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SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as
of October 6, 2017, between Good Gaming, Inc., a Nevada corporation (the “Company”), and RedDiamond Partners LLC,
a limited liability company formed under the laws of Delaware (the “Purchaser”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506(b) promulgated thereunder, the Company desires to issue and sell to
the Purchaser, and the Purchaser desires to purchase from the Company, convertible preferred stock of the Company designated as
Series D Preferred Stock and
as more fully described in this Agreement;

 

WHEREAS,
the Board of Directors of the Company has approved the creation and authorization of the Series
D Preferred Stock;

 

WHEREAS,
pursuant to the Certificate of Designations, the Company shall issue to the Purchaser certain number of shares of the Series D
Preferred Stock (the “Preferred Shares”) in accordance with 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: (a) capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Certificate of Designations (as defined herein), and (b) 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 4.6.

 

“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.

 

    	 

    	 

    

 

“Certificate
of Designations” means that certain Certificate of Designations, Preferences
and Rights of the Series D Convertible Preferred Stock of the Company.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchaser’s obligations to pay the
applicable Purchase Price as to such Closing and (ii) the Company’s obligations to deliver the Securities as to such Closing,
in each case, have been satisfied or waived.

 

“Closing”
means one or more closings of the purchase and sale of the Securities pursuant to Section 2.2.

 

“Closing
Statement” means the Closing Statement in the form on Annex A attached hereto.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.001
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 Sichenzia Ross Ference Kesner
LLP.

 

“Redemption
Price” shall have the meaning ascribed to such term in the Certificate of Designations.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

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

 

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

 

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“Exempt
Issuance” means the issuance of (a) shares
of Common Stock or options to employees, officers, directors, advisors or independent contractors of the Company pursuant to any
stock or option plan duly adopted for such purpose, (b) shares of Common Stock, warrants or options to advisors or independent
contractors of the Company for compensatory purposes, (c) securities upon the exchange of or redemption of any Securities issued
hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the date of filing of the Certificate of Designations with the Secretary of State of the State of Nevada, provided that the
Certificate of Designations has not been amended since such date to increase the authorized number of such securities or to decrease
the redemption price or exchange price of such securities, (d) securities issuable pursuant to any contractual anti-dilution obligations
of the Company in effect as of the date of filing of the Certificate of Designations with the Secretary of State of the State
of Nevada, provided that such obligations have not been materially amended since such date, and (e) securities issued pursuant
to acquisitions or any other strategic transactions approved by the Board of Directors, provided that any such issuance 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.

 

“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(jj).

 

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

 

“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(m).

 

“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.

 

“Preferred
Shares” means the shares of Series D Convertible
Preferred Stock issued to the Purchaser.

 

“Preferred
Stock Certificate” means one or more certificates representing Preferred Shares issued to the Purchaser at a Closing.

 

“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.

 

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

 

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

 

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

 

“Purchase
Price” shall mean the respective actual amounts of funds the Purchaser will transfer to the Company at each Closing.

 

“Registrable
Securities” means all Underlying Shares and any other shares of Common Stock issuable under the Certificate of Designations.

 

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

 

“Maximum
Convertible Amount” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially
issuable or convertible in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon the
conversion in full of all Preferred Shares or all, respectively, (including Underlying Shares issuable as payment of dividends,
late-charges, make-whole amounts, and any other amounts described in the Certificate of Designations).

 

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

 

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

 

“Securities”
means the Preferred Shares and the Underlying Shares.

 

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

 

“Series
D Preferred Stock” means the Series D Convertible Preferred Stock, par value $0.001
per share, of the Company that can be issued pursuant to the Certificate of Designations.

 

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

 

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

 

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“Stated
Value” means the face value of the Series D Preferred Stock, based on which the number of shares of common stock of the
Company will be calculated together with the conversion price.

 

“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 Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market; the New York Stock Exchange;
the NYSE MKT, any level of the OTC Markets operated by OTC Markets Group, Inc. or the OTC Bulletin Board (or any successors to
any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Certificate of Designations, the legal opinion of Company Counsel, the Transfer Agent
Instruction Letter, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

 

“Transfer
Agent” means Action Stock Transfer Corporation,
the current transfer agent of the Company, with a mailing address of 2469 E. Fort Union Blvd., Suite 214, Salt Lake City, UT 84121
and a telephone number of 801-274-1088, and any successor transfer agent of the Company.

 

“Transfer
Agent Instruction Letter” means the letter from the Company to the Transfer Agent which instructs the Transfer Agent to
issue Underlying Shares pursuant to the Transaction Documents, in the form of Exhibit A attached hereto.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Preferred Shares (including, without
limitation, any shares of Common Stock issuable as payment of dividends, late-charges, make-whole amounts, and any other amounts
described in the Certificate of Designations) and issued and issuable in lieu of the cash payment of dividends on the Preferred
Shares in accordance with the terms of the Certificate of Designations.

 

ARTICLE
II.

PURCHASE
AND SALE; EXCHANGE

 

2.1
Purchase. The Purchaser agrees to purchase from the Company and the Company agrees to sell to the Purchaser an aggregate
of $250,000 of Preferred Shares at a purchase price equal to ninety-five percent (95%) of the Stated Value per share. The purchase
and sale of the Preferred Shares shall occur in multiple Closings and, at each Closing, the Purchaser shall purchase no less than
$35,000 of Preferred Shares, provided, however, that the Purchaser shall have the right, but not the obligation, to purchase,
at its sole discretion any amount greater than $35,000 of Preferred Shares until the Purchaser has purchased an aggregate of $250,000
of Preferred Shares hereunder. The Purchaser shall not be required
to purchase additional shares of Preferred Share subsequent to any Closing if (a) the Company,
its Subsidiaries, or any of the directors or officers of the Company or its Subsidiaries commit fraud; (b) the Company or its
Subsidiaries breach any covenant contained herein or in the other Transaction Documents; or (c) a Triggering Event (as
defined in the Certificate of Designations) occurs on or before any Closing Day unless the Company cures such Triggering Event
within the applicable period set forth in the Certificate of Designations.

 

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2.2
Closings. On each Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell
and the Purchaser agrees to purchase a minimum of $35,000 of Preferred Shares and up to $250,000 of Preferred Shares in aggregate
among all Closings hereunder. At each Closing, (i) the Purchaser shall deliver to the Company, via wire transfer to an account
designated by the Company, immediately available funds equal to the Purchase Price, which, for such respective Closing, shall
be equal to the number of Preferred Shares to be purchased and sold multiplied by ninety-five percent (95%) of the Stated Value
per share; (ii) the Company shall deliver to the Purchaser its respective Preferred Stock Certificate representing the Preferred
Shares purchased and sold at such Closing; and (iii) the Company and the Purchaser shall deliver all other items set forth in
Section 2.3. Upon satisfaction of the covenants and conditions set forth in Sections 2.3 and 2.4 for each Closing, each Closing
shall occur at the offices of Sichenzia Ross Ference Kesner LLP or such other location as the parties shall mutually agree, and
may by agreement be undertaken remotely by electronic exchange of Closing documentation. Substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company and the Purchaser shall conduct a Closing at which the Purchaser
shall purchase and the Company shall sell $35,000 of Preferred Shares (the “First Closing”). Subsequent to the First
Closing, the Company and the Purchaser shall conduct additional Closings on each monthly anniversary following the date of the
First Closing until the Purchaser has purchased and the Company has sold an aggregate of $250,000 of Preferred Shares hereunder.
For the avoidance of doubt, the final Closing pursuant to which the Purchaser’s aggregate Preferred Shares purchased would
be equal to $250,000 of Preferred Shares, the amount of Preferred Shares purchased and sold at such final Closing may be less
than $35,000. At the sole discretion of the Purchaser, the Purchaser shall have the option to accelerate the date of any and all
additional Closings by providing the Company notice of such intent to conduct a Closing at least three (3) Trading Days prior
to the date of such accelerated Closing.

 

	2.3	Deliveries Upon Closing.

 

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

 

	 	(i)	as
    to the First Closing, this Agreement duly executed by the Company;
	 	 	 
	 	(ii)	as
    to the First Closing, a stamped copy of the Certificate of Designations that is filed with the Secretary of State of the State
    of Nevada;

 

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	 	(iii)	as
    to the First Closing, the Transfer Agent Instruction Letter duly executed by the Company and the Transfer Agent; and
	 	 	 
	 	(iv)	a
    certificate representing the requisite amount of Preferred Shares equal to the Purchaser’s Purchase Price as to the
    applicable Closing, registered in the name of the Purchaser.

 

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

 

	 	(i)	as
    to the First Closing, this Agreement duly executed by the Purchaser; and
	 	 	 
	 	(ii)	the
    Purchaser’s Purchase Price as to the applicable Closing, by wire transfer to the account specified in writing by the
    Company.

 

	2.4	Closing Conditions.

 

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

 

	 	(i)	the
    accuracy in all material respects, on the applicable 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 applicable Closing Date
    shall have been performed; and
	 	 	 
	 	(iii)	the
    delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

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

 

	 	(i)	the
    accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the
    Company contained herein (unless as of a specific date therein);
	 	 	 
	 	(ii)	all
    obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall
    have been performed;

 

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	 	(iii)	the
    delivery by the Company of the items set forth in Section 2.3(a) of this Agreement;
	 	 	 
	 	(iv)	the
    Certificate of Designations has been filed with the Secretary of State of the State of Nevada;
	 	 	 
	 	(v)	there
    is no Triggering Event (as defined in the Certificate of Designations); 
	 	 	 
	 	(vi)	there
    shall have been no Material Adverse Effect with respect to the Company since the date hereof; and
	 	 	 
	 	(vii)	from
    the date hereof to the applicable 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 applicable Closing Date, trading in securities
    generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established
    on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been
    declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or
    escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material
    adverse change in, any financial market which, in each case, in the reasonable judgment of the Purchaser, and without regard
    to any factors unique to the Purchaser, makes it impracticable or inadvisable to purchase the Preferred Stock at the applicable
    Closing.

 

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 as of the date hereof:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). 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.

 

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(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 Securities 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; (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 (except
Liens in favor of the Purchaser) 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 4.15 of this Agreement, (ii) the notice and/or application(s) to each applicable
Trading Market for the issuance and sale of the Securities and the listing of the Underlying Shares for trading thereon in the
time and manner required thereby and (iii) the filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction Documents. The Underlying Shares, when issued in accordance
with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved
under the Purchaser’s name from its duly authorized capital stock a number of shares of Common Stock for issuance of the
Underlying Shares at least equal to 300% of the Maximum Convertible Amount on the date hereof.

 

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(g)
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also
include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof.
The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, except for
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 set forth on Schedule 3.1 (g), there are no outstanding options, warrants, scrip rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible
into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock,
or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue
additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of
the Preferred Stock will not obligate the Company 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. 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 Securities. 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.

 

(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 one year preceding the date hereof (or such shorter period as the Company was required by law or regulation to
file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”). As of their respective dates, the SEC Reports complied
in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
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, except as specifically disclosed in a subsequent SEC
Report filed prior to the date hereof: (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 for the issuance of the Preferred Stock contemplated by this Agreement,
no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or
exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial
condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation
is made.

 

(j)
Litigation. Except as set forth on Schedule 3.1(j), 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 Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect, and 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 that is likely to lead to action that can reasonably be expected to result in a Material Adverse Effect.
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.

 

    	12 

    	 

    

 

(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.

 

(l)
Compliance. Except as disclosed on Schedule 3.1(1), 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)
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.

 

(n)
Title to Assets. Except as disclosed in the SEC Reports, 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.

 

    	13 

    	 

    

 

(o)
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 as described in the SEC Reports as necessary or required for use in connection with their respective
businesses as presently conducted and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). 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 one (1) year 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.

 

(p)
Transactions with Affiliates and Employees. Except as set forth on Schedule 3.1(p), 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.

 

    	14 

    	 

    

 

(q)
Sarbanes-Oxley; Internal Accounting Controls. Except as disclosed in its SEC Reports, 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 applicable 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) that have materially affected, or is reasonably likely
to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(r)
Certain Fees. Other than as set forth on Schedule 3.1(r), no brokerage or finder’s fees or commissions are or will
be payable by the Company or any Subsidiaries 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.

 

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

 

(t)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its 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.

 

    	15 

    	 

    

 

(u)
Registration Rights. Except in Schedule 3.1(u), no Person has any right to cause the Company to effect the registration
under the Securities Act of any securities of the Company or any Subsidiaries.

 

(v)
Listing and Maintenance Requirements. The class of Common Stock is registered pursuant to Section 12(b) or 12(g) of the
Exchange Act, and except as disclosed in Schedule 3.1 (v), the Company has taken no action designed to, or which to its knowledge
is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received
any notification that the Commission is contemplating terminating such registration. The Company has not, in the twelve (12) months
preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to
the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company
is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing
and maintenance requirements.

 

(w)
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 Articles 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 Securities and the Purchaser’s ownership of the Securities.

 

(x)
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 the Purchaser or their
agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The
Company understands and confirms that 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 light of the circumstances under which they were made, not misleading.
The Company acknowledges and agrees that the Purchaser does not make or has not made any representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

    	16 

    	 

    

 

(y)
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 Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would
require the registration of any such securities under the Securities Act, or (ii) any applicable stockholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated.

