Document:

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of ________, 2019 between CEMTREX, INC., a Delaware
corporation (the “Company”), and the purchaser identified on the signature pages hereto (the “Purchaser”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the
Securities Act (as defined below), the Company desires to issue and sell to the Purchaser, and the Purchaser, severally and not
jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

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 Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

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

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.4.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“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 405 under the Securities Act.

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

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

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived, but in no event later than
the second (2nd) Trading Day following the date hereof.

 

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

 

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“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Company
Counsel” means The Doney Law Firm, with offices located at 4955 S. Durango Rd. Ste. 165, Las Vegas, NV 89113.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disclosure
Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time)
and before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following
the date hereof and (ii) if this Agreement is signed between midnight (New York City time) and 9:00 a.m. (New York City time)
on any Trading Day, no later than 9:01 a.m. (New York City time) on the date hereof.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of
Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered
to the Company, (b) securities upon the exercise or exchange of or conversion of securities exercisable or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have
not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend
the term of such securities, and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority
of the disinterested directors of the Company, provided that such securities are issued as “restricted securities”
(as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection
therewith during the prohibition period in Section 4.12(a) herein, and provided that any such issuance shall only be to a Person
(or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

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“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Per
Share Purchase Price” equals $2.23, which represents a 30% discount to the market price, subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that
occur after the date of this Agreement.

 

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

 

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

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to the Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-218501which registers the sale of
the Shares.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

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

 

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

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to the Purchaser pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include locating and/or borrowing shares of Common Stock).

 

“Subscription
Amount” means, as to the Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below
the Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Clear Trust, LLC, the current transfer agent of the Company, having an address at 16540 Pointe Village
Dr. Ste 205 Lutz, FL 33558 and telephone number (813) 235.4490, and any successor transfer agent of the Company.

 

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“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.10(b).

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1
Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with
the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchaser agrees to purchase,
up to an aggregate of $500,000 of Shares. The Purchaser’s Subscription Amount as set forth on the signature page hereto
executed by such Purchaser shall be made available for “Delivery Versus Payment” settlement with the Company or its
designee. The Company shall deliver to the Purchaser its respective Shares, and the Company and the Purchaser shall deliver the
other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in
Sections 2.2 and 2.3, the Closing shall occur. Settlement of the Shares shall occur via “Delivery Versus Payment”
(“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the Purchaser’s
name and address and released by the Transfer Agent via DWAC directly to the Purchaser’s Brokerage Account, identified by
the Purchaser; upon receipt of such Shares, and Shares cleared for resale by the Purchaser’s Broker, payment therefor shall
be made by the Purchaser by check to the Company).

 

2.2
Deliveries.

 

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

 

(i)
this Agreement duly executed by the Company;

 

(ii)
a legal opinion of Company Counsel, substantially in the form of Exhibit A attached hereto;

 

(iii)
subject to the last sentence of Section 2.1, the Company shall have provided the Purchaser with the Company’s mailing address
for payment, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)
subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer
Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”)
Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of
such Purchaser; and

 

(v)
the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)
On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)
this Agreement duly executed by such Purchaser; and

 

 

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2.3
Closing Conditions.

 

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

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) on the Closing Date of the representations and warranties of the Purchaser contained herein (unless
as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

(iii)
the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

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

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

(iii)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

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

 

(v)
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Shares at the Closing.

 

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ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties
to the Purchaser:

 

(a)
Subsidiaries. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary
free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued
and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company
has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

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(d)
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents
to which it is a party, the issuance and sale of the Shares and the consummation by it 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, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon
any of the properties or assets of the Company or any Subsidiary, 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) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.3 of this Agreement, (ii) the filing with the Commission of the Prospectus
Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares for trading thereon in the time
and manner required thereby and (iv) such filings as are required to be made under applicable state securities laws (collectively,
the “Required Approvals”).

 

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(f)
Issuance of the Shares; Registration. The Shares are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement. The Company has prepared and filed the Registration Statement in conformity with the requirements
of the Securities Act, which became effective on June 14, 2017 (the “Effective Date”), including the Prospectus,
and such amendments and supplements thereto as may have been required to the date of this Agreement. The Registration Statement
is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement
or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have
been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and
regulations of the Commission, shall file the Prospectus with the Commission pursuant to Rule 424(b). At the time the Registration
Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration
Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities
Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements
thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will
conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The Company was at the time of the filing of the Registration Statement eligible to
use Form S-3. The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction requirements with
respect to the aggregate market value of securities being sold pursuant to this offering and during the twelve (12) months prior
to this offering, as set forth in General Instruction I.B.6 of Form S-3.

 

(g)
Capitalization. The capitalization of the Company as of the date hereof is as set forth in the SEC Reports. The Company
has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to
the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to
employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common
Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has
any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Shares, there are no outstanding
options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities,
rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or
acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents
or capital stock of any Subsidiary. The issuance and sale of the Shares will not obligate the Company or any Subsidiary to issue
shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding
securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem
a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Shares. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

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(h)
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“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 financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

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(i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably
be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise)
other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made
any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or
Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any
request for confidential treatment of information. Except for the issuance of the Shares contemplated by this Agreement or as
set forth on Schedule 3.1(h), no event, liability, fact, circumstance, occurrence or development has occurred or exists
or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects,
properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities
laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior
to the date that this representation is made.

 

(j)
Litigation. Except as provided in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or
investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any
of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or
officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such
Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive
officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not
subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and
its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment
and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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

 

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

 

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

 

    	 	12	 

    	 	 	 

    

 

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

 

(p)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or required for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since
the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(q)
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription
Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

    	 	13	 

    	 	 	 

    

 

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

 

(s)
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The
Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that:
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such
date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or
is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

    	 	14	 

    	 	 	 

    

 

(t)
Certain Fees. Except as set forth in the Prospectus Supplement, which provides for a 5% fee to the placement agent, no
brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

(u)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

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

 

(w)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the
listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently
eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company
is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection
with such electronic transfer.

 

(x)
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of
the Purchaser 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 Shares and the Purchaser’s ownership of the Shares.

 

    	 	15	 

    	 	 	 

    

 

(y)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchaser or
their agents or counsel with any information that it believes constitutes or might constitute material, non-public information
which is not otherwise disclosed in the Prospectus Supplement. The Company understands and confirms that the Purchaser will rely
on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or
on behalf of the Company to the Purchaser regarding the Company and its Subsidiaries, their respective businesses and the transactions
contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the
twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser
makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3.2 hereof.

 

(z)
No Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Shares to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa)
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the
receipt by the Company of the proceeds from the sale of the Shares hereunder, (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements
and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend
to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will
file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the
Closing Date. Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the
Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to
be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

    	 	16	 

    	 	 	 

    

 

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

 

(cc)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material
respect any provision of FCPA.

 

(dd)
Accountants. To the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm
as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in
the Company’s Annual Report for the fiscal year ending September 30, 2019.

 

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

 

    	 	17	 

    	 	 	 

    

 

(ff)
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this
Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(f) and 4.12 hereof), it is understood and
acknowledged by the Company that: (i) the Purchaser has not been asked by the Company to agree, nor has any Purchaser agreed,
to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based
on securities issued by the Company or to hold the Shares for any specified
term; (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short
Sales or “derivative” transactions, before or after the closing of this or future private placement transactions,
may negatively impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and counter-parties
in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently may have a
“short” position in the Common Stock, and (iv) the Purchaser shall not be deemed to have any affiliation with or control
over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) the Purchaser may engage in hedging activities at various times during the period that the Shares are
outstanding, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests
in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

(gg)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another
to purchase any other securities of the Company.

 

(hh)
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i)
in accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair
market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock
option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there
is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate
the grant of stock options with, the release or other public announcement of material information regarding the Company or its
Subsidiaries or their financial results or prospects.

 

    	 	18	 

    	 	 	 

    

 

(ii)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

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

 

(kk)
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve
System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls,
directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(ll)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance
with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of
the Company or any Subsidiary, threatened.

 

3.2
Representations and Warranties of the Purchaser. The Purchaser, for itself and for no other Purchaser, hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein,
in which case they shall be accurate as of such date):

 

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

 

    	 	19	 

    	 	 	 

    

 

(b)
Understandings or Arrangements. Such Purchaser is acquiring the Shares as principal for its own account and has no direct
or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares (this
representation and warranty not limiting such Purchaser’s right to sell the Shares pursuant to the Registration Statement
or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Shares hereunder
in the ordinary course of its business.

 

(c)
Purchaser Status. At the time such Purchaser was offered the Shares, it was, and as of the date hereof it is an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7).

 

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

 

(e)
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(f)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Shares covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives,
including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates,
such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including
the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein
shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order
to effect Short Sales or similar transactions in the future.

 

    	 	20	 

    	 	 	 

    

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance
of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating
or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1
Furnishing of Information. Until the time that no Purchaser owns Shares, 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 even if the Company is not then subject to the reporting requirements of the Exchange
Act.

 

4.2
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes
of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such
other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

    	 	21	 

    	 	 	 

    

 

4.3
Securities Laws Disclosure; Publicity. The Company shall (a) by the Disclosure Time, issue a press release disclosing the
material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents
as exhibits thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press
release, the Company represents to the Purchaser that it shall have publicly disclosed all material, non-public information delivered
to the Purchaser by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents
in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such
press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents,
employees or Affiliates on the one hand, and any of the Purchaser or any of their Affiliates on the other hand, shall terminate.
The Company and the Purchaser shall consult with each other in issuing any other press releases with respect to the transactions
contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such
public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the
prior consent of the Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld
or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other
party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection
with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or
Trading Market regulations, in which case the Company shall provide the Purchaser with prior notice of such disclosure permitted
under this clause (b).

