials and price lists; (B) the terms upon which Company or any subsidiary of Company obtains products from its suppliers and sells services and products to customers; (C) the nature, origin, composition and development of Company's or any subsidiary’s services and products; and (D) the manner in which Company or any subsidiary of Company provides products and services to its customers.  

(iii)    “Material Contact” means contact in person, by telephone, or by paper or electronic correspondence in furtherance of the Business of Company.

(iv)    “Restricted Territory” means, and is limited to, the geographic area included in the Atlanta-Sandy Springs-Marietta, Georgia metropolitan statistical area.  Executive acknowledges and agrees that this is a portion of the area in which Company and its subsidiaries does business at the time of the execution of this Agreement, and in which Executive had responsibility on behalf of Company. 

(v)    “Trade Secrets” means Confidential Information of Company and its subsidiaries which meets the definition of a trade secret under applicable law. 

(b)    Confidentiality.  Executive agrees that Executive will not, directly or indirectly, use, copy, disclose, distribute or otherwise make use of on his own behalf or on behalf of any other person or entity (i) any Confidential Information for a period of five (5) years after the Termination Date or (ii) any Trade Secret at any time such information constitutes a trade secret under applicable law.  

(c)    Non-Competition.  Executive agrees that for a period of two (2) years following the Termination Date, Executive will not, either for himself or on behalf of any other person or entity, compete with the Business of Company within the Restricted Territory by performing activities which are the same as or similar to those performed by Executive for Company or Company’s subsidiaries. 

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(d)    Non-Solicitation of Customers.  Executive agrees that for a period of two (2) years following the Termination Date, Executive shall not, directly or indirectly, solicit any actual or prospective customers of Company or any subsidiary with whom Executive had Material Contact, for the purpose of selling any products or services which compete with the Business of Company.

(e)    Non-Recruitment of Employees or Contractors.  Executive agrees that for a period of two (2) years following the Termination Date, Executive will not, directly or indirectly, solicit or attempt to solicit any employee or contractor of Company or any subsidiary with whom Executive had Material Contact, to terminate or lessen such employment or contract. 

(f)    Acknowledgments.  Executive hereby acknowledges and agrees that the covenants contained in (b) through (e) of this Section 7 hereof are reasonable as to time, scope and territory given Company’s and Company’s subsidiaries’ need to protect their business, customer relationships, personnel, Trade Secrets and Confidential Information.  For purposes of the covenants contained in (b) through (e) of this Section 7, Company shall refer also to Company's subsidiaries as applicable.  In the event any covenant or other provision in this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it shall be interpreted to extend only over the maximum period of time for which it may be enforceable and/or over the maximum geographical area as to which it may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action, and the invalidity of any one or more of the covenants or other provisions in this Agreement shall not cause or render any other covenants or provisions in this Agreement invalid or voidable.  Executive acknowledges and represents that Executive has substantial experience and knowledge such that Executive can readily obtain subsequent employment which does not violate this Agreement.

(g)    Specific Performance.  Executive acknowledges and agrees that any breach of the provisions of this Section 7 by him will cause irreparable damage to Company or Company’s subsidiaries, the exact amount of which will be difficult to determine, and that the remedies at law for any such breach will be inadequate.  Accordingly, Executive agrees that, in addition to any other remedy that may be available at law, in equity, or hereunder, Company shall be entitled to specific performance and injunctive relief, without posting bond or other security, to enforce or prevent any violation of any of the provisions of this Section 7 by Executive.  Additionally, notwithstanding the obligations within Section 11 of this Agreement regarding the exclusive jurisdiction of the United States District Court for the Northern District of Georgia and the State and Superior Courts of Cobb County, Georgia pertaining to actions arising out of this Agreement, and in addition to Company’s right to seek injunctive relief in any state or federal court located in Cobb County, Georgia, the Parties hereby acknowledge and agree that Company may seek specific performance and injunctive relief in any jurisdiction, court or forum applicable to Executive’s then current residency in order to prevent or to restrain any breach by Executive, or any and all of Executive’s partners, co-venturers, employers, employees, or agents, acting directly or indirectly on behalf of or with Executive, of any of the provisions of the restrictive covenants contained in this Section 7.

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8.    Return of all Property and Information of Company.  Executive agrees to return all property of the Company and its subsidiaries within seven (7) days following the execution of this Agreement.  Such property includes, but is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information provided by Company or any subsidiary thereof to Executive or which Executive has developed or collected in the scope of Executive’s employment related to Company and its subsidiaries or affiliates as well as all Company or subsidiary-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers.  Upon request by Company, Executive shall certify in writing that Executive has complied with this provision, and has deleted all information of Company and its subsidiaries from any computers or other electronic storage devices owned by Executive.  Executive may only retain information relating to Executive’s benefit plans and compensation to the extent needed to prepare Executive’s tax returns.  
9.    No Harassing or Disparaging Conduct. Executive further agrees and promises that Executive will not engage in, or induce other persons or entities to engage in, any harassing or disparaging conduct or negative or derogatory statements directed at or about Company or its subsidiaries or affiliates, the activities of Company or its subsidiaries or affiliates, or the Releasees at any time in the future.  Notwithstanding the foregoing, this Section 9 may not be used to penalize Executive for providing truthful testimony under oath in a judicial or administrative proceeding or complying with an order of a court or government agency of competent jurisdiction.
10.    References.  Following the Termination Date, Executive agrees to direct any third party seeking an employment reference to the Company’s Senior Vice President-Human Resources and Company agrees to give any potential employers who inquire about Executive’s work history at Company a neutral reference consisting of Employee’s dates of employment, title and compensation. The Company will not be responsible with respect to any references which are directed by Executive to anyone other than the Company’s Senior Vice President-Human Resources.  
11.    Construction of Agreement and Venue for Disputes.  This Agreement shall be deemed to have been jointly drafted by the Parties and shall not be construed against either Party. This Agreement shall be governed by the law of the State of Georgia, and the Parties agree that any actions arising out of or relating to this Agreement or Executive’s employment with Company must be brought exclusively in either the United States District Court for the Northern District of Georgia, or the State or Superior Courts of Cobb County, Georgia.  Notwithstanding the pendency of any proceeding, either Party shall be entitled to injunctive relief in a state or federal court located in Cobb County, Georgia upon a showing of irreparable injury.  The Parties consent to personal jurisdiction and venue solely within these forums and solely in Cobb County, Georgia and waive all otherwise possible objections thereto.  The prevailing Party shall be entitled to recover its costs and attorneys fees from the non-prevailing Party in any such proceeding no later than 90 days following the settlement or final resolution of any such proceeding.  The existence of any claim or cause of action by Executive against Company or Company's subsidiaries or affiliates, including any dispute relating to the termination of Executive's employment or under this Agreement, shall not constitute a defense to enforcement of said covenants by injunction.  

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12.    Severability.  If any provision of this Agreement shall be held void, voidable, invalid or inoperative, no other provision of this Agreement shall be affected as a result thereof, and accordingly, the remaining provisions of this Agreement shall remain in full force and effect as though such void, voidable, invalid or inoperative provision had not been contained herein.
13.    No Reliance Upon Other Statements.  This Agreement is entered into without reliance upon any statement or representation of any Party hereto or any Party hereby released other than the statements and representations contained in writing in this Agreement (including all Exhibits hereto).  
14.    Entire Agreement.  This Agreement, including all Exhibits hereto (which are incorporated herein by this reference), contains the entire agreement and understanding concerning the subject matter hereof between the Parties hereto.  No waiver, termination or discharge of this Agreement, or any of the terms or provisions hereof, shall be binding upon either Party hereto unless confirmed in writing.  This Agreement may not be modified or amended, except by a writing executed by both Parties hereto.  No waiver by either Party hereto of any term or provision of this Agreement or of any default hereunder shall affect such Party’s rights thereafter to enforce such term or provision or to exercise any right or remedy in the event of any other default, whether or not similar.
15.    Further Assurance.  Upon the reasonable request of the other Party, each Party hereto agrees to take any and all actions, including, without limitation, the execution of certificates, documents or instruments, necessary or appropriate to give effect to the terms and conditions set forth in this Agreement.
16.    No Assignment.  Neither Party may assign this Agreement, in whole or in part, without the prior written consent of the other Party, and any attempted assignment not in accordance herewith shall be null and void and of no force or effect.
17.    Binding Effect.  This Agreement shall be binding on and inure to the benefit of the Parties and their respective heirs, representatives, successors and permitted assigns.
18.    Indemnification.  Company understands and agrees that any indemnification obligations under its governing documents or the indemnification agreement between Company and Executive with respect to Executive’s service as an officer of Company remain in effect and survive the termination of Executive’s employment under this Agreement as set forth in such governing documents or indemnification agreement.
19.    Nonqualified Deferred Compensation.
(a)    It is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement which is considered to be deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) shall be paid and provided in a manner, and at such time and form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance.  

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(b)    Neither Company nor Executive shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits in any manner which would not be in compliance with Section 409A of the Code (including any transition or grandfather rules thereunder).  

(c)    Because Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, any payments to be made or benefits to be delivered in connection with Executive’s “Separation from Service” (as determined for purposes of Section 409A of the Code) that constitute deferred compensation subject to Section 409A of the Code shall not be made until the earlier of (i) Executive’s death or (ii) six months after Executive’s Separation from Service (the “409A Deferral Period”) as required by Section 409A of the Code.  Payments otherwise due to be made in installments or periodically during the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the balance of the payment shall be made as otherwise scheduled.  Any such benefits subject to the rule may be provided under the 409A Deferral Period at Executive’s expense, with Executive having a right to reimbursement from Company once the 409A Deferral Period ends, and the balance of the benefits shall be provided as otherwise scheduled.  

(d)    For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code.

(e)    Notwithstanding any other provision of this Agreement, neither Company nor its subsidiaries or affiliates shall be liable to Executive if any payment or benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Section 409A of the Code otherwise fails to comply with, or be exempt from, the requirements of Section 409A of the Code.

[signatures on following page]

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IN WITNESS WHEREOF, the Parties have executed, or caused their duly authorized representatives to execute, this Agreement as of the day and year first above written.

“Executive”

/s/ Puneet Pamnani                
Puneet Pamnani

“Company”

PRGX GLOBAL, INC.