 

(z)
No General Solicitation. In connection with the transaction contemplated herein, neither the Company nor any person acting
on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.
The Company has offered the Securities for sale only to the Purchaser and certain other “accredited investors” within
the meaning of Rule 501 under the Securities Act.

 

(aa)
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.

 

(bb)
Accountants. The Company’s accounting firm is set forth on Schedule 3.1(bb) of the Disclosure Schedules. To the knowledge
and belief of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.

 

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

 

(dd)
Acknowledgment Regarding Purchaser’s Purchase of Securities. 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 Securities. 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 

    	 

    

 

(ee)
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 Securities, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid
to the Company’s placement agent in connection with the placement of the Securities.

 

(ff)
Reserved.

 

(gg)
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.

 

(hh)
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.

 

(ii)
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 (25%)
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

    	18 

    	 

    

 

(jj)
RESERVED.

 

(kk)
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 (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. Except as set forth on Schedule 3.1(kk),
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 know of no basis for any such claim.

 

(ll)
Seniority. As of each Closing Date, except as set forth on Schedule 3.1(ll), no Indebtedness or other claim against the
Company is senior to the Preferred Shares in right of payment, whether with respect to interest or upon liquidation or dissolution,
or otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets
covered thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

(mm)
Shell Company Status. The Company is not presently and has not been since December
31, 2015, an issuer identified as a “Shell Company” and otherwise complies with Rule 144(i).

 

(nn)
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, suit or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

3.2
Representations and Warranties of the Purchaser. The 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):

 

(a)
Organization; Authority. The 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 the 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 the Purchaser.
Each Transaction Document to which it is a party has been duly executed by the Purchaser and, when delivered by the Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of the 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)
Own Account. The Purchaser understands that the Preferred Shares are “restricted securities” and it is acquiring
the Preferred Shares as principal for its own account and not with a view to or for distributing or reselling such Securities
or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation
of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Purchaser’s
right to sell the Securities in compliance with applicable federal and state securities laws). The Purchaser is acquiring Preferred
Shares hereunder in the ordinary course of its business.

 

(c)
Purchaser Status. At the time the Purchaser was offered the applicable Securities, it was, and as of the date hereof it
is, and on each date on which it converts any Preferred Shares, it will be an “accredited investor” as defined in
Rule 501 under the Securities Act.

 

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

 

(e)
General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(f)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser
has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
the 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 the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of the 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 Securities covered by this Agreement. Other than to other Persons party to this Agreement, the Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

    	20 

    	 

    

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the 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 transaction contemplated hereby.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

	4.1	Transfer Restrictions.

 

(a)
The Preferred Stock may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Preferred Stock other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of
the Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form
and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require
registration of such Preferred Stock under the Securities Act. As a condition of transfer, any such transferee shall agree in
writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b)
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the
following form:

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(A) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	21 

    	 

    

 

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

 

(c)
Certificates evidencing the Underlying Shares. Certificates evidencing the Underlying Shares shall not contain any legend
(including the legend set forth in Section 4.1(b) hereof): (a) while a registration statement covering the resale of such security
is effective under the Securities Act; (b) following any sale of such Underlying Shares pursuant to Rule 144; (c) if such Underlying
Shares are eligible for sale under Rule 144 and such sale is contemplated at such time as certificates evidencing the Underlying
Shares are to be issued without legend; or (d) if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The
Company shall, upon request of a Purchaser and at the Company’s expense, cause Company Counsel to issue a legal opinion
to the Transfer Agent promptly after any of the events described in (a)-(d) in the preceding sentence if required by the Transfer
Agent to effect the removal of the legend hereunder (with a copy to the Purchaser and its broker). If
Underlying Shares are sold under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission), then such Underlying Shares
shall be issued free of all legends. The Company agrees that, at such time as such legend is no longer required under this Section
4.1(c), it will, no later than three (3) Trading Days following the delivery by the Purchaser to the Company or the Transfer Agent
of a certificate representing such Underlying Shares and an opinion acceptable to the Company for the availability of a resale
exemption with a restrictive legend (such third Trading Day, the “Preferred Share Legend Removal Date”), instruct
the Transfer Agent to deliver or cause to be delivered to the Purchaser a certificate representing such Shares that is free from
all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent
that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Underlying Shares subject to legend removal
hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime
broker with the Depository Trust Company System as directed by the Purchaser.

 

    	22 

    	 

    

 

(d)
In addition to the Purchaser’s other available remedies, the Company shall pay to the Purchaser, in cash, as partial liquidated
damages and not as a penalty, $500 per Trading Day for each Trading Day after the Preferred Share Legend Removal Date until such
certificate is delivered without a legend. Nothing herein shall limit the Purchaser’s right to pursue actual damages for
the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and
the Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief.

 

4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance or conversion of the Preferred Stock may result
in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The
Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation
to issue the Underlying Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right
of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders
of the Company.

 

	4.3	Furnishing of Information;
Public Information.

 

(a)
The Company covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act.

 

    	23 

    	 

    

 

(b)
At any time during the period commencing from the six (6)-month anniversary of the date hereof and ending at such time that all
of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without
restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information
requirement under Rule 144(c) (a “Public Information Failure”), then, in addition to the Purchaser’s other available
remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any
such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate
Stated Value of the Purchaser’s Preferred Stock then owned by the Purchaser on the day of a Public Information Failure and
on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of
(i) the date such Public Information Failure is cured and (ii) such time that such public information is no longer required for
the Purchaser to transfer the Underlying Shares pursuant to Rule 144. The payments to which the Purchaser shall be entitled pursuant
to this Section 4.3(b) are referred to herein as “Public Information Failure Payments.” Public Information Failure
Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured. In the event the Company fails to make Public Information Failure Payments in a timely manner, such
Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid
in full. Nothing herein shall limit the Purchaser’s right to pursue actual damages for the Public Information Failure, and
the Purchaser shall have the right to pursue all remedies available to it at law or in equity, including, without limitation,
a decree of specific performance and/or injunctive relief.

 

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

 

4.5
One-Time Redemption. At any time before the third month anniversary from the date hereof, the Company may redeem the total
outstanding Preferred Stock for an aggregate of one hundred and fifteen percent (115%) of its Stated Value and one hundred percent
(100%) of accrued and unpaid dividends of the outstanding Preferred Stock and any other amounts due pursuant to the Certificate
of Designations. The form of the Redemption Notice included in the Certificate of Designations sets forth the totality of the
procedures required of the Company in order to redeem the Preferred Shares. No additional legal opinion, other information or
instructions shall be required of the Company to redeem all of its outstanding Preferred Shares. The Purchaser shall honor redemptions
of the Preferred Stock and shall deliver the certificate representing all such Preferred Stock outstanding in accordance with
the terms, conditions and time periods set forth in the Transaction Documents.

 

4.6
Stockholder 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 Securities under the Transaction Documents or under any other agreement between the Company and the Purchaser.

 

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

 

4.8
Use of Proceeds. The Company may use the net proceeds hereunder at its sole and absolute discretion.

 

4.9
Indemnification of the Purchaser. Subject to the provisions of this Section 4.9, the Company will indemnify and hold the
Purchaser and its directors, officers, stockholders, 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
the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, stockholders, 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 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 any Purchaser Party in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company
who is not an Affiliate of the Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents
(unless such action is based upon a breach of the Purchase’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings the 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 the Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, the 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 choice that is reasonably acceptable to the Purchaser Party
being sued. 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 the 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 the 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 (x) for any settlement by a Purchaser Party effected without the
Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (y) to the extent, but only to
the extent that a loss, claim, damage or liability is attributable to any Purchaser’s breach of any of the representations,
warranties, covenants or agreements made by the Purchaser in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.9 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred. The indemnification contained herein shall be in addition to any cause
of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to under applicable laws.

 

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	4.10	Reservation and Listing
of Securities.

 

(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

(b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 300% of
the Maximum Convertible Amount on such date, then the Board of Directors shall use commercially reasonable efforts to amend the
Company’s certificate or articles of incorporation to increase the number of authorized but unissued shares of Common Stock
to at least 300% of the Maximum Convertible Amount at such time, as soon as possible and in any event not later than the seventy-fifth
(75th) day after such date.

 

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

 

4.11
Prohibition on Variable Securities. For a period of eight months from the date hereof so long as any of the Preferred Shares
are still outstanding, the Company shall not, without written consent of the Purchaser, issue any Variable Security (as defined
herein), unless (i) the Company is permitted to redeem all outstanding Preferred Shares in cash at the time of the issuance of
the respective Variable Security and (ii) the Company has the option to and does redeem all outstanding Preferred Shares, pursuant
to the terms of the Certificate of Designations, in cash at the time of the issuance of the respective Variable Security. A Variable
Security shall mean any security issued by the Company that (i) has or may have conversion rights of any kind, contingent, conditional
or otherwise in which the number of shares that may be issued pursuant to such conversion right varies with the market price of
the Company’s common stock; (ii) is or may become convertible into the Company’s common stock (including without limitation
convertible debt, warrants or convertible preferred stock), with a conversion or exercise price that varies with the market price
of the common stock, even if such security only becomes convertible or exercisable following an event of default, the passage
of time, or another trigger event or condition; or (iii) was issued or may be issued in the future in exchange for or in connection
with any contract, security, or instrument, whether convertible or not, where the number of shares of common stock issued or to
be issued is based upon or related in any way to the market price of the common stock, including, but not limited to, common stock
issued in connection with a Section 3(a)(9) exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange.
This 8 month prohibition shall be extended an additional month(s) if the Purchaser makes additional $35,000 monthly purchases
after the $250,000 is purchased. The Company shall be under no obligation to sell more than $250,000 of Series D Preferred Stock.

 

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4.12
Treatment of Obligations and Prohibition on Senior Obligations. All obligations hereunder and pursuant to the Certificate
of Designation, including those to pay dividends, fees, expenses or redemption amounts upon the occurrence of a Triggering Event
(as defined in the Certificate of Designations), and any premiums, whether or not allowed as a claim under bankruptcy or similar
laws) with respect to the Preferred Shares and other obligations, and fees and expenses in connection therewith and hereunder
(collectively, the “Obligations”), shall rank senior to any to be incurred debt, payment obligations or similar arrangement
(“Indebtedness”) in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company and the incurrence of any Indebtedness that ranks senior to the Obligations shall be prohibited
unless the Purchaser expressly consents in writing to such incurrence of Indebtedness.

 

4.13
Right of First Offer. From the date hereof
until the date that is the six (6) month anniversary of the date of the First Closing, in the event that the Company desires to
consummate a transaction with any Person with respect to a bona fide offer of capital or financing, including without limitation,
the issuance of Common Stock, Common Stock Equivalents or debt for cash consideration, Indebtedness or a combination of units
thereof (a “ROFO Financing”), then the Company shall first offer such opportunity to the Purchaser, in writing (a
“ROFO Notice”). The ROFO Notice must be sent Purchaser pursuant to Section 5.4. Such ROFO Notice shall contain the
material economic terms that the Company would, in good faith, expect to receive in the market for transactions similar in type
to the ROFO Financing being sought (the “Material Economic Terms”). If Purchaser is unwilling or unable to provide
such ROFO Financing to the Company within three (3) Trading Days from Purchaser’s receipt of the ROFO Notice, then the Company
may obtain such ROFO Financing from any other Person upon the exact same Material Economic Terms, which such ROFO Financing must
be completed within ninety (90) calendar days after the date of the ROFO Notice. If the Company does not receive the ROFO Financing
from such Person within ninety (90) calendar days after the date of the respective ROFO Notice, then the Company must again offer
the ROFO Financing opportunity to Purchaser as described above, and the process detailed above shall be repeated. Additionally,
in the event that the Company proceeds to a ROFO Financing with another Person and then the Material Economic Terms are altered
or modified in any way, then the Company must again offer the ROFO Financing opportunity (on such altered or modified Material
Economic Terms) to the Purchaser as described above, and the process detailed above shall be repeated.

 

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4.14
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 Short Sales, of any of the Company’s securities during the period
commencing with the execution of this Agreement and ending on the date that the Preferred Shares are no longer outstanding.

 

4.15
Securities Laws Disclosure; Publicity.
The Company shall by the fourth (4th) Trading Day immediately following the date hereof file a Current Report on Form
8-K, including the Transaction Documents as exhibits thereto, with the Commission. 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. 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 the
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 the 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, delayed, denied, or conditioned 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 the Purchaser, or include
the name of the Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written
consent of the Purchaser, except: (a) as required by federal securities law in connection with any registration statement filed
in connection with the resale of the Securities purchased hereunder 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).

 

4.16
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of the Purchaser. The Company shall also take such action as the Company
shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser
on the applicable dates under applicable securities or “Blue Sky” laws of the states of the United States, and shall
provide evidence of such actions promptly upon request of the Purchaser.