 

4.4
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other
Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Shares under the Transaction Documents or under any other agreement between the Company and the Purchaser.

 

4.5
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, which shall be disclosed pursuant to Section 4.3, the Company covenants and agrees that neither it, nor
any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes,
or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have
consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions
in securities of the Company.

 

    	 	22	 

    	 	 	 

    

 

4.6
Use of Proceeds. Except as set forth on Schedule 4.6 attached hereto, the Company shall use the net proceeds from
the sale of the Shares hereunder for working capital purposes and shall not use such proceeds: (a) for the satisfaction of any
portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business
and prior practices), (b) for the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding
litigation or (d) in violation of FCPA or OFAC regulations.

 

4.7
Indemnification of Purchaser. Subject to the provisions of this Section 4.7, the Company will indemnify and hold the Purchaser
and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder
or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is
finally judicially determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly
notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser
Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more
than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in
the other Transaction Documents. The indemnification required by this Section 4.7 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements
contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others
and any liabilities the Company may be subject to pursuant to law.

 

    	 	23	 

    	 	 	 

    

 

4.8
Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common
Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list
or quote all of the Shares on such Trading Market and promptly secure the listing of all of the Shares on such Trading Market.
The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include
in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed
or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably necessary to
continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility
of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation,
including, without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing corporation
in connection with such electronic transfer.

 

4.9
Reserved

 

4.10
Subsequent Equity Sales. From the date hereof until 10 days after the Closing Date, the Company shall not issue, enter
into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.

 

4.11
Reserved

 

4.12
Certain Transactions and Confidentiality. The Purchaser covenants that neither it nor any Affiliate acting on its behalf
or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s
securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.3. The Purchaser
covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant
to the initial press release as described in Section 4.3, such Purchaser will maintain the confidentiality of the existence and
terms of this transaction and the information included in the Disclosure Schedules. Notwithstanding
the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.3, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.3 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company
to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.3. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only
apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Shares covered by this Agreement.

 

    	 	24	 

    	 	 	 

    

 

4.13
Reserved

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchaser, by written notice to the other
parties, if the Closing has not been consummated on or before the fifth (5th) Trading Day following the date hereof;
provided, however, that no such termination will affect the right of any party to sue for any breach by any other
party (or parties).

 

5.2
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer
Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the
Company), stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Purchaser.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus
Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof 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.

 

5.4
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 or email attachment at the email address as set forth on the signature pages
attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as
set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time)
on any Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for
such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided
pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

    	 	25	 

    	 	 	 

    

 

5.5
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written
instrument signed, in the case of an amendment, by the Company and Purchaser or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately
and adversely impacts a Purchaser, the consent of such disproportionately impacted Purchaser shall also be required. No waiver
of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed
amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative
to the comparable rights and obligations of the other Purchaser shall require the prior written consent of such adversely affected
Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon the Purchaser and holder of Shares
and the Company.

 

5.6
Headings. 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.

 

5.7
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 may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers any Shares, provided that such transferee agrees in writing to be bound, with
respect to the transferred Shares, by the provisions of the Transaction Documents that apply to the “Purchaser.”

 

5.8
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 as
otherwise set forth in Section 4.7 and this Section 5.8.

 

    	 	26	 

    	 	 	 

    

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action
or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such 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 other manner permitted by law. If any party shall commence
an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company
under Section 4.7, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.

 

5.11
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 each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Reserved

 

5.14
Replacement of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Shares.

 

    	 	27	 

    	 	 	 

    

 

5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17
Reserved

 

5.18
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.19
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.20
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

    	 	28	 

    	 	 	 

    

(Signature
Pages Follow)

 

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.

 

	Cemtrex, Inc. 	 	Address
    for Notice:
	 	 	 	 
	By:	 	 	E-Mail:
	Name:	 	 	Fax:
	Title:	 	 	 
	 	With
    a copy to (which shall not constitute notice):	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	 	29	 

    	 	 	 

    

 

[PURCHASER
SIGNATURE PAGES TO CETX SECURITIES PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser:

 

Signature
of Authorized Signatory of Purchaser: _________________________________

 

Name
of Authorized Signatory: _______________________________________________

 

Title
of Authorized Signatory: ________________________________________________

 

Email
Address of Authorized Signatory:

 

Address
for Notice to Purchaser:

 

 

 

Address
for Delivery of Shares to Purchaser (if not same as address for notice):

 

DWAC

 

 

 

Subscription
Amount:

 

Shares:

 

EIN
Number:

 

[  ]
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur on the second (2nd) Trading Day following the date of this Agreement and (iii) any condition
to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company
or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be
a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such
agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

    	 	30AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT

 

This
LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into at Rochester, New York, as of June 27, 2019,
between Premier Packaging Corporation, a New York corporation, with its chief executive office located at 6 Framark Drive,
Victor, New York 14564 (the “Borrower”) and Citizens Bank, N.A., a national banking association, with an address of
833 Broadway, Albany, New York 12207 (the “Bank”).

 

FOR
VALUE RECEIVED, and in consideration of the granting by the Bank of financial accommodations to or for the benefit of the Borrower,
including without limitation respecting the Obligations (as hereinafter defined), the Borrower represents to and agrees with the
Bank as follows:

 

1.
THE LOAN

 

1.1
Term Loan. Subject to the terms and conditions of this Agreement, the Bank hereby agrees to make a loan to Borrower in
the original principal amount of $1,156,741.69 (the “Loan”). The Loan shall be evidenced by that certain Consolidated
Term Note, of even date herewith (the “Note”) made by Borrower in favor of the Bank in the original principal amount
of $1,156,741.69. Any payment or other amounts received by the Bank on account of any Obligations (as hereinafter defined),
whether before or after the maturity date of the Note, whether as scheduled or as accelerated in accordance with the terms of
the Loan Documents or applicable law, shall be applied in such order of priority as the Bank may elect. This Agreement, the Note,
all agreements, documents and instruments related to Bank Product Obligations and all Hedging Contracts (each as hereinafter defined),
and any and all other documents, amendments or renewals executed and delivered in connection with any of the foregoing, if any,
are collectively hereinafter referred to as the “Loan Documents.” For the avoidance of doubt, each Loan Document or
other agreement or instrument referred to herein or in any other Loan Document means such agreement or instrument as amended,
modified and supplemented from time to time.

 

1.2
Interest. Interest respecting the Loan will be charged to Borrower on the principal amount from time to time outstanding
at the applicable interest rates specified in the Note, and Borrower agrees to pay such interest, as well as all other amounts
coming due under the Loan Documents, in accordance with the terms of this Agreement, the Note and the other Loan Documents.

 

1.3
Repayment. The Loan shall be payable to Bank on or before the maturity date of the Note. Any payment or other amounts received
by the Bank on account of any Obligations (as hereinafter defined), whether before or after the maturity date of the Note, whether
as scheduled or as accelerated in accordance with the terms of the Loan Documents or applicable law, shall be applied in such
order of priority as the Bank may elect.

 

2.
GRANT OF SECURITY INTEREST

 

2.1
Grant of Security Interest. The Borrower
hereby grants to the Bank (for its own account and as agent on behalf of each Bank Affiliate to the extent an Obligation is owed
to such Bank Affiliate at any time) a security interest in, a lien on and pledge and assignment of the Collateral. The security
interest granted by this Agreement is given to and shall be held by the Bank as security for the payment and performance of all
Obligations, including, without limitation, all amounts outstanding pursuant to the Loan Documents.

 

    	 

    	 

    

 

2.2
Definitions. The following definitions
shall apply:

 

	 	(a)	“Bank
    Affiliate” shall mean any “Affiliate” of the Bank and “Affiliate” shall mean with respect to
    any person, (a) any person which, directly or indirectly through one or more intermediaries controls, or is controlled by,
    or is under common control with, such person, or (b) any person who is a director or officer (i) of such person, (ii) of any
    subsidiary of such person, or (iii) any person described in clause (a) above. For purposes of this definition, control of
    a person shall mean the power, direct or indirect, (x) to vote 5% or more of the Capital Stock having ordinary voting power
    for the election of directors (or comparable equivalent) of such person, or (y) to direct or cause the direction of the management
    and policies of such person whether by contract or otherwise. Control may be by ownership, contract, or otherwise.
	 	 	 
	 	(b)	“Bank
    Product Obligation” shall mean each obligation and liability of Borrower, absolute or contingent, due or to become due,
    now existing or hereafter arising or contracted, under each agreement to which Borrower and Bank and/or any Bank Affiliate
    are parties, relating to any of the following products, services or facilities extended by Bank or any Bank Affiliate to Borrower:
    (i) cash management services; (ii) swaps, caps, floors, collars, options, forwards, cross rights or obligations, or combination
    thereof or similar transaction, with respect to interest rate, foreign exchange, currency, commodity, index, credit or equity
    risks or similar products, including, without limitation, all products, services and facilities under each Hedging Contract
    in effect from time to time (including, without limitation, all regularly occurring payment obligations thereunder and all
    amounts due upon termination thereof), (iii) letters of credit; (iv) commercial credit card and merchant card services; and
    (v) other banking products and services as may be requested by Borrower from time to time from Bank or any Bank Affiliate.
	 	 	 
	 	(c)	“Code”
    shall mean the New York Uniform Commercial Code, as amended from time to time or, in connection with any lien as to which
    the laws of another jurisdiction govern perfection or enforcement thereof, the Uniform Commercial Code of that jurisdiction.
	 	 	 