By:    /s/ Victor A. Allums                       

Title:    Senior Vice President & General Counsel

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EXHIBIT A
Form of Release

RELEASE

In consideration for the undertakings and promises set forth in that certain Separation Agreement, dated as of ____________ ___, 2016 (the “Agreement”), between PUNEET PAMNANI (“Executive”) and PRGX GLOBAL, INC. (“Company”), Executive (on behalf of himself and his heirs, assigns and successors in interest) unconditionally releases, discharges, and holds harmless Company and its subsidiaries and affiliates and their respective officers, directors, employees, agents, insurers, assigns and successors in interest (collectively, “Releasees”) from each and every claim, cause of action, right, liability or demand of any kind and nature, and from any claims which may be derived therefrom (collectively “Released Claims”), that Executive had, has, or might claim to have against Releasees at the time Executive executes this Agreement, whether presently known or unknown to Executive, including, without limitation, any and all claims listed below, other than any such claims Executive has or might have under the Agreement:

(a)    arising from Executive’s employment, pay, bonuses, vacation or any other Executive benefits, and other terms and conditions of employment or employment practices of Company;

(b)    arising out of or relating to the termination of Executive’s employment with Company or the surrounding circumstances thereof;

(c)    based on discrimination and/or harassment on the basis of race, color, religion, sex, national origin, handicap, disability, age or any other category protected by law under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, Executive Order 11246, the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the Equal Pay Act, the Americans With Disabilities Act, the Rehabilitation Act of 1973, C.O.B.R.A. (as any of these laws may have been amended) or any other similar labor, employment or anti-discrimination law under state, federal or local law;

(d)    based on any contract, tort, whistleblower, personal injury wrongful discharge theory or other common law theory; or

(e)    arising under the Employment Agreement or any other written or oral agreements between Executive and Company or any of Company’s subsidiaries (other than the Agreement).

Executive covenants not to sue or initiate any claims against any of the Releasees on account of any Released Claim or to incite, assist or encourage other persons or entities to bring claims of any nature whatsoever against Company or Releasees.  Executive further covenants not to accept, recover or receive any monetary damages or any other form of relief which may arise out of or in 

connection with any administrative remedies which may be filed with or pursued independently by any governmental agency or agencies, whether federal, state or local.

Executive hereby acknowledges that Executive has no interest in reinstatement, reemployment or employment with Company, and Executive forever waives any interest in or claim of right to any future employment by Company.  Executive further covenants not to apply for future employment with Company or otherwise seek or encourage reinstatement.

By signing this Release, Executive certifies that:

(a)    Executive has carefully read and fully understands the provisions of this Release; 

(b)    Executive was advised by Company in writing, via this Release, to consult with an attorney before signing this Release;

(c)    Executive understands that any discussions he may have had with counsel for Company regarding his employment or this Release does not constitute legal advice to him and that he has retained his own independent counsel to render such advice;

(d)    Executive understands that this Agreement FOREVER RELEASES Company and all other Releasees from any legal action arising prior to the date of execution of this Agreement;

(e)    In signing this Agreement, Executive DOES NOT RELY ON AND HAS NOT RELIED ON ANY REPRESENTATION OR STATEMENT (WRITTEN OR ORAL) NOT SPECIFICALLY SET FORTH IN THIS RELEASE OR THE AGREEMENT by Company or any other Releasee, or by any of their agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Agreement or otherwise;

(f)    Company hereby allows Executive no less than twenty-one (21) days from its initial presentation to Executive to consider this Release before signing it, should Executive so desire; and

(g)    Executive agrees to its terms knowingly, voluntarily and without intimidation, coercion or pressure.

Executive may revoke this Release within seven (7) calendar days after signing it.  To be effective, such revocation must be received in writing by the General Counsel of Company at the offices of Company at 600 Galleria Parkway, Suite 100, Atlanta, Georgia 30339.  Revocation can be made by hand delivery or facsimile before the expiration of this seven (7) day period.

[signature on following page]

IN WITNESS WHEREOF, the undersigned has executed this Release as of the date set forth below.

“Executive”

                    
Puneet Pamnani        

Dated:  ________ ___, 2016Exhibit
10.22

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (the “Agreement”), is dated as of August 9, 2016, by and among Energous Corporation,
a Delaware corporation (the “Company”) and Ascend Legend Master Fund, Ltd., an exempted company formed under
the laws of the Cayman Islands (the “Investor”).

 

BACKGROUND

 

A.         The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506 of
Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act.

 

B.          The
Investor wishes to purchase, and the Company wishes to sell and issue to the Investor, upon the terms and subject to the conditions
stated in this Agreement, (i) an aggregate of up to 1,618,123 shares of the Common Stock at a purchase price of $12.36 per share
(as adjusted by any stock split, dividend or other distribution, recapitalization or similar event, the “Shares”)
and (ii) warrants to purchase an aggregate of up to 1,618,123 shares (subject to adjustment as described in the Warrants) of Common
Stock (the “Warrants”) in the form attached hereto as Exhibit B, which Warrants shall be exercisable
at any time on or after date which is six months and one day after the date hereof and have an exercise price equal to $23.00 per
share (subject to adjustment as described Warrants) (“Exercise Price”) and a term of exercise of five (5) years
from and after the Closing (as defined below).

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Investor agree as follows:

 

ARTICLE
I

DEFINITIONS

 

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

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Applicable
Law” collectively means any and all laws, rules, regulations, and governmental, judicial or administrative decrees, orders
and decisions that are applicable to the Company or any of its Subsidiaries, this Agreement, the other Transaction Documents, including
the U.S. Gramm-Leach-Bliley Act of 1999, as amended, and the regulations promulgated under such Act, the U.S. Fair Credit Reporting
Act of 1970, as amended, or any regulations or guidelines promulgated under such Act, the U.S. Bank Secrecy Act, orders and guidelines
of the Office of Foreign Assets Control and the USA Patriot Act, and any other applicable data protection, privacy, consumer protection
or confidentiality laws or regulations (including the rules and regulations of any self-regulatory organization to which the Company
or its securities are subject, including The Nasdaq Stock Market or comparable securities trading market).

 

     

     

    

 

“Board”
has the meaning set forth in Section 2.2.

 

“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required
by Applicable Law to remain closed.

 

“Change of Control
of the Company” means a change in ownership or control of the Company effected through any of the following transactions:
(a) a merger, consolidation or other reorganization approved by the Company’s stockholders, unless securities representing
more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately
thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the Persons who beneficially
owned the Company’s outstanding voting securities immediately prior to such transaction; (b) a stockholder-approved sale,
transfer or other disposition of all or substantially all of the Company’s assets; or (c) the closing of any transaction
or series of transactions to which any Person or any group of Persons comprising a “group” within the meaning of Rule
13d-5(b)(1) of the Exchange Act becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 or the Exchange
Act) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the
total combined voting power of the Company’s securities (as measured in terms of the power to vote with respect to the election
of Board members) outstanding immediately after the consummation of such transaction or series of transactions, whether such transaction
involves a directly issuance from the Company or the acquisition of outstanding securities held by one or more of the Company’s
existing stockholders.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing Date”
means the date and time of the Closing and shall be on such date and time as is mutually agreed to by the Company and the Investor.

 

“Common Stock”
means the common stock of the Company, par value $0.00001 per share.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Plans”
has the meaning set forth in Section 3.1(k).

 

“Disclosure
Letter” has the meaning set forth in the lead-in paragraph to Article III.

 

“Disclosure
Materials” has the meaning set forth in Section 3.1(h).

 

    	 	-2-	 

     

    

 

“Effectiveness
Period” has the meaning set forth in Section 6.1(b).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Exercise Price”
has the meaning set forth in the Background.

 

“GAAP”
has the meaning set forth in Section 3.1(h).

 

“Indemnified
Party” has the meaning set forth in Section 6.4(c).

 

“Indemnifying
Party” has the meaning set forth in Section 6.4(c).

 

“Insolvent”
has the meaning set forth in Section 3.1(i).

 

“Investor”
has the meaning set forth in the Preamble.

 

“Investor Controlled
Entity” shall mean an entity of which the Investor collectively owns or controls, directly or indirectly, not less than
a majority of the outstanding voting power entitled to vote in the election of directors of such entity (or, in the event the entity
is not a corporation, the governing members, board or other similar body of such entity).

 

“Lien”
means, with respect to any asset, any pledge, lien, collateral assignment, security interest, encumbrance, right of first refusal,
mortgage, deed of trust, title retention, conditional sale or other security arrangement, or adverse claim of title.

 

“Losses”
means any and all losses, claims, damages, liabilities, settlement costs and expenses, including, without limitation, reasonable
attorneys’ fees.

 

“Material Adverse
Effect” means (i) a material adverse effect on the legality, validity, or enforceability of any of the Transaction
Documents, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company
and the Subsidiaries, taken as a whole on a consolidated basis, or (iii) a material adverse effect on the Company’s
ability to perform on a timely basis its obligations under any of the Transaction Documents.

 

“Material Permits”
has the meaning set forth in Section 3.1(m).

 

“Non-Voting
Convertible Securities” means any securities of the Company that are convertible into, exchangeable for or otherwise
exercisable to acquire Voting Stock of the Company, including convertible securities, warrants, rights or options to purchase Voting
Stock of the Company.

 

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

 

    	 	-3-	 

     

    

 

“Preferred Stock”
means the preferred stock of the Company, par value $0.00001 per share.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, or a partial proceeding, such as a deposition),
whether commenced or threatened in writing.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the
Prospectus including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Purchase Price”
has the meaning set forth in Section 2.1.

 

“Registrable
Securities” means the Shares and the Warrant Shares issued or issuable pursuant to the Transaction Documents, together
with any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event
with respect to the foregoing.

 

“Registration
Statement” means each registration statement filed under Article VI, including (in each case) the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Regulation
D” has the meaning set forth in the Background.

 

“Rule 144,”
“Rule 144(c),” “Rule 415,” and “Rule 424” means Rule 144, Rule 144(c),
Rule 415 and Rule 424, respectively, promulgated by the SEC pursuant to the Securities Act, as such Rules may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“SEC”
has the meaning set forth in the Background.

 

“SEC Reports”
has the meaning set forth in Section 3.1(h).

 

“Securities”
means, collectively, the Shares purchased hereunder, the Warrants and the Warrant Shares.

 

“Securities
Act” has the meaning set forth in the Background.

 

“Shares”
has the meaning set forth in the Background.

 

“Subsidiary”
means any direct or indirect subsidiary of the Company.

 

    	 	-4-	 

     

    

 

“Total Current
Voting Power” shall mean, with respect to any entity, at the time of determination of Total Current Voting Power, the
total number of votes which may be cast in the election of members of the board of directors of the corporation if all securities
entitled to vote in the election of such directors are present and voted (or, in the event the entity is not a corporation, the
governing members, board or other similar body of such entity).

 

“Trading Day”
means (a) any day on which the Securities are listed or quoted and traded on The Nasdaq Stock Market or comparable securities trading
market, or (b) if trading ceases to occur on any such market, any Business Day.

 

“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, and the Warrants.

 

“Transfer Agent”
means Wells Fargo or any successor transfer agent for the Company.

 

“Voting Period”
has the meaning set forth in Section 4.7.

 

“Voting Stock”
means shares of Common Stock and any other securities of the Company having the ordinary power to vote in the election of members
of the Board.

 

“Warrants”
has the meaning set forth in the Background.

 

“Warrant Shares”
means the shares of Common Stock to be issued upon exercise of the Warrants (as adjusted by any stock split, dividend or other
distribution, recapitalization or similar event).

 

“13D Group”
means any group of Persons that would be required under Section 13(d) of the Exchange Act, and the rules and regulations promulgated
thereunder, to file a statement on Schedule 13D or Schedule 13G with the SEC as a “person” within the meaning
of Section 13(d)(3) of the Exchange Act if such group beneficially owned Voting Stock representing more than 5% of any class
of Voting Stock then outstanding.