 

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4.17
Exchange Transactions. During the period commencing on the date hereof and for so long as any of the Preferred Shares remain
outstanding, neither the Company nor any of its affiliates or Subsidiaries, nor any of its or their respective officers, employees,
directors, agents or other representatives, will, without the prior written consent of the Purchaser (which consent may be withheld,
delayed or conditioned in the Purchaser’s sole discretion), directly or indirectly: (a) solicit, initiate, encourage or
accept any other inquiries, proposals or offers from any Person (other than the Purchaser) relating to any exchange of any indebtedness
or other securities of, or claim against, the Company or any of its Subsidiaries relying on the exemption provided by Section
3(a)(10) of the Securities Act (any such transaction described in clause (a), an “Exchange Transaction”); (b)
enter into, effect, alter, amend, announce or recommend to its stockholders any Exchange Transaction with any Person (other than
the Purchaser); or (c) participate in any discussions, conversations, negotiations or other communications with any Person (other
than the Purchaser) regarding any Exchange Transaction, or furnish to any Person (other than the Purchaser) any information with
respect to any Exchange Transaction, or otherwise cooperate in any way, assist or participate in, facilitate or encourage any
effort or attempt by any Person (other than the Purchaser) to seek an Exchange Transaction involving the Company or any of its
Subsidiaries. In addition, for so long as any of the Preferred Shares remain outstanding,
neither the Company nor any of its affiliates or Subsidiaries, nor any of its or their respective officers, employees, directors,
agents or other representatives, will, without the prior written consent of the Purchaser (which consent may be withheld, delayed
or conditioned in the Purchaser’s sole discretion), directly or indirectly, cooperate in any way, assist or participate
in, facilitate or encourage any effort or attempt by any Person (other than the Purchaser) to
effect any acquisition of securities or indebtedness of, or claim against, the Company by such Person from an existing holder
of such securities, indebtedness or claim in connection with a proposed exchange of such securities or indebtedness of, or claim
against, the Company (whether pursuant to Section 3(a)(9) or 3(a)(10) of the Securities Act or otherwise) (a “Third Party
Exchange Transfer”). The Company, its affiliates and Subsidiaries, and each of its and their respective officers,
employees, directors, agents or other representatives shall immediately cease and cause to be terminated all existing discussions,
conversations, negotiations and other communications with any Persons (other than the Purchaser) with respect to any of the foregoing.
The Company shall promptly (and in no event later than twenty-four (24) hours after receipt) notify (which notice shall be provided
orally and in writing and shall identify the Person making the inquiry, request, proposal or offer and set forth the material
terms thereof) the Purchaser after receipt of any inquiry, request, proposal or offer relating to any Exchange Transaction or
Third Party Exchange Transfer, and shall promptly (and in no event later than twenty-four (24) hours after receipt) provide copies
to the Purchaser of any written inquiries, requests, proposals or offers relating thereto. The Company agrees that it and its
affiliates and Subsidiaries, and each of its and their respective officers, employees, directors, agents or other representatives
Subsidiaries will not enter into any agreement with any Person subsequent to the date hereof which prohibits the Company from
providing any information to the Purchaser in accordance with this provision. For all purposes of this Agreement, violations of
the restrictions set forth in this Section 4.17 by any Subsidiary or affiliate of the Company, or any officer, employee, director,
agent or other representative of the Company or any of its Subsidiaries or affiliates shall be deemed a direct breach of this
Section 4.17 by the Company. For the avoidance of doubt, the Company shall not without the prior written consent of the Purchaser
(which consent may be withheld, delayed or conditioned in the Purchaser’s sole discretion), directly or indirectly consummate
an Exchange Transaction or a Third Party Exchange Transfer if such exchange involves a third party (i.e., a Person that
is neither the Company nor any existing security or debt holder of the Company).

 

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4.18
Piggyback Registration Right. If at any time prior to the date that is six months after the date of this agreement, the
Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each holder of Preferred Shares written notice of such determination and, if within
fifteen days after receipt of such notice, any such holder shall so request in writing, the Company shall include in such registration
statement all or any part of the Registrable Securities such holder requests to be registered; provided, that, the Company shall
not be required to register any Registrable Securities that are eligible for resale pursuant to Rule 144 promulgated under the
Securities Act or that are the subject of a then effective registration statement.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any party by written notice to the other parties if the First Closing
has not been consummated on or before October 31, 2017; provided, however, that such termination will not affect
the right of any party to sue for any breach by any other party (or parties).

 

5.2
Fees and Expenses. The Company has agreed
to pay its legal fees and those of the Purchaser relating to the Closing of the transactions contemplated herein in an amount
not exceeding an aggregate of $25,000.00, which shall be deducted and paid directly out of the respective Purchase Price of the
Preferred Shares at the Closing unless pre-paid. The Company shall deliver to the Purchaser, prior to each applicable Closing,
a completed and executed copy of the Closing Statement, attached hereto as Annex A. 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.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and 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: (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 12:00 noon
(New York City time) on a Trading Day; (ii) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading
Day or later than 12:00 noon (New York City time) on any Trading Day; or (iii) the second (2nd) Trading Day following
the date of physical transmittal, if sent by a United States nationally recognized overnight courier service or upon actual receipt
of the physically transmitted notice 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.

 

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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 the Purchaser, and in the case of a waiver, by the party against
whom the enforcement of any such waived provision is sought. 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.

 

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 the Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the Purchaser as defined
herein.

 

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 4.9.

 

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 Nevada, 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, stockholders, 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 suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either
party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to
the obligations of the Company under Section 4.9, the prevailing party in such action, suit or proceeding shall be reimbursed
by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

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5.10
Survival. The representations and warranties contained herein shall survive each Closing and the deliveries of the Securities.

 

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 was 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
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

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

 

5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, 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
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under
the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid or settled to the satisfaction of Purchaser notwithstanding the fact that the instrument
or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

 

5.19
Reserved.

 

5.20
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.

 

5.21
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.

 

5.22
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.

 

(Signature
Pages Follow)

 

    	33 

    	 

    

 

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.

 

	RedDiamond Partners LLC	 	Address
    for Notice:
	 	 	 	 
	By:	 	 	156
    West Saddle River Road
	Name:	 	 	Saddle
    River, NJ 07458
	Title:	 	 	 
	 	 	 	 
	Good Gaming, Inc.	 	Address
    for Notice:
	 	 	 	 
	By:	 	 	415
    McFarlan Road, Suite 108
	Name:	 	 	Kennett
    Square, PA 19348
	Title:	Chief
    Executive Officer	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	34 

    	 

    

 

Execution Version

 

[PURCHASER
SIGNATURE PAGES TO Good Gaming, Inc. SECURITIES PURCHASE AGREEMENT]

 

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.

 

Name
of Purchaser: RedDiamond Partners LLC

 

Signature
of Authorized Signatory of Purchaser:

 

	 	 
	

                                                          

                                                         Name of Authorized Signatory:
	 
	 	 
	Title
    of Authorized Signatory: ___________________________	 
	 	 
	Email
    Address of Authorized Signatory: ____________________	 
	 	 
	Facsimile
    Number of Authorized Signatory: _________________	 
	 	 
	Address
    for Notice to Purchaser: 	 

 

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

 

EIN
Number: _______________________Execution
Version

 

CERTIFICATE
OF DESIGNATIONS, PREFERENCES AND RIGHTS OF THE SERIES D CONVERTIBLE PREFERRED STOCK OF GOOD GAMING, INC.

 

I,
David Dorwart, hereby certify that I am the Chief Executive Officer of Good Gaming, Inc. (the “Company”), a
corporation organized and existing under the Nevada Revised Statutes (the “NRS”), and further do hereby certify:

 

That,
pursuant to the authority expressly conferred upon the Board of Directors of the Company (the “Board”) by the
Company’s Articles of Incorporation, as amended (the “Articles of Incorporation”), the Board on October
5, 2017, adopted the following resolutions creating a series of shares of preferred stock designated as Series D Convertible Preferred
Stock, none of which shares have been issued:

 

RESOLVED,
that the Board hereby designates the Series D Convertible Preferred Stock and the number of shares constituting such series, and
fixes the rights, powers, preferences, privileges and restrictions relating to such series in addition to any set forth in the
Articles of Incorporation as follows:

 

TERMS
OF SERIES D CONVERTIBLE PREFERRED STOCK

 

1.
Designation and Number of Shares. There shall hereby be created and established a series of preferred stock of the Company
designated as “Series D Convertible Preferred Stock” (the “Preferred Shares”). The authorized number
of Preferred Shares shall be 350 shares. Each Preferred Share shall have a par value of $0.001. Capitalized terms not defined
herein shall have the meanings as set forth in Section 23 below.

 

2.
Ranking. Except with respect to any other future series of preferred stock of senior rank to the Preferred Shares in respect
of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding-up of the Company
(collectively, the “Senior Preferred Stock”) or any future series of preferred stock of pari passu rank to
the Preferred Shares in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution
and winding-up of the Company (collectively, the “Parity Stock”), all shares of capital stock of the Company
shall be junior in rank to all Preferred Shares with respect to the preferences as to dividends, distributions and payments upon
the liquidation, dissolution and winding-up of the Company (collectively, the “Junior Stock”). The rights of
all such shares of capital stock of the Company shall be subject to the rights, powers, preferences and privileges of the Preferred
Shares. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares shall
maintain their relative rights, powers, preferences, privileges, and designations provided for herein and no such merger or consolidation
shall result inconsistent therewith.

 

3.
Dividends.

 

(a)
From and after the date of issuance of each share of Preferred Shares (the “Initial Issuance Date”), each holder
of a Preferred Share (each, a “Holder” and collectively, the “Holders”) shall be entitled
to receive dividends (the “Dividends”), which Dividends shall be paid by the Company out of funds legally available
therefor, payable, subject to the conditions and other terms hereof, in shares of Common Stock or cash on the Stated Value (as
defined below) of such Preferred Share at the Dividend Rate (as defined below), which shall be cumulative and shall continue to
accrue whether or not declared and whether or not in any fiscal year there shall be net profits or surplus available for the payment
of dividends in such fiscal year. Dividends on the Preferred Shares shall commence accumulating on the Initial Issuance Date and
shall be computed on the basis of a 365-day year and actual days elapsed. Subject to Section 4(c), Dividends shall be payable
quarterly, at the Holder’s option, in cash or shares of Common Stock, with the first (1st) Dividend Date being
December 31, 2017 (each, a “Dividend Date”). If a Dividend Date is not a Business Day (as defined below), then
the Dividend shall be due and payable on the Business Day immediately following such Dividend Date. Additionally, after the first
Dividend Date, the Holder may request the payment of any accrued Dividends on any Conversion Date or the date of any Installment
Redemption Payment (each, an “Optional Dividend Date”).

 

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(b)
Dividends shall be payable on each Dividend Date, to the Holders of record of the Preferred Shares on the applicable Dividend
Date, in shares of Common Stock (the “Dividend Shares”) so long as there has been no Equity Conditions Failure
and so long as the delivery of Dividend Shares would not violate the provisions of Section 4(e); provided, however,
that the Company may, at its option, pay Dividends on any Dividend Date in cash (the “Cash Dividends”) or in
a combination of Cash Dividends and, so long as there has been no Equity Conditions Failure, Dividend Shares. The Company shall
deliver a written notice (each, a “Dividend Election Notice”) to each Holder on the Dividend Notice Due Date
(the date such notice is delivered to all of the Holders, the “Dividend Notice Date”), which notice (1) either
(A) confirms that Dividends to be paid on such Dividend Date shall be paid entirely in Dividend Shares or (B) elects to pay Dividends
as Cash Dividends, Dividend Shares, or as a combination of Dividend Shares and Cash Dividends and, in any event, specifies the
amount of Dividends that shall be paid as Cash Dividends and the amount of Dividends, if any, that shall be paid in Dividend Shares
and (2) certifies that there has been no Equity Conditions Failure as of such time, if any portion of the Dividends shall be paid
in Dividend Shares. Notwithstanding anything herein to the contrary, if no Equity Conditions Failure has occurred as of the Dividend
Notice Date but an Equity Conditions Failure occurs at any time prior to the Dividend Date, (A) the Company shall provide each
Holder a subsequent notice to that effect and (B) unless such Holder waives the Equity Conditions Failure, the Dividend payable
to such Holder on such Dividend Date shall be paid as Cash Dividends to be paid to each Holder on a Dividend Date in Dividend
Shares shall be paid in a number of fully paid and non-assessable shares (rounded to the nearest whole share, with 0.50 or more
of a share being rounded up to the nearest whole share and 0.49 or less of a share being rounded down to the nearest whole share)
of Common Stock equal to the quotient of (1) the amount of Dividends payable to such Holder on such Dividend Date less any Cash
Dividends paid and (2) the Conversion Price in effect on the applicable Dividend Date.

 

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(c)
When any Dividend Shares are to be paid on a Dividend Date to any Holder, the Company shall (i) (A) provided that (x) the Company’s
transfer agent (the “Transfer Agent”) is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program and (y) such Dividend Shares to be so issued are eligible for resale pursuant to Rule
144 (as defined in the Securities Purchase Agreement), credit such aggregate number of Dividend Shares to which such Holder shall
be entitled to such Holder’s or its designee’s balance account with DTC through its Deposit and Withdrawal at Custodian
system, or (B) if either of the immediately preceding clauses (x) or (y) is not satisfied, issue and deliver on the applicable
Dividend Date, to the address set forth in the register maintained by the Company for such purpose pursuant to the Securities
Purchase Agreement or to such address as specified by such Holder in writing to the Company at least two (2) Business Days prior
to the applicable Dividend Date, a certificate, registered in the name of such Holder or its designee, for the number of Dividend
Shares to which such Holder shall be entitled and (ii) with respect to each Dividend Date, pay to such Holder, in cash by wire
transfer of immediately available funds, the amount of any Cash Dividend. The Company shall pay any and all taxes that may be
payable with respect to the issuance and delivery of Dividend Shares.

