Document:

Exhibit
10.1

 

STOCK
PURCHASE AGREEMENT

 

This
STOCK PURCHASE AGREEMENT, dated as of February 6, 2018, is by and between FIRST CHOICE HEALTHCARE SOLUTIONS, INC.,
a Delaware corporation with its principal offices at 709 South Harbor City Boulevard, Suite 530, Melbourne, FL 32901 (the “Company”),
and STEWARD HEALTH CARE SYSTEM LLC, a Delaware limited liability company with its principal offices at 111 Huntington Avenue,
Suite 1800, Boston, MA 02199 (the “Purchaser”).

 

WHEREAS,
the Company desires to issue and sell to the Purchaser and/or its Affiliates an aggregate of 5,000,000 shares (each, a “Share”
and collectively, the “Shares”) of the common stock, par value $0.001 per share (the “Common Stock”),
of the Company, representing approximately 15.5% of the issued and outstanding shares of common stock of the Company after the
closing of the agreement, and the Purchaser desires to purchase and acquire the Shares, all on the terms and subject to the conditions
as set forth in this Agreement.

 

NOW
THEREFORE, in consideration of the mutual agreements, representations, warranties and covenants herein contained, the parties
hereto agree as follows:

 

1.             Definitions. In addition to those capitalized
terms otherwise defined in this Agreement, as used in this Agreement, the following capitalized terms shall have the following
respective meanings:

 

(a)               
“Affiliate” of a party, means any corporation or other business entity controlled by, controlling or under
common control with such party. For this purpose, “control” shall mean direct or indirect beneficial ownership of
fifty percent (50%) or more of the voting or income interest in such corporation or other business entity.

 

(b)              
“Business Day” means any calendar day other than a Saturday, Sunday or other day on which banks in New York
City are authorized or required to be closed.

 

(c)               
“Closing Date” means the date of the Closing.

 

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

 

(e)               
“Independent Director” means a director meeting the requirements set forth under NASDAQ Rule 4200(a)(15).

 

(f)              
“Market Capitalization” means an amount equal to (i) the total number of issued and outstanding shares of Common
Stock that are issued and outstanding at any given time after the date hereof and listed on OTCQB (or, if the primary listing
of such Common Stock is on another exchange, on such other exchange) multiplied by (ii) the arithmetic average of the closing
price per share of such Common Stock as reported by OTCQB (or, if the primary listing of such Common Stock is on another exchange,
on such other exchange) for each of the 10 consecutive trading days immediately preceding the date of such determination.

 

     

     

    

 

(g)              
“SEC” means the Securities and Exchange Commission.

 

(h)              
“SEC Filings” means those reports and filings made by the Company with the SEC.

 

(i)                
“Securities Act” means the Securities Act of 1933, as amended, and all of the rules and regulations promulgated
thereunder

 

(j)                
“Subsidiary” means any subsidiary of the Company as set forth on Exhibit A attached hereto and
shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date
hereof.

 

2.            
Purchase and Sale of the Shares 

 

2.1       
   Purchase and Sale. Subject to and upon the terms and conditions set forth in this Agreement, the Company
agrees to sell and issue to the Purchaser and/or its Affiliates, and the Purchaser hereby agrees to purchase from the
Company, at the Closing (as herein after defined), the Shares for a purchase price equal to $7,500,000 (the
“Purchase Price”). Notwithstanding anything herein to the contrary, the Company hereby acknowledges and
agrees that the Company shall issue the Shares to Purchaser or, as the Purchaser may designate in its sole discretion, one or
more of its Affiliates at the Closing as directed by the Purchaser, and such Affiliate(s), if any, may exercise the rights of
the Purchaser set forth herein as if such Affiliate(s) were the Purchaser hereunder and the Purchaser shall cause such
Affiliate(s) to comply with the Purchaser’s obligations hereunder as if the such Affiliates(s) were the Purchaser
hereunder.

 

2.2     
     Closing.

 

(a)               
Subject to the satisfaction or waiver of the conditions set forth in Section 5 of this Agreement, the purchase and sale of the
Shares shall take place on or before March 1, 2018 or such other date mutually agreed on by the parties (the “Closing”);
provided, the Closing shall be deemed to have occurred at 12:00 a.m. (eastern time) on the date thereof.

 

(b)              
At the Closing, (i) the Company shall deliver to the Purchaser a stock certificate representing the Shares being purchased and
acquired by the Purchaser pursuant to this Agreement (each, a “Stock Certificate”) and (ii) the Purchaser shall
make payment of Purchaser’s Purchase Price in immediately available funds.

 

(c)      
        Upon completion of the Closing, Purchaser shall be entitled to designate two (2) individuals (“Designated
Directors”) to serve as members of the five (5) member Board of Directors of the Company (the
“Board”) of which at least one (1) of the Designated Directors shall be an Independent Director for
purposes of complying with SEC rules; provided, however, that in the event Purchaser and its Affiliates owns
less than the lesser of (x) 10% of the issued and outstanding shares of common stock of the Company or (y) 90% of the
Shares (as may be adjusted from time to time pursuant to a stock split, stock dividend or other similar capital transaction),
then the Company may provide a notice to the Purchaser requiring each of the Designated Directors to resign from his/her
position as a member of the Board within 90 days of such notice and Purchaser shall no longer be entitled to designate any
individual to serve as members of the Board.

 

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3.            
Representations, Warranties and Covenants
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 warranty made herein to the extent of the disclosure contained in the corresponding section
of the Disclosure Schedules, the Company hereby represents and warrants to the Purchaser as of the Closing Date as follows:

 

3.1         
Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware and is qualified to do business in each jurisdiction in which the character of its properties or the nature
of its business requires such qualification, except where the failure to so qualify would not have a material adverse effect upon
the Company taken as a whole. The Company has all requisite corporate power and authority to carry on its business as now being
conducted. True and accurate copies of the Company’s Certificate of Incorporation and Bylaws and other organizational documents,
each as amended and in effect as of the date hereof, have been made available to the Purchaser.