	 	(d)	“Collateral”
    shall mean all of the Borrower’s present and future right, title and interest in and to any and all of the personal
    property of the Borrower whether such property is now existing or hereafter created, acquired or arising and wherever located
    from time to time, including without limitation:

 

	 	(i)	accounts;
	 	 	 
	 	(ii)	chattel
    paper;
	 	 	 
	 	(iii)	goods;
	 	 	 
	 	(iv)	inventory;
	 	 	 
	 	(v)	equipment;
	 	 	 
	 	(vi)	fixtures;
	 	 	 
	 	(vii)	farm
    products;
	 	 	 
	 	(viii)	instruments;
	 	 	 
	 	(ix)	investment
    property;
	 	 	 
	 	(x)	documents;
	 	 	 
	 	(xi)	commercial
    tort claims;

 

    	2

    	 

    

 

	 	(xii)	deposit
    accounts;
	 	 	 
	 	(xiii)	letter-of-credit
    rights;
	 	 	 
	 	(xiv)	general
    intangibles;
	 	 	 
	 	(xv)	supporting
    obligations; and
	 	 	 
	 	(xvi)	records
    of, accession to and proceeds and products of the foregoing.

 

	 	(e)	“Debtors”
    shall mean the Borrower’s customers who are obligated to the Borrower.
	 	 	 
	 	(f)	“Hedging
    Contract” shall mean each agreement to which Borrower and Bank and/or any Bank Affiliate are parties relating to any
    swap, cap, floor, collar, option, forward, cross right or obligation, or combination thereof or similar transaction, with
    respect to interest rate, foreign exchange, currency, commodity, index, credit or equity risk.
	 	 	 
	 	(g)	“Obligation(s)”
    shall mean, without limitation, all loans, advances, indebtedness, notes, liabilities, Bank Product Obligations and amounts,
    liquidated or un-liquidated, owing by the Borrower to the Bank or any Bank Affiliate at any time, of each and every kind,
    nature and description, whether arising under this Agreement or any of the other Loan Documents or otherwise, and whether
    secured or unsecured, direct or indirect (that is, whether the same are due directly by the Borrower to the Bank or any Bank
    Affiliate, or are due indirectly by the Borrower to the Bank or any Bank Affiliate as endorser, guarantor or other surety,
    or as borrower of obligations due third persons which have been endorsed or assigned to the Bank or any Bank Affiliate, or
    otherwise), absolute or contingent, due or to become due, now existing or hereafter arising or contracted, including, without
    limitation, payment when due of all amounts outstanding from time to time under the Loan Documents. Said term shall also include
    all interest and other charges chargeable to the Borrower or due from the Borrower to the Bank or any Bank Affiliate from
    time to time and all costs and expenses referred to in this Agreement or any of the other Loan Documents.
	 	 	 
	 	(h)	“Person”
    or “party” shall mean individuals, partnerships, corporations, limited liability companies and all other entities.

 

All
words and terms used in this Agreement other than those specifically defined herein shall have the meanings accorded to them,
if any, in the Code.

 

2.3
Ordinary Course of Business. Subject to
the Bank’s rights and remedies hereunder and as provided by law or in equity, the parties agree that (a) the Borrower will
hold, process, sell, use or consume in the manufacture or processing of finished goods, or otherwise dispose of inventory for
fair consideration, all in the ordinary course of the Borrower’s business, but not, without limitation, by way, directly
or indirectly, of sales to creditors or in bulk or sales or other dispositions occurring under circumstances which would or could
create any lien or interest adverse to the Bank’s security interest in the inventory or other right hereunder in the proceeds
resulting therefrom, and (b) the Borrower may receive from the Debtors all amounts due as proceeds of the Collateral at the Borrower’s
own cost and expense, and also liability, if any; provided, however, that the Bank may at any time, without cause or notice, and
whether or not an Event of Default has occurred or DEMAND has been made, terminate all or any part of the Borrower’s rights
described in the preceding sentence or elsewhere in this Agreement in respect of the Collateral, and, without limitation, notify
Debtors to make all payments due as proceeds of the Collateral to the Bank. Until Bank shall otherwise notify Borrower, all proceeds
of and collections of Collateral shall be retained by Borrower and used solely for the ordinary and usual operation of Borrower’s
business. From and after notice by Bank to Borrower, all proceeds of and collections of the Collateral shall be held in trust
by Borrower for Bank and shall not be commingled with Borrower’s other funds or deposited in any account of Borrower at
any bank other than the Bank, and Borrower agrees to deliver to Bank on the dates of receipt thereof by Borrower, duly endorsed
to Bank or to bearer, or assigned to Bank, as may be appropriate, all proceeds of the Collateral in the identical form received
by Borrower.

 

    	3

    	 

    

 

2.4
Allowances. Absent an Event of Default
the Borrower may grant such allowances or other adjustments to Debtors (exclusive of extending the time for payment of any item
which shall not be done without first obtaining the Bank’s written consent in each instance) as the Borrower may reasonably
deem to accord with sound business practice, including, without limiting the generality of the foregoing, accepting the return
of all or any part of the inventory (subject to the provisions set forth in this Agreement with reference to returned inventory).

 

2.5
Records. The Borrower shall deliver to
the Bank from time to time promptly at the Bank’s request all invoices, original documents of title, contracts, chattel
paper, instruments and any other writings relating thereto, and other evidence of performance of contracts, or evidence of shipment
or delivery of the merchandise or of the rendering of services; and the Borrower will deliver to the Bank promptly at the Bank’s
request from time to time additional copies of any or all of such papers or writings, and such other information with respect
to any of the Collateral and such schedules of inventory, schedules of accounts and such other writings as the Bank may in its
sole discretion deem to be necessary or effectual to evidence any loan hereunder or the Bank’s security interest in the
Collateral.

 

2.6
Legends. The Borrower shall promptly make,
stamp or record such entries or legends on the Borrower’s books and records or on any of the Collateral (including, without
limitation, chattel paper) as Bank shall request from time to time, to indicate and disclose that Bank has a security interest
in such Collateral.

 

2.7
Inspection. The Bank, or its representatives,
at any time and from time to time but not to exceed more than 2 times in any calendar year provided an event of default occurred
and is continuing, shall have the right at the sole cost and expense of Borrower, and the Borrower will permit the Bank and/or
its representatives: (a) to examine, check, make copies of or extracts from any of the Borrower’s books, records and files
(including, without limitation, orders and original correspondence); (b) to perform field exams or otherwise inspect and examine
the Collateral and to check, test or appraise the same as to quality, quantity, value and condition; and (c) to verify the Collateral
or any portion or portions thereof or the Borrower’s compliance with the provisions of this Agreement.

 

2.8
Search Reports. Bank shall receive prior
to the date of this Agreement UCC search results under all names used by the Borrower during the prior five (5) years, from each
jurisdiction where any Collateral is located, from the State, if any, where the Borrower is organized and registered (as such
terms are used in the Code), and the State where the Borrower’s chief executive office is located. The search results shall
confirm that the security interest in the Collateral granted Bank hereunder is prior to all other security interests in favor
of any other person and the Borrower hereby authorizes the Bank to file UCC financings statements and any other records or writings
in each jurisdiction the Bank shall deem necessary or advisable in order to perfect and protect the security interest in the Collateral
granted to Bank hereunder.

 

3.
REPRESENTATIONS AND WARRANTIES

 

The
Borrower hereby represents and warrants to the Bank as of the date of this Agreement and, as applicable, covenants to the Bank,
that:

 

3.1
Organization and Qualification. Borrower
is a duly organized and validly existing corporation under the laws of the State of its incorporation with the exact legal name
set forth in the first paragraph of this Agreement. Borrower is in good standing under the laws of said State, has the power to
own its property and conduct its business as now conducted and as currently proposed to be conducted, and is duly qualified to
do business under the laws of each state where the nature of the business done or property owned requires such qualification.

 

    	4

    	 

    

 

3.2
Subsidiaries. Borrower has no subsidiaries
other than as specifically disclosed to the Bank in writing prior to the date this representation and warranty is deemed made
and the Borrower has never consolidated, merged or acquired substantially all of the assets of any other entity or person other
than as previously specifically disclosed to the Bank in writing prior to the date this representation and warranty is deemed
made.

 

3.3
Corporate Records. Borrower’s corporate
charter, articles or certificate of organization or incorporation and all amendments thereto, as well as Borrower’s bylaws,
operating agreement, partnership agreement and all other organizational documents, as applicable, have been duly filed and are
in proper order. All outstanding capital stock or other evidence of ownership issued by the Borrower was and is properly issued
and all books and records of the Borrower, including but not limited to its minute books, bylaws and books of account, are accurate
and up to date and will be so maintained.

 

3.4
Title to Properties; Absence of Liens.
Borrower has good and clear record and marketable title to all of its properties and assets, and all of its properties and assets
including the Collateral are free and clear of all mortgages, liens, pledges, charges, encumbrances and setoffs, other than the
security interest therein granted to the Bank and those mortgages, deeds of trust, leases of personal property and security interests
previously specifically consented to in writing by the Bank.

 

3.5
Places of Business. The location of Borrower’s
chief executive office is correctly stated in the preamble to this Agreement, and Borrower shall, during the term of this Agreement,
keep the Bank currently and accurately informed in writing of each of its other places of business, and shall not change the location
of such chief executive office or open or close, move or change any material existing or new place of business without giving
the Bank at least thirty (30) days prior written notice thereof.

 

3.6
Valid Obligations. The execution, delivery
and performance of the Loan Documents have been duly authorized by all necessary corporate action and each represents a legal,
valid and binding obligation of Borrower and is fully enforceable according to its terms, except as limited by laws relating to
the enforcement of creditors’ rights.

 

3.7
Conflicts. There is no provision in Borrower’s
organizational or charter documents, if any, or in any indenture, contract or agreement to which Borrower is a party which prohibits,
limits or restricts the execution, delivery or performance of the Loan Documents and neither the execution, delivery nor performance
of the Loan Documents constitute a default, event of default or event of similar import under any indenture, contract or agreement
to which Borrower is a party.

 

3.8
Governmental Approvals. The execution,
delivery and performance of the Loan Documents does not require any approval of or filing with any governmental agency or authority.