 

(d)
In the event that a Holder requests the payment of Dividends on any Optional Dividend Date, such Dividends shall be payable in
accordance with mechanisms set forth in Sections 4(c)(i)-(ii) and Section 5(b), as applicable. The Dividends shall be paid, at
the Holder’s option in cash, in Dividend Shares, or any combination of cash and Dividend Shares, so long as there has been
no Equity Conditions Failure and so long as the delivery of Dividend Shares would not violate the provisions of Section 4(e).
Dividends to be paid to such Holder on an Optional Dividend Date in Dividend Shares shall be paid in a number of fully paid and
non-assessable shares (rounded to the nearest whole share) of Common Stock equal to the quotient of (1) the amount of Dividends
payable to such Holder on such Optional Dividend Date less any Dividends paid in cash and (2) the Conversion Price in effect on
the applicable Optional Dividend Date.

 

4.
Conversion. Each Preferred Share shall be convertible into validly issued, fully paid and non-assessable shares of Common
Stock (as defined below) on the terms and conditions set forth in this Section 4.

 

(a)
Holder’s Conversion Right. Subject to the provisions of Section 4(e) and Section 5, at any time or times after the
date (the “Initial Conversion Date”) that is six (6) months after the Initial Issuance Date, each Holder shall
be entitled to convert any whole number of Preferred Shares and any accrued but unpaid Dividends into validly issued, fully paid
and non-assessable shares of Common Stock in accordance with Section 4(c) at the Conversion Rate (as defined below); provided,
however, the maximum number of Preferred Shares that may be converted by such Holder during the twenty (20) Trading Day
period following the Initial Conversion Date and every twenty (20) Trading Day period thereafter (each a “Monthly Conversion
Period”) shall be no greater than that number of Preferred Shares with an aggregate Stated Value equal to $35,000 (the
“Maximum Conversion Shares”) unless the Company and the Holder agree in writing to increase the Maximum Conversion
Shares for each respective Monthly Conversion Period.

 

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(b)
Conversion Rate. The number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion
(the “Conversion Shares”) of each Preferred Share pursuant to Section 4(a) shall be determined according to
the following formula (the “Conversion Rate”):

 

(Conversion
Amount x Conversion Premium)

Conversion
Price

 

No
fractional shares of Common Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in
the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to
the nearest whole share.

 

(c)
Mechanics of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:

 

(i)
Holder’s Conversion. Subject to the provisions of Section 4(e) and Section 5, to convert Preferred Shares into validly
issued, fully paid and non-assessable shares of Common Stock on any date (a “Conversion Date”), a Holder shall
deliver (whether via facsimile or otherwise), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an
executed notice of conversion of Preferred Shares subject to such conversion in the form attached hereto as Exhibit I
(the “Conversion Notice”) to the Company, which Conversion Notice shall be subject to an adjustment to the
Conversion Price set forth on such Conversion Notice upon the close of the Principal Market on the Conversion Date. If required
by Section 4(c)(vi), within three (3) Trading Days following a conversion of any such Preferred Shares as aforesaid, such Holder
shall surrender to a nationally recognized overnight delivery service for delivery to the Company the original certificates representing
the share(s) of Preferred Shares (the “Preferred Share Certificates”) so converted as aforesaid.

 

(ii)
Company’s Response. On or before the first (1st) Trading Day following the date of receipt of a Conversion
Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation, in the form attached hereto
as Exhibit II, of receipt of such Conversion Notice to such Holder and the Transfer Agent, which confirmation shall
constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before
the second (2nd) Trading Day following the date of receipt by the Company of such Conversion Notice, the Company shall
(1) provided that (x) the Transfer Agent is participating in DTC Fast Automated Securities Transfer Program and (y) such Conversion
Shares and Dividend Shares (as applicable) to be so issued are eligible for resale pursuant to Rule 144 (as defined in the Securities
Purchase Agreement) credit such aggregate number of Conversion Shares and Dividend Shares (as applicable) to which such Holder
shall be entitled to such Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian
system, or (2) if either of the immediately preceding clauses (x) or (y) are not satisfied, issue and deliver (via reputable overnight
courier) to the address as specified in such Conversion Notice, a certificate, registered in the name of such Holder or its designee,
for the number of Conversion Shares and Dividend Shares (as applicable) to which such Holder shall be entitled. If the number
of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion pursuant to Section 4(c)(vi) is
greater than the number of Preferred Shares being converted, then the Company shall if requested by such Holder, as soon as practicable
and in no event later than three (3) Trading Days after receipt of the Preferred Share Certificate(s) and at its own expense,
issue and deliver to such Holder (or its designee) a new Preferred Share Certificate representing the number of Preferred Shares
not converted.

 

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(iii)
Record Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred
Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(iv)
Company’s Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, to issue to a Holder
within two (2) Trading Days after the Company’s receipt of a Conversion Notice (whether via facsimile or otherwise) (the
“Share Delivery Deadline”), a certificate for the number of shares of Common Stock to which such Holder is
entitled and register such shares of Common Stock on the Company’s share register or to credit such Holder’s or its
designee’s balance account with DTC for such number of shares of Common Stock to which such Holder is entitled upon such
Holder’s conversion of any Preferred Shares (as the case may be) (a “Conversion Failure”), then, in addition
to all other remedies available to such Holder, such Holder, upon written notice to the Company, may void its Conversion Notice
with respect to, and retain or have returned (as the case may be) any Preferred Shares that have not been converted pursuant to
such Holder’s Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company’s obligations
to make any payments which have accrued prior to the date of such notice pursuant to the terms of this Certificate of Designations
or otherwise. In addition to the foregoing, if within two (2) Trading Days after the Company’s receipt of a Conversion Notice
(whether via facsimile or otherwise), the Company shall fail to issue and deliver a certificate to such Holder and register such
shares of Common Stock on the Company’s share register or credit such Holder’s or its designee’s balance account
with DTC for the number of Conversion Shares and Dividend Shares (as applicable) to which such Holder is entitled upon such Holder’s
conversion hereunder (as the case may be), and if on or after such second (2nd) Trading Day such Holder (or any other
Person in respect, or on behalf, of such Holder) purchases (in an open market transaction or otherwise) shares of Common Stock
to deliver in satisfaction of a sale by such Holder of all or any portion of the number of shares of Common Stock, or a sale of
a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, issuable upon such conversion
that such Holder so anticipated receiving from the Company, then, in addition to all other remedies available to such Holder,
the Company shall, within three (3) Business Days after such Holder’s request, which request shall include reasonable documentation
of all fees, costs and expenses, and in such Holder’s discretion, either (i) pay cash to such Holder in an amount equal
to such Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the
shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of such Holder)
(the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate
or credit such Holder’s balance account with DTC for the number of shares of Common Stock to which such Holder is entitled
upon such Holder’s conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate,
or (ii) promptly honor its obligation to so issue and deliver to such Holder a certificate or certificates representing such shares
of Common Stock or credit such Holder’s balance account with DTC for the number of shares of Common Stock to which such
Holder is entitled upon such Holder’s conversion hereunder (as the case may be) and pay cash to such Holder in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied by (B)
the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable
Conversion Notice and ending on the date of such issuance and payment under this clause (ii). Immediately following the voiding
of a Conversion Notice as aforesaid, the Conversion Price of any Preferred Shares returned or retained by such Holder for failure
to timely convert shall be adjusted to the lesser of (I) the Conversion Price relating to the voided Conversion Notice and (II)
the lowest average VWAP of the Common Stock during the period beginning on the Conversion Date and ending on the date such Holder
voided the Conversion Notice, subject to further adjustment as provided in this Certificate of Designations.

 

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(v)
Pro Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the
same Conversion Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion, the Company
shall convert from each Holder electing to have Preferred Shares converted on such date a pro rata amount of such Holder’s
Preferred Shares submitted for conversion on such date based on the number of Preferred Shares submitted for conversion on such
date by such Holder relative to the aggregate number of Preferred Shares submitted for conversion on such date. In the event of
a dispute as to the number of shares of Common Stock issuable to a Holder in connection with a conversion of Preferred Shares,
the Company shall issue to such Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance
with Section 22.

 

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(vi)
Book-Entry. Notwithstanding anything to the contrary set forth in this Section 4, upon conversion of any Preferred Shares
in accordance with the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing
the Preferred Shares to the Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented
by the certificate are being converted (in which event such certificate(s) shall be delivered to the Company as contemplated by
this Section 4(c)(vi)) or (B) such Holder has provided the Company with prior written notice (which notice may be included in
a Conversion Notice) requesting reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each Holder and
the Company shall maintain records showing the number of Preferred Shares so converted by such Holder and the dates of such conversions
or shall use such other method, reasonably satisfactory to such Holder and the Company, so as not to require physical surrender
of the certificate representing the Preferred Shares upon each such conversion. In the event of any dispute or discrepancy, such
records of such Holder establishing the number of Preferred Shares to which the record holder is entitled shall be controlling
and determinative in the absence of manifest error. A Holder and any transferee or assignee, by acceptance of a certificate, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred Shares, the number of Preferred
Shares represented by such certificate may be less than the number of Preferred Shares stated on the face thereof. Each certificate
for Preferred Shares shall bear the following legend:

 

ANY
TRANSFEREE OR ASSIGNEE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE CORPORATION’S CERTIFICATE OF DESIGNATIONS
RELATING TO THE SHARES OF SERIES A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 4(c)(vi) THEREOF. THE NUMBER
OF SHARES OF SERIES A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES A PREFERRED
STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 4(c)(vi) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE SHARES OF SERIES
A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.

 

(d)
Taxes. The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof),
issuance and other similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon
the conversion of Preferred Shares.

 

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(e)
Limitation on Beneficial Ownership.

 

(i)
Notwithstanding anything to the contrary contained in this Certificate of Designations, the Preferred Shares held by a Holder
shall not be convertible by such Holder, and the Company shall not effect any conversion of any Preferred Shares held by such
Holder, to the extent (but only to the extent) that such Holder or any of its affiliates would beneficially own in excess of 4.99%
(the “Maximum Percentage”) of the then issued and outstanding shares of Common Stock. To the extent the above
limitation applies, the determination of whether the Preferred Shares held by such Holder shall be convertible (vis-à-vis
other convertible, exercisable or exchangeable securities owned by such Holder or any of its affiliates) and of which such securities
shall be convertible, exercisable or exchangeable (as among all such securities owned by such Holder and its affiliates) shall,
subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion,
exercise or exchange (as the case may be). No prior inability of a Holder to convert Preferred Shares, or of the Company to issue
shares of Common Stock to such Holder, pursuant to this Section 4(e) shall have any effect on the applicability of the provisions
of this Section 4(e) with respect to any subsequent determination of convertibility or issuance (as the case may be). For purposes
of this Section 4(e), beneficial ownership and all determinations and calculations (including, without limitation, with respect
to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and
regulations promulgated thereunder. The provisions of this Section 4(e) shall be implemented in a manner otherwise in strict conformity
with the terms of this Section 4(e) to correct this Section 4(e) (or any portion hereof) which may be defective or inconsistent
with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such Maximum Percentage limitation. The limitations contained in this Section 4(e) shall
apply to a successor holder of Preferred Shares. The holders of Common Stock shall be third party beneficiaries of this Section
4(e) and the Company may not waive this Section 4(e) without the consent of holders of a majority of its Common Stock. For any
reason at any time, upon the written or oral request of a Holder, the Company shall within one (1) Business Day confirm orally
and in writing to such Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion
or exercise of convertible or exercisable securities into Common Stock, including, without limitation, pursuant to this Certificate
of Designations or securities issued pursuant to the other Transaction Documents. By written notice to the Company, any Holder
may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided
that (i) any such increase will not be effective until the 61st day after such notice is delivered to the Company,
and (ii) any such increase or decrease will apply only to such Holder sending such notice and not to any other Holder.

 

Notwithstanding
anything contained in this Section 4(e) to the contrary, the Holder may, at its option and in its sole discretion, determine (A)
whether the Preferred Shares held by such Holder shall be convertible (vis-à-vis other convertible, exercisable or exchangeable
securities owned by such Holder or any of its affiliates) and (B) of which such securities shall be convertible, exercisable or
exchangeable (as among all such securities owned by such Holder and its affiliates) on any basis, order, or amounts for conversion,
exercise or exchange (as the case may be).

 

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(ii)
Principal Market Regulation. Notwithstanding anything herein to the contrary, the Company shall not issue any shares of
Common Stock upon conversion of any Preferred Shares or otherwise pursuant to this Certificate of Designations, until the Company
obtains the Stockholder Approval, to the extent such Stockholder Approval is necessary for such issuance.