 

3.2          
Capitalization; Subsidiaries. 

 

(a)               
The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock, of which 27,163,818 shares are outstanding
on the date hereof, and 1,000,000 shares of preferred stock, $0.01 par value per share, of which no shares are outstanding on
the date hereof. All issued and outstanding shares of capital stock have been duly authorized and validly issued and are fully
paid and nonassessable and have been issued in compliance with state and federal securities laws. Options, warrants and other
securities convertible into shares of Common Stock to purchase 6,838,306 shares of Common Stock are outstanding and all such options,
warrants and convertible securities have been duly authorized and validly issued and are fully paid and nonassessable and have
been issued in compliance with state and federal securities laws. Except as set forth in the SEC Filings, there are no existing
options, warrants, calls, preemptive (or similar) rights, subscriptions or other rights, agreements, arrangements or commitments
(which, for purposes of this Agreement, shall be deemed to include “phantom” stock or other commitments that provide
any right to receive value or benefits similar to capital stock or other similar rights) of any character to which the Company
or any Subsidiary is a party or by which obligates the Company or any Subsidiary to issue, deliver, transfer or sell, or cause
to be issued, delivered, transferred or sold, any shares of the capital stock of the Company or any Subsidiary or other equity
interests in the Company or any Subsidiary, or obligating the Company or any Subsidiary to grant, extend or enter into any such
options, warrants, calls, preemptive (or similar) rights, subscriptions or other rights, agreements, arrangements or commitments,
or any securities convertible into or exchangeable for shares of capital stock or other equity interests of the Company or any
Subsidiary, and there are no outstanding contractual obligations of the Company or any Subsidiary to repurchase, redeem or otherwise
acquire any shares of its capital stock or other equity interests. Except as set forth in the SEC Filings, there are no statutory
or contractual preemptive rights or rights of first offer or refusal or similar rights with respect to any shares of capital stock
of the Company or any Subsidiary, and there are no declared and unpaid dividends or distributions on any shares of capital stock
of the Company or any Subsidiary.

 

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(b)              
The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary, as more fully
described on Exhibit A, free and clear of any taxes, liens, claims and encumbrances, 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. Each Subsidiary is duly organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation and is qualified to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification, except where the failure to so qualify would not have a
material adverse effect upon the Company taken as a whole. Each Subsidiary has all requisite corporate power and authority to
carry on its business as now being conducted.

 

3.3         
Authorization. All corporate action on the part of the Company and its officers, directors and stockholders necessary for
the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
herein and therein has been duly and validly taken. When executed and delivered by the Company, this Agreement shall constitute
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as
such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally and by
general equitable principles. The Company has all requisite corporate power to enter into this Agreement and to carry out and
perform its obligations under the terms of this Agreement. No provision of the Company’s Certificate of Incorporation or
Bylaws would, directly or indirectly, restrict or impair the ability of the Purchaser to vote, or otherwise to exercise the rights
of a stockholder with respect to, the Shares or any other Shares that may be acquired or controlled by the Purchaser.

 

3.4         
Valid Issuance of the Shares. The Shares being purchased hereunder will, upon issuance pursuant to the terms hereof, be
duly authorized and validly issued, fully paid and nonassessable and free from all taxes, liens, claims and encumbrances with
respect to the issue thereof other than the restrictions on transfer provided herein and shall not be subject to preemptive rights
or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

3.5         
SEC Filings. The Company has timely filed all reports, schedules, forms, statements and other documents required to be
filed by it with the SEC pursuant to the reporting requirements of the Securities Act and the Exchange Act. As of their respective
filing dates, the SEC Filings complied as to form in all material respects with the requirements of the Securities Act and the
Exchange Act and none of the SEC Filings 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 made therein, in light of the circumstances under which
they were made, not misleading, as of their respective filing dates, except to the extent corrected by a subsequently filed SEC
Filings. None of the statements made in any such SEC Filings is, or has been, required to be amended or updated under applicable
law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective
dates, the financial statements of the Company included in the SEC Filings complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have
been prepared in accordance with United States generally accepted accounting principles, consistently applied (“GAAP”),
during the periods involved and fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal, immaterial year-end audit adjustments). Except as
set forth in the financial statements of the Company included in the SEC Filings, the Company has no liabilities, contingent or
otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to September 30, 2017, and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting
principles to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial
condition or operating results of the Company.

 

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3.6         
Consents. All consents, approvals, orders and authorizations required on the part of the Company in connection with the
execution, delivery or performance of this Agreement and the consummation of the transactions contemplated herein, other than
for Regulation D and state blue sky filings with respect to the sale of Shares which will be made pre-closing, in states with
pre-offer requirements, and post-closing in accordance with such laws, have been obtained and will be effective as of the Closing
Date, provided that this representation and warranty is made in reliance on, and assuming the accuracy of, the representations
and warranties of the Purchaser in Section 4 hereof to the extent that the accuracy of such representations and warranties are
relevant to the determination of whether any such consent, approval, order or authorization is required.

 

3.7       
   No Conflict. The Company is not in violation or default of any provision of its Certificate of
Incorporation or Bylaws, each as amended and in effect as of the Closing. The execution and delivery of this Agreement by the
Company and the consummation of the transactions contemplated hereby and thereby will not conflict with or result in any
breach, violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to a loss of a benefit under, (i) any provision of the
Certificate of Incorporation or Bylaws of the Company or (ii) any agreement or instrument, permit, franchise, license,
judgment, order, statute, law, ordinance, rule or regulations applicable to the Company, any Subsidiary or any of their
properties or assets, or (iii) any applicable law (as defined below) or any applicable judgment, order or decree of any
governmental authority, except in the case of clause (ii) to the extent that such violations and defaults would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company, such Subsidiary
and their properties and assets. The execution and delivery of this Agreement by the Company and the consummation of the
transactions contemplated hereby will not or result in the creation of any material lien, claim or encumbrance or
other rights upon any of the properties or assets of the Company, or the suspension, revocation, impairment or forfeiture of
any material permit, license, authorization, or approval applicable to the Company, its business or operations, or any of its
assets or properties. Neither the Company nor Subsidiary has taken any action or failed to take any action that would give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any Subsidiary is a party or by which any property or assets of the Company or any Subsidiary is bound or
affected, except for possible defaults as would not, individually or in the aggregate, have a material adverse effect on the
Company, such Subsidiary and their properties and assets. The businesses of the Company and the Subsidiaries, if any, are not
being conducted, and shall not be conducted so long as the Purchaser owns any of the Shares, in violation of any law,
ordinance or regulation of any governmental entity.