 

3.9
Litigation, etc. There are no actions,
claims or proceedings pending or to the knowledge of Borrower threatened against Borrower which might materially adversely affect
the ability of Borrower to conduct its business or to pay or perform the Obligations or which might adversely affect any material
portion of the Collateral or the Bank’s interest therein.

 

3.10
Accounts and Contract Rights. All accounts
arise out of legally enforceable and existing contracts, and represent unconditional and undisputed bona fide indebtedness by
a Debtor, and are not and will not be subject to any discount (except such cash or trade discount as may be shown on any invoice,
contract or other writing delivered to the Bank). No contract right, account, general intangible or chattel paper is or will be
represented by any note or other instrument, and no contract right, account or general intangible is, or will be represented by
any conditional or installment sales obligation or other chattel paper, except such instruments or chattel paper as have been
or immediately upon receipt by the Borrower will be delivered to the Bank (duly endorsed or assigned), which Borrower hereby covenants
to cause to be timely done, and such delivery, in the case of chattel paper, shall include all executed copies except those in
the possession of the installment buyer and Borrower shall cause to be delivered to the Bank immediately upon receipt thereof
by Borrower all security for and guaranties of any of the Collateral together with such assignments and endorsements thereof as
the Bank may request.

 

    	5

    	 

    

 

3.11
Title to Collateral. At the date hereof
the Borrower is (and as to Collateral that the Borrower may acquire after the date hereof, on the date of such acquisition, will
be) the lawful owner of the Collateral, and the Collateral and each item thereof is, will be and shall at all times this Agreement
remains in effect continue to be free of all restrictions, liens, encumbrances or other rights, title or interests (other than
the security interest therein granted to the Bank under the Loan Documents and the interests of each mortgagee, beneficiary, lessee
or secured party to the extent, and only to the extent, arising under a mortgage, deed of trust, lease of personal property and
security agreement, credits, defenses, recoupments, set-offs or counterclaims whatsoever. The Borrower has and will have full
power and authority to grant to the Bank a security interest in the Collateral and, the Borrower has not transferred, assigned,
sold, pledged, encumbered, subjected to lien or granted any security interest in, and will not transfer, assign, sell (except
sales or other dispositions in the ordinary course of business in respect to inventory as expressly permitted in this Agreement),
pledge, encumber, subject to lien or grant any security interest in any of the Collateral (or any of the Borrower’s right,
title or interest therein), to any person other than the Bank. The Collateral is and will be valid and genuine in all respects.
The Borrower hereby warrants and covenants to defend the Bank’s right to and interest in the Collateral against all claims
and demands of all persons whatsoever.

 

3.12
Location of Collateral. Except for sale,
processing, use, consumption or other disposition in the ordinary course of business, the Borrower will keep all inventory and
equipment only at locations specified in this Agreement or specified to the Bank in writing. The Borrower shall, during the term
of this Agreement, keep the Bank currently and accurately informed in writing of each location where the Borrower’s records
relating to its accounts and contract rights, respectively, are kept, and shall not remove such records or any of them to another
location without giving the Bank at least thirty (30) days prior written notice thereof.

 

3.13
Third Parties. The Bank shall not be deemed
to have assumed any liability or responsibility to the Borrower or any third person for the correctness, validity or genuineness
of any instruments or documents that may be released or endorsed to the Borrower by the Bank (which shall automatically be deemed
to be without recourse to the Bank in any event) or for the existence, character, quantity, quality, condition, value or delivery
of any goods purporting to be represented by any such documents; and the Bank, by accepting such security interest in the Collateral,
or by releasing any Collateral to the Borrower, shall not be deemed to have assumed any obligation or liability to any supplier
or Debtor or to any other third party, and the Borrower agrees to indemnify and defend the Bank and hold it harmless in respect
to any claim or proceeding arising out of any matter referred to in this paragraph.

 

3.14
Payment of Accounts. Each account or other
item of Collateral, other than inventory and equipment, will be paid in full on or before the date shown as its due date in the
schedule of Collateral, in the copy of the invoice(s) relating to the account or other Collateral or in contracts relating thereto.
Upon any suspension of business, assignment or trust mortgage for the benefit of creditors, dissolution, petition in receivership
or under any chapter of the Bankruptcy Code as amended from time to time by or against any Debtor, any Debtor becoming insolvent
or unable to pay its debts as they mature or any other act of the same or different nature amounting to a business failure, the
Borrower will immediately notify the Bank thereof.

 

3.15
Taxes. The Borrower has filed all Federal,
state and other tax returns required to be filed (except for such returns for which current and valid extensions have been filed),
and all taxes, assessments and other governmental charges due from the Borrower have been fully paid. The Borrower has established
on its books reserves adequate for the payment of all Federal, state and other tax liabilities (if any).

 

    	6

    	 

    

 

3.16
Use of Proceeds. The proceeds of the Loan
will not be used for personal, family or household purposes or the purpose of purchasing or carrying margin stock or margin securities
within the meaning of Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and 224.
The Collateral is not, and will not be, used or acquired primarily for personal, family or household purposes.

 

3.17
Environmental. As of the date hereof neither
the Borrower nor any of Borrower’s agents, employees or independent contractors (1) have caused or are aware of a release
or threat of release of Hazardous Materials (as defined herein) on any of the premises or personal property owned or controlled
by Borrower (“Controlled Property”) or any property abutting Controlled Property (“Abutting Property”),
which could give rise to liability under any Environmental Law (as defined herein) or any other Federal, state or local law, rule
or regulation; (2) have arranged for the transport of or transported any Hazardous Materials in a manner as to violate, or result
in potential liabilities under, any Environmental Law; (3) have received any notice, order or demand from the Environmental Protection
Agency or any other Federal, state or local agency under any Environmental Law; (4) have incurred any liability under any Environmental
Law in connection with the mismanagement, improper disposal or release of Hazardous Materials; or (5) are aware of any inspection
or investigation of any Controlled Property or Abutting Property by any Federal, state or local agency for possible violations
of any Environmental Law.

 

To
the best of Borrower’s knowledge, neither Borrower, nor any prior owner or tenant of any Controlled Property, committed
or omitted any act which caused the release of Hazardous Materials on such Controlled Property which could give rise to a lien
thereon by any Federal, state or local government. No notice or statement of claim or lien affecting any Controlled Property has
been recorded or filed in any public records by any Federal, state or local government for costs, penalties, fines or other charges
as to such property. All notices, permits, licenses or similar authorizations, if any, required to be obtained or filed in connection
with the ownership, operation, or use of the Controlled Property, including without limitation, the past or present generation,
treatment, storage, disposal or release of any Hazardous Materials into the environment, have been duly obtained or filed.

 

Borrower
agrees to indemnify and hold the Bank and each Bank Affiliate harmless from all Claims (as hereinafter defined) arising from or
in any way related to (i) any and all of its violations of any Environmental Law (including those arising from any lien by any
Federal, state or local government arising from the presence of Hazardous Materials) or (ii) the presence of Hazardous Materials
located on or emanating from any Controlled Property or Abutting Property whether existing or not existing and whether known or
unknown at the time of the execution hereof and regardless of whether or not caused by, or within the control of Borrower, including,
without limitation, any inspection, investigation, cleanup, environmental engineering or other remedial response efforts. Borrower
further agrees to reimburse Bank and each Bank Affiliate upon demand for any costs incurred by Bank in connection with the foregoing.
Borrower agrees that its obligations hereunder shall be continuous and shall survive the repayment of all Obligations and other
debts to Bank, if any, and shall continue so long as a valid claim may be lawfully asserted against the Bank or any Bank Affiliate.

 

The
term “Hazardous Materials” includes but is not limited to any and all substances (whether solid, liquid or gas) defined,
listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous
wastes, or words of similar meaning or regulatory effect under any present or future Environmental Law or that may have a negative
impact on human health or the environment, including but not limited to petroleum and petroleum products, asbestos and asbestos-containing
materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives.

 

    	7

    	 

    

 

The
term “Environmental Law” means any present and future Federal, state and local laws, statutes, ordinances, rules,
regulations and the like, as well as common law, relating to protection of human health or the environment, relating to Hazardous
Materials, relating to liability for or costs of remediation or prevention of releases of Hazardous Materials or relating to liability
for or costs of other actual or threatened danger to human health or the environment. The term “Environmental Law”
includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant
thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive
Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous
Materials Transportation Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to
underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control
Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal
Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; the River and Harbors
Appropriation Act, New York Environmental Conservation Law, Chapter 43-B of the New York Consolidated Laws.

 

4.
AFFIRMATIVE COVENANTS

 

4.1
Payments and Performance. Borrower will
duly and punctually pay all Obligations becoming due to the Bank and each Bank Affiliate and will duly and punctually perform
all Obligations on its part to be done or performed under each of the Loan Documents.

 

4.2
Books and Records; Inspection. Borrower
will at all times keep proper books of account in which full, true and correct entries will be made of its transactions in accordance
with generally accepted accounting principles, consistently applied and which are, in the opinion of a Certified Public Accountant
acceptable to Bank, adequate to determine fairly the financial condition and the results of operations of Borrower. Borrower will
at all reasonable times make its books and records available in its offices for inspection, examination and duplication by the
Bank and the Bank’s representatives and will permit inspection of the Collateral and all of its properties by the Bank and
the Bank’s representatives. Borrower will from time to time furnish the Bank with such information and statements as the
Bank may request in its sole discretion with respect to the Obligations or the Bank’s security interest in the Collateral.
Borrower shall, during the term of this Agreement, keep the Bank currently and accurately informed in writing of each location
where Borrower’s records relating to its accounts and contract rights are kept, and shall not remove such records to another
location without giving the Bank at least thirty (30) days prior written notice thereof.