 

ARTICLE
II

PURCHASE AND SALE

 

2.1         Purchase
and Sale of the Shares and Warrants. Subject to the terms and conditions of this Agreement, the Investor hereby agrees to purchase,
and the Company hereby agrees to sell and issue to the Investor, the Shares and Warrants as set forth opposite the Investor’s
name on Exhibit A for the aggregate purchase price (the “Purchase Price”) set forth opposite the
Investor’s name on Exhibit A.

 

2.2         Closing.

 

(a)          At
the Closing, the Company shall deliver to the Investor (i) the Shares and Warrants, registered in the name of the Investor as indicated
on Exhibit A and (ii) a certificate, in the form set forth on Exhibit C, executed by the secretary of the
Company and dated as of the Closing Date, as to the Certificate of Incorporation, by-laws, foreign qualification, incumbency of
the Company’s officers and good standing of the Company and the resolutions adopted by the Company’s Board of Directors
(the “Board”) authorizing the transactions contemplated by the Transaction Documents.

 

    	 	-5-	 

     

    

 

(b)          At
the Closing, the Investor shall deliver to the Company the Purchase Price to the Company by wire transfer of immediately available
funds to an account specified by the Company in writing.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as disclosed in the SEC Reports filed since March 27, 2014 (but excluding all disclosures
contained in the exhibits to such SEC Reports and the schedules to such exhibits, excluding the “Risk Factors” section
contained in such SEC Reports, and excluding forward-looking statements identifying risks and uncertainties that are not historical
facts contained in such SEC Reports) or the Disclosure Letter delivered by the Company to the Investor concurrently with the execution
hereof (the “Disclosure Letter”), the Company hereby represents and warrants to the Investor as follows:

 

(a)          Subsidiaries.
The Company has no Subsidiaries other than those listed on Section 3.1(a) of the Disclosure Letter. Except as disclosed
in Section 3.1(a) of the Disclosure Letter, the Company owns, directly or indirectly, all of the capital stock or comparable
equity interests of each Subsidiary free and clear of any Lien and all the issued and outstanding shares of capital stock or comparable
equity interest of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights.

 

(b)          Organization
and Qualification. Each of the Company and its Subsidiaries is an entity duly organized, validly existing and in good standing
under the Applicable Laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite legal authority
to own or lease and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor
any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation or by-laws or
other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified to do 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, has not had and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(c)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of the Company and no further consent or action is required
by the Company, its officers, the Board or its stockholders. The issuance of the Shares, the Warrants and the Warrant Shares do
not require the approval of the stockholders of the Company. Each of the Transaction Documents has been (or upon delivery will
be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and
binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by (i)
applicable bankruptcy, insolvency, reorganization or other Applicable Laws of general application relating to or affecting the
enforcement of creditors rights generally; and (ii) the effect of rules of law governing the availability of specific performance
and other equitable remedies.

 

    	 	-6-	 

     

    

 

(d)          No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents and the consummation by the
Company of the transactions contemplated hereby and thereby 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, by-laws or other organizational or charter
documents; (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation (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) 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) result in a violation of any Applicable Law, except, in the case of clause (ii) or (iii), to the extent that such conflict
or violation has not had and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give notice to,
or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person
in connection with the execution, delivery and performance by the Company of the Transaction Documents or the consummation of the
transactions contemplated hereby and thereby, other than (i) the filings required to comply with the Company’s registration
obligations hereunder, (ii) the application(s) to The Nasdaq Stock Market for the listing of the shares of Common Stock purchased
pursuant to this Agreement and the Warrant Shares for trading thereon in the time and manner required thereby, and (iii) filings
required under applicable U.S. federal and state securities laws.

 

(f)          The
Securities. The Securities are duly authorized and, when issued and paid for in accordance with the Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and will not be subject to preemptive
rights, rights of first refusal, or similar rights of stockholders. The Company has reserved from its duly authorized capital stock
the maximum number of shares of Common Stock issuable pursuant to this Agreement and upon exercise of the Warrants.

 

    	 	-7-	 

     

    

 

(g)          Capitalization.
As of August 9, 2016, the aggregate number of shares and type of all authorized, issued and outstanding classes of capital stock,
options and other securities of the Company (whether or not presently convertible into or exercisable or exchangeable for shares
of capital stock of the Company) consists of (i) 50,000,000 authorized shares of Common Stock, with 17,043,703 shares of Common
Stock outstanding; (ii) 10,000,000 shares of Preferred Stock, none of which are outstanding; (iii) 24,785,395 shares of Common
Stock, on a diluted basis, reserved for issuance upon the exercise of outstanding warrants; and (iv) 4,037,888 shares of Common
Stock, reserved for issuance upon the exercise of outstanding employee stock options and/or restricted stock units. Since August
9, 2016, the Company has not issued or granted, as applicable, any capital stock, options or other securities of the Company (whether
or not presently convertible into or exercisable or exchangeable for shares of capital stock of the Company). All outstanding shares
of capital stock are duly authorized, validly issued, fully paid and nonassessable and have been issued in compliance with all
applicable securities laws and regulations. Except as disclosed in this Section 3.1(g) or in Section 3.1(g)
of the Disclosure Letter, the Company does not have outstanding any other options, warrants, 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 entered into any agreement giving any Person any right to subscribe for or acquire, any shares of Preferred Stock or Common
Stock, or securities or rights convertible or exchangeable into shares of Preferred Stock or Common Stock. There are no anti-dilution
or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security
holders) and the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities
to any Person (other than the Investor) and will not result in a right of any holder of securities to adjust the exercise, conversion,
exchange or reset price under such securities. To the knowledge of the Company, based solely on an examination of Schedules 13D
and Schedules 13G on file with the SEC, except pursuant to this Agreement, no Person or group of related Persons beneficially
owns (as determined pursuant to Rule 13d-3 under the Exchange Act) or has the right to acquire, by agreement with or by obligation
binding upon the Company, beneficial ownership of in excess of five percent (5%) of the outstanding Common Stock.

 

(h)          SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and the
Exchange Act since March 27, 2014, including pursuant to Sections 13(a) or 15(d) of the Exchange Act, 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. Such reports
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) of the Exchange Act, together with any materials filed or furnished by the Company under the Securities Act and the Exchange
Act, whether or not any such reports were required being collectively referred to herein as the “SEC Reports”
and, together with this Agreement and the Disclosure Letter, the “Disclosure Materials”. As of their respective
dates, the SEC Reports filed by the Company complied in all material respects with the requirements of the Securities Act and the
Exchange Act, as applicable, and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when
filed by the Company, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a
consistent basis during the periods involved (“GAAP”), 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 consolidated financial position of the Company and its consolidated Subsidiaries
taken as a whole 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. All material agreements to which the Company
or any Subsidiary is a party or to which the property or assets of the Company or any Subsidiary are subject that are required
to be filed with the SEC or identified on the SEC Reports are included as part of or identified in the SEC Reports. The Company
is eligible to use Form S-3 to register the resale of the Registrable Securities. The Company has not received any comments from
the SEC or the staff of the SEC Division of Corporation Finance on the Company’s SEC Reports (or any Company filings with
the SEC during the years ended December 31, 2014 and 2015) that remain unresolved.

 

    	 	-8-	 

     

    

 

(i)          No
Change. Except as otherwise disclosed in the SEC Reports, since March 27, 2014, (A) there has been no event, occurrence or
development that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect,
(B) the Company has not incurred any liabilities (contingent or otherwise) other than those arising from operations in the ordinary
course of business consistent with past practice, and (C) 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 other than pursuant to the Company’s stock repurchase plan described in the SEC Reports. The Company has
not taken any steps to seek protection pursuant to any bankruptcy law nor does the Company believe that its creditors intend to
initiate involuntary bankruptcy Proceedings or have any actual knowledge of any fact which would reasonably lead a creditor to
do so. The Company is not Insolvent (as hereinafter defined) as of the date hereof, and will not be Insolvent after giving effect
to the transactions contemplated hereby to occur at the applicable Closing. For purposes of this Section 3.1(i), “Insolvent”
means (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s
total indebtedness, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured or (iii) the Company has unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is proposed to be conducted.

 

(j)          Litigation.
Except as disclosed in Section 3.1(j) of the Disclosure Letter or the SEC Reports, there is no Proceeding pending or,
to the knowledge of the Company, threatened against the Company or any Subsidiary or any of its properties that has or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect. Neither the Company, nor, to the knowledge of
the Company, any director or officer thereof, is or has been the subject of any Proceeding 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 involving the Company or, to the knowledge of the Company,
any current or former director or officer of the Company. Except as disclosed in the Disclosure Letter, neither the Company nor
any Subsidiary is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. There is no Proceeding by the Company or any Subsidiary currently pending or which the Company or any Subsidiary intends
to initiate that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Since March
27, 2014, (i) the Common Stock has been designated for quotation on The Nasdaq Stock Market, (ii) trading in the Common Stock has
not been suspended by the SEC or The Nasdaq Stock Market and (iii) the Company has received no communication, written or oral,
from the SEC or The Nasdaq Stock Market regarding the suspension or delisting of the Common Stock.

 

    	 	-9-	 

     

    

 

(k)          Key
Employees. There are no currently effective employment contracts, offer letters containing economic terms, consulting agreements,
deferred compensation arrangements, bonus plans, incentive plans, profit sharing plans, retirement agreements or other employee
compensation plans or agreements (“Company Plans”) containing terms and conditions that would result in the
material payment to any employee or former employee of the Company or any of its Subsidiaries of any material money or other property
or the acceleration, vesting or provision of any other material rights or benefits to any employee or former employee of the Company
or any of its Subsidiaries by virtue of the issuance of the Securities pursuant to this Agreement (either alone or upon the occurrence
of any other event).

 

(l)          Registration
Rights and Voting Rights. Except as required pursuant to Article VI of this Agreement, the Company is presently not
under any obligation, and has not granted any rights, to register any of the Company’s presently outstanding securities or
any of its securities that may hereafter be issued that have not expired or been satisfied. To the knowledge of the Company, no
stockholder of the Company has entered into any agreement with respect to the voting of equity securities of the Company.

 

(m)         Compliance
with Laws; Permits. Neither the Company nor any of its Subsidiaries is, or since March 27, 2014 has been, in violation of any
Applicable Law in respect of the conduct of its business or the ownership of its properties, which violation has had or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company and its Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary
to conduct their respective businesses as described in the SEC Reports (“Material Permits”), except where the
failure to possess such permits has not had and would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, and neither the Company nor any Subsidiary has received any notice of Proceedings relating to the revocation or
modification of any Material Permit, the revocation or modification of which has had or would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

(n)          Offering
Valid. Assuming the accuracy of the representations and warranties of the Investor contained in Section 3.2 hereof,
the offer, sale and issuance of the Common Stock, the Warrants, and the Warrant Shares will be exempt from the registration requirements
of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification) under the
registration, permit or qualification requirements of all applicable state securities laws.