 

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3.8         
Trading Market. The Common Stock is registered pursuant to the Exchange Act, and the Company has taken no action designed
to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Common Stock
is listed on the OTC Markets, QB Tier (“OTCQB”), under the symbol “FCHS”, and is in full compliance
with the listing rules and requirements of OTCQB. There are no proceedings pending or, to the Company’s knowledge, threatened
to revoke or suspend such listing and the Company has not received any communication from the OTC Markets Group Inc. with respect
to any pending or threatened proceeding that would give rise to a delisting from the OTCQB. The Company will use commercially
reasonable efforts to maintain its listing and/or registration in accordance with the Exchange Act and agrees not to voluntarily
withdraw its listing and/or registration under the Exchange Act until the earlier of the date on which either (a) the Purchaser
is no longer a stockholder of the Company, (b) the Company enters into a merger, stock exchange, consolidation or similar transaction
with another entity that results in the holders of Common Stock receiving securities of the surviving entity of such merger, exchange,
consolidation or similar transaction which securities are listed on an Exchange or (c) the Company sells all or substantially
all of its assets with the intention to thereafter conduct a dissolution of the Company in accordance with applicable law.

 

3.9         
Absence of Litigation. There is no action, suit, proceeding or, to the Company’s knowledge, investigation, pending,
or, to the Company’s knowledge, threatened against, nor any outstanding judgment, order or decree against, the Company or
any Subsidiary before or by any governmental body against, the Company or any Subsidiary or any officer or director thereof in
their capacity as such which has, or for which an unfavorable outcome, ruling or finding in any said matter, or for all matters
taken as a whole, might have, a material adverse effect on the Company. Neither the Company nor any Subsidiary, nor any director
or officer thereof, is or has been the subject of any action, suit, proceeding or, to the Company’s knowledge, investigation
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 SEC involving
the Company or any current or former director or officer of the Company. The SEC 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. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the
foregoing. The foregoing includes, without limitation, any such action, suit, proceeding or investigation that questions or otherwise
affects this Agreement or the right of the Company to execute, deliver and perform under same. 

 

3.10       
Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties contained herein, the
Shares are being offered and will be sold pursuant to an available exemption from registration under the Securities Act. Except
as set forth in the SEC Filings, neither the Company, nor any of Subsidiary, nor any person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Shares to be integrated with prior offerings by the Company for purposes of (i) the Securities
Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval
provisions of any trading market on which any of the securities of the Company are listed or designated.

 

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3.11       
Registration Rights. Except as set forth on Schedule 3.11 and in Section 7.1 hereof, the Company has not granted
or agreed to grant, and is not under any obligation to provide, any rights to register under the Securities Act any of its presently
outstanding securities or any of its capital stock that may be issued subsequently, and to the Company’s knowledge, no stockholder
of the Company has entered into any agreement with respect to the voting of equity securities of the Company.

 

3.12       
Compliance with Laws. Neither the Company nor any of its subsidiaries is in violation of any applicable federal, foreign,
state, local or other law, statute, regulation, rule, ordinance, code, convention, directive, order, judgment or other legal requirement
of any governmental authority (collectively, “Laws”), except where such violation would not, individually or
in the aggregate, reasonably be expected to have a material adverse effect or a material adverse effect on the ability of the
Company and its Subsidiaries, taken as a whole, to conduct their businesses in the ordinary course of business consistent with
past practices. To the knowledge of the Company, neither the Company nor any Subsidiary is being investigated with respect to,
or been threatened to be charged with or given notice of any violation of, any applicable Law, except as would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect or a material adverse effect on the ability of the
Company and its Subsidiaries, taken as a whole, to conduct their businesses in the ordinary course of business consistent with
past practices.

 

3.13       
Investment Company Act. Neither the Company nor any Subsidiary is an investment company within the meaning of the Investment
Company Act of 1940, as amended (the “40 Act”), or, directly or indirectly, controlled by or acting on behalf
of any person which is an investment company, within the meaning of said 40 Act.

 

3.14        
Regulation M Compliance. The Company has not, and to the knowledge of the Company, no one acting on its behalf has, (a) 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 Common Stock, (b) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Common Stock, or (c) paid or agreed to pay to any person any compensation for soliciting
another to purchase any other securities of the Company.

 

3.15  
     Brokers and Finders. Neither the Company nor any Subsidiary nor any of their respective
officers or directors has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage
fees, commissions or finder’s fees, and no broker or finder has acted directly or indirectly for the Company or any of
its subsidiaries in connection with this Agreement or the sale of Shares contemplated hereby.

 

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3.16       
Absence of Certain Changes. Since September 30, 2017, except as specifically disclosed in a subsequence SEC Filing filed
prior to the date hereof and/or press release, (i) there has been no material adverse change and no material adverse development
in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or Exchange
Act reporting status of the Company or the Subsidiaries, (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 SEC, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend
or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem
any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate,
except pursuant to existing Company stock option plans. The Company does not have pending before the SEC any request for confidential
treatment of information. Except for the issuance of the Shares contemplated by this Agreement, no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to
be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not
been publicly disclosed at least 1 trading day prior to the date that this representation is made.

 

3.17       
Foreign Corrupt Practices. Neither the Company, nor any Subsidiaries, nor any director, officer, agent, employee or other
person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company,
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (“FCPA”),
or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

3.18        
Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets
have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become
absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company
would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take
any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature.
The Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving
effect to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might
issue a qualified opinion in respect of its current fiscal year.

 

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

 

3.20       
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.

 

3.21       
 Acknowledgment Regarding Purchaser’s Purchase of Shares. The Company acknowledges and agrees that the Purchaser
is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the
Purchaser or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated
hereby is not advice or a recommendation and is merely incidental to the Purchaser’s purchase of the Shares. The Company
further represents to the Purchaser that the Company’s decision to enter into this Agreement has been based solely on the
independent evaluation of the Company and its representatives.