 

4.3
Financial Statements. Borrower will furnish
to Bank:

 

	 	(a)	as
    soon as available to Borrower, but in any event within 120 days after the close of each fiscal year end, a full and complete
    signed copy of financial statements of Premier Packaging Corporation, reviewed by certified public accountants acceptable
    to Bank, which shall include a balance sheet of Premier Packaging Corporation, as at the end of such year, statement of cash
    flows and statement of profit and loss of Premier Packaging Corporation reflecting the results of its operations during such
    year, bearing the unqualified opinion of such certified public accountants and prepared on an annual basis in accordance with
    generally accepted accounting principles, consistently applied together with any so-called management letter;
	 	 	 
	 	(b)	as
    soon as available to Borrower, but in any event within 45 days after the close of each fiscal quarter end, a full and complete
    copy of management prepared financial statements of Premier Packaging Corporation;
	 	 	 
	 	(c)	as
    soon as available to Borrower, but in any event within 30 days after the close of each fiscal year end, management prepared
    projections of Premier Packaging Corporation;

 

    	8

    	 

    

 

	 	(d)	as
    soon as available to Borrower, but in any event within 120 days after the end of each fiscal year, an inventory listing for
    Premier Packaging Corporation;
	 	 	 
	 	(e)	as
    soon as available to Borrower, but in any event within 120 days after the end of each fiscal year, an accounts receivable
    aging report;
	 	 	 
	 	(f)	as
    soon as available to Borrower, but in any event within 120 days after the end of each fiscal year, an accounts payable aging
    report;
	 	 	 
	 	(g)	as
    soon as available to Borrower, but in any event within 120 days after the end of each fiscal year, a covenant compliance certificate
    on the bank’s form.
	 	 	 
	 	(h)	from
    time to time, such financial data and information about Borrower as Bank may reasonably request; and
	 	 	 
	 	(i)	any
    financial data and information about any guarantors of the Obligations as Bank may reasonably request.

 

4.4
Conduct of Business. The Borrower will
maintain its existence in good standing and comply with all laws and regulations of the United States and of each applicable state
thereof and of each applicable political subdivision thereof, and of any governmental authority which may be applicable to it
or to its business; provided that this covenant shall not apply to any tax, assessment or charge which is being contested in good
faith and with respect to which reserves have been established and are being maintained.

 

4.5
Notice to Account Debtors. The Borrower
agrees, promptly upon the request of the Bank, to notify all or any of the Debtors in writing of the Bank’s security interest
in the Collateral in whatever manner the Bank requests and, hereby authorizes the Bank, at the Borrower’s expense, to notify
all or any of the Debtors of the Bank’s security interest in the Borrower’s accounts and the other Collateral and,
without limiting any other right or remedy the Bank may have at any time, to direct all or any Debtors to make all payments with
respect to the accounts and the other Collateral directly to the Bank following the occurrence of an Event of Default or the Maturity
Date.

 

4.6
Contact with Accountant. The Borrower
hereby authorizes the Bank to directly contact and communicate with any accountant employed by Borrower in connection with the
review and/or maintenance of Borrower’s books and records or preparation of any financial reports delivered by or at the
request of Borrower to Bank.

 

4.7
Operating and Deposit Accounts. The Borrower
shall maintain with the Bank its primary operating and deposit accounts.. At the option of the Bank, all loan payments and fees
will automatically be debited from the Borrower’s primary operating account and all advances will automatically be credited
to the Borrower’s primary operating account.

 

4.8
Taxes. Borrower will promptly pay all
real and personal property taxes, assessments and charges and all franchise, income, unemployment, retirement benefits, withholding,
sales and other taxes assessed against it or payable by it before delinquent; provided that this covenant shall not apply to any
tax assessment or charge which is being contested in good faith and with respect to which reserves have been established and are
being maintained. The Bank may, at its option, from time to time, discharge any taxes, liens or encumbrances of any of the Collateral,
and the Borrower will pay to the Bank on demand or the Bank in its sole discretion may charge to the Borrower all amounts so paid
or incurred by it, together with interest thereon until paid at the rate set forth in the Note that applies during the continuance
of an Event of Default.

 

    	9

    	 

    

 

4.9
Maintenance. Borrower will keep and maintain
the Collateral and its other properties, if any, in good repair, working order and condition. Borrower will immediately notify
the Bank of any loss or damage to or any occurrence which would adversely affect the value of any Collateral. The Bank may, at
its option, from time to time, take any other action that the Bank may deem proper to repair, maintain or preserve any of the
Collateral, and the Borrower will pay to the Bank on demand or the Bank in its sole discretion may charge to the Borrower all
amounts so paid or incurred by it, together with interest thereon until paid at the rate set forth in the Note that applies during
the continuance of an Event of Default.

 

4.10
Insurance. Borrower will maintain in force
property and casualty insurance on all Collateral and any other property of the Borrower, if any, against risks customarily insured
against by companies engaged in businesses similar to that of the Borrower containing such terms and written by such companies
as may be satisfactory to the Bank, such insurance to be payable to the Bank as its interest may appear in the event of loss and
to name the Bank as insured pursuant to a standard loss payee clause; no loss shall be adjusted thereunder without the Bank’s
approval; and all such policies shall provide that they may not be canceled without first giving at least ten (10) days written
notice of cancellation to the Bank. In the event that the Borrower fails to provide evidence of such insurance, the Bank may,
at its option, secure such insurance and charge the cost thereof to the Borrower. At the option of the Bank, all insurance proceeds
received from any loss or damage to any of the Collateral shall be applied either to the replacement or repair thereof or as a
payment on account of the Obligations. From and after the occurrence of an Event of Default, the Bank is authorized to cancel
any insurance maintained hereunder and apply any returned or unearned premiums, all of which are hereby assigned to the Bank,
as a payment on account of the Obligations.

 

4.11
Notification of Default. Immediately upon
becoming aware of the existence of any condition or event which constitutes an Event of Default, or any condition or event which
would upon notice or lapse of time, or both, constitute an Event of Default, Borrower shall give Bank written notice thereof specifying
the nature and duration thereof and the action being or proposed to be taken with respect thereto.

 

4.12
Notification of Material Litigation. Borrower
will immediately notify the Bank in writing of any litigation or of any investigative proceedings of a governmental agency or
authority commenced or threatened against it which would or might be materially adverse to the financial condition of Borrower,
any guarantor of the Obligations or any material part of the Collateral.

 

4.13
Pension Plans. With respect to any pension
or benefit plan maintained by Borrower, or to which Borrower contributes (“Plan”), the benefits under which are guarantied,
in whole or in part, by the Pension Benefit Guaranty Corporation created by the Employee Retirement Income Security Act of 1974,
P.L. 93-406, as amended (“ERISA”) or any governmental authority succeeding to any or all of the functions of the Pension
Benefit Guaranty Corporation (“Pension Benefit Guaranty Corporation”), Borrower will (a) fund each Plan as required
by the provisions of Section 412 of the Internal Revenue Code of 1986, as amended; (b) cause each Plan to pay all benefits when
due; (c) furnish Bank (i) promptly with a copy of any notice of each Plan’s termination sent to the Pension Benefit Guaranty
Corporation (ii) no later than the date of submission to the Department of Labor or to the Internal Revenue Service, as the case
may be, a copy of any request for waiver from the funding standards or extension of the amortization periods required by Section
412 of the Internal Revenue Code of 1986, as amended and (iii) notice of any Reportable Event as such term is defined in ERISA;
and (d) subscribe to any contingent liability insurance provided by the Pension Benefit Guaranty Corporation to protect against
employer liability upon termination of a guarantied pension plan, if available to Borrower.

 

4.14
Lien Law. If any account or general intangible included in the Collateral represents money owing pursuant to any contract
for the improvement of real property or for a public improvement for purposes of the Lien Law of the State of New York (the “Lien
Law”), Borrower shall (i) give Bank notice of such fact; (ii) receive and hold any money advanced by Bank with respect to
such account or general intangible as a trust fund to be first applied to the payment of trust claims as such term is defined
in the Lien Law (Section 71 or otherwise); and (iii) until such trust claim is paid, not use or permit the use of any such money
for any purpose other than the payment of such trust claims.

 

    	10

    	 

    

 

5.
NEGATIVE COVENANTS

 

5.1
Financial Covenants. The Borrower will
not at any time or during any fiscal period (as applicable) fail to be in compliance with any of the financial covenants in this
section.

 

	 	(a)	Definitions.
    The following definitions shall apply to this Section:

 

(i)
“Capital Expenditures” (“CAPEX”) shall mean for any period, all acquisitions or machinery, equipment,
land, leaseholds, buildings, improvements and all other expenditures considered to be for fixed assets under GAAP, consistently
applied. Where an asset is acquired under a capital lease, the amount required to be capitalized shall be considered a capital
expenditure during the first year of the lease.

 

(ii)
“Current Assets” shall mean current assets as defined under GAAP.

 

(iii)
“Current Liabilities” shall mean current liabilities as defined under GAAP.

 

(iv)
“Current Maturity of Long-Term Debt” (“CMLTD”) shall mean, for any period, the current scheduled
principal or capital lease payments required to be paid during the applicable period.

 

(v)
“Distributions” shall mean all cash dividends to shareholders, and all cash distributions of Subchapter S corporations,
to partners of partnerships, to members of limited liability companies or to beneficiaries of trusts.

 

(vi)
“Earnings” shall mean earnings as defined under GAAP.

 

(vii)
“EBITDA” shall mean, for any period, Earnings from continuing operations before payment of federal, state and
local income taxes plus Interest Expense, depreciation and amortization, in each case for such period, computed and calculated
in accordance with GAAP.

 

(viii)
“GAAP” shall mean generally accepted accounting principles in effect from time to time in the United States.