 

(f)
Anti-Dilution. If, at any time while the Preferred Shares are outstanding, the Company or any Subsidiary, as applicable,
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces
any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock at or with a conversion formula that creates an effective price per share that is lower than
the then Conversion Price (such lower price or conversion formula, the “Base Conversion Price” and such issuances,
collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued
shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange
prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled
to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall
be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price
shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 4(f) in respect of an Exempt
Issuance. The Company shall notify the Holders in writing, no later than the Trading Day following the issuance of any Common
Stock or Common Stock Equivalents subject to this Section 4(f), indicating therein the applicable issuance price, or applicable
reset price, exchange price, conversion price, conversion formula and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant
to this Section 4(f), upon the occurrence of any Dilutive Issuance, the Holders will be entitled to receive a number of Conversion
Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately
refers to the Base Conversion Price in the Notice of Conversion.

 

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5.
Optional and Triggered Redemption 

 

(a)
Company One-Time Redemption. In addition to the Company’s Monthly Redemption right as set forth in Section 5(c),
at any time before December 6, 2017 and provided that no Equity Conditions Failure (as defined below) exists, the Company shall
have the right to redeem all, but not less than all, of the Preferred Shares then outstanding, plus the then accrued and
unpaid Dividends (the “Company One-Time Redemption Amount”). The Preferred Shares subject to redemption described
herein shall be redeemed by the Company, in cash at a price per Preferred Share (the “Company One-Time Redemption Price”)
equal to (1) one hundred and fifteen percent (115%) of the Stated Value, plus (2) all Additional Amounts, plus (3)
all Make-Whole Amounts, plus (4) any accrued and unpaid Late Charges (as defined in Section 22(b)(ii)) with respect to
such Stated Value as of such date of determination. The Company may exercise its redemption option under this Section 5(a) by
delivering a written notice thereof by facsimile or electronic mail to all, but not less than all, of the Holders (the “Company
One-Time Redemption Notice” and the date all of the Holders received such notice is referred to as the “Company
One-Time Redemption Notice Date”). The Company may deliver only one Company One-Time Redemption Notice hereunder and
such Company One-Time Redemption Notice shall be irrevocable. The Company One-Time Redemption Notice shall (x) state the date
on which the Company One-Time Redemption shall occur (the “Company One-Time Redemption Date”) which date shall
not be less than thirty (30) Trading Days nor more than forty-five (45) Trading Days following the Company One-Time Redemption
Notice Date, (y) certify that there has been no Equity Conditions Failure and (z) state the aggregate Company One-Time Redemption
Amount of the Preferred Shares which is being redeemed in such Company Optional Redemption from such Holder and all of the other
Holders of the Preferred Shares pursuant to this Section 5(a) on the Company Optional Redemption Date. Notwithstanding anything
herein to the contrary, (i) if no Equity Conditions Failure has occurred as of the Company Optional Redemption Notice Date but
an Equity Conditions Failure occurs at any time prior to the Company One-Time Redemption Date, (A) the Company shall provide each
Holder a subsequent notice to that effect and (B) unless such Holder waives the Equity Conditions Failure, the Company One-Time
Redemption with respect to such Holder shall be cancelled and the applicable Company One-Time Redemption Notice shall be null
and void and (ii) at any time prior to the date the Company One-Time Redemption Price is paid, in full, the Company One-Time Redemption
Amount may be converted, in whole or in part, by any Holder into shares of Common Stock pursuant to Section 4. All Conversion
Amounts converted by a Holder after the Company One-Time Redemption Notice Date shall reduce the Company One-Time Redemption Amount
of the Preferred Shares of such Holder required to be redeemed on the Company One-Time Redemption Date. Redemptions made pursuant
to this Section 5(a) shall be made in accordance with Section 5(d). In the event of the Company’s redemption of any of the
Preferred Shares under this Section 5(a), a Holder’s damages would be uncertain and difficult to estimate because of the
parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment
opportunity for such Holder. Accordingly, any redemption premium due under this Section 5(a) is intended by the parties to be,
and shall be deemed, a reasonable estimate of such Holder’s actual loss of its investment opportunity and not as a penalty.
For the avoidance of doubt, the Company shall have no right to effect a Company One-Time Redemption if any Triggering Event has
occurred and is continuing, but any Triggering Event shall have no effect upon any Holder’s right to convert Preferred Shares
in its discretion.

 

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(b)
Triggering Event Redemptions.

 

(i)
Triggering Event. Each of the following events shall constitute a “Triggering Event” and each of the
events in clauses (ix), (x) and (xi) shall constitute a “Bankruptcy Triggering Event”:

 

a.
any of the shares of Common Stock issuable upon conversion of the Preferred Shares are not freely tradable without restriction
by any of the Holders due to a breach by the Company which remains uncured for a period of five (5) consecutive Trading Days;

 

b.
the suspension from trading or failure of the Common Stock to be traded or listed (as applicable) on an Eligible Market for a
period of five (5) consecutive Trading Days;

 

c.
the Company’s written notice to any holder of the Preferred Shares, including, without limitation, by way of public announcement
or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of any Preferred
Shares into shares of Common Stock that is requested in accordance with the provisions of this Certificate of Designations, other
than pursuant to Section 4(e) hereof;

 

d.
at any time following the fifth (5th) consecutive day that a Holder’s pro rata Authorized Share Allocation (as
defined in Section 9 below) is less than 300% of the number of shares of Common Stock that such Holder would be entitled to receive
upon a conversion in full of the Preferred Shares held by such Holder (without regard to any limitations on conversion set forth
in this Certificate of Designations);

 

e.
the Company’s Board of Directors fails to declare any Dividend to be paid on the applicable Dividend Date in accordance
with Section 3;

 

f.
the Company’s failure to pay to any Holder any Dividend (whether or not declared by the Board of Directors) or any other
amount when and as due under this Certificate of Designations (including, without limitation, the Company’s failure to pay
any redemption payments or amounts hereunder) or any other Transaction Document or any other agreement, document, certificate
or other instrument delivered in connection with the transactions contemplated hereby (in each case, as permitted pursuant to
the NRS), except, in the case of a failure to pay Dividends and Late Charges (as defined in Section 22(b)(ii)) when and as due,
in each such case only if such failure remains uncured for a period of at least three (3) Trading Days;

 

g.
the Company, on three or more occasions, either (A) fails to cure a Conversion Failure by delivery of the required number of shares
of Common Stock within two (2) Trading Days after the applicable Conversion Date or (B) fails to remove any restrictive legend
on any certificate for any shares of Common Stock issued to such Holder upon conversion of any Preferred Shares acquired by such
Holder as and when required with respect to such securities in accordance with applicable federal securities laws, and any such
failure remains uncured for at least three (3) Trading Days;

 

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h.
the occurrence of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $250,000 of Indebtedness
of the Company or any Subsidiaries;

 

i.
bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted
by or against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not
be dismissed within thirty (30) days of their initiation;

 

j.
the commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company
or any subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign
law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part
of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts,
or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability
to pay its debts generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance
of any such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other
similar action under federal, state or foreign law;

 

k.
the entry by a court of (A) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of
a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or (B) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt
or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition
of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (C) a decree, order, judgment
or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its
affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment
or other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

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l.
a final judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against the Company and/or
any of its subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged, settled
or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however,
any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the
$250,000 amount set forth above so long as the Company provides each Holder a written statement from such insurer or indemnity
provider (which written statement shall be reasonably satisfactory to each Holder) to the effect that such judgment is covered
by insurance or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance
or indemnity within thirty (30) days of the issuance of such judgment;

 

m.
the Company and/or any Subsidiary, individually or in the aggregate fails to pay, when due, or within any applicable grace period,
any payment with respect to any Indebtedness in excess of $250,000 due to any third party (other than, with respect to payments
contested by the Company and/or such subsidiary (as the case may be) in good faith by proper proceedings and with respect to which
adequate reserves have been set aside for the payment thereof in accordance with GAAP) or is otherwise in breach or violation
of any agreement for monies owed or owing in an amount in excess of $250,000, which breach or violation causes the other party
thereto to declare a default or otherwise accelerate amounts due thereunder;

 

n.
other than as specifically set forth in another clause of this Section 5(b), the Company or any Subsidiary breaches any representation
or warranty in any material respect (other than representations or warranties subject to material adverse effect or materiality,
which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, except, in the
case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of
five (5) consecutive Trading Days, unless such breach does not have a Material Adverse Effect (as defined below);

 

o.
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that either (A) the
Equity Conditions are satisfied, (B) there has been no Equity Conditions Failure, or (C) as to whether any Triggering Event has
occurred, and such Holder suffers economic damage thereby;

 

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p.
any breach or failure in any respect by the Company or any Subsidiary to comply with any covenants of this Certificate of Designations,
unless such breach does not have a Material Adverse Effect;

 

q.
occurrence of any Material Adverse Effect;

 

r.
the occurrence or continuance of an Event of Default under any Transaction Document and such Event of Default has not been cured
during the applicable cure period; or

 

s.
any Equity Condition Failure.

 

(ii)
Notice of a Triggering Event; Redemption Right. Upon the occurrence of a Triggering Event with respect to the Preferred
Shares, the Company shall within one (1) Business Day deliver written notice thereof via facsimile or electronic mail (a “Triggering
Event Notice”) to each Holder. At any time after the earlier of a Holder’s receipt of a Triggering Event Notice
and such Holder becoming aware of a Triggering Event (such earlier date, the “Triggering Event Right Commencement Date”)
and ending (such ending date, the “Triggering Event Right Expiration Date”, and each such period, a “Triggering
Event Redemption Right Period”) on the tenth (10th) Trading Day after the later of (x) the date such Triggering
Event is cured (notwithstanding, the Company shall only have five (5) calendar days to cure any Equity Conditions Failure) and
(y) such Holder’s receipt of a Triggering Event Notice that includes (I) a reasonable description of the applicable Triggering
Event, (II) a certification as to whether, in the opinion of the Company, such Triggering Event is capable of being cured and,
if applicable, a reasonable description of any existing plans of the Company to cure such Triggering Event and (III) a certification
as to the date the Triggering Event occurred and, if cured on or prior to the date of such Triggering Event Notice, the applicable
Triggering Event Right Expiration Date, such Holder may require the Company to redeem (regardless of whether such Triggering Event
has been cured on or prior to the Triggering Event Right Expiration Date) all or any of the Preferred Shares held by such Holder
by delivering written notice thereof (the “Triggering Event Redemption Notice”) to the Company, which Triggering
Event Redemption Notice shall indicate the number of the Preferred Shares such Holder is electing to redeem. Each of the Preferred
Shares subject to redemption by the Company pursuant to this Section 5(b) shall be redeemed by the Company, at the Holder’s
option, for shares of Common Stock or cash at a price equal to the greater of (i) the product of (A) the Conversion Amount to
be redeemed multiplied by (B) one hundred thirty five percent (135%) (the “Triggering Event Redemption Premium”)
and (ii) the product of (X) the Conversion Rate with respect to the Conversion Amount in effect at such time as such Holder delivers
a Triggering Event Redemption Notice multiplied by (Y) the product of (1) the Trigger Event Redemption Premium multiplied by (2)
the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date immediately preceding
such Triggering Event and ending on the date the Company makes the entire payment required to be made under this Section 5(b)
(the “Triggering Event Redemption Price”). In the event that the Company elects to pay the Trigger Event Redemption
Price in shares of Common Stock, the Company shall issue the shares of Common Stock at a conversion price equal to 40% of the
average of the VWAPs for the fifteen (15) consecutive Trading Days ending on the Trading Day that is immediately prior to the
date payment in connection with such Trigger Event (the “Triggering Event Redemption Conversion Price”). For
the avoidance of doubt, if Holders are requesting redemptions at the Triggering Event Redemption Conversion Price due to an Equity
Conditions Failure, upon a cure of the Equity Conditions Failure, the Company shall not be required to pay to the Holders the
redemptions described in this Section 5(b) in shares of Common Stock at the Triggering Event Conversion Redemption Price. Triggering
Redemptions required by this Section 5(b) shall be made in accordance with the provisions of Section 5. To the extent redemptions
required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the Preferred
Shares by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary
in this Section 5(b), but subject to Section 4(e), until the Triggering Event Redemption Price (together with any Late Charges
(as defined in Section 22(b)(ii)) thereon) is paid in full, the Conversion Amount submitted for redemption under this Section
5(b) (together with any Late Charges (as defined in Section 22(b)(ii)) thereon) may be converted, in whole or in part, by such
Holder into Common Stock pursuant to the terms of this Certificate of Designations. In the event of the Company’s redemption
of any of the Preferred Shares under this Section 5(b), a Holder’s damages would be uncertain and difficult to estimate
because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable
substitute investment opportunity for such Holder. Accordingly, any redemption premium due under this Section 5(b) is intended
by the parties to be, and shall be deemed, a reasonable estimate of such Holder’s actual loss of its investment opportunity
and not as a penalty. Any redemption upon a Triggering Event shall not constitute an election of remedies by the applicable Holder
or any other Holder, and all other rights and remedies of each Holder shall be preserved.

 

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(iii)
Notwithstanding anything to the contrary contained in this Section 5(b), upon a Trigger Event, each Holder shall have the option
to redeem all of its Preferred Shares in accordance with this Section 5(b). Additionally, following a Triggering Event, interest
shall accrue on the amount due to a Holder at a rate of two percent (2%) per month until such Holder is paid in full. The Holder
may also require the Company to deposit all revenues that are due it into an account at a bank or financial institution that is
subject to a deposit account control agreement in a form reasonably satisfactory to the Holder.