 

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3.22       
Disclosure. All information relating to or concerning the Company or its Subsidiaries set forth in this Agreement and provided
to the Purchaser pursuant to this Agreement and otherwise in connection with the transactions contemplated hereby is true and
correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements
made herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has
occurred or exists with respect to the Company or any Subsidiary or its or their business, properties, prospects, operations or
financial conditions, which, under applicable Law, requires public disclosure or announcement by the Company but which has not
been so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the Exchange Act
are being incorporated into an effective registration statement filed by the Company under the Securities Act). Except with respect
to the material terms and conditions of the transactions contemplated by this Agreement, the Company confirms that neither it
nor any other person acting on its behalf has provided any of the Purchaser or their agents or counsel with any information that
it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchaser
will rely on the foregoing representation in effecting the transactions contemplated by this Agreement and any transactions in
securities of the Company. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those specifically set forth in Section 5 hereof.

 

3.23       
Transactions With Affiliates and Employees. Except as set forth in the SEC Filings, none of the officers or directors of
the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is
presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner,
in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any
stock option plan of the Company.

 

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3.24       
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the SEC thereunder that are effective as of the date hereof and as of the Closing Date. The Company
and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets
is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the SEC’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.

 

3.25       
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 hereunder.

 

4.            
Representations, Warranties and Covenants
of the Purchaser. Purchaser represents and warrants to the Company as of the Closing Date as follows:

 

4.1         
Authorization. All action on the part of the Purchaser and, if applicable, its officers, directors and shareholders necessary
for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
herein has been taken. When executed and delivered, this Agreement will constitute the legal, valid and binding obligation of
the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such may be limited by bankruptcy, insolvency,
reorganization or other laws affecting creditors’ rights generally and by general equitable principles. The Purchaser has
all requisite power or corporate power, whichever is applicable, to enter into this Agreement and to carry out and perform its
obligations under the terms of this Agreement.

 

4.2         
Purchase Entirely for Own Account. The Purchaser is acquiring the Shares being purchased by it hereunder for investment,
for its own account, and not for resale or with a view to distribution thereof in violation of the Securities Act.

 

    10 

     

    

 

4.3         
Investor Status; Etc. The Purchaser is an “Accredited Investor” as defined in Rule 501 of Regulation D promulgated
under the Securities Act for the reason(s) set forth in the Execution Section of this Agreement and was not organized for the
purpose of acquiring the Shares. The Purchaser’s financial condition is such that it is able to bear the risk of holding
the Shares for an indefinite period of time and the risk of loss of its entire investment. The Purchaser has been afforded the
opportunity to ask questions of and receive answers from the management of the Company concerning its investment in the Shares
and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Company’s stage
of development so as to be able to evaluate the risks and merits of its investment in the Company.

 

4.4         
Shares Not Registered. The Purchaser understands that the Shares have not been registered under the Securities Act or the
securities laws of any state, by reason of their issuance by the Company in a transaction exempt from the registration requirements
of the Securities Act and applicable state securities laws, and that the Shares must continue to be held by the Purchaser unless
a subsequent disposition thereof is registered under the Securities Act or exempt from such registration.

 

4.5         
No Conflict. The execution and delivery of this Agreement by the Purchaser and the consummation of the transactions contemplated
hereby and thereby will not conflict with or result in any violation of or default by the Purchaser (with or without notice or
lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a
loss of a material benefit under (i) any provision of the organizational documents of the Purchaser or (ii) any agreement or instrument,
permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Purchaser or its
respective properties or assets except in the case of clause (ii) to the extent that such violations and defaults would not, individually
or in the aggregate, reasonably be expected to a material adverse effect on the ability of the Purchaser to consummate the transactions
contemplated hereby.

 

4.6         
Consents. All notices, consents, approvals, orders and authorizations required on the part of the Purchaser in connection
with the execution, delivery or performance of this Agreement and the consummation of the transactions contemplated herein have
been obtained and are effective as of the Closing Date.

 

4.7        
Company Representations and Warranties. No representations or warranties have been made to the Purchaser by the Company,
or any officer, employee, agent, affiliate or subsidiary of the Company, other than the representations and warranties of the
Company contained herein, and in purchasing the Shares the Purchaser is not relying on any representations relating to the Company
other than those contained hereinor in the Company’s SEC Filings.

 

4.8          
No Recommendation. The Purchaser understands that no federal or state agency has made any findings or determination as
to the fairness of the offering or the sale and purchase of the Shares hereunder (or any part thereof) for public investment,
or any recommendation or endorsement of the Shares (or any part thereof).

 

4.9         
Access to Information. The Purchaser has had access to such information regarding the business and finances of the Company
and the Shares including, without limitation, the SEC Filings and has been provided the opportunity to discuss with the Company’s
management the business, affairs and financial condition of the Company and such other matters with respect to the Company and
Shares as would concern a reasonable person considering the transactions contemplated by this Agreement and/or concerned with
the operation of the Company, including, without limitation, pursuant to a meeting and/or discussions with management of the Company.

 

    11 

     

    

 

5.            
Conditions Precedent.

 

5.1          
Conditions to the Obligation of the Purchaser to Consummate the Closing. The obligation of the Purchaser to consummate
the Closing and to purchase and pay for the Shares being purchased by it pursuant to this Agreement is subject to the satisfaction
of the following conditions precedent:

 

(a)               
The representations and warranties contained herein of the Company shall be true and correct on and as of the Closing Date with
the same force and effect as though made on and as of the Closing Date (it being understood and agreed by the Purchaser that,
in the case of any representation and warranty of the Company contained herein (other than those set forth in Sections 3.2, 3.3,
and 3.4) and which is not hereinabove qualified by application thereto of a materiality standard, such representation and warranty
need be true and correct only in all material respects in order to satisfy as to such representation or warranty the condition
precedent set forth in the foregoing provisions of this Section 5.1(a)).

 

(b)              
The Company shall have performed all obligations and conditions herein required to be performed or observed by the Company on
or prior to the Closing Date.

 

(c)               
No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially
delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall
be pending.

 

(d)              
The purchase of and payment for the Shares by the Purchaser shall not be prohibited by any law or governmental order or regulation.
All necessary consents, approvals, licenses, permits, orders and authorizations of, or registrations, declarations and filings
with, any governmental or administrative agency or of any other person with respect to any of the transactions contemplated hereby,
other than for Regulation D and state blue sky filings with respect to the sale of the Shares, shall have been duly obtained or
made and shall be in full force and effect.

 

(e)               
The Company shall have delivered to the Purchaser (or the Purchaser’s authorized agent) the Stock Certificate representing
the number of Shares being purchased by the Purchaser pursuant to this Agreement.