 

(o)          Private
Placement. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of
the Securities. Neither the Company nor any of its Affiliates nor, any Person acting on the Company’s behalf has, directly
or indirectly, at any time within the past six months, made any offer or sale of any security or solicitation of any offer to buy
any security under circumstances that would (i) eliminate the availability of the exemption from registration under Regulation
D in connection with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of the
Securities pursuant to the Transaction Documents to be integrated with prior offerings by the Company for purposes of any Applicable
Law or stockholder approval provisions, including, without limitation, under the rules and regulations of The Nasdaq Stock Market
in a manner which would require any stockholder approval.

 

    	 	-10-	 

     

    

 

(p)          Transfer
Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) required to be paid in connection with
the sale and transfer of the shares of Common Stock to be sold to the Investor hereunder will be, or will have been, fully paid
or provided for by the Company, and all Applicable Laws imposing such taxes will be or will have been complied with fully.

 

(q)          Placement
Agent’s Fees. The Company has not employed any broker, investment banker, finder or other Person in a similar capacity
and has not incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no
broker, investment banker, finder or other Person in a similar capacity has acted, directly or indirectly, for the Company or any
of its Subsidiaries, in connection with this Agreement or the transactions contemplated hereby. The Company shall pay, and hold
the Investor harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees
and out-of-pocket expenses) arising in connection with any such claim for fees arising out of the issuance of the Securities pursuant
to this Agreement and the Transaction Documents.

 

(r)          Application
of Takeover Protections. Except as described in Section 3.1(r) of the Disclosure Letter, there is no control share
acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Company’s charter documents or the Applicable Laws of its state of incorporation or otherwise, that is
or could become applicable to the Investor as a result of the Investor and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including, without limitation, as a result of the Company’s issuance of the
Securities (including the issuance of the Warrant Shares) and the Investor’s ownership of the Securities.

 

3.2          Representations,
Warranties and Covenants of the Investor. The Investor hereby represents and warrants to the Company as follows:

 

(a)          Organization;
Authority. The Investor is an entity duly organized, validly existing and in good standing under the Applicable Laws of the
jurisdiction of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate
the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The purchase
by the Investor of the Securities hereunder has been duly authorized by all necessary corporate, partnership or other action on
the part of the Investor. This Agreement has been duly executed and delivered by the Investor and constitutes the valid and binding
obligation of the Investor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization or other Applicable Laws of general application relating to or affecting the enforcement of creditors
rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable remedies.
The Investor is not required to obtain any consent, waiver, authorization or order of, give notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution,
delivery and performance by the Investor of the Transaction Documents or the consummation of the transactions contemplated hereby
and thereby, other than filings required under applicable U.S. federal and state securities laws.

 

    	 	-11-	 

     

    

 

(b)          No
Public Sale or Distribution. The Investor is (i) acquiring the Common Stock and the Warrants and (ii) upon exercise of the
Warrants will acquire the Warrant Shares issuable upon exercise thereof, not with a view towards, or for resale in connection with,
the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from
such registration and in compliance with applicable federal and state securities laws, and the Investor does not have a present
arrangement to effect any distribution of the Securities to or through any person or entity; provided, however, that
by making the representations herein, the Investor does not agree to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the Securities Act.

 

(c)          Investor
Status. At the time the Investor was offered the Securities, it was, and at the date hereof it is, an “accredited investor”
as defined in Rule 501(a) under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a)
under the Securities Act.

 

(d)          Experience
of the Investor. The Investor, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. The Investor understands that it must bear the economic risk of this
investment in the Securities, and is able to bear such risk and is able to afford a complete loss of such investment.

 

(e)          Access
to Information. The Investor acknowledges that it has had access to the Disclosure Materials and information about the Company
and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment. No information, inquiry, or investigation conducted by or on behalf of the
Investor or its representatives or counsel shall modify, amend or affect the Investor’s right to rely on the truth, accuracy
and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction
Documents.

 

(f)          Restricted
Securities. The Investor understands that the Securities are characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act
only in certain limited circumstances. The Investor has been advised or is aware that it may be deemed to be an “affiliate”
of the Company within the meaning of the Securities Act following the execution of this Agreement.

 

    	 	-12-	 

     

    

 

(g)          Placement
Agent’s Fees. The Investor has not employed any broker, investment banker, finder or other Person in a similar capacity
or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no broker, investment
banker, finder or other Person in a similar capacity has acted, directly or indirectly, for the Company or any of its Subsidiaries,
in connection with this Agreement or the transactions contemplated hereby. The Investor shall pay, and hold the Company harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses)
arising in connection with any such claim for any such fees described in the preceding sentence arising out of the purchase of
the Securities pursuant to this Agreement.

 

(h)          Litigation.
There is no Proceeding pending or, to the Investor’s knowledge, threatened against the Investor or any subsidiary or any
of its properties which in any manner challenge or seek to prevent, enjoin, alter or materially delay the transactions contemplated
by this Agreement.

 

(i)          No
Ownership of Company Securities. Except as set in disclosure provided to the Company, as of the date of this Agreement, neither
the Investor, nor any Investor Controlled Entity, Affiliate of the Investor (other than any officer or director of the Investor)
or any 13D Group of which the Investor or any of its Affiliates is a member, beneficially owns any shares of Common Stock, or any
other equity securities of the Company, or any options, warrants or other rights to acquire equity securities of the Company or
any other securities convertible into equity securities of the Company. Except as set in disclosure provided to the Company, since
March 27, 2014, neither the Investor, nor any Investor Controlled Entity, Affiliate of the Investor (other than any officer or
director of the Investor) or any 13D Group of which the Investor or any of its Affiliates is a member, has purchased, sold, transferred,
made any short sale of, granted any option for the purchase of, or entered into any hedging or similar transaction with the same
economic effect as a sale of, any equity securities or any options, warrants or other rights to acquire equity securities of the
Company.

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer
Restrictions.

 

(a)          The
Investor covenants that the Securities will only be disposed of pursuant to an effective registration statement under, and in compliance
with the requirements of, the Securities Act, to the Company or pursuant to an available exemption from the registration requirements
of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or to the Company, the Company may require the transferor to provide
to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration under the Securities Act. Notwithstanding the foregoing,
the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent, without any such
legal opinion, except to the extent that the Transfer Agent requests such legal opinion, any transfer of Securities by the Investor
to an Affiliate of the Investor (including an individual retirement account related thereto), provided that (i) the transferee
certifies to the Company that it is an “accredited investor,” as defined in Rule 501(a) under the Securities Act and
(ii) the transferee agrees in writing to be subject to the terms and conditions of this Agreement.

 

    	 	-13-	 

     

    

 

(b)          The
Investor agrees to the imprinting, so long as is required by this Section 4.1(b), of the following legends on any certificate
evidencing any of the Securities:

 

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

 

THESE SECURITIES ARE SUBJECT
TO TRANSFER RESTRICTIONS AS SET FORTH IN A CERTAIN SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF
THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.

 

Certificates evidencing
Securities shall not be required to contain the legends set forth above (i) following any sale of such Securities pursuant to a
Registration Statement covering the resale of the Securities is effective under the Securities Act; (ii) following any sale of
such Securities pursuant to Rule 144 if the holder provides the Company with a legal opinion reasonably acceptable to the Company
to the effect that the Securities have been sold under Rule 144; (iii) if the Securities are eligible for sale under Rule 144(b)(1);
or (iv) if the holder provides the Company with a legal opinion reasonably acceptable to the Company to the effect that the legend
is not required under applicable requirements of the Securities Act (including controlling judicial interpretations and pronouncements
issued by the staff of the SEC). The Company may not make any notation on its records or give instructions to the Transfer Agent
that enlarge the restrictions on transfer set forth in this Section 4.1(b) unless required by Applicable Law. Notwithstanding
anything to the contrary in any of the Transaction Documents, the Securities may be pledged in connection with a bona fide margin
account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed to be
a transfer, sale or assignment of the Securities hereunder, and in connection with a pledge of Securities, the question shall not
be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to any provision
of this Agreement or any other Transaction Document.

 

    	 	-14-	 

     

    

 

(c)          Notwithstanding
the foregoing provisions of this Section 4.1, during the Voting Period, Investor agrees that it shall not sell, transfer or dispose
of, directly or indirectly, any Securities, other than pursuant to an effective registration statement, pursuant to Rule 144, or
to the Company, unless the transferee agrees in writing to be bound by and subject to the terms and conditions of this Agreement.

 

4.2         Furnishing
of Information. During the time a Registration Statement is required to be effective, the Company covenants to timely file
(or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company
after the date hereof pursuant to the Exchange Act. Upon the request of the Investor, the Company shall deliver to the Investor
a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. As long as the
Investor owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish
to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the Investor to
sell the Securities under Rule 144. The Company further covenants that it will take such further action as the Investor may reasonably
request, all to the extent necessary from time to time to enable such Person to sell such Securities without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144.

 

4.3         Integration.
The Company shall not, and shall use its commercially reasonably efforts to ensure that no Affiliate thereof shall, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Investor or that would be integrated with the offer or sale of the Securities
such that approval of the stockholders of the Company would be required pursuant to the rules and regulations of The Nasdaq Stock
Market or a comparable securities trading market.

 

4.4         Reservation
of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to
the Transaction Documents in such amount as may be required to fulfill its obligations to issue Warrant Shares under the Transaction
Documents. In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy
its obligations to issue such Warrant Shares under the Transaction Documents, the Company shall promptly take such actions as may
be required to increase the number of authorized shares.

 

4.5         Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing of the Common Stock on The Nasdaq Stock
Market or a comparable securities trading market, and promptly following the Closing (but not later than the 30 day anniversary
of the Closing) to list the Shares and Warrant Shares on The Nasdaq Stock Market. The Company further agrees, if the Company applies
to have the Common Stock traded on any other securities trading market, it will include in such application the Shares and the
Warrant Shares, and will take such other action as is necessary or desirable in the reasonable opinion of the Investor to cause
the Shares and Warrant Shares to be listed on such other securities trading market as promptly as possible. The Company will take
all action reasonably necessary to continue the listing and trading of its Common Stock on The Nasdaq Stock Market or comparable
securities trading market and will comply in all material respects with the Company’s reporting, filing and other obligations
under the by-laws or rules of such market.

 

    	 	-15-	 

     

    

 

4.6         Anti-Takeover
Provisions. If any control share acquisition, business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s charter documents or the Applicable Laws of its state
of incorporation or otherwise, that is or would reasonably be expected to become applicable to the Investor as a result of the
Investor and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including, without
limitation, as a result of the Company’s issuance of the Securities and/or Investor’s exercise of Warrants and the
Investor’s ownership of the Securities, shall become applicable to the transactions contemplated by the Transaction Documents,
the Company and the Board shall use best efforts to grant such approvals and take such actions as are necessary so that the transactions
contemplated by the Transaction Documents may be consummated as promptly as practicable on the terms contemplated hereby and otherwise
act to minimize the effects of any such statute or regulation on the transactions contemplated hereby.