 

(ix)
“Indebtedness” shall mean (x) all indebtedness for borrowed money or for the deferred purchase price of property
or services, and all obligations under leases which are or should be, under GAAP, recorded as capital leases, in respect of which
a person is directly or contingently liable as borrower, guarantor, endorser or otherwise, or in respect of which a person otherwise
assures a creditor against loss, (y) all obligations for borrowed money or for the deferred purchase price of property or services
secured by (or for which the holder has an existing right, contingent or otherwise, to be secured by) any lien upon property (including
without limitation accounts receivable and contract rights) owned by a person, whether or not such person has assumed or become
liable for the payment thereof, and (z) all other liabilities and obligations which would be classified in accordance with GAAP
as liabilities on a balance sheet or to which reference should be made in footnotes thereto.

 

(x)
“Intangible Assets” shall mean, as of the date of determination thereof, assets that in accordance with GAAP
are properly classifiable as intangible assets, including, but not limited to, goodwill, franchises, licenses, patents, trademarks,
trade names and copyrights.

 

    	11

    	 

    

 

(xi)
“Interest Expense” shall mean, for any period, ordinary, regular, recurring and continuing expenditures for
interest on all borrowed money.

 

(xii)
“Tangible Net Worth” shall mean, as of the date of determination thereof, total assets, excluding all Intangible
Assets and all obligations owed from affiliates or any employee, less total liabilities.

 

(xiii)
“Unfinanced CAPEX” shall mean, for any period, Capital Expenditures less new long-term Indebtedness issued
during such period to fund the Capital Expenditures.

 

	 	(b)	Current
    Ratio. The Borrower shall not permit the Current Assets to Current Liabilities to be less than 1.25 to 1.0, at any
    time, reported on a rolling four quarter basis.
	 	 	 
	 	(c)	Debt
    to Tangible Net Worth. The Borrower shall not permit the ratio of its Indebtedness to Tangible Net Worth to be greater
    than 3.0 to 1.0 at any time.
	 	 	 
	 	(d)	EBITDA
    (after Taxes, Distributions and Unfinanced CAPEX) to Interest Expense plus CMLTD. The Borrower shall not permit the
    ratio of its EBITDA, minus taxes paid in cash, Distributions and Unfinanced CAPEX, to Interest Expense plus CMLTD, to be less
    than 1.15 to 1.0 for any fiscal year for the 4 consecutive fiscal quarters ending at the end of each fiscal quarter.

 

5.2
Limitations on Indebtedness. Borrower
shall not incur any indebtedness or create, assume, guarantee, become contingently liable for, or suffer to exist indebtedness
in addition to indebtedness to the Bank, except (i) indebtedness or liabilities of Borrower directly connected with the liens
and security interests approved by the Bank in accordance with Section 3.4, and (ii) indebtedness or liabilities other than for
money borrowed, that are unsecured and incurred or arise in the ordinary course of Borrower’s business.

 

5.3
[Intentionally Omitted.]

 

5.4
Loans or Advances. The Borrower shall
not make any loans or advances or distributions or pay dividends in excess of $400,000 annually to any individual, partnership,
corporation, limited liability corporation, trust, or other organization or person, including without limitation its officers
and employees; provided, however, that Borrower may make advances to its employees, including its officers, with respect to expenses
incurred by such employees in the ordinary course of business which expenses are reimbursable by Borrower, and provided further,
however, that Borrower may extend credit in the ordinary course of business in accordance with customary trade practices.

 

5.5
Dividends and Distributions. Borrower
shall not, without prior written consent of the Bank, pay any dividends on or make any distribution on account of any class of
Borrower’s capital stock in cash or in property (other than additional shares of such stock), or redeem, purchase or otherwise
acquire, directly or indirectly, any of such stock, except, so long as Borrower is not in default hereunder, if Borrower is a
Subchapter S corporation, under the regulations of the Internal Revenue Service of the United States, distributions to the stockholders
of Borrower in such amounts as are necessary to pay the tax liability of such stockholders due as a result of such stockholders’
interest in the Borrower.

 

5.6
Investments. The Borrower shall not make
investments in, or advances to, any individual, partnership, corporation, limited liability company, trust or other organization
or person other than as previously specifically consented to in writing by the Bank. The Borrower will not purchase or otherwise
invest in or hold securities, non-operating real estate or other non-operating assets or purchase all or substantially all the
assets of any entity other than as previously specifically consented to in writing by the Bank.

 

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5.7
Merger. Borrower shall not merge or consolidate
or be merged or consolidated with or into any other entity.

 

5.8
Capital Expenditures. The Borrower shall
not, directly or indirectly, make or commit to make capital expenditures by lease, purchase, or otherwise, except in the ordinary
and usual course of its business for the purpose of replacing machinery, equipment or other personal property which, as a consequence
of wear, duplication or obsolescence, is no longer used or necessary in the Borrower’s business.

 

5.9
Sale of Assets. Borrower shall not sell,
lease or otherwise dispose of any of its assets, except inventory in the ordinary and usual course of business and except for
machinery, equipment or other personal property which, as a consequence of wear, duplication or obsolescence, is no longer used
or necessary in the Borrower’s business, provided that fair consideration is received therefor; provided, however, in no
event shall the Borrower sell, lease or otherwise dispose of any equipment purchased with the proceeds of any loans, including
with limitation the Loan, made by the Bank.

 

5.10
Restriction on Liens. Borrower shall not
grant any security interest in, or mortgage of, any of its properties or assets including the Collateral. Borrower shall not enter
into any agreement with any person other than the Bank that prohibits the Borrower from granting any security interest in, or
mortgage of, any of its properties or assets including the Collateral.

 

5.11
Other Business. Borrower shall not engage
in any business other than the business in which it is currently engaged or a business reasonably allied thereto.

 

5.12
Change of Name, etc. Borrower shall not
change its legal name or the State or the type of its organization, without giving the Bank at least 30 days prior written notice
thereof.

 

6.
DEFAULT

 

6.1
Default. “Event of Default”
shall mean the occurrence of one or more of any of the following events after the expiration of all applicable notice and cure
periods:

 

	 	(a)	default
    or breach of any liability, obligation, covenant or undertaking to Bank or any Bank Affiliate of the Borrower or any guarantor
    of the Obligations, hereunder or otherwise, including, without limitation, failure to pay in full and when due any installment
    of principal or interest, regularly scheduled or termination payments under Hedging Contracts or any other amount or default
    or breach of the Borrower or any guarantor of the Obligations under any other Loan Document or any other agreement with the
    Bank or Bank Affiliate;
	 	 	 
	 	(b)	failure
    of the Borrower or any guarantor of the Obligations to maintain aggregate collateral security value satisfactory to the Bank;
	 	 	 
	 	(c)	default
    or breach of any material liability, obligation or undertaking of the Borrower or any guarantor of the Obligations to any
    person other than the Bank or any Bank Affiliate;
	 	 	 
	 	(d)	if
    any statement, representation or warranty heretofore, now or hereafter made by the Borrower or any guarantor of the Obligations
    in connection with any of the Loan Documents or any other agreement, document or instrument related to the Obligations, or
    in any supporting financial statement of the Borrower or any guarantor of the Obligations shall be determined by the Bank
    to have been false or misleading in any material respect when made;
	 	 	 
	 	(e)	if
    the Borrower or any guarantor of the Obligations is a corporation, trust, partnership or limited liability company, the liquidation,
    termination or dissolution of any such organization, or the merger or consolidation of such organization with or into another
    entity, or its ceasing to carry on actively its present business or the appointment of a receiver for its property, or, without
    the prior written consent of the Bank, the sale or transfer of ownership of any interest in the Borrower;

 

    	13

    	 

    

 

	 	(f)	the
    death of the Borrower or any guarantor of the Obligations and, if the Borrower or any guarantor of the Obligations is a partnership
    or limited liability company, the death of any partner or member;
	 	 	 
	 	(g)	the
    institution by or against the Borrower or any guarantor of the Obligations of any proceedings under the Bankruptcy Code 11
    USC §101 et seq. or any other insolvency, debtor relief or debt adjustment law or any other law in which the Borrower
    or any guarantor of the Obligations is alleged to be insolvent or unable to pay its debts as they mature, or the making by
    the Borrower or any guarantor of the Obligations of an assignment for the benefit of creditors or the granting by the Borrower
    or any guarantor of the Obligations of a trust mortgage for the benefit of creditors;
	 	 	 
	 	(h)	the
    service upon the Bank of a writ in which the Bank is named as trustee of the Borrower or any guarantor of the Obligations;
	 	 	 
	 	(i)	a
    judgment or judgments for the payment of money shall be rendered against the Borrower or any guarantor of the Obligations,
    and any such judgment shall remain unsatisfied and in effect for any period of thirty (30) consecutive days without a stay
    of execution;
	 	 	 
	 	(j)	any
    levy, lien (including mechanics lien), seizure, attachment, execution or similar process shall be issued or levied on any
    of the property of the Borrower or any guarantor of the Obligations;
	 	 	 
	 	(k)	the
    termination or revocation of any guaranty of the Obligations; or
	 	 	 
	 	(l)	the
    occurrence of such a change in the condition or affairs (financial or otherwise) of the Borrower or any guarantor of the Obligations,
    or the occurrence of any other event or circumstance, such that the Bank, in its sole discretion, deems that it is insecure
    or that the prospects for timely or full payment or performance of any obligation of the Borrower or any guarantor of the
    Obligations to the Bank has been or may be impaired.

 

6.2
Acceleration. If an Event of Default shall
occur, at the election of the Bank, all Obligations shall become immediately due and payable without notice or demand, except
with respect to Obligations payable on DEMAND, which shall be due and payable on DEMAND, whether or not an Event of Default has
occurred.