 

(f)               
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

    12 

     

    

 

5.2         
Conditions to the Obligation of the Company to Consummate the Closing. The obligation of the Company to consummate the
Closing and to issue and sell to the Purchaser the Shares to be purchased at the Closing is subject to the satisfaction of the
following conditions precedent:

 

(a)               
The representations and warranties contained herein of the Purchaser shall be true and correct on and as of the Closing Date with
the same force and effect as though made on and as of the Closing Date (it being understood and agreed by the Company that, in
the case of any representation and warranty of a Purchaser contained herein which is not hereinabove qualified by application
thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in
order to satisfy as to such representation or warranty the condition precedent set forth in the foregoing provisions of this Section
5.2(a)).

 

(b)              
The Purchaser shall have performed all obligations and conditions herein required to be performed or observed by the Purchaser
on or prior to the Closing Date.

 

(c)               
No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially
delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall
be pending.

 

(d)              
The receipt by the Company of the Purchaser’s Purchase Price in immediately available funds.

 

6.            
Transfer, Legends.

 

6.1         
Securities Law Transfer Restrictions. Purchaser shall not sell, assign, pledge, transfer or otherwise dispose or encumber
any of the Shares, being purchased by the Purchaser hereunder, except pursuant to (i) an effective registration statement under
the Securities Act or (ii) an available exemption from registration under the Securities Act and applicable state securities laws
and, if requested by the Company, upon delivery by the Purchaser of an opinion of counsel reasonably satisfactory to the Company
and the Company’s counsel to the effect that the proposed transfer is exempt from registration under the Securities Act
and applicable state securities laws. Any transfer or purported transfer of the Shares in violation of this Section 6.1 shall
be voidable by the Company. The Company shall not register any transfer of the Shares in violation of this Section 6.1. The Company
may, and may instruct any transfer agent for the Company, to place such stop transfer orders as may be required on the transfer
books of the Company in order to ensure compliance with the provisions of this Section 6.1.

 

6.2          
Legends. Each certificate representing any of the Shares shall be endorsed with the legend set forth below, and the Purchaser
covenants that, except to the extent such restrictions are waived by the Company, it shall not transfer the Shares represented
by any such certificate without complying with the restrictions on transfer described in this Agreement and the legend endorsed
on such certificate:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED AND MAY NOT BE
SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN ABSENCE OF (i) AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
SECURITIES UNDER SAID ACT OR (ii) AN OPINION OF COMPANY COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

    13 

     

    

 

Provided
that the holder of Shares qualifies and provides such documentation, representations and warranties as may be reasonably requested
by Company, which request shall solely be in order for the Company to comply with applicable law (e.g., representations
that such holder is not an affiliate of the Company (and has not been an affiliate within the previous 90 days) and other customary
Rule 144 stockholder representations), and at least six months have elapsed since the Closing Date, provided, that if such holder
objects to any such Company request, the holder may, in lieu of providing the requested documentation, representations and warranties,
provide the Company with an opinion of counsel reasonably acceptable to the Company that the requested documentation, representations
and warranties are not necessary, the Company shall, upon the written request of such holder, cause the removal of the legend
set forth above and any other restrictive legend from each certificate representing any of such Shares endorsed with the legend
and any “stop order” or equivalent restriction with respect to any Shares held in book entry form, upon the return
of such certificate(s) from such holder and to issue or cause to be issued the unlegended Shares to the holder through the direct
registration system or such other form to allow the holder to cause the shares to be held in trust.

 

7.            
Miscellaneous Provisions.

 

7.1         
Registration Rights. For purposes of this Section 7.1, “Registrable Securities” of the Purchaser (or
any permitted successors and assigns) means, at any time, the Shares, and any securities issued by the Company after the date
hereof in respect of the Shares by way of a share dividend or share split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization.

 

(a)            
  Upon written demand from Purchaser to the Company any time after the six (6) month anniversary of the Closing Date,
the Company shall use reasonable best efforts to prepare and file with the SEC, within sixty (60) days from such written
demand, a registration statement covering the resale of the Registrable Securities for an offering to be made on a continuous
basis pursuant to Rule 415 promulgated under the Securities Act, as promptly as reasonably practicable (the “Shelf
Registration Statement”). Such registration statement shall be on Form S-3or any comparable or successor form or forms
or any similar short-form registration constituting a “shelf” registration statement providing for the
registration of, and the sale by the holders of Registrable Securities on a continuous or delayed basis of, all of their
Registrable Securities, pursuant to Rule 415 or otherwise. In addition, at any time following the 180th day after the Closing
Date, and regardless of the effectiveness of the Shelf Registration Statement, the Purchaser shall have the right to require
the Company to file two (2) registration statements under the Securities Act in respect of all or a portion of Registrable
Securities owned by holders of Registrable Securities (the “Demand Registration Statements”). The Company shall
use its reasonable best efforts to effect such registration to permit the sale of such Registrable Securities in accordance
with the intended method or methods of disposition thereof under the Shelf Registration Statement and/or the Demand
Registration Statements, as applicable, and pursuant thereto the Company shall cooperate in the sale of such
Registrable Securities pursuant to each registration statement filed pursuant to this Section 7.1(a).

 

    14 

     

    

 

(b)              
The Company shall use its reasonable best efforts to cause any registration statement filed pursuant to Section 7.1(a) above to
be declared effective by the SEC as promptly as possible after the filing thereof, and shall use its reasonable best efforts to
keep such registration statement continuously effective under the Securities Act until the date that all Registrable Securities
covered by such registration statement have been sold (provided that before filing any amendments or supplements thereto, the
Company will furnish copies of all such documents proposed to be filed to the Purchaser and the other holders of Registrable Securities).

 

(c)               
The Company shall notify the holders of Registrable Securities in writing promptly (and in any event within two trading days)
after receiving notification from the SEC that the registration statement has been declared effective.

 

(d)              
The Company shall promptly notify each holder of Registrable Securities who is a seller, of the happening of any event as a result
of which the prospectus included in any applicable registration statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading, and, at the request of any such seller, the Company will promptly
prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities,
such prospectus will not contain any untrue statement of a material fact or omit to state any fact necessary to make the statements
therein not misleading.