 

(iv)
Mandatory Redemption upon Bankruptcy Triggering Event. Notwithstanding anything to the contrary herein, and notwithstanding
any conversion that is then required or in process, upon any Bankruptcy Triggering Event, the Company shall immediately redeem,
in cash, each of the Preferred Shares then outstanding at a redemption price equal to the applicable Triggering Event Redemption
Price (calculated as if such Holder shall have delivered the Triggering Event Redemption Notice immediately prior to the occurrence
of such Bankruptcy Triggering Event), without the requirement for any notice or demand or other action by any Holder or any other
person or entity, provided that a Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Triggering
Event, in whole or in part, and any such waiver shall not affect any other rights of such Holder or any other Holder hereunder,
including any other rights in respect of such Bankruptcy Triggering Event, any right to conversion, and any right to payment of
such Triggering Event Redemption Price or any other Redemption Price, as applicable.

 

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(c)
Company Monthly Redemption. On or after the date that is six (6) months from the Initial Issuance Date, on each Business
Day before the Monthly Conversion Period as described in Section 4(a), the Company, at its sole discretion, shall have the right
to redeem all or a portion of the Maximum Conversion Shares (the “Monthly Redemption Shares”), in cash at a
price per Maximum Conversion Share (the “Company Monthly Redemption Price”) equal to (1) one hundred twenty
percent (120%) of the Stated Value of such Monthly Redemption Shares, plus (2) all Additional Amounts with respect to such
Monthly Redemption Shares, plus (3) all Make-Whole Amounts with respect to such Monthly Redemption Shares, plus
(4) any accrued and unpaid Late Charges (as defined in Section 22(b)(ii)) with respect to the Stated Value of such Monthly Redemption
Shares as of such date of determination. The Company may exercise its redemption option under this Section 5(c) by delivering
a written notice thereof by facsimile or electronic mail to all, but not less than all, of the Holders (the “Company
Monthly Redemption Notice” and the date all of the Holders received such notice is referred to as the “Company
Monthly Redemption Notice Date”). The Company may deliver only one Company Monthly Redemption Notice with respect to
any Monthly Conversion Period hereunder and such Company Monthly Redemption Notice shall be irrevocable. The Company Monthly Redemption
Notice shall (x) state the date on which the Company One-Time Redemption shall occur (the “Company Monthly Redemption
Date”) which date shall be no more than three (3) Trading Days following the Company Monthly Redemption Notice Date,
(y) certify that there has been no Equity Conditions Failure and (z) state the aggregate Company Monthly Redemption Shares which
is being redeemed in such Company Monthly Redemption from such Holder and all of the other Holders of Monthly Redemption Shares
pursuant to this Section 5(c) on the Company Monthly Redemption Date. Redemptions made pursuant to this Section 5(c) shall be
made in accordance with Section 5(d). In the event of the Company’s redemption of any of the Preferred Shares under this
Section 5(c), a Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to
predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for such
Holder. Accordingly, any redemption premium due under this Section 5(c) is intended by the parties to be, and shall be deemed,
a reasonable estimate of such Holder’s actual loss of its investment opportunity and not as a penalty. For the avoidance
of doubt, the Company shall have no right to effect a Company Monthly Redemption if any Triggering Event has occurred and is continuing,
but any Triggering Event shall have no effect upon any Holder’s right to convert Preferred Shares in its discretion.

 

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(d)
Redemptions.

 

(i)
General. If a Holder has submitted a Triggering Event Redemption Notice in accordance with Section 5(b)(ii), the Company
shall deliver the applicable Triggering Event Redemption Price to such Holder in cash within five (5) Business Days after the
Company’s receipt of such Holder’s Triggering Event Redemption Notice. If the Company has delivered a Monthly Redemption
Notice in accordance with Section 5(c), the Company shall deliver the Monthly Redemption Price, in cash, within three (3) Trading
Days following the Company Monthly Redemption Notice Date. In the event of a redemption of less than all of the Preferred Shares
held by such Holder, the Company shall promptly cause to be issued and delivered to such Holder a new Preferred Certificate (likewise
to the procedure set forth in Section 14) representing the number of Preferred Shares which have not been redeemed. In the event
that the Company does not pay the applicable Redemption Price to a Holder within the time period required for any reason (except
if such payment is prohibited pursuant to the NRS), at any time thereafter and until the Company pays such unpaid Redemption Price
in full, such Holder shall have the option, in lieu of redemption, to require the Company to promptly return to such Holder all
or any of the Preferred Shares that were submitted for redemption and for which the applicable Redemption Price has not been paid.
Upon the Company’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such
Preferred Shares, (y) the Company shall immediately return the applicable Preferred Share Certificate, or issue a new Preferred
Share Certificate (likewise to the procedure set forth in Section 14), to such Holder, and in each case the Additional Amount
of such Preferred Shares shall be increased by an amount equal to the difference between (1) the applicable Redemption Price (as
the case may be, and as adjusted pursuant to this Section 5(d), if applicable) minus (2) the Stated Value portion of the Conversion
Amount submitted for redemption and (z) the Conversion Price of such Preferred Shares shall be automatically adjusted with respect
to each conversion effected thereafter by such Holder to the lower of (A) the Fixed Conversion Price as in effect on the date
on which the applicable Redemption Notice is voided, and (B) 40% of the average of the VWAPs for the fifteen (15) consecutive
Trading Days ending on the Trading Day that is immediately prior to the date on which the applicable Redemption Notice is voided
(it being understood and agreed that all such determinations shall be appropriately adjusted for any stock dividend, stock split,
stock combination or other similar transaction during such period). A Holder’s delivery of a notice voiding a Redemption
Notice and exercise of its rights following such notice shall not affect the Company’s obligations to make any payments
of Late Charges (as defined in Section 22(b)(ii)) which have accrued prior to the date of such notice with respect to the Preferred
Shares subject to such notice.

 

(ii)
Redemption by Multiple Holders. Upon the Company’s receipt of a Redemption Notice from any Holder for redemption
or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 5(b)(ii),
the Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to each other Holder by
facsimile or electronic mail a copy of such notice. If the Company receives one or more Redemption Notices, during the seven (7)
Business Day period beginning on and including the date which is three (3) Business Days prior to the Company’s receipt
of the initial Redemption Notice and ending on and including the date which is three (3) Business Days after the Company’s
receipt of the initial Redemption Notice and the Company is unable to redeem all principal, interest and other amounts designated
in such initial Redemption Notice and such other Redemption Notices received during such seven (7) Business Day period, then the
Company shall redeem a pro rata amount from each Holder based on the principal amount of the Preferred Shares submitted for redemption
pursuant to such Redemption Notices received by the Company during such seven (7) Business Day period.

 

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(iii)
Triggering Event Redemptions. Notwithstanding anything to the contrary in Sections 5(b)(ii) or 5(b)(iv), the Company shall
have no obligation to comply with such Sections 5(b)(ii) or 5(b)(iv) at any time that (x) the Company does not have surplus as
described under the NRS or funds legally available to redeem all outstanding Preferred Shares, (y) the Company’s capital
is impaired as described under the NRS or (z) the redemption of any Preferred Shares would result in an impairment of the Company’s
capital as described under NRS; provided, however that in the event that the Company does not comply with the provisions of Sections
5(b)(ii) or 5(b)(iv) by virtue of the restrictions in this Section 5(d)(iii), the Company will comply with the provisions of Sections
5(b)(ii) or 5(b)(iv) promptly after such restrictions are no longer applicable.

 

6.
Rights Upon Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless
(i) the Successor Entity assumes in writing all of the obligations of the Company under this Certificate of Designations and the
other Transaction Documents in accordance with the provisions of this Section 6 pursuant to written agreements in form and substance
satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements
to deliver to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Certificate of Designations, including, without limitation,
having a Stated Value and Dividend Rate equal to the stated value and dividend rate of the Preferred Shares held by the Holders
and having similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders and (ii) the Successor
Entity (including its Parent Entity) is a publicly traded corporation whose shares of common stock are quoted on or listed for
trading on an Eligible Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designations
and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of
Designations and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company
herein and therein. In addition to the foregoing, upon consummation of a Fundamental Transaction, the Successor Entity shall deliver
to each Holder confirmation that there shall be issued upon conversion of the Preferred Shares at any time after the consummation
of such Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except
such items still issuable under Sections 7(a) and 12, which shall continue to be receivable thereafter)) issuable upon the conversion
of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common stock (or their equivalent)
of the Successor Entity (including its Parent Entity) which each Holder would have been entitled to receive upon the consummation
of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately prior to such Fundamental
Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in this Certificate of Designations),
as adjusted in accordance with the provisions of this Certificate of Designations. The provisions of this Section 6 shall apply
similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion
of the Preferred Shares.

 

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7.
Rights Upon Issuance of Purchase Rights and Other Corporate Events.

 

(a)
Purchase Rights. In addition to any adjustments pursuant to Section 8 below, if at any time the Company grants, issues
or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of Common Stock (the “Purchase Rights”), then each Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such
Holder had held the number of shares of Common Stock acquirable upon complete conversion of all the Preferred Shares (without
taking into account any limitations or restrictions on the convertibility of the Preferred Shares) held by such Holder immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that such Holder’s right to participate in any such Purchase Right would result in such
Holder exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for such Holder until such time, if ever, as its right thereto would not result
in such Holder exceeding the Maximum Percentage).

 

(b)
Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other
assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make
appropriate provision to insure that each Holder will thereafter have the right to receive upon a conversion of all the Preferred
Shares held by such Holder (i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other
assets to which such Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock
been held by such Holder upon the consummation of such Corporate Event (without taking into account any limitations or restrictions
on the convertibility of the Preferred Shares contained in this Certificate of Designations) or (ii) in lieu of the shares of
Common Stock otherwise receivable upon such conversion, such securities or other assets received by the holders of shares of Common
Stock in connection with the consummation of such Corporate Event in such amounts as such Holder would have been entitled to receive
had the Preferred Shares held by such Holder initially been issued with conversion rights for the form of such consideration (as
opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. The provisions
of this Section 7 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any
limitations on the conversion of the Preferred Shares contained in this Certificate of Designations.

 

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8.
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section
7 or Section 12, if the Company at any time on or after the Subscription Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares,
the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision
of Section 7 or Section 12, if the Company at any time on or after the Subscription Date combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion
Price in effect immediately prior to such combination will be proportionately increased. Any adjustment pursuant to this Section
8 shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment
under this Section 8 occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event.

 

9.
Authorized Shares.

 

(a)
Reservation. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of
Common Stock equal to the sum of (i) 300% of the Conversion Rate with respect to the Conversion Amount of each Preferred Share
as of the Initial Issuance Date (assuming for purposes hereof, that all the Preferred Shares issuable pursuant to the Securities
Purchase have been issued, such Preferred Shares are convertible at the Conversion Price and without taking into account any limitations
on the conversion of such Preferred Shares set forth in herein) and (ii) the maximum number of Dividend Shares issuable pursuant
to the terms of this Certificate of Designations from the Initial Issuance Date through the fifth (5th) anniversary
of the Initial Issuance Date (assuming for purposes hereof, that all the Preferred Shares issuable pursuant to the Second Securities
Purchase Agreement have been issued and without taking into account any limitations on the issuance of securities set forth herein).
So long as any of the Preferred Shares are outstanding, the Company shall take all action necessary to reserve and keep available
out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Preferred
Shares, as of any given date, the sum of (i) 300% of the number of shares of Common Stock as shall from time to time be necessary
to effect the conversion of all of the Preferred Shares issued or issuable pursuant to the Securities Purchase Agreement and (ii)
the maximum number of Dividend Shares issuable pursuant to the terms of this Certificate of Designations from such date through
the fifth (5th) anniversary of such given date, assuming for purposes hereof, that all the Preferred Shares issuable
pursuant to the Securities Purchase Agreement have been issued and without taking into account any limitations on the issuance
of securities set forth herein), provided that at no time shall the number of shares of Common Stock so available be less than
the number of shares required to be reserved by the previous sentence (without regard to any limitations on conversions contained
in this Certificate of Designations) (the “Required Amount”). The initial number of shares of Common Stock
reserved for conversions of the Preferred Shares and for issuance as Dividend Shares and each increase in the number of shares
so reserved shall be allocated pro rata among the Holders based on the number of Preferred Shares held by each Holder on the Initial
Issuance Date or increase in the number of reserved shares (as the case may be) (the “Authorized Share Allocation”).
In the event a Holder shall sell or otherwise transfer any of such Holder’s Preferred Shares, each transferee shall be allocated
a pro rata portion of such Holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any
Person which ceases to hold any Preferred Shares shall be allocated to the remaining Holders of Preferred Shares, pro rata based
on the number of Preferred Shares then held by such Holders.

 

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(b)
Insufficient Authorized Shares. If, notwithstanding Section 9(a) and not in limitation thereof, at any time while any of
the Preferred Shares remain outstanding the Company does not have a sufficient number of authorized and unissued shares of Common
Stock to satisfy its obligation to have available for issuance upon conversion of the Preferred Shares at least a number of shares
of Common Stock equal to the Required Amount (an “Authorized Share Failure”), then the Company shall immediately
take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the
Company to reserve and have available the Required Amount for all of the Preferred Shares then outstanding. Without limiting the
generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
or obtain written consent of its stockholders for the approval of an increase in the number of authorized shares of Common Stock.
In connection with such meeting, the Company shall provide each stockholder with a proxy statement or information statement, as
applicable, and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of
Common Stock and to cause its Board to recommend to the stockholders that they approve such proposal.