 

The
Bank is hereby authorized, at its election, after an Event of Default or after DEMAND, without any further demand or notice except
to such extent as notice may be required by applicable law, to take possession and/or sell or otherwise dispose of all or any
of the Collateral at public or private sale; and the Bank may also exercise any and all other rights and remedies of a secured
party under the Code or which are otherwise accorded to it in equity or at law, all as Bank may determine, and such exercise of
rights in compliance with the requirements of law will not be considered adversely to affect the commercial reasonableness of
any sale or other disposition of the Collateral. If notice of a sale or other action by the Bank is required by applicable law,
unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized
market, the Borrower agrees that ten (10) days written notice to the Borrower, or the shortest period of written notice permitted
by such law, whichever is smaller, shall be sufficient notice; and, unless prohibited by applicable law, the Bank, its officers,
attorneys and agents may bid and become purchasers at any such sale, if public, and may purchase at any private sale any of the
Collateral that is of a type customarily sold on a recognized market or which is the subject of widely distributed standard price
quotations. Any sale (public or private) shall be without warranty and free from any right of redemption, which the Borrower hereby
waives and releases effective, without any further action whatsoever, immediately upon the occurrence of an Event of Default,
and may be free of any warranties as to the Collateral if Bank shall so decide. No purchaser at any sale (public or private) shall
be responsible for the application of the purchase money. Any balance of the net proceeds of sale remaining after paying all Obligations
shall be returned to such party as may be legally entitled thereto; and if there is a deficiency, the Borrower shall be responsible
for repayment of the same to the Bank, each applicable Bank Affiliate and other party legally entitled thereto, with interest
at the rate set forth in the Note that applies during the continuance of an Event of Default. Upon demand by the Bank, the Borrower
shall assemble the Collateral and make it available to the Bank at a place designated by the Bank which is reasonably convenient
to the Bank and the Borrower. The Borrower hereby acknowledges that the Bank has extended credit and other financial accommodations
to the Borrower upon reliance of the Borrower’s granting the Bank the rights and remedies contained in this Agreement and
the other Loan Documents including without limitation the right to take immediate possession of the Collateral upon the occurrence
of an Event of Default or after DEMAND with respect to Obligations payable on DEMAND and the Borrower hereby acknowledges that
the Bank is entitled to equitable and injunctive relief to enforce any of its rights and remedies hereunder or under the Code
and the Borrower hereby waives any defense to such equitable or injunctive relief based upon any allegation of the absence of
irreparable harm to the Bank.

 

    	14

    	 

    

 

All
amounts received by the Bank in respect of the Obligations, whether from Borrower, any guarantor of the Obligations, any endorser
of the Note or any other person, or from any disposition of any of the Collateral, or otherwise, shall be applied by the Bank
in such order of priority as the Bank may elect, including, without limitation, if the Bank so elects, in the following order:

 

First,
to pay all outstanding fees, expenses and costs of the Bank under the Loan Documents;

 

Second,
to pay, pro rata, interest on the Note and scheduled payments under all Hedging Contracts, if any;

 

Third,
to pay, pro rata, principal outstanding on the Note and all amounts due in accordance with the terms of the Hedging Contracts
upon the termination thereof;

 

Fourth,
to pay any other Obligations; and

 

Last,
the balance, if any, to the Borrower or as otherwise required by law.

 

The
Bank shall not be required to marshal any present or future security for (including but not limited to this Agreement and the
Collateral subject to the security interest created hereby), or guarantees of, the Obligations or any of them, or to resort to
such security or guarantees in any particular order; and all of its rights hereunder and in respect of such securities and guaranties
shall be cumulative and in addition to all other rights, however existing or arising. To the extent that it lawfully may do so,
the Borrower hereby agrees that it will not invoke and irrevocably waives the benefits of any law relating to the marshaling of
collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Agreement or under any other
instrument evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations
is secured or guaranteed. Except as required by applicable law, the Bank shall have no duty as to the collection or protection
of the Collateral or any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation
of any rights pertaining thereto beyond the safe custody thereof.

 

    	15

    	 

    

 

6.3
Power of Attorney. The Borrower hereby
irrevocably constitutes and appoints the Bank as the Borrower’s true and lawful attorney, with full power of substitution,
at the sole cost and expense of the Borrower but for the sole benefit of the Bank, upon the occurrence of an Event of Default
or after DEMAND with respect to Obligations payable on DEMAND, to convert the Collateral into cash, including, without limitation,
completing the manufacture or processing of work in process, and the sale (either public or private) of all or any portion or
portions of the inventory and other Collateral; to enforce collection of the Collateral, either in its own name or in the name
of the Borrower, including, without limitation, executing releases or waivers, compromising or settling with any Debtors and prosecuting,
defending, compromising or releasing any action relating to the Collateral; to receive, open and dispose of all mail addressed
to the Borrower and to take therefrom any remittances or proceeds of Collateral in which the Bank has a security interest; to
notify Post Office authorities to change the address for delivery of mail addressed to the Borrower to such address as the Bank
shall designate; to endorse the name of the Borrower in favor of the Bank upon any and all checks, drafts, money orders, notes,
acceptances or other instruments of the same or different nature; to sign and endorse the name of the Borrower on and to receive
as secured party any of the Collateral, any invoices, freight or express receipts, or bills of lading, storage receipts, warehouse
receipts, or other documents of title of the same or different nature relating to the Collateral; to sign the name of the Borrower
on any notice of the Debtors or on verification of the Collateral; and to sign, if necessary, and file or record on behalf of
the Borrower any financing or other statement in order to perfect or protect the Bank’s security interest. The Bank shall
not be obliged to do any of the acts or exercise any of the powers hereinabove authorized, but if the Bank elects to do any such
act or exercise any such power, it shall not be accountable for more than it actually receives as a result of such exercise of
power, and it shall not be responsible to the Borrower except for its own gross negligence or willful misconduct. All powers conferred
upon the Bank by this Agreement, being coupled with an interest, shall be irrevocable so long as any Obligation of the Borrower
or any guarantor or surety to the Bank shall remain unpaid or the Bank is obligated under this Agreement to extend any credit
to the Borrower.

 

6.4
Nonexclusive Remedies. All of the Bank’s
rights and remedies not only under the provisions of this Agreement but also under any other agreement or transaction shall be
cumulative and not alternative or exclusive, and may be exercised by the Bank at such time or times and in such order of preference
as the Bank in its sole discretion may determine.

 

7.
MISCELLANEOUS

 

7.1
Waivers. The Borrower waives notice of
intent to accelerate, notice of acceleration, notice of nonpayment, demand, presentment, protest or notice of protest of the Obligations,
and all other notices, consents to any renewals or extensions of time of payment thereof, and generally waives any and all suretyship
defenses and defenses in the nature thereof. No delay or omission on the part of the Bank or any Bank Affiliate in exercising
any right under any of the Loan Documents shall operate as a waiver of such right or of any other right of the Bank, nor shall
any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion.
No course of dealing and no delay or omission of the Bank or any Bank Affiliate in exercising or enforcing any of its rights,
powers, privileges, remedies, immunities or discretion under the Loan Documents or under applicable law shall constitute a waiver
thereof; and no waiver by the Bank of any Event of Default or of any DEMAND shall operate as a waiver of any other Event of Default
or any other DEMAND, or of the same Event of Default or DEMAND on any other occasion. No term or provision of any of the Loan
Documents shall be waived, altered or modified except with the prior written consent of the Bank, which consent makes explicit
reference to the term or provision in question. Except as provided in the preceding sentence, no other agreement or transaction,
of whatsoever nature, entered into between the Bank or any Bank Affiliate and the Borrower at any time (whether before, during
or after the effective date or term of this Agreement) shall be construed in any particular way as a waiver, modification or limitation
of any of the Bank’s (or any Bank Affiliate’s) rights, powers, privileges, remedies, immunities or discretion under
the Loan Documents or applicable law (nor shall anything in any Loan Document be construed as a waiver, modification or limitation
of any of rights, powers, privileges, remedies, immunities or discretion of the Bank under any such other agreement or transaction)
and all of the same may be exercised by the Bank (or Bank Affiliate) at such time or times and in such order of preference as
the Bank in its sole discretion may determine.

 

    	16

    	 

    

 

7.2
Waiver of Homestead. To the maximum extent
permitted under applicable law, the Borrower hereby waives and terminates any homestead rights and/or exemptions respecting any
of its property under the provisions of any applicable homestead laws.

 

7.3
Deposit Collateral. The Borrower hereby
grants to the Bank (for its own account and as agent on behalf of each Bank Affiliate to the extent an Obligation is owed to such
Bank Affiliate at any time) a continuing lien and security interest in any and all deposits or other sums at any time credited
by or due from the Bank or any Bank Affiliate to the Borrower and any cash, securities, instruments or other property of the Borrower
in the possession of the Bank or any Bank Affiliate, whether for safekeeping or otherwise, or in transit to or from the Bank or
any Bank Affiliate (regardless of the reason the Bank or Bank Affiliate had received the same or whether the Bank or Bank Affiliate
has conditionally released the same) as security for the full and punctual payment and performance of all of the Obligations and
such deposits and other sums may be applied or set off against the Obligations at any time, whether or not then due, whether or
not demand has been made and whether or not other collateral is then available to the Bank or any Bank Affiliate.

 

7.4
Indemnification. The Borrower shall indemnify,
defend and hold the Bank and each Bank Affiliate, as well as any assignee of the Bank as described in Section 7.9 below,
and their respective directors, officers, employees, agents and attorneys (each an “Indemnitee”) harmless of and from
all claims, losses, liabilities (including negligence, tort and strict liability), damages, demands, judgments, settlements, suits,
and all legal proceedings and any and all costs and expenses in connection therewith (including reasonable attorneys’ fees
and expenses) (to the extent applicable given the circumstances, each a “Claim”) that in any way relate to or arise
out of this Agreement or any of the other Loan Documents, the Obligations, the Collateral, or the Indemnitee’s relationship
with the Borrower or any guarantor or endorser of the Obligations (each of which may be defended, compromised, settled or pursued
by the Indemnitee with counsel of the Bank’s election, but at the expense of the Borrower); provided, however that, notwithstanding
the foregoing, the Borrower shall have no obligation hereunder to indemnify, defend or hold harmless any Indemnitee for any Claim
to the extent the Claim is determined by a final, nonappealable judgment by a court of competent jurisdiction to have resulted
directly and proximately from the actual, but not imputed, gross negligence or willful misconduct of the Indemnitee. Notwithstanding
anything to the contrary in this Agreement or any other Loan Document, the provisions of this Section 7.4 shall survive
payment of the Obligations, and/or any termination or ineffectiveness of this Agreement, or any release or discharge related to
the Obligations or this Agreement executed by the Bank (or the assignee) in favor of the Borrower.