 

(e)               
All expenses incident to the Company’s performance of or compliance with this Section 7.1, including, but not limited to,
all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger
and delivery expenses, and fees and disbursements of counsel for the Company, reasonable fees and disbursements of one counsel
chosen by the holders of the Registrable Securities included in such registration to represent all holders of Registrable Securities
included in any registration and all independent certified public accountants, underwriters (excluding underwriting discounts
and selling commissions) and other persons retained by the Company, will be borne by the Company.

 

(f)               
The Company agrees to indemnify, to the extent permitted by Law, each holder of Registrable Securities, its members, managers,
officers, employees and directors and each person who controls such holder (within the meaning of the Securities Act) against
all losses, claims, damages, liabilities and expenses (including, but not limited to, attorneys’ fees and expenses) caused
by any untrue or alleged untrue statement of material fact contained in any registration statement, prospectus or preliminary
prospectus, or any amendment thereof or supplement thereto, or any omission or alleged omission of a material fact required to
be stated therein or necessary to make the statements therein not misleading, except insofar as the same are caused by or contained
in any information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure
to deliver a copy of the prospectus or any amendments or supplements thereto after the Company has furnished such holder with
a sufficient number of copies of the same. In connection with any registration statement in which a holder of Registrable Securities
is participating, each such holder will furnish to the Company in writing such information as is reasonably necessary for use
in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company,
its members, managers, directors, employees and officers and each person who controls the Company (within the meaning of the Securities
Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement of material
fact contained in the registration statement, prospectus or preliminary prospectus, or any amendment thereof or supplement thereto,
or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or omission is contained in or omitted from any information
so furnished in writing by such holder for the acknowledged purpose of inclusion in such registration statement, prospectus or
preliminary prospectus; provided that the obligation to indemnify will be several, not joint and several, among such holders
of Registrable Securities and the liability of each such holder of Registrable Securities will be in proportion to and limited
in all events to the net amount received by such holder from the sale of Registrable Securities pursuant to such registration
statement.

 

    15 

     

    

 

(g)              
In the event the Purchaser elects to sell Shares in an underwritten offering, the Company agrees to cooperate in connection with
the underwriting process and use reasonable best efforts to facilitate such underwritten offering, including, without limitation,
entering into customary documentation, making all SEC filings that are customary in connection with an underwritten offering,
making the Company reasonably available for diligence, and participating in road shows.

 

7.2         
Piggy-Back Registration.

 

(a)               
At any time and from time to time after the Closing Date, but prior to Purchaser’s exercise of its rights under Section
7.1(a), whenever the Company proposes to file a registration statement (other than a registration statement on Form S-4 or Form
S-8 or any successor forms or a registration statement that does not contemplate a distribution of the securities being registered
on a firmly underwritten basis), the Company will, prior to such filing, (x) give written notice of such proposed filing to Purchaser,
as soon as practicable but in no event less than twenty (20) days before the anticipated filing date, which notice shall
describe the intended method(s) of distribution, the name of the proposed managing underwriter or underwriters, if any, of the
offering, and the type and estimated number of shares available to be included by way of piggyback registration, and (y) offer
to the Purchaser in such notice the opportunity to register the sale of such number of shares of Registrable Securities as such
holders may request in writing within ten (10) days following receipt of such notice (a “Piggy-Back Registration”).
Subject to (i) the applicable rules and regulations and interpretations of the SEC, including, without limitation, Rule 415 under
the Securities Act, and (ii) Section 7.2(b), the Company shall permit such Registrable Securities to be included in such registration
on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such
Registrable Securities in accordance with the intended method(s) of distribution thereof. Purchaser proposing to distribute its
securities through a Piggy-Back Registration that involves an underwriter or underwriters shall complete and execute all questionnaires,
powers of attorney, indemnities, underwriting agreements (with the underwriter or underwriters selected for such underwriting
by the Company), and other documents reasonably required under the terms of the applicable underwriting arrangements and shall
take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities
included in such underwriting.

 

    16 

     

    

 

(b)              
If in the sole discretion of the managing underwriter or underwriters, if any, of a Piggy-Back Registration, the offering of all,
or part of, the Registrable Securities that Purchaser requested to be included would adversely affect such offering, then the
Company shall be required to include in the underwriting only that number of Registrable Securities, if any, which the managing
underwriter or underwriters believe may be sold without causing such adverse effect. If the number of Registrable Securities to
be included in the underwriting in accordance with the foregoing is less than the total number of shares that Purchaser has requested
to be included, then Purchaser shall participate in the underwriting pro rata based upon its total ownership of Registrable Securities.
Any such limitation shall be imposed in such manner so as to avoid any diminution in the number of shares the Company may register
for sale by giving first priority for the shares to be registered for issuance and sale by the Company and the underwriter, and
by giving second priority for the shares to be registered for sale by Purchaser.

 

(c)               
Notwithstanding the provisions and rights set forth in Section 7.1 and Section 7.2, Purchaser hereby acknowledges and agrees that
the Shares shall not be transferred under any applicable Laws permitting any such transfer prior to the six (6) month anniversary
of the Closing Date.

 