 

4.7         Voting.
During the period commencing upon the date hereof and ending five (5) years from and after the Closing (the “Voting
Period”), each of the Investor, any Investor Controlled Entity, any Affiliate of the Investor (other than any officer
or director of the Investor) and any 13D Group of which the Investor or any of its Affiliates is a member shall vote all Common
Stock of the Company they hold in each vote of the Company’s stockholders in the manner recommended by the Board; provided
that this Section 4.7 shall not apply to proposals seeking approvals of the Company’s stockholders with respect
to amendments to the Company’s Certificate of Incorporation or by-laws that directly conflict with the rights of the Investor
under this Agreement, or that directly affect the Investor by naming the Investor specifically in such amendment, (ii) if the Company
has materially breached any of its representations or warranties hereunder, or (iii) if the Company has breached any of its covenants
hereunder without curing such breach within ten days after notice thereof. With respect to votes of the Company’s stockholders
relating to the election of members of the Board, each of the Investor, any Investor Controlled Entity and any 13D Group of which
the Investor or any of its Affiliates is a member shall vote all Common Stock of the Company they hold in favor of individuals
recommended by the Board for election to the Board, provided that the provisions of this sentence shall not apply in the event
of any fraud or malfeasance by, or any material change in, the senior executive management of the Company. During the Voting Period,
the Investor agrees to take such actions as may be reasonably necessary to ensure that any Common Stock held by the Investor, any
Investor Controlled Entity, any Affiliate of the Investor (other than any officer or director of the Investor) and any 13D Group
of which the Investor or any of its Affiliates is a member are present for any vote of the Company’s stockholders for purposes
of establishing a quorum with respect to such vote.

 

4.8         Standstill;
Required Sales.

 

(a)          The
Investor agrees that during the Voting Period, neither the Investor, nor any Investor Controlled Entity, Affiliate of the Investor
(other than any officer or director of the Investor) or any 13D Group of which the Investor or any of its Affiliates is a member
shall directly or indirectly:

 

(i)          otherwise
act, alone or in concert with others, to seek to control the management, Board or policies of the Company;

 

    	 	-16-	 

     

    

 

(ii)         enter
into any joint venture, securities lending or option agreement, put or call, guarantee of loans, guarantee of profits or division
of losses or profits, contract, arrangement or understanding with any Person with respect to any securities of the Company or any
Subsidiary of the Company;

 

(iii)        acquire
additional shares of Voting Stock without the consent of the Board, except for the Warrant Shares;

 

(iv)        solicit
or participate in the solicitation of proxies with respect to any Voting Stock, or seek to advise or influence any person with
respect to the voting of any Voting Stock (other than as otherwise provided or contemplated by this Agreement);

 

(v)         deposit
any Voting Stock in a voting trust or, except as otherwise provided or contemplated herein, subject any Voting Stock to any arrangement
or agreement with any third party with respect to the voting of such Voting Stock;

 

(vi)        join
a 13D Group (other than a group comprising solely of the Investor and its Affiliates) for the purpose of acquiring, holding, voting
or disposing of Voting Stock or Non-Voting Convertible Securities;

 

(viii)      take
any action which might require the Company to make a public announcement regarding the possibility of a business combination or
merger involving the Company or any of its subsidiaries or divisions;

 

(ix)         disclose
any intention, plan or arrangement inconsistent with the foregoing;

 

(x)          advise,
assist or encourage any other Persons in connection with any of the foregoing; or

 

(xi)         request
that the Company (or its respective directors, officers, affiliates, employees or agents), directly or indirectly, amend or waive
any provision of this Section 4.8(a) in a manner that may require public disclosure of such a request.

 

Notwithstanding anything
to the contrary in this Agreement, (i) the prohibitions in this Article IV shall not affect the Investor’s ability
to hold the Shares, the Warrants and the Warrant Shares and (ii) in the event that it shall be publicly announced or disclosed
that the Company has entered into an agreement to effect a Change of Control of the Company, that the Company has received an unsolicited
offer (determined to be bona fide by the Board in good faith) for a majority of the outstanding shares of capital stock of the
Company or for the sale of the Company or substantially all of its assets at any time, the Investor shall be released from compliance
with the terms of this Section 4.8(a) for the pendency of such transaction, offer or process.

 

(b)     
   Intentionally omitted

 

    	 	-17-	 

     

    

 

4.9         Lock-Up.
From and after the Closing, the Investor hereby agrees not to (i) sell, transfer or otherwise dispose of, directly or indirectly,
any Shares or Warrant Shares or (ii) enter into any swap or other arrangement that transfers to another Person any of the economic
consequences of ownership of Shares or Warrant Shares, until the six month anniversary of the closing, except to the Company, in
response to a Change of Control (or agreement related to a Change of Control), or a tender or exchange offer for the Common Stock
(other than a tender or exchange offer by the Investor, any Investor Controlled Entity, any Affiliate of the Investor or any 13D
Group of which the Investor or any of its Affiliates is a member) or as part of a transaction in which all outstanding shares of
Common Stock of the Company are converted into or exchanged for other consideration and is approved by the stockholders of the
Company. This Section 4.9 shall not, with respect to Securities, apply to (a) bona fide gifts, whether to charitable organizations
or otherwise, provided the recipient thereof agrees in writing to be bound by the terms of this Section 4.9, (b) dispositions to
any individual retirement account, foundation, trust, partnership, or limited liability company, as the case may be, for the direct
or indirect benefit of the Investor and/or the immediate family of the Investor or any Investor Related Entity, provided that such
transferee agrees in writing to be bound by the terms of this Section 4.9, (c) transfers as required by law, (d) dispositions by
a corporation, partnership or limited liability company to a shareholder, partner or member thereof, provided such shareholder,
partner or member agrees in writing to be bound by the terms of this Section 4.9, or (e) any obligations regarding the Securities
under any existing pledge, margin account or similar agreement, including, but not limited to, sales and transfers of such Undersigned
Shares.

 

4.10       Press
Releases. No later than the Trading Day immediately following the execution of this Agreement, the Company will issue a press
release disclosing the transactions contemplated by the Agreement, and the Company shall file a Form 8-K relating to the Transaction
Documents. The Company and the Investor shall consult with each other in issuing any subsequent press releases with respect to
the transactions contemplated hereby, and the Company and the Investor shall not issue any such subsequent press release or otherwise
make any such public statement without the prior consent of the other party, which consent shall not be unreasonably withheld,
conditioned or delayed, except if such disclosure is required by Applicable Law, in which case the disclosing party shall if possible
promptly provide the other party with prior notice of such public statement or communication.

 

4.11       Antitrust
Filings. If the exercise of the Warrants requires any antitrust filings under Applicable Law, then the Investor and the Company
agree to make any such required filings and to cooperate with each other in making any such filings.

 

ARTICLE
V

CONDITIONS PRECEDENT

 

5.1         Conditions
Precedent to the Obligations of the Investor. The obligation of the Investor to acquire Securities at the Closing is subject
to the satisfaction or waiver by the Investor, at the Closing, of each of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material
respects (other than those representations and warranties that are qualified by materiality or Material Adverse Effect qualifiers,
which shall be true and correct in all respects) as of the date when made and as of the Closing as though made on and as of such
date.

 

    	 	-18-	 

     

    

 

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

 

(c)          No
Stockholder Approval Required. No approval on the part of the stockholders of the Company shall be required in connection with
the execution and delivery by the Company of this Agreement and the other Transaction Documents and the consummation of the transactions
to be performed by the Company contemplated by the Transaction Documents.

 

(d)          Regulatory
Approvals. All material approvals, authorizations and consents of any governmental entity or Person required to consummate
the transactions contemplated by this Agreement and the other Transaction Documents (including any such approvals, authorizations
and consents under applicable foreign antitrust laws) shall have been obtained and remain in full force and effect, and all statutory
waiting periods relating to such approvals, authorizations and consents shall have expired or been terminated.

 

(e)          Qualification
Under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required to be obtained prior
to the Closing under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance
of this Agreement and the other Transaction Documents, including, without limitation, the offer and sale of the Securities.

 

(f)          No
Litigation. No litigation, order, writ, injunction, judgment, decree or other claim shall be pending or, to the knowledge of
the Investor, threatened that questions the validity of this Agreement or the other Transaction Documents or the right of the Company
or the Investor to enter into such agreements or to consummate the transactions contemplated hereby and thereby.

 

(g)          No
Violation. No statute, rule, regulation, order, or interpretation shall have been enacted, entered or deemed applicable by
any domestic or foreign government or governmental or administrative agency or court which would make the transactions contemplated
by the Agreement or the other Transaction Documents illegal.

 

5.2         Conditions
Precedent to the Obligations of the Company. The obligation of the Company to sell the Securities at the Closing is subject
to the satisfaction or waiver by the Company, at the Closing, of each of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Investor contained herein shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made on and as of such date.

 

(b)          Performance.
The Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by this Agreement and the other Transaction Documents to be performed, satisfied or complied with by the Investor at or
prior to the Closing.

 

    	 	-19-	 

     

    

 

(c)          Regulatory
Approvals. All material approvals, authorizations and consents of any governmental entity or Person required to consummate
the transactions contemplated by this Agreement and the other Transaction Documents (including any such approvals, authorizations
and consents under applicable foreign antitrust laws) shall have been obtained and remain in full force and effect, and all statutory
waiting periods relating to such approvals, authorizations and consents shall have expired or been terminated.

 

(d)          Qualification
Under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required to be obtained prior
to the Closing under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance
of this Agreement and the other Transaction Documents, including, without limitation, the offer and sale of the Securities.

 

(e)          No
Litigation. No litigation, order, writ, injunction, judgment, decree or other claim shall be pending or, to the knowledge of
the Company, threatened that questions the validity of this Agreement or the other Transaction Documents or the right of the Company
or the Investor to enter into such agreements or to consummate the transactions contemplated hereby and thereby.

 

(f)          No
Violation. No statute, rule, regulation, order, or interpretation shall have been enacted, entered or deemed applicable by
any domestic or foreign government or governmental or administrative agency or court which would make the transactions contemplated
by this Agreement or the other Transaction Documents illegal.

 

ARTICLE
VI

REGISTRATION RIGHTS

 

6.1          Registration
Statement.

 

(a)          Until
such time as the date that all Registrable Securities covered by such Registration Statement have been sold or can be sold publicly
under Rule 144 without volume limitation, upon written request by the Investor, the Company shall, as soon as reasonably practicable
following Investor’s request, prepare and file with the SEC a Registration Statement covering the resale of such portion
of the Registrable Securities requested by the Investor for an offering to be made on a continuous basis pursuant to Rule 415.
Each Registration Statement shall be on Form S-3 or any successor form thereto (except if the Company is not then eligible to register
for resale the Registrable Securities on Form S-3 or any successor form thereto, in which case such registration shall be on another
appropriate form in accordance with the Securities Act and the Exchange Act). The Company shall not be obligated to file and have
declared effective more than three (3) Registration Statements per year pursuant to this Article VI and each registration
hereunder shall include Registrable Securities consisting of not less than 200,000 shares of Common Stock (as adjusted by any stock
split, dividend or other distribution, recapitalization or similar event).

 

(b)          The
Company shall use its best efforts to cause each Registration Statement to be declared effective by the SEC as promptly as practical
after the filing thereof (but in no event sooner than six months after the Closing Date of this Agreement), and, subject to Section 6.1(e),
shall use its best efforts to keep each Registration Statement continuously effective under the Securities Act for all Registrable
Securities for a period up to the earlier of seventy five (75) days or until the date that all Registrable Securities covered by
such Registration Statement have been sold or can be sold publicly under Rule 144 on a single day (the “Effectiveness Period”).