 

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10.
Voting Rights. Holders of Preferred Shares shall have no voting rights, except as required by law (including without limitation,
the NRS) and as expressly provided in this Certificate of Designations. To the extent that under the NRS the vote of the holders
of the Preferred Shares, voting separately as a class or series as applicable, is required to authorize a given action of the
Company, the affirmative vote or consent of the holders of all of the Preferred Shares, voting together in the aggregate and not
in separate series unless required under the NRS, represented at a duly held meeting at which a quorum is presented or by written
consent of all of the Preferred Shares (except as otherwise may be required under the NRS), voting together in the aggregate and
not in separate series unless required under the NRS, shall constitute the approval of such action by both the class or the series,
as applicable. Subject to Section 4(e), to the extent that under the NRS holders of the Preferred Shares are entitled to vote
on a matter with holders of shares of Common Stock, voting together as one class, each Preferred Share shall entitle the holder
thereof to cast that number of votes per share as is equal to the number of shares of Common Stock into which it is then convertible
(subject to the ownership limitations specified in Section 4(e) hereof) using the record date for determining the stockholders
of the Company eligible to vote on such matters as the date as of which the Conversion Price is calculated. Holders of the Preferred
Shares shall be entitled to written notice of all stockholder meetings or written consents (and copies of proxy materials and
other information sent to stockholders) with respect to which they would be entitled by vote, which notice would be provided pursuant
to the Company’s bylaws and the NRS).

 

11.
Liquidation, Dissolution, Winding-Up. In the event of a Liquidation Event, the Holders shall be entitled to receive in
cash out of the assets of the Company, whether from capital or from earnings available for distribution to its stockholders (the
“Liquidation Funds”), before any amount shall be paid to the holders of any of shares of Junior Stock, an amount
per Preferred Share equal to the greater of (A) 110% of the Conversion Amount thereof on the date of such payment, multiplied
by the Redemption Premium and (B) the amount per share such Holder would receive if such Holder converted such Preferred Shares
into Common Stock immediately prior to the date of such payment, provided that if the Liquidation Funds are insufficient to pay
the full amount due to the Holders and holders of shares of Parity Stock, then each Holder and each holder of Parity Stock shall
receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder and such holder
of Parity Stock as a liquidation preference, in accordance with their respective certificate of designations (or equivalent),
as a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and all holders of shares of
Parity Stock. To the extent necessary, the Company shall cause such actions to be taken by each of its Subsidiaries so as to enable,
to the maximum extent permitted by law, the proceeds of a Liquidation Event to be distributed to the Holders in accordance with
this Section 11. All the preferential amounts to be paid to the Holders under this Section 11 shall be paid or set apart for payment
before the payment or setting apart for payment of any amount for, or the distribution of any Liquidation Funds of the Company
to the holders of shares of Junior Stock in connection with a Liquidation Event as to which this Section 11 applies.

 

12.
Participation. In addition to any adjustments pursuant to Section 8, the Holders shall, as holders of Preferred Shares,
be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock to the same extent
as if such Holders had converted each Preferred Share held by each of them into shares of Common Stock (without regard to any
limitations on conversion herein or elsewhere) and had held such shares of Common Stock on the record date for such dividends
and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders
of shares of Common Stock (provided, however, to the extent that a Holder’s right to participate in any such dividend or
distribution would result in such Holder exceeding the Maximum Percentage, then such Holder shall not be entitled to participate
in such dividend or distribution to such extent (or the beneficial ownership of any such shares of Common Stock as a result of
such dividend or distribution to such extent) and such dividend or distribution to such extent shall be held in abeyance for the
benefit of such Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Maximum Percentage).

 

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13.
Vote to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the
vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Articles
of Incorporation, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent
without a meeting of the Required Holders, voting together as a single class, the Company shall not amend or repeal any provision
of, or add any provision to, its Articles of Incorporation or bylaws, or file any certificate of designations or articles of amendment
of any series of shares of preferred stock, if such action would adversely alter or change in any respect the preferences, rights,
privileges or powers, or restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action
shall be by means of amendment to the Articles of Incorporation or by merger, consolidation or otherwise; provided, however, the
Company shall be entitled, without the consent of the Required Holders unless such consent is otherwise required by the NRS, to
(a) amend the Articles of Incorporation to effectuate one or more reverse stock splits of its issued and outstanding Common Stock
for purposes of maintaining compliance with the rules and regulations of the Principal Market; (b) purchase, repurchase or redeem
any shares of capital stock of the Company junior in rank to the Preferred Shares (other than pursuant to equity incentive agreements
(that have in good faith been approved by the Board) with employees giving the Company the right to repurchase shares upon the
termination of services); or (c) issue any preferred stock that is junior in rank to the Preferred Shares.

 

14.
Lost or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of any certificates representing Preferred Shares (as to which a written certification and the
indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification
undertaking by the applicable Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender
and cancellation of the certificate(s), the Company shall execute and deliver new certificate(s) of like tenor and date.

 

15.
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate
of Designations shall be cumulative and in addition to all other remedies available under this Certificate of Designations and
any of the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive
relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy.
Nothing herein shall limit any Holder’s right to pursue actual and consequential damages for any failure by the Company
to comply with the terms of this Certificate of Designations. The Company covenants to each Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by a Holder and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, each Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened
breach, without the necessity of showing economic loss and without any bond or other security being required, to the extent permitted
by applicable law. The Company shall provide all information and documentation to a Holder that is requested by such Holder to
enable such Holder to confirm the Company’s compliance with the terms and conditions of this Certificate of Designations.

 

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16.
Noncircumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation,
bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Certificate of Designations, and will at all times in good faith carry out all the provisions of this Certificate of Designations
and take all action as may be required to protect the rights of the Holders. Without limiting the generality of the foregoing
or any other provision of this Certificate of Designations, the Company (i) shall not increase the par value of any shares of
Common Stock receivable upon the conversion of any Preferred Shares above the Conversion Price then in effect, (ii) shall take
all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the conversion of Preferred Shares and (iii) shall, so long as any Preferred Shares are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for
the purpose of effecting the conversion of the Preferred Shares, the maximum number of shares of Common Stock as shall from time
to time be necessary to effect the conversion of the Preferred Shares then outstanding (without regard to any limitations on conversion
contained herein).

 

17.
Failure or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing
and signed by an authorized representative of the waiving party. This Certificate of Designations shall be deemed to be jointly
drafted by the Company and all Holders and shall not be construed against any Person as the drafter hereof.

 

18.
Notices. The Company shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant
to the terms of this Certificate of Designations, including in reasonable detail a description of such action and the reason therefor.
Whenever notice is required to be given under this Certificate of Designations, unless otherwise provided herein, such notice
must be in writing and shall be given in accordance with the signature page of the Securities Purchase Agreement. Without limiting
the generality of the foregoing, the Company shall give written notice to each Holder (i) promptly following any adjustment of
the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the Common Stock, (B) with respect to any grant, issuances, or sales of any Options, Convertible Securities
or rights to purchase stock, warrants, securities or other property to all holders of shares of Common Stock as a class or (C)
for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided, in each case,
that such information shall be made known to the public prior to, or simultaneously with, such notice being provided to any Holder.

 

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19.
Transfer of Preferred Shares. Subject to the restrictions set forth in the Securities Purchase Agreement, a Holder may
transfer some or all of its Preferred Shares without the consent of the Company.

 

20.
Preferred Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency
of the Company as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall
record the name, address and facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the
name and address of each transferee. The Company may treat the Person in whose name any Preferred Shares is registered on the
register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events recognizing
any properly made transfers.

 

21.
Stockholder Matters; Amendment.

 

(a)
Stockholder Matters. Any stockholder action, approval or consent required, desired or otherwise sought by the Company pursuant
to the NRS, the Articles of Incorporation, this Certificate of Designations or otherwise with respect to the issuance of Preferred
Shares may be effected by written consent of the Company’s stockholders or at a duly called meeting of the Company’s
stockholders, all in accordance with the applicable rules and regulations of the NRS. This provision is intended to comply with
the applicable sections of the NRS permitting stockholder action, approval and consent affected by written consent in lieu of
a meeting.

 

(b)
Amendment. This Certificate of Designations or any provision hereof may be amended by obtaining the affirmative vote at
a meeting duly called for such purpose, or written consent without a meeting in accordance with the NRS, of the Required Holders,
voting separate as a single class, and with such other stockholder approval, if any, as may then be required pursuant to the NRS
and the Articles of Incorporation.

 

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22.
Dispute Resolution.

 

(a)
Submission to Dispute Resolution.

 

(i)
In the case of a dispute relating to a Closing Sale Price, a Conversion Price, a VWAP or a fair market value or the arithmetic
calculation of a Conversion Rate (as the case may be) (including, without limitation, a dispute relating to the determination
of any of the foregoing), the Company or the applicable Holder (as the case may be) shall submit the dispute to the other party
via facsimile (A) if by the Company, within two (2) Business Days after the occurrence of the circumstances giving rise to such
dispute or (B) if by such Holder at any time after such Holder learned of the circumstances giving rise to such dispute. If such
Holder and the Company are unable to promptly resolve such dispute relating to such Closing Sale Price, such Conversion Price,
such VWAP or such fair market value, or the arithmetic calculation of such Conversion Rate (as the case may be), at any time after
the second (2nd) Business Day following such initial notice by the Company or such Holder (as the case may be) of such
dispute to the Company or such Holder (as the case may be), then such Holder may, at its sole option, select an independent, reputable
investment bank to resolve such dispute.

 

(ii)
Such Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered
in accordance with the first sentence of this Section 22 and (B) written documentation supporting its position with respect to
such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following
the date on which such Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents
referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute
Documentation”) (it being understood and agreed that if either such Holder or the Company fails to so deliver all of
the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required
Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation
or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based
solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline).
Unless otherwise agreed to in writing by both the Company and such Holder or otherwise requested by such investment bank, neither
the Company nor such Holder shall be entitled to deliver or submit any written documentation or other support to such investment
bank in connection with such dispute (other than the Required Dispute Documentation) .

 

(iii)
The Company and such Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company
and such Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline.
The fees and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution
of such dispute shall be final and binding upon all parties absent manifest error.

 

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(b)
Miscellaneous.

 

(i)
The Company expressly acknowledges and agrees that (i) this Section 22 constitutes an agreement to arbitrate between the Company
and each Holder (and constitutes an arbitration agreement) under §7501, et seq. of the New York Civil Practice Law and Rules
(“CPLR”) and that any Holder is authorized to apply for an order to compel arbitration pursuant to CPLR §7503(a)
in order to compel compliance with this Section 22, (ii) the terms of this Certificate of Designations and each other applicable
Transaction Document shall serve as the basis for the selected investment bank’s resolution of the applicable dispute, such
investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and the like that
such investment bank determines are required to be made by such investment bank in connection with its resolution of such dispute
and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the terms of this
Certificate of Designations and any other applicable Transaction Document, (iii) the applicable Holder (and only such Holder with
respect to disputes solely relating to such Holder), in its sole discretion, shall have the right to submit any dispute described
in this Section 22 to any state or federal court sitting in the City of New York, Borough of Manhattan, subject to any choice
of law provision in the Securities Purchase Agreement, in lieu of utilizing the procedures set forth in this Section 22 and (iv)
nothing in this Section 22 shall limit such Holder from obtaining any injunctive relief or other equitable remedies (including,
without limitation, with respect to any matters described in this Section 22).

 

(ii)
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Certificate of Designations, unless otherwise
expressly set forth herein, such payment shall be made in lawful money of the United States of America by a certified check drawn
on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to
the Company in writing, provided that such Holder may elect to receive a payment of cash via wire transfer of immediately available
funds by providing the Company with prior written notice setting out such request and such Holder’s wire transfer instructions.
Whenever any amount expressed to be due by the terms of this Certificate of Designations is due on any day which is not a Business
Day, the same shall instead be due on the next succeeding day which is a Business Day. Any amount due hereunder which is not paid
when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount
at the rate of nine percent (9%) per annum from the date such amount was due until the same is paid in full (“Late Charge”).

 

23.
Certain Defined Terms. For purposes of this Certificate of Designations, the following terms shall have the following meanings:

 

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

 

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(b)
“Additional Amount” means, as of the applicable date of determination, with respect to each Preferred Share,
all declared and unpaid Dividends on such Preferred Share.

 

(c)
“Approved Share Plan” means any employee benefit plan which has been approved by the board of directors of
the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase
Common Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such.

 

(d)
“Bloomberg” means Bloomberg, L.P.

 

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

 

(f)
“Closing Sale Price” means, for any security as of any date, the last closing trade price for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing trade price (as the case may be) then the last trade price of such security prior to 4:00:00 p.m.,
New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market
for such security, the last trade price of such security on the principal securities exchange or trading market where such security
is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for
such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security
as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot
be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such
date shall be the fair market value as mutually determined by the Company and the applicable Holder. If the Company and such Holder
are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures
in Section 22. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during such period.