7.3          
Indemnification. The Company (the “Indemnitor”) hereby agrees to indemnify, pay and hold the Purchaser
and its Affiliates and each of their respective officers, directors, partners, employees and members (collectively, the “Indemnified
Parties”) harmless from and against any and all costs, expenses, liabilities, obligations, losses, damages (consequential
or otherwise), penalties, actions, judgments, suits, claims and disbursements of any kind or nature whatsoever (including the
reasonable fees and expenses of counsel) which may be imposed on, incurred by, or asserted against such Indemnified Party, in
any manner relating to or arising out of (a) the failure of any of the representations and warranties set forth in Section 3 to
be true and correct as of the Closing, and (b) any non-compliance with or breach of any covenant or agreement of the Company contained
in this Agreement (the “Indemnified Liabilities”). Each Indemnified Party shall give the Indemnitor prompt
written notice of any claim that might give rise to Indemnified Liabilities setting forth a description of those elements of such
claim of which such Indemnified Party has knowledge; provided, that any delay or failure to give such notice shall not
affect the obligations of the Indemnitor unless (and then solely to the extent) such Indemnitor is materially prejudiced by such
delay or failure. The Indemnitor shall have the right at any time during which such claim is pending to select counsel to defend
and control the defense thereof and settle any claims for which they are responsible for indemnification hereunder (provided,
that the Indemnitor will not settle any such claim without the appropriate Indemnified Party’s prior written consent, which
consent shall not be unreasonably withheld (it being understood that such consent shall be reasonably withheld if any such settlement
does not include as a term thereof the unconditional release of the appropriate Indemnified Party from all claims arising out
of or in any way relating to the circumstances involving such claim) so long as in any such event the Indemnitor shall have stated
in a writing delivered to the Indemnified Party that, as between the Indemnitor and the Indemnified Party, the Indemnitor is responsible
to the Indemnified Party with respect to such claim; provided, that the Indemnitor shall not be entitled to control the
defense of any claim in the event that in the reasonable opinion of counsel for the Indemnified Party there are one or more material
defenses available to the Indemnified Party which are not available to the Indemnitor. To the extent that the undertaking to indemnify,
pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy,
the Company shall contribute the maximum portion which it is permitted to pay and satisfy under applicable Law to the payment
and satisfaction of all Indemnified Liabilities incurred by the Indemnified Parties or any of them. The obligations of the Company
set forth in this Section 7.3 shall survive until the third anniversary of the date of the Closing and, with respect to any claim
for Indemnified Liabilities made prior to the third anniversary of the Closing, until the final resolution thereof.

 

    17 

     

    

 

7.4         
Form D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Shares as required under Regulation D and
to provide a copy thereof to the Purchaser promptly after such filing. The Company shall, on or before the Closing Date, take
such action as the Company shall reasonably determine is necessary to qualify the Shares for sale to the Buyer at the applicable
closing pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States
(or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or
prior to the Closing Date.

 

7.5         
No Integration. The Company shall not make any offers or sales of any security (other than the Shares) under circumstances
that would require registration of the Securities being offered or sold hereunder under the Exchange Act or cause the offering
of the Shares to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

7.6         
Furnishing of Information; Public Information. 

 

(a)             
For so long as the Purchaser owns Shares, the Company covenants to (i) maintain the registration of the Common Stock under the
Exchange Act, (ii) 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 Securities Act and the Exchange Act even if the Company
is not then subject to the reporting requirements of the Exchange Act and (ii) furnish to the Purchaser, forthwith upon request,
a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144, the Securities Act, and
the Exchange Act, and such other information as may be reasonably requested in availing the Purchaser of any rule or regulation
of the SEC that permits the selling of any such securities without registration.

 

(b)     
         At any time during the period commencing from the six (6) month anniversary of the
Closing Date and ending at such time that all of the Shares 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 Shares, an amount in cash equal to two percent (2.0%) of the Purchaser Price on the day of a Public
Information Failure and on every thirtieth (30th) day (pro rated for periods totaling less than thirty days)
thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public
information is no longer required for the Purchaser to transfer the Shares pursuant to Rule 144 or a registration statement.
The payments to which a Purchaser shall be entitled pursuant to this Section 7.6(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.

 

    18 

     

    

 

7.7         
Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital purposes,
including but not limited to acquisitions, and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s
debt (other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (b) for
the redemption of any Common Stock (or common stock equivalents), (c) for the settlement of any outstanding litigation or (d)
in violation of FCPA or OFAC regulations.

 

7.8         
Put Option. On or after April 1, 2022, Purchaser, has the option to sell (the “Put Option”), at Purchaser’s
sole discretion, fifty percent (50%) of the Shares to the Company (the “Put Shares”), one-time during each
of the following two (2) calendar years thereafter without accumulation, by providing at least ninety (90) days prior written
notice to the Company (“Put Notice”). The Company shall have the obligation to accept Purchaser’s Put
Notice and purchase the Put Shares in accordance with this Section 7.8. The purchase price to be paid by the Company for the Put
Shares shall equal the Purchase Price set forth hereunder pro-rated for the number of shares being purchased (the “Put
Price”). The Company shall purchase and pay for the Put Shares within ninety (90) days following the date of the Put
Notice, unless otherwise agreed to by the Company and the Purchaser (the “Put Closing Date”). On the Put Closing
Date, (i) the Purchaser shall sell to the Company the Put Shares, free and clear of any liens and encumbrances, (ii) the
Company shall pay the Put Price to the Purchaser by wire transfer of immediately available funds to the account of the Purchaser
previously designated in writing to the Company, and (iii) the Purchaser shall deliver to the Company the Put Shares, represented
by a stock certificate. Notwithstanding anything to the contrary contained herein, at such time as the Market Capitalization of
the Company is equal to or more than $100,000,000 after the date hereof, the Put Option shall be automatically terminated and
of no further force and effect.

 

7.9          
Public Statements or Releases. The Company shall (a) by 9:30 a.m. (New York City time) on the trading day immediately following
the date hereof, issue a press release agreed to in writing by Purchaser disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the this Agreement as an exhibit thereto, with the SEC within the
time required by the Exchange Act. From and after the issuance of such press release, (x) the Company represents to the Purchaser
that it shall have publicly disclosed all material, non-public information delivered to any of the Purchaser by the Company or
any Subsidiary, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated
by this Agreement and (y) each Party shall not make, issue or release any announcement, whether to the public generally or to
any of its suppliers or customers, with respect to this Agreement and its contents or the transactions provided for herein, or
make any statement or acknowledgment of the existence of, or reveal the status of, this Agreement and its contents or the transactions
provided for herein, without the prior consent of the other parties, which shall not be unreasonably withheld or delayed, provided,
that nothing in this Section 7.9 shall prevent the Purchaser from making such public announcements as it may reasonably consider
necessary in order to satisfy its legal obligations, but, to the extent not inconsistent with such obligations, the Purchaser
shall provide the Company with an opportunity to review and comment on any proposed public announcement before it is made.

 

    19 

     

    

 

7.10       
Further Assurances. Each party agrees to cooperate fully with the other party and to execute such further instruments,
documents and agreements and to give such further written assurances, as may be reasonably requested by the other party to better
evidence and reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes
of this Agreement.

 

7.11       
Rights Cumulative. Each and all of the various rights, powers and remedies of the parties shall be considered to be cumulative
with and in addition to any other rights, powers and remedies which such parties may have at law or in equity in the event of
the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall neither
constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such party.