 

    	 	-20-	 

     

    

 

(c)          The
Company shall notify the Investor in writing promptly (and in any event within two (2) Trading Days) after receiving notification
from the SEC that a Registration Statement has been declared effective.

 

(d)          The
Company may require the Investor to provide such information regarding the Investor as may be required under the Securities Act
to effect the registration contemplated hereunder.

 

(e)          If
at any time after a Registration Statement has become effective, the Company is engaged in any plan, proposal or agreement with
respect to any financing, acquisition, recapitalization, reorganization or other material transaction or development the public
disclosure of which would be detrimental to the Company, then the Company may direct that such request be delayed or that use of
the Prospectus contained in such Registration Statement be suspended, as applicable, for a period of up to 45 days. The Company
will notify the Investor of the delay or suspension. In the case of notice suspending an effective Registration Statement, the
Investor will immediately discontinue any sales of Registrable Securities pursuant to such Registration Statement until the Investor
has received copies of a supplemented or amended Prospectus or until the Investor is advised in writing by the Company that the
then-current Prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or
deemed incorporated by reference in such Prospectus. The Company may exercise the rights provided by this Section 6.1(e)
for an aggregate of 90 days within any 365-day period.

 

(f)         The
Company will use its best efforts to cooperate with the Investor in the disposition of the Registrable Securities covered by a
Registration Statement.

 

6.2         Registration
Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)          (i) Prepare
and file with the SEC such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep each Registration Statement continuously effective, as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the SEC such additional Registration Statements in order to register
for resale under the Securities Act all of the Registrable Securities during the Effectiveness Period; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant
to Rule 424; (iii) respond as promptly as reasonably practical, to any comments received from the SEC with respect to each
Registration Statement or any amendment thereto; and (iv) comply in all material respects with the provisions of the Securities
Act and the Exchange Act applicable to the Company with respect to the disposition of all Registrable Securities covered by a Registration
Statement during the applicable period in accordance with the intended methods of disposition by the Investor thereof set forth
in a Registration Statement as so amended or in such Prospectus as so supplemented.

 

    	 	-21-	 

     

    

 

(b)          Notify
the Investor as promptly as reasonably practical, and confirm such notice in writing no later than two (2) Trading Days thereafter,
of any of the following events: (i) any Registration Statement or any post-effective amendment is declared effective; (ii)
the Company becomes aware that the SEC has issued any stop order suspending the effectiveness of any Registration Statement or
initiates any Proceedings for that purpose; (iii) the Company receives notice of any suspension of the qualification or exemption
from qualification of any Registrable Securities for sale in any jurisdiction, or the initiation or threat of any Proceeding for
such purpose; or (iv) the financial statements included in any Registration Statement become ineligible for inclusion therein or
any Registration Statement or Prospectus or other document contains any untrue statement of a material fact or omits 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.

 

(c)          Use
its best efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of
any Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, as soon as possible.

 

(d)          If
requested by the Investor, promptly provide the Investor, without charge, at least one conformed copy of each Registration Statement
and each amendment thereto, including financial statements and schedules, and all exhibits to the extent requested by the Investor
(including those previously furnished or incorporated by reference) promptly after the filing of such documents with the SEC.

 

(e)          Promptly
deliver to the Investor, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and
each amendment or supplement thereto as the Investor may reasonably request. The Company hereby consents to the use of such Prospectus
and each amendment or supplement thereto by the Investor in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto to the extent permitted by federal and state securities laws
and regulations.

 

(f)          Prior
to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with the Investor in
connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as the Investor requests
in writing, to keep each such registration or qualification (or exemption therefrom) effective for so long as required, but not
to exceed the duration of the Effectiveness Period, and to do any and all other acts or things reasonably necessary or advisable
to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided,
however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so subject.

 

    	 	-22-	 

     

    

 

(g)          Upon
sale of such Registrable Securities pursuant to an effective Registration Statement, cooperate with the Investor to facilitate
the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee, which
certificates shall be free, to the extent permitted by this Agreement and under Applicable Law, of all restrictive legends, and
to enable such Registrable Securities to be in such denominations and registered in such names as any the Investor may reasonably
request.

 

(h)          Promptly
upon the occurrence of any event described in Section 6.2(b)(iv), prepare a supplement or amendment, including a post-effective
amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as thereafter delivered, neither such Registration Statement
nor such Prospectus will 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, in the light of the circumstances under which they were made, not misleading.

 

(i)          Comply
with all rules and regulations of the SEC applicable to the Company in connection with the registration of the Securities.

 

(j)          The
Company shall comply with all applicable rules and regulations of the SEC under the Securities Act and the Exchange Act, including,
without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement or amendment thereof,
with the SEC pursuant to Rule 424 under the Securities Act, promptly inform the holders in writing if, at any time during the Effectiveness
Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the holders are required to
make available a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be
reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

6.3           Registration
Expenses. The Company shall pay all fees and expenses incident to the performance of or compliance with Article VI
of this Agreement, but excluding underwriting discounts and commissions of the Investor, including without limitation (a) all registration
and filing fees and expenses, including without limitation those related to filings with the SEC, The Nasdaq Stock Market or comparable
securities trading market and in connection with applicable state securities or Blue Sky laws, (b) printing expenses (including
without limitation expenses of printing certificates for Registrable Securities), (c) messenger, telephone and delivery expenses
incurred by the Company, (d) fees and disbursements of counsel for the Company, (e) fees and expenses of all other Persons retained
by the Company in connection with the consummation of the transactions contemplated by this Agreement, (f) reasonable fees and
expenses of one special counsel for the Investor (not to exceed $25,000 per registration or $100,000 in the aggregate for all registrations
pursuant to this Agreement); and (g) all listing fees to be paid by the Company to The Nasdaq Stock Market or comparable securities
trading market.

 

    	 	-23-	 

     

    

 

6.4          Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless the Investor,
the officers, directors, partners, members, agents and employees of each of them, each Person who controls the Investor (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members,
agents and employees of each such controlling Person, to the fullest extent permitted by Applicable Law, from and against all Losses
arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement,
any Prospectus or any form of Company prospectus or in any amendment or supplement thereto or in any Company preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, provided, however, that the Company shall not be liable
in any such case to the extent that such Losses arise out of, or are based upon, an untrue statement or omission or alleged untrue
statement or omission made in such Registration Statement in reliance upon and in conformity with information that relates solely
to the Investor or the Investor’s proposed method of distribution of Registrable Securities and was provided by the Investor
in writing for use in such Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement
thereto.

 

(b)          Indemnification
by the Investor. The Investor shall, notwithstanding any termination of this Agreement, indemnify and hold harmless the Company,
its officers, directors, partners, members, agents and employees of each of them, each Person who controls the Company (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the officers, directors, partners, members,
agents and employees of each such controlling Person, to the fullest extent permitted by Applicable Law, from and against all Losses
arising out of any untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of Company
prospectus or in any amendment or supplement thereto or in any Company preliminary prospectus, or arising out of or relating to
any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were
made) not misleading, in each case, on the effective date thereof, but only to the extent that such untrue statement or omission
is based solely upon information regarding the Investor furnished to the Company by the Investor in writing expressly for use therein,
or to the extent that such information solely relates to the Investor or the Investor’s proposed method of distribution of
Registrable Securities and was provided by the Investor for use in such Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto. In no event shall the liability of the Investor under this Article VI
be greater in amount than the dollar amount of the net proceeds received by the Investor upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

    	 	-24-	 

     

    

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable fees and expenses
incurred in connection with defense thereof; provided that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that such failure shall have materially and adversely prejudiced the Indemnifying Party. An Indemnified Party shall have the right
to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to
pay such fees and expenses; (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding; or
(iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party or that additional or different defenses may be available
to the Indemnified Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the
defense thereof and the reasonable fees and expenses of separate counsel shall be at the expense of the Indemnifying Party), it
being understood, however, that the Indemnifying Party shall not, in connection with any one such Proceeding (including separate
Proceedings that have been or will be consolidated before a single judge) be liable for the fees and expenses of more than one
separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent, unless such consent is unreasonably withheld or delayed. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding. All reasonable fees and expenses of the Indemnified Party
(including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding
in a manner not inconsistent with this Section 6.4(c)) shall be paid to the Indemnified Party, as incurred, within twenty
(20) Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided that the Indemnifying Party shall reimburse all
such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification
hereunder).

 

(d)          Contribution.
If a claim for indemnification under Section 6.4(a) or (b) is unavailable to an Indemnified Party (by reason of public
policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6.4(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 6.4(d) was
available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 6.4(d) were determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions
of this Section 6.4(d), the Investor shall not be required to contribute, in the aggregate, any amount in excess of the
amount by which the net proceeds actually received by the Investor from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that the Investor has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

    	 	-25-	 

     

    

 

6.5         Dispositions.
The Investor agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in
connection with sales of Registrable Securities pursuant to a Registration Statement and shall sell its Registrable Securities
in accordance with the Plan of Distribution set forth in the Prospectus. The Investor further agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Sections 6.2(b)(ii), (iii) or (iv),
the Investor will use best efforts to discontinue disposition of Registrable Securities under a Registration Statement until the
Investor is advised in writing by the Company that the use of the Prospectus, or amended Prospectus, as applicable, may be used.
The Investor acknowledges and agrees that the provisions of Section 4.9 of this Agreement shall apply with respect to any
proposed disposition pursuant to a Registration Statement filed pursuant to this Article VI. The Company may provide appropriate
stop orders to enforce the provisions of this paragraph.

 

6.6         “Market
Stand-Off” Agreement. For so long as the Investor and/or any Investor Controlled Entity, Affiliate of the Investor or
any 13D Group of which the Investor or any of its Affiliates is a member collectively owns at least 5% of the voting power of the
Company, the Investor agrees that neither the Investor, nor any Investor Controlled Entity, Affiliate of the Investor or any 13D
Group of which the Investor or any of its Affiliates is a member shall, to the extent requested by the Company or an underwriter
of securities of the Company, sell, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging
or similar transaction with the same economic effect as a sale, any Common Stock (or other securities) of the Company held by such
Person for a period specified by the representative of the underwriters of Common Stock (or other securities) of the Company not
to exceed ninety (90) days following the effective date of any registration statement of the Company filed under the Securities
Act other than a Registration Statement filed pursuant to Section 6.1; provided that all officers and directors
of the Company enter into similar agreements. The obligations described in this Section 6.6 shall not apply to a registration
relating solely to employee benefit plans on Form S-8 or similar forms that may be promulgated in the future, or a registration
relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Investor
further agrees to execute (and cause any Investor Controlled Entity, Affiliate of the Investor or any 13D Group of which the Investor
or any of its Affiliates is a member to execute) such agreements as may be reasonably requested by the underwriters in connection
with such registration that are consistent with this Section 6.6 or that are necessary to give further effect thereto.
The Investor agrees that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce
the provisions of this Section 6.6.