 

7.5
Costs and Expenses. The Borrower shall
pay to the Bank on demand any and all costs and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements, court costs, litigation and other expenses) incurred or paid by the Bank in establishing, maintaining, protecting
or enforcing any of the Bank’s rights or the Obligations, including, without limitation, any and all such costs and expenses
incurred or paid by the Bank in defending the Bank’s security interest in, title or right to the Collateral or in collecting
or attempting to collect or enforcing or attempting to enforce payment of the Obligations, including in connection with post-judgment
collection efforts, if any.

 

7.6
Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be an original, but all of which shall constitute but one agreement.

 

7.7
Severability. If any provision of this
Agreement or portion of such provision or the application thereof to any person or circumstance shall to any extent be held invalid
or unenforceable, the remainder of this Agreement (or the remainder of such provision) and the application thereof to other persons
or circumstances shall not be affected thereby.

 

7.8
Complete Agreement. This Agreement and
the other Loan Documents constitute the entire agreement and understanding between and among the parties hereto relating to the
subject matter hereof, and supersedes all prior proposals, negotiations, agreements and understandings among the parties hereto
with respect to such subject matter.

 

    	17

    	 

    

 

7.9
Binding Effect of Agreement. This Agreement
shall be binding upon and inure to the benefit of the respective heirs, executors, administrators, legal representatives, successors
and assigns of the parties hereto, and shall remain in full force and effect (and the Bank shall be entitled to rely thereon)
until released in writing by the Bank. The Bank may transfer and assign any or all of its rights and obligations under this Agreement
and/or any of the other Loan Documents and deliver all of any part of the Collateral to one more assignees, who shall, respectively,
thereupon have all of such transferred and assigned rights and obligations of the Bank; and the Bank shall then be relieved and
discharged of any responsibility or liability with respect to the transferred and assigned obligations. The Borrower may not assign
or transfer any of its rights or obligations under this Agreement. Except as expressly provided herein or in the other Loan Documents,
nothing, expressed or implied, is intended to confer upon any person, other than the parties hereto, any rights, remedies, obligations
or liabilities under or by reason of this Agreement or the other Loan Documents.

 

7.10
Further Assurances. Borrower will from
time to time execute and deliver to Bank such documents, and take or cause to be taken, all such other or further action, as Bank
may request in order to effect and confirm or vest more securely in Bank all rights contemplated by this Agreement and the other
Loan Documents (including, without limitation, to correct clerical errors) or to vest more fully in or assure to the Bank the
security interest in the Collateral granted to the Bank by this Agreement or any other Loan Document or to comply with applicable
statute or law and to facilitate the collection of the Collateral (including, without limitation, the execution of stock transfer
orders and stock powers, endorsement of promissory notes and instruments and notifications to obligors on the Collateral). Borrower
authorizes the Bank to file financing statements, continuation statements or amendments without the signature of Borrower thereon,
and any such financing statements, continuation statements or amendments may be filed at any time in any jurisdiction. Bank may
at any time and from time to time file financing statements, continuation statements and amendments thereto which contain any
information required by the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement
or amendment, including whether Borrower is an organization, the type of organization and any organization identification number
issued to Borrower. Borrower agrees to furnish any such information to Bank promptly upon request. In addition, Borrower shall
at any time and from time to time take such steps as Bank may reasonably request for Bank (i) to obtain an acknowledgment, in
form and substance satisfactory to Bank, of any bailee having possession of any of the Collateral that the bailee holds such Collateral
for Bank, (ii) to obtain “control” (as defined in the Code) of any Collateral comprised of deposit accounts, electronic
chattel paper, letter of credit rights or investment property, with any agreements establishing control to be in form and substance
satisfactory to Bank, and (iii) otherwise to insure the continued perfection and priority of Bank’s security interest in
any of the Collateral and the preservation of its rights therein. Borrower hereby constitutes Bank its attorney-in-fact to execute,
if necessary, and file all filings required or so requested for the foregoing purposes, all acts of such attorney being hereby
ratified and confirmed; and such power, being coupled with an interest, shall be irrevocable until this Agreement terminates in
accordance with its terms, all Obligations are irrevocably paid in full and the Collateral is released.

 

7.11
Amendments and Waivers. This Agreement
may be amended and Borrower may take any action herein prohibited, or omit to perform any act herein required to be performed
by it, only if Borrower shall obtain the Bank’s prior, express written consent to each such amendment, action or omission
to act. No course of dealing and no delay or omission on the part of Bank in exercising any right hereunder shall operate as a
waiver of such right or any other right and waiver on any one or more occasions shall not be construed as a bar to or waiver of
any right or remedy of Bank on any future occasion.

 

7.12
Terms of Agreement. This Agreement shall
continue in full force and effect so long as any Obligations or obligation of Borrower to Bank shall be outstanding, or the Bank
shall have any obligation to extend any financial accommodation hereunder, and is supplementary to each and every other agreement
between Borrower and Bank and shall not be so construed as to limit or otherwise derogate from any of the rights or remedies of
Bank or any of the liabilities, obligations or undertakings of Borrower under any such agreement, nor shall any contemporaneous
or subsequent agreement between Borrower and the Bank be construed to limit or otherwise derogate from any of the rights or remedies
of Bank or any of the liabilities, obligations or undertakings of Borrower hereunder, unless such other agreement specifically
refers to this Agreement and expressly so provides.

 

    	18

    	 

    

 

7.13
Notices. Any notice under or pursuant
to the Loan Documents shall be a signed writing or other authenticated record (within the meaning of Article 9 of the Code). Any
notices under or pursuant to the Loan Documents shall be deemed duly received and effective if delivered in hand to any officer
or agent of the Borrower or Bank, or three (3) Business Days (meaning any day that is neither a Saturday, Sunday nor legal holiday
on which the Bank is authorized or required to be closed at the address set forth above) after mailing if mailed by registered
or certified mail, return receipt requested, addressed to the Borrower or Bank at the address set forth in this Agreement or such
other address as either party may from time to time designate by written notice to the other party.

 

7.14
Governing Law. This Agreement and, unless
provided to the contrary therein, the other Loan Documents shall be governed by federal law applicable to the Bank and, to the
extent not preempted by federal law, the laws of the State of New York.

 

7.15
Reproductions. This Agreement and the
other Loan Documents, as well as all other documents which have been or may be hereinafter furnished by Borrower to the Bank may
be reproduced by the Bank by any photographic, photostatic, microfilm, xerographic or similar process, and any such reproduction
shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original
is in existence and whether or not such reproduction was made in the regular course of business).

 

7.16
Multiple Borrowers. If more than one person
constitutes the Borrower, all of the Obligations shall be joint and several as among each and of such persons; provided, however,
the release by the Bank of any one such person shall not release any other person obligated on account of the Obligations, or
any of them. Any and all present and future debts of any one such person to any other such person constituting the Borrower are
hereby subordinated to the full payment and performance of all Obligations. Each reference in the Loan Documents to the Borrower
shall be deemed to refer to each such person constituting the Borrower individually and also to all such persons jointly. No person
liable for any Obligation may seek contribution from any other person also liable, unless and until all Obligations to the Bank
of the person from whom contribution is sought have been irrevocably and indefeasibly satisfied in full. The release or compromise
by the Bank of any Collateral shall not release any person liable for any of the Obligations.

 

7.17
Jurisdiction and Venue. Borrower irrevocably
submits to the nonexclusive jurisdiction of any Federal or state court sitting in New York, over any suit, action or proceeding
arising out of or relating to the Obligations, the Collateral or any of the Loan Documents. Borrower irrevocably waives, to the
fullest extent it may effectively do so under applicable law, any objection it may now or hereafter have to the laying of the
venue of any such suit, action or proceeding brought in any such court and any claim that the same has been brought in an inconvenient
forum. Borrower hereby consents to any and all process which may be served in any such suit, action or proceeding, (i) by mailing
a copy thereof by registered and certified mail, postage prepaid, return receipt requested, to the Borrower’s address shown
in this Agreement or as notified to the Bank and (ii) by serving the same upon the Borrower in any other manner otherwise permitted
by law, and agrees that such service shall in every respect be deemed effective service upon Borrower.

 

7.18
JURY WAIVER. THE BORROWER AND BANK
EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE ANY AND
ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THE LOAN DOCUMENTS, THE OBLIGATIONS, THE COLLATERAL
AND ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE ANY
SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER CERTIFIES THAT NEITHER
THE BANK NOR ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN
THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

[Signature
Page Follows]

 

    	19

    	 

    

 

Executed
as an instrument under seal as of _____________, 2019.

 

	 	Borrower:
	 	 	 
	 	Premier Packaging Corporation
	 	 	 
	 	By:	 
	 	 	Frank
    D. Heuszel, CEO

 

Accepted:
Citizens Bank, N.A., a national banking association

 

	By:	 	 
	Name:	Douglas
    Dandurand	 
	Title:	Vice
    President	 

 

[Signature
Page to LOAN AGREEMENT]

 

    	20

    	 

    

 

DISCLOSURE
SCHEDULE

 

to

 

Loan
and Security Agreement (see Section 3.4)

dated
as of June 27, 2019

 

None.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]