 

7.12       
Pronouns. All pronouns or any variation thereof shall be deemed to refer to the masculine, feminine or neuter, singular
or plural, as the identity of the person, persons, entity or entities may require.

 

7.13       
Notices.

 

(a)               
Any notices, reports or other correspondence (hereinafter collectively referred to as “correspondence”) required or
permitted to be given hereunder shall be sent by postage prepaid first class mail, courier or telecopy or delivered by hand to
the party to whom such correspondence is required or permitted to be given hereunder. The date of giving any notice shall be the
date of its actual receipt.

 

(b)         
All correspondence to the Company shall be addressed as follows:

First
Choice Healthcare Solutions, Inc.

709
South Harbor City Boulevard, Suite 530

Melbourne,
FL 32901

Attention:
Chris Romandetti – President and Chief Executive Officer

 

with
a copy to (which copy shall not constitute notice):

 

Schnader
Harrison Segal & Lewis LLP

140
Broadway, Suite 3100

New
York, NY 10005

Attention:
Richard G. Satin, Esq.

 

(c)          
All correspondence to the Purchaser shall be addressed as follows:

Steward
Health Care System LLC

111
Huntington Avenue, Suite 1800

Boston,
MA 02199

Attention:
General Counsel

 

with
a copy to (which copy shall not constitute notice):

 

McDermott
Will & Emery LLP

28
State Street

Boston,
Massachusetts 02109

Attention:
Christopher M. Jedrey, Esq.

 

    20 

     

    

 

(d)             
Any party may change the address to which correspondence to it is to be addressed by notification as provided for herein.

 

7.14       
Captions. The captions and paragraph headings of this Agreement are solely for the convenience of reference and shall not
affect its interpretation.

 

7.15       
Severability. Should any part or provision of this Agreement be held unenforceable or in conflict with the applicable laws
or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be replaced with a provision which accomplishes,
to the extent possible, the original business purpose of such part or provision in a valid and enforceable manner, and the remainder
of this Agreement shall remain binding upon the parties hereto.

 

7.16       
Governing Law. This Agreement shall be governed by and construed in accordance with the internal and substantive laws of
Delaware and without regard to any conflicts of laws concepts which concepts, which would apply the substantive law of some other
jurisdiction.

 

7.17       
Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the chancery courts
of the State of Delaware and to the jurisdiction of the United States District Court for the District of Delaware, for the purpose
of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action
or other proceeding arising out of or based upon this Agreement except in the chancery courts of the State of Delaware or the
United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as
a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding
is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the
subject matter hereof may not be enforced in or by such court.

 

7.18       
Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or
more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition
or as a waiver of any other term, provision or condition of this Agreement.

 

    21 

     

    

 

7.19       
Expenses. Each party will bear its own costs and expenses in connection with this Agreement.

 

7.20    
   Assignment. The rights and obligations of the parties hereto shall inure to the benefit of and shall be
binding upon the authorized successors and permitted assigns of each party. Except as set forth in Section 2.1 and for the
rights set forth in Section 7.1 and Section 7.2 above which shall transfer with a transfer of Registrable Securities, neither
party may assign its rights or obligations under this Agreement or designate another person (i) to perform all or part of its
obligations under this Agreement or (ii) to have all or part of its rights and benefits under this Agreement, in each case
without the prior written consent of the other party. In the event of any assignment in accordance with the terms of this
Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement by executing and agreeing
to an assumption agreement reasonably acceptable to the other party.

 

7.21    
  Survival. The respective representations and warranties given by the parties hereto, and the other
covenants and agreements contained herein, shall survive the Closing Date and the consummation of the transactions
contemplated herein for a period of two years, without regard to any investigation made by any party.

 

7.22       
Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto respecting the subject matter
hereof and supersedes all prior agreements, negotiations, understandings, representations and statements respecting the subject
matter hereof, whether written or oral. No modification, alteration, waiver or change in any of the terms of this Agreement shall
be valid or binding upon the parties hereto unless made in writing and duly executed by the Company and the Purchaser.

 

7.23       
Counterparts. This Agreement may be executed in a number of counterparts, each of which together, shall for all purposes
constitute one Agreement, binding on all of the parties hereto, notwithstanding that all such parties have not signed the same
counterpart.

 

7.24       
Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may
be waived only with the written consent of the Company; provided, however, that the amount of the number of Shares
may not be modified without the consent of the Purchaser. Any amendment or waiver effected in accordance with this Section 7.24
shall be binding upon each of the Purchaser and the Company.

 

[EXECUTION
SECTION FOLLOWS]

 

    22 

     

    

  

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

  

SELLER:

 

FIRST
CHOICE HEALTHCARE SOLUTIONS, INC.

 

	By:	/s/ Chris Romandetti	 
	Name:	Chris Romandetti
	Title:	President and Chief Executive Officer
	 	 
	PURCHASER:
	 	 
	STEWARD HEALTH CARE SYSTEM LLC
	 	 
	By:	/s/ Michael Callum	 
	Name:	Michael Callum MD
	Title:	Executive Vice PresidentExhibit 4.1

 

THE BANK OF NEW YORK MELLON

NEW YORK’S FIRST BANK-FOUNDED 1784 BY ALEXANDER HAMILTON

 

 

2 HANSON PLACE, 12TH FLOOR, BROOKLYN,
N.Y. 11217

 

 

 

February 8, 2018

 

Hennion & Walsh, Inc.

2001 Route 46, Waterview Plaza

Parsippany, New Jersey 07054

 

Smart Trust 365 (the “Fund”)

 

Dear Sirs:

The Bank of New York
Mellon is acting as trustee for the Fund, consisting of the unit investment trust (the “Trust”) included in
the Registration Statement relating to the Fund. We enclosed a list of the securities to be deposited in the Trust on the date
hereof. The prices indicated therein reflect our evaluation of such securities as of close of business on February 7, 2018, in
accordance with the valuation method set forth in the applicable Standard Terms and Conditions of Trust and Trust Agreement. We
consent to the reference to The Bank of New York Mellon as the party performing the evaluations of the Trust securities in the
Registration Statement (No. 333-221856) filed with the Securities and Exchange Commission with respect to the registration of the
sale of the Units of the Trust and to the filing of this consent as an exhibit thereto.

 

	Very truly yours,
	 
	/s/ GERARDO CIPRIANO
	Gerardo Cipriano
	Vice President

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