 

    	 	-26-	 

     

    

 

6.7          Assignment
of Registration Rights. The registration rights under this Article VI of this Agreement with respect to applicable shares
transferred by Investor pursuant to this agreement shall be automatically transferred to any transferee of all or any portion of
Investor’s Registrable Securities,, to the extent of such shares transferred, if (a) Investor agrees in writing with the
transferee or assignee to assign such rights and a copy of such agreement is furnished to the Company within a reasonable time
after such assignment; (b) the Company is furnished with written notice of (i) the name and address of such transferee, and (ii)
the securities with respect to which such registration rights are being transferred; (c) following such transfer or assignment,
the further disposition of such securities by the transferee is restricted under this Agreement, the Securities Act and applicable
state securities laws; (d) at or before the time the Company receives the written notice contemplated by clause (b) of this sentence
the transferee agrees in writing to be bound by all of the provisions of this Agreement; and (e) such transfer shall have been
made in accordance with the applicable requirements of this Agreement.

 

ARTICLE
VII

MISCELLANEOUS

 

7.1          Termination.
This Agreement may be terminated by the Company or the Investor, by written notice to the other, if the Closing has not been consummated
by the third Business Day following the date of this Agreement; provided that no such termination will affect the right
of any party to sue for any breach by the other party (or parties).

 

7.2          Fees
and Expenses. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with
the sale and issuance of the Securities.

 

7.3          Entire
Agreement. The Transaction Documents and the non-disclosure agreement dated August 4, 2016 between the Company and the Investor,
together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

 

7.4          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number specified in this Section 7.4 prior to 6:30 p.m. (New York City time) on a Trading
Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section 7.4 on a day that is not a Trading Day or later than 6:30 p.m. (New York City
time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally recognized overnight courier service,
or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers for such
notices and communications are as follows:

 

    	 	-27-	 

     

    

 

Notices for the Company:

 

Energous Corporation, Inc.

3590 North First Street, Suite 210

San Jose, CA 95134

Attention: Brian Sereda

Telephone No.: [telephone]

 

With a copy to:

 

Fenwick & West LLP

801 California Street

Mountain View, CA 94041

Attention: Mark Leahy and Horace Nash

Telephone No.: [telephone]

Facsimile No.:  [fax]

 

Notices for the Investor:

 

Ascend Legend Fund, Ltd.

c/o Stone Coast Fund Services Ltd.

c/o Codan Trust Company (Cayman) Limited

Boundary Hall, 2nd Floor, Cricket Square

PO Box 2681

Grand Cayman KY1-1111

Telephone: [telephone]

Facsimile:  [fax]

 

With a copy to:

 

Ascend Capital Limited Partnership

c/o Ascend Capital, LLC

4 Orinda Way

Orinda, CA 94563

Attn: Benjamin Slavet, Chief Operating Officer and Chief
Financial Officer

Telephone No.: [telephone]

Facsimile No.:  [fax]

 

7.5         Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Investor. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right.

 

    	 	-28-	 

     

    

 

7.6         Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

7.7         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Investor. Notwithstanding the foregoing, nothing in this Section 7.7 shall prevent any assignment of this Agreement
by the Company or the Investor that is deemed to occur in connection with a Change of Control of the Company. The Investor may
assign some or all of its rights hereunder in connection with transfer of any of its Securities without the consent of the Company,
in which event such assignee shall be deemed to be an Investor hereunder with respect to such assigned rights.

 

7.8         No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that
each Indemnified Party is an intended third party beneficiary of Section 6.4 and (in each case) may enforce the provisions
of such Section 6.4 directly against the parties with obligations thereunder.

 

7.9         Governing
Law; Venue; Service of Process; Waiver of Jury Trial. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THAT BODY OF LAWS PERTAINING TO CONFLICT OF LAWS. 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 HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT
OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT AND THAT 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 VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) 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. THE COMPANY AND INVESTOR HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

    	 	-29-	 

     

    

 

7.10       Survival.
The representations and warranties contained herein shall survive the Closing. The agreements and covenants contained herein shall
survive the Closing in accordance with their respective terms.

 

7.11       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or email-attached signature page were an original thereof.

 

7.12       Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

7.13       Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall promptly issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, and the Investor will pay only those costs and expenses that are customarily charged
by or on behalf the Company or the Transfer Agent to any stockholder of the Company in connection therewith. The Company may require
the execution by the holder thereof of a customary lost certificate affidavit of that fact and a customary agreement to indemnify
and hold harmless the Company (and Transfer Agent, if applicable) for any losses in connection therewith.

 

7.14       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by Applicable Law, including recovery of damages,
the Investor and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the
foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation (other than in connection
with any action for temporary restraining order) the defense that a remedy at law would be adequate.

 

    	 	-30-	 

     

    

 

7.15       Indemnification.
In consideration of the Investor’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless the Investor and each other holder of the Securities (other than holders of Securities purchased on
any securities trading market), and all of the Investor’s stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”),
as incurred, from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities
and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements, but excluding any consequential,
indirect or incidental damages (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising
out of, or relating to (a) any material misrepresentation or material breach of any representation or warranty made by the Company
in the Transaction Documents, (b) any material breach of any covenant, agreement or obligation of the Company contained in the
Transaction Documents that remains uncured ten (10) days after the Company receives notice thereof, or (c) any cause of action,
suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought
on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, or (ii) any transaction financed or
to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities. To the extent
that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. In no event shall
aggregate payments under this Section 7.15 exceed the Purchase Price. Except as otherwise set forth herein, the mechanics and procedures
with respect to the rights and obligations under this Section 7.15 shall be the same as those set forth in Section 6.4(c).

 

7.16       Adjustments
in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common
Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares
of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing,
each reference in any Transaction Document to a number of shares or a price per share shall be amended to appropriately account
for such event.

 

[SIGNATURE PAGES TO
FOLLOW]

 

    	 	-31-	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	ENERGOUS CORPORATION, INC.
	 	 
	 	By: /s/ Stephen R. Rizzone
	 	 
	 	Name: Stephen R. Rizzone
	 	 
	 	Title: President and Chief Executive Officer

 

Signature Page to Securities
Purchase Agreement

 

     

     

    

 

	 	INVESTOR:
	 	 
	 	ASCEND LEGEND MASTER FUND, LTD.
	 	 
	 	By: /s/ Malcolm P. Fairbairn
	 	 
	 	Name: Malcolm P. Fairbairn
	 	 
	 	Title: Director

 

Signature Page to Securities
Purchase Agreement

 

     

     

    

 

Exhibits:

 

		A	Securities Purchased

 

		B	Form of Warrant

 

		C	Form of Secretary’s Certificate - Company

 

     

     

    

 

Exhibit
A

SECURITIES PURCHASED

 

	Investor	 	Common Stock	 	 	Warrants	 	 	Purchase Price	 
	Ascend Legend Master Fund, Ltd.	 	 	1,618,123	 	 	 	1,618,123	 	 	$	20,000,000	 

 

     

     

    

 

Exhibit B

FORM OF WARRANT

 

     

     

    

 

NEITHER THESE SECURITIES NOR THE SECURITIES
FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES IN ACCORDANCE
WITH THE PURCHASE AGREEMENT (AS DEFINED BELOW).

 

ENERGOUS CORPORATION

 

WARRANT

 

	Warrant No. [     ]	Dated:  [               ]

 

Energous Corporation,
a Delaware corporation (the “Company”), hereby certifies that, for value received, [          ],
an exempted company formed under the laws of the Cayman Islands, or its successors or assigns (the “Holder”),
is entitled to purchase from the Company up to a total of [          ] shares
of common stock, $.00001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an exercise price initially equal to $23.00 per
share (as adjusted from time to time as provided in Section 8, the “Exercise Price”), at any time
on or after date which is six months and one day after the date hereof (the “Initial Exercise Date”) and through
and including the date that is five (5) years after the date hereof (the “Expiration Date”), and subject to
the following terms and conditions. This Warrant (this “Warrant”) is issued pursuant to that certain Securities
Purchase Agreement, dated as of the date hereof, by and among the Company and the Investor named therein (as amended from time
to time, the “Purchase Agreement”).

 

1.             Definitions.
In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings
given to such terms in the Purchase Agreement.

 

2.             Registration
of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the Holder of record hereof. The Company may deem and treat the registered Holder of this
Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary. The Warrant Shares shall be afforded the registration rights set forth in Article
VI of the Purchase Agreement.

 

     

     

    

 

3.            Exercise
and Duration of Warrant.

 

(a)          This
Warrant shall be exercisable by the Holder at any time and from time to time on or after the Initial Exercise Date to and including
the Expiration Date. At 6:30 P.M., New York City time on the Expiration Date, the portion of this Warrant not exercised prior
thereto shall be and become void and of no value.

 

(b)          The
Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached hereto (the “Exercise
Notice”), appropriately completed and duly signed, and (ii) payment of the Exercise Price in a form specified in
Section 3(c) hereof for the number of Warrant Shares as to which this Warrant is being exercised, or, if applicable, an
election to net exercise this Warrant as provided in Section 3(d) hereof for the number Warrant Shares to be acquired in
connection with such exercise, and the date such items are delivered to the Company (as determined in accordance with the notice
provisions hereof) is an “Exercise Date.” The Holder shall be required to deliver the original Warrant in order
to effect an exercise hereunder unless the Holder shall deliver an affidavit of loss or such other documentation reasonably requested
by the Company in lieu of such original Warrant in connection with any such exercise. Execution and delivery of the Exercise Notice
in respect of less than all the Warrant Shares issuable upon exercise of this Warrant shall have the same effect as cancellation
of the original Warrant and issuance of a new warrant to purchase Common Stock, in substantially the form of this Warrant (any
such new warrant, a “New Warrant”), evidencing the right to purchase the remaining number of Warrant Shares.

 

(c)          Payment
for the Warrant Shares upon exercise may be made by (i) a check payable to the Company’s order, (ii) wire transfer
of funds to the Company, (iii) by net exercise as provided in Section 3(d) hereof, or (iv) any combination of the foregoing.

 

(d)          Net
Exercise Election. Holder may elect to convert all or any portion of this Warrant, without the payment by Holder of any additional
consideration, by the surrender of this Warrant to the Company, with the Exercise Notice, duly executed by Holder, into up to the
number of shares of Warrant Shares that is obtained under the following formula:

 

X = Y (A-B)

    A

 

	where	X =	the number of shares of Warrant Shares to be issued to
Holder pursuant to a net exercise of this Warrant effected pursuant to this Section 3(d).

 

		Y =	the number of Warrant Shares as to which this Warrant
is then being net exercised.

 

		A =	the fair market value of one share of Warrant Shares,
determined at the time of such net exercise as set forth in the last paragraph of this Section 3(d).

 

		B =	the Exercise Price.

 

The Company will promptly
respond in writing to an inquiry by Holder as to the then current fair market value of one share of Warrant Stock.

 

     

     

    

 

For purposes of the above
calculation, fair market value of one share of Warrant Shares shall be determined by the Company’s Board of Directors in
good faith; provided, however, that if on the relevant exercise date for which such value must be determined,
a public market for the Company’s Common Stock exists, then the fair market value per share of the Warrant Shares shall be
(A) the average of the closing bid and asked prices of the Common Stock quoted in the Over-The-Counter Market Summary or (B) the
last reported sale price of the Common Stock or the closing price quoted on the exchange on which the Common Stock is listed, whichever
is applicable, as published in the Western Edition of The Wall Street Journal for the five (5) trading days prior to the
date as of which the value of the fair market value is to be determined.