 

(g)
“Common Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any
capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such
common stock.

 

(h)
“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. 

 

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(i)
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose
or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that
the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(j)
“Conversion Amount” means, with respect to each Preferred Share, as of the applicable date of determination,
the sum of (1) the Stated Value thereof, plus (2) the Additional Amount thereon as of such date of determination, plus
(3) the Make-Whole Amount.

 

(k)
“Conversion Premium” means One Hundred Twenty Five Percent (125%).

 

(l)
“Conversion Price” means, with respect to each Preferred Share, the lower of (i) the Fixed Conversion Price;
or (ii) the lower of the VWAP of the Common Stock on the Trading Day prior to the Conversion Date or the VWAP of the Common Stock
on the Conversion Date, subject to changes as set forth herein.

 

(m)
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the
holder thereof to acquire, any shares of Common Stock.

 

(n)
“Dividend Notice Due Date” means the eleventh (11th) Trading Day immediately prior to the applicable
Dividend Date.

 

(o)
“Dividend Rate” means five percent (5.0%) per annum.

 

(p)
“Eligible Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq
Global Market or the Principal Market.

 

(q)
“Equity Conditions” means: (i) with respect to the applicable date of determination all of the shares of Common
Stock issuable upon conversion of all of the Preferred Shares are freely tradable without the need for registration under any
applicable federal or state securities laws (in each case, disregarding any limitation on conversion contained herein); (ii) on
each day during the period beginning thirty (30) days prior to the applicable date of determination and ending on and including
the applicable date of determination (the “Equity Conditions Measuring Period”), the Common Stock (including
all of the shares of Common Stock issuable upon conversion of all of the Preferred Shares) is listed or designated for quotation
(as applicable) on an Eligible Market and shall not have been suspended from trading on an Eligible Market (other than suspensions
of not more than two (2) days and occurring prior to the applicable date of determination due to business announcements by the
Company); (iii) on each day during the Equity Conditions Measuring Period, the Company shall have delivered all shares of Common
Stock issuable upon conversion of Preferred Shares on a timely basis as set forth in Section 4 hereof, and all other shares of
capital stock required to be delivered by the Company on a timely basis as set forth in the other Transaction Documents; (iv)
any shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without violating
Section 4(e) hereof (each Holder acknowledges that the Company shall be entitled to assume that this condition has been met for
all purposes hereunder absent written notice from such Holder); (v) any shares of Common Stock to be issued in connection with
the event requiring determination may be issued in full without violating the rules or regulations of the Eligible Market on which
the Common Stock is then listed or designated for quotation (as applicable); (vi) on each day during the Equity Conditions Measuring
Period, no public announcement of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been
abandoned, terminated or consummated; (vii) the Company shall have no knowledge of any fact that would reasonably be expected
to cause any of the shares of Common Stock issuable upon conversion of any Preferred Shares to not be freely tradable without
the need for registration under any applicable state securities laws (disregarding any limitation on conversion contained herein);
(viii) no Holder shall be in possession of any material, non-public information provided to any of them by the Company, any of
its Subsidiaries or any of their respective affiliates, employees, officers, representatives, agents or the like; (ix) on each
day during the Equity Conditions Measuring Period, the Company otherwise shall have been in material compliance with each, and
shall not have breached any, provision, covenant, representation or warranty of any Transaction Document; (x) on each day during
the Equity Conditions Measuring Period, there shall not have occurred any Volume Failure or Price Failure; (xi) there shall be
no Triggering Events; (xii) The Company’s Common Stock must be DWAC eligible and not subject to “DTC chill”;
(xiii) the Company must be current on all of its filings under the 1934 Act; (xiv) the Preferred Shares must be able to be delivered
via an “Automatic Conversion” of principal and/or interest.

 

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(r)
“Equity Conditions Failure” means, with respect to any date of determination, that on any day during the period
commencing twenty (20) Trading Days immediately prior to such date of determination, the Equity Conditions have not been satisfied
(or waived in writing by the Required Holders).

 

(s)
“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors,
advisors or independent contractors of the Company pursuant to any stock or option plan duly adopted for such purpose, (b) shares
of Common Stock, warrants or options to advisors or independent contractors of the Company for compensatory purposes, (c) securities
upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the Initial Issuance Date, provided that such securities
have not been amended since the Initial Issuance Date to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, (d) securities issuable pursuant to any contractual anti-dilution obligations
of the Company in effect as of the Initial Issuance Date, provided that such obligations have not been materially amended since
the Initial Issuance Date, (e) securities issued pursuant to acquisitions or any other strategic transactions approved by the
Board of Directors, provided that any such issuance 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 and (f) shares
issued in lieu of cash payments under the Company’s management agreement with Via One Services Inc.

 

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(t)
“Fixed Conversion Price” means, with respect to each Preferred Share, the result of 110% multiplied by the
VWAP of the common stock of the Company on the First Closing Date of the Securities Purchase Agreement relating to the purchase
and sale of the Preferred Shares as described herein, subject to changes as set forth herein.

 

(u)
“Fundamental Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly,
in one or more related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries
is the surviving corporation) any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of
all or substantially all of its respective properties or assets to any other Person, or (3) allow any other Person to make a purchase,
tender or exchange offer that is accepted by the holders of more than fifty percent (50%) of the outstanding shares of Voting
Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to,
or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than fifty percent (50%) of the
outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination), or (5) (I) reorganize, recapitalize or reclassify the Common Stock, (II) effect
or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (III) make any
public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving
the Common Stock (including, without limitation, any public announcement or disclosure of (x) any potential, possible or actual
stock combination, reverse stock split or other similar transaction involving the Common Stock or (y) board or stockholder approval
thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or
other similar transaction involving the Common Stock), or (ii) any “person” or “group” (as these terms
are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or
shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of fifty
percent (50%) of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

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

 

(w)
“Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations
issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital
leases” in accordance with generally accepted accounting principles) (other than trade payables entered into in the ordinary
course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar
instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced
incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any
conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or
assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement
are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which,
in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is classified
as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest
or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though
the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G)
above.

 

(x)
“Liquidation Event” means, whether in a single transaction or series of transactions, the voluntary or involuntary
liquidation, dissolution or winding up of the Company or such Subsidiaries the assets of which constitute all or substantially
all of the assets of the business of the Company and its Subsidiaries, taken as a whole.

 

(y)
“Make-Whole Amount” means as of any given date, the amount of any Dividend that, but for any conversion hereunder
on such given date, would have accrued with respect to the Conversion Amount being redeemed hereunder at the Dividend Rate then
in effect for the period from such given date through the first anniversary of the Initial Issuance Date.

 

(z)
“Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any subsidiary, either
individually or taken as a whole, (ii) the transactions contemplated hereunder or (iii) the authority or ability of the Company
to perform any of its obligations hereunder.

 

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(aa)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(bb)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(cc)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(dd)
“Price Failure” means, with respect to a particular date of determination, that the quotient of (x) the sum
of the VWAP of the Common Stock for each Trading Day in the thirty (30) consecutive Trading Day period ending and including the
Trading Day immediately preceding such date of determination, divided by (y) thirty (30) is less than $0.005 (as adjusted for
stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions).

 

(ee)
“Principal Market” means the OTCPINK, OTCQB or OTCQX.

 

(ff)
“Redemption Notices” means, collectively, the Triggering Event Redemption Notice, the Company Monthly Redemption
Notice and each of the foregoing, individually, a “Redemption Notice”.

 

(gg)
“Redemption Premium” means One Hundred Thirty Percent (130%).

 

(hh)
“Redemption Prices” means, collectively, the Triggering Event Redemption Price, the Company One-Time Redemption
Price and the Monthly Redemption Price, and each of the foregoing, individually, a “Redemption Price”.

 

(ii)
“Required Holders” means the holders of at least two-thirds of the outstanding Preferred Shares.

 

(jj)
“Rule 144” means Rule 144 promulgated by the SEC pursuant to the Securities Act of 1933, as amended, as such
Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the
same effect as such Rule.

 

(kk)
“SEC” means the Securities and Exchange Commission or the successor thereto.

 

(ll)
“Securities” means, collectively, the Preferred Shares and the shares of Common Stock issuable upon conversion
of the Preferred Shares.

 

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(mm)
“Securities Purchase Agreement” shall mean that certain Securities Purchase Agreement, dated October 5, 2017,
by and between the Company and the Holder.

 

(nn)
“Stated Value” shall mean $1,000 per share, subject to adjustment for stock splits, stock dividends, recapitalizations,
reorganizations, reclassifications, combinations, subdivisions or other similar events occurring after the Initial Issuance Date
with respect to the Preferred Shares.

 

(oo)
“Stockholder Approval” means, for the purposes of this Certificate of Designations and any other Transaction
Document, the affirmative approval of the stockholders of the Company providing for the Company’s issuance of all of the
Securities as described in the Transaction Documents in accordance with applicable law and the rules and regulations of the Principal
Market.

 

(pp)
“Subscription Date” means October 5, 2017.

 

(qq)
“Subsidiary” or “Subsidiaries” means any subsidiary of the Company, including, where applicable,
any direct or indirect subsidiary of the Company formed or acquired after the date hereof. 

 

(rr)
“Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity)
with which such Fundamental Transaction shall have been entered into.

 

(ss)
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common
Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such
day is otherwise designated as a Trading Day in writing by the Required Holders.

 

(tt)
“Transaction Documents” means this Certificate of Designations, the Series D Certificate of Designations, the
Securities, the Securities Purchase Agreement and each of the other agreements and instruments entered into or delivered by the
Company or any of the Holders in connection with the transactions contemplated thereby, all as may be amended from time to time
in accordance with the terms hereof or thereof.

 

(uu)
“Volume Failure” means, with respect to a particular date of determination, the aggregate dollar trading volume
(as reported on Bloomberg) of the Common Stock on the Principal Market of any Trading Day in the twenty (20) consecutive Trading
Day period ending on the Trading Day immediately preceding such date of determination is less than $35,000 (adjusted for any stock
dividend, stock split, stock combination or other similar transaction during such period).

 

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(vv)
“Voting Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the
holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors,
managers, trustees or other similar governing body of such Person (irrespective of whether or not at the time capital stock of
any other class or classes shall have or might have voting power by reason of the happening of any contingency).

 

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

 

24.
Disclosure. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designations,
unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public
information relating to the Company or any of its Subsidiaries, the Company shall simultaneously with any such receipt or delivery
publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company
so shall indicate to each Holder contemporaneously with delivery of such notice, and in the absence of any such indication, each
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Company or its Subsidiaries. Nothing contained in this Section 24 shall limit any obligations of the Company,
or any rights of any Holder.

 

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IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Designations of Series D Convertible Preferred Stock of Good Gaming,
Inc. to be signed by its Chief Executive Officer on this 5th day of October, 2017.

 

	 	Good
    Gaming, Inc.
	 	                
	 	By:	      
	 	Name:	
	 	Title:	

 

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EXHIBIT
I

 

Good
Gaming, Inc.

 

CONVERSION
NOTICE

 

Reference
is made to the Certificate of Designations, Preferences and Rights of the Series D Convertible Preferred Stock of Good Gaming,
Inc. (the “Certificate of Designations”). In accordance with and pursuant to the Certificate of Designations,
the undersigned hereby elects to convert the number of shares of Series D Convertible Preferred Stock, $0.001 par value per share
(the “Preferred Shares”), of Good Gaming, Inc., a Nevada corporation (the “Company”), indicated
below into shares of common stock, $0.001 value per share (the “Common Stock”), of the Company, as of the date
specified below.

 

	Date
    of Conversion: 
	_________________________________________________________________________
	 
	Number
    of Preferred Shares to be converted: ______________________________________________________
	 
	Share
    certificate no(s). of Preferred Shares to be converted: ___________________________________________
	 
	Tax
    ID Number (If applicable): _________________________________________________________________
	 
	Conversion
    Price**: _________________________________________________________________
	 
	Number
    of shares of Common Stock to be issued: ___________________________________________________

 

Please
issue the shares of Common Stock into which the Preferred Shares are being converted in the following name and to the following
address:

 

	Issue
    to: _______________________________________________________________
	 
	 _______________________________________________________________
	 
	Address:
    _______________________________________________________________
	 
	Telephone
    Number: ____________________________________________________
	 
	Facsimile
    Number: _______________________________________________________
	 
	Holder:
    ______________________________________________________________

 

	By:
    
	___________________________________________________
	 
	Title:
    
	_________________________________________________
	 
	Dated:
    
	_______________________________________________

 

	Account
    Number (if electronic book entry transfer): 
	_____________________________________________
	 
	Transaction
    Code Number (if electronic book entry transfer): 
	________________________________________

 

**
Conversion Price may be based on the VWAP of the Trading Day prior to the Conversion Date and remains subject to adjustment upon
the close of the Principal Market on the Conversion Date.

 

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EXHIBIT
II

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Conversion Notice and hereby directs [  ] to issue the above indicated number of shares
of Common Stock in accordance with the Irrevocable Transfer Agent Instructions dated __________, 2017 from the Company and acknowledged
and agreed to by [   ].

 

	 	Good
    Gaming, Inc.
	 	 
	 	By:	
	 	Name:	
	 	Title:	

 

    	 	38

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