 

4.            Delivery
of Warrant Shares.

 

(a)          Upon
exercise of this Warrant, the Company shall promptly issue or cause to be issued and cause to be delivered to or upon the written
order of the Holder and in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such
exercise (i) free of restrictive legends if sold under a registration statement covering the resale of the Warrant Shares and naming
the Holder as a selling stockholder, or (ii) if such shares are not freely transferable without volume restrictions pursuant to
Rule 144 under the Securities Act, such certificate will bear the legends set forth in Section 4.1(b) of the Purchase Agreement.
The Holder, or any Person so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record
of such Warrant Shares as of the Exercise Date. The Company shall, upon request of the Holder, use best efforts to deliver, or
to cause its transfer agent to deliver, Warrant Shares hereunder electronically through The Depository Trust Company or another
established clearing corporation performing similar functions.

 

(b)          This
Warrant is exercisable, either in its entirety or, from time to time, for a portion of the number of Warrant Shares. Upon surrender
of this Warrant following one or more partial exercises, the Company shall issue or cause to be issued, at its expense, a New Warrant
evidencing the right to purchase the remaining number of Warrant Shares.

 

(c)          The
Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation
or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit
the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock upon exercise of this Warrant as required pursuant to the terms hereof.

 

     

     

    

 

5.            Charges,
Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be
made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided,
however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issuance, delivery or registration of any certificates for Warrant Shares or Warrant in a name other than that of the Holder.
The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant
or receiving Warrant Shares upon exercise hereof.

 

6.            Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company, at no cost to Holder, shall issue or cause
to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a
New Warrant, but only upon receipt of an affidavit of such loss, theft or destruction and customary indemnity, if requested.

 

7.            Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (after giving
effect to the adjustments and restrictions of Section 8, if any). The Company covenants that all Warrant Shares so
issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof,
be duly and validly authorized, issued and fully paid and nonassessable. The Company will use reasonable commercial efforts to
take all such action to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable
law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock
may be listed, in each case, applicable to the Company.

 

8.            Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 8.

 

(a)          Stock
Dividends, Splits and Combinations. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend
on its Common Stock or otherwise makes a distribution on its Common Stock that is payable in shares of Common Stock, (ii) 
subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause
(i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such dividend, distribution, subdivision or combination.

 

     

     

    

 

(b)          Fundamental
Transactions. If any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger
of the Company with another corporation, or sale, transfer or other disposition of all or substantially all of the Company’s
assets to another corporation shall be effected (all such transactions being hereinafter referred to as a “Fundamental
Transaction”), then the Company shall ensure that lawful and adequate provision shall be made whereby the Holder shall
thereafter have the right to purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu
of the Warrant Shares immediately theretofore issuable upon exercise of this Warrant, such shares of stock, securities or assets
as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant
Shares immediately theretofore issuable upon exercise of this Warrant, had such reorganization, reclassification, consolidation,
merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made with respect
to the rights and interests of the Holder to the end that the provisions hereof (including, without limitation, provision for adjustment
of the Exercise Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any share of stock,
securities or assets thereafter deliverable upon the exercise thereof. The Company shall not effect any such consolidation, merger,
sale, transfer or other disposition unless prior to or simultaneously with the consummation thereof the successor corporation (if
other than the Company) resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring such
assets or other appropriate corporation or entity shall assume the obligation to deliver to the Holder, at the last address of
the Holder appearing on the books of the Company, such shares of stock, securities or assets as, in accordance with the foregoing
provisions, the Holder may be entitled to purchase, and the other obligations under this Warrant. The provisions of this Section 8(b)
shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions,
each of which transactions shall also constitute a Fundamental Transaction.

 

(c)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 8, the number of
Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased (as the case may be), proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the decreased or increased (as the case may be)
number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(d)          Calculations.
All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(e)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 8, the Company at its expense will
promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail
the facts upon which such adjustment is based. Upon any such occurrence and/or otherwise upon written request by or on behalf of
the Holder, the Company will promptly deliver a copy of each such certificate to the Holder and to the Transfer Agent.

 

     

     

    

 

(f)          Notice
of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property
in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any
capital stock of the Company, (ii) enters into any agreement contemplating, or solicits stockholder approval for, any Fundamental
Transaction or Change of Control or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of
the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction,
at least fifteen calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock
in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary to
facilitate the exercise of the Warrant pursuant to Section 3(b) (which exercise may be conditioned upon the occurrence of such
event); provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity
of the corporate action required to be described in such notice.

 

9.          Fractional
Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this
Warrant. If any fraction of a Warrant Share would, except for the provisions of this Section 9, be issuable upon exercise
of this Warrant, then the number of Warrant Shares to be issued will be rounded down to the nearest whole share.

 

10.         Notices.
Any and all notices or other communications or deliveries hereunder (including without limitation any Exercise Notice) shall be
in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in the Purchase Agreement prior to 6:30 p.m. (New York City time)
on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in the Purchase Agreement on a day that is not a Trading Day or later than 6:30 p.m.
(New York City time) on any Trading Day, (iii) the Trading Day following the date of delivery to the courier service, if sent
by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices or communications shall be as set forth in the Purchase Agreement.

 

11.         Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the
Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a
successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice
of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register.

 

     

     

    

 

12.          Miscellaneous.

 

(a)          The
Company shall not, by amendment of its Certificate of Incorporation or Bylaws, or through any reorganization, transfer of assets,
consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out
all the provisions of this Warrant. Without limiting the generality of the foregoing, the Company (i) will not increase the
par value of any Warrant Shares above the amount payable therefor on such exercise and (ii) will not, and will not permit
its transfer agent to, close its stockholder books or records in any manner which interferes with the timely exercise of this Warrant.

 

(b)          GOVERNING
LAW; VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THAT BODY OF LAWS PERTAINING TO CONFLICT OF LAWS. 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 HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT
OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT AND THAT 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 VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) 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. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

 

(c)          The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

 

(d)          In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

     

     

    

 

(e)          No
course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of
such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate
on the Expiration Date.

 

(f)          No
provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant or purchase Warrant Shares, and
no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors
of the Company.

 

(g)          The
Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

 

(h)          Any
term of this Warrant may be amended and the observance of any term of this Warrant may be waived with the written consent of the
Company and the holders of a majority of the outstanding unexercised warrants issued pursuant to the Purchase Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	ENERGOUS CORPORATION
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to exercise
the right to purchase shares of Common Stock under the foregoing Warrant)

 

To: Energous Corporation

 

The undersigned is the Holder of Warrant
No. _______ (the “Warrant”) issued by Energous Corporation, a Delaware corporation (the “Company”).
Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

 

		1.	The Warrant is currently exercisable to purchase a total
of ______________ Warrant Shares.

 

		2.	The undersigned Holder hereby exercises its right to
purchase _________________ Warrant Shares pursuant to the Warrant.

 

		3.	The Holder is hereby paying the sum of $____________
to the Company in cash in accordance with the terms of the Warrant.

 

		4.	Pursuant to this exercise, the Company shall deliver
to the holder _______________ Warrant Shares in accordance with the terms of the Warrant.

 

		5.	Following this exercise, the Warrant shall be exercisable
to purchase a total of ______________ Warrant Shares.

 

	Dated:  ____________________, ______	Name of Holder:
	 	 
	 	 
	 	(Print)	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

     

     

    

 

EXHIBIT C

FORM OF SECRETARY’S CERTIFICATE – COMPANY

 

     

     

    

 

Energous Corporation

Secretary’s Certificate

 

I, Brian Sereda, certify
that I am the Secretary of Energous Corporation, a Delaware corporation (the “Company”), and that, as such,
I am authorized to execute this certificate on behalf of the Company and in connection with that certain Securities Purchase Agreement,
dated as of August [__], 2016 (the “Purchase Agreement”), by and among the Company and the Investor named therein
(the “Investor”), and do hereby further certify that:

 

1.     Attached
hereto as Exhibit A is a true and complete copy of the Second Amended and Restated Certificate of Incorporation of the Company
filed with the Secretary of State of the State of Delaware (the “Certificate of Incorporation”), as amended
by that Certificate of Amendment dated March 26, 2016; no other amendments to the Certificate of Incorporation have been adopted,
the Company has not filed any amendments to the Certificate of Incorporation with the Secretary of State of the State of Delaware,
and no action has been taken by the Company, its shareholders, directors or officers in contemplation of the filing of any such
amendment or other document; the Certificate of Incorporation remains in full force and effect on the date hereof;

 

2.     Attached
hereto as Exhibit B is a certificate of good standing certified by the Secretary of State of the State of Delaware;

 

3.     Attached
hereto as Exhibit C is a certificate of foreign qualification certified by the Secretary of State of the State of California;

 

4.     Attached
hereto as Exhibit D is a true and complete copy of the By-laws of the Company; such By-laws have not been amended and are
in full force and effect as of the date hereof;

 

5.     Attached
hereto as Exhibit E are true and complete copies of the resolutions adopted by the Board of Directors of the Company, either
at a meeting or meetings properly held or by the unanimous written consent of the Board of Directors, relating to the issuance,
offering and sale of the shares of the Company’s common stock (the “Common Stock”) and the warrants to
purchase shares of Common Stock (the “Warrants”) pursuant to the Purchase Agreement; all of such resolutions
were duly adopted, have not been amended, modified or rescinded and remain in full force and effect; and such resolutions are the
only resolutions adopted by the Board of Directors with respect to the issuance, offering and sale of the Common Stock and Warrants
pursuant to the Purchase Agreement;

 

6.     Attached
hereto as Exhibit F is a true and complete copy of an incumbency certificate of the Company’s officers.

 

[Signature page follows]

 

     

     

    

 

In witness whereof,
I have hereunto signed my name this [    ]th day of August, 2016.

 

	 	By:	 
	 	 	Brian Sereda, Secretary

 

     

     

    

 

Exhibit A

Certificate of Incorporation

 

     

     

    

 

Exhibit B

Delaware Good Standing

 

     

     

    

 

Exhibit C

Foreign Qualification

 

     

     

    

 

Exhibit D

By-laws

 

     

     

    

 

Exhibit E

Board of Director Resolutions

 

     

     

    

 

Exhibit F

Incumbency Certificate

 

The undersigned individuals of Energous
Corporation, a Delaware corporation (the “Corporation”), are designated as appropriate parties with the power and authority
to enter into contracts, agreements and to provide written directions pertaining to services associated with stock transfer and
registrar needs:

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	Stephen R. Rizzone	 	President and Chief Executive Officer	 	 
	 	 	 	 	 
	Brian Sereda	 	Chief Financial Officer and Secretary	 	 

 

IN WITNESS WHEREOF I have hereunto set
my hand and the Corporate Seal of the Corporation this __ day of August, 2016.

 

	 	 
	 	Name: Brian Sereda
	 	Title: Secretary

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