Document:

Exhibit 10.2

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”)
is dated as of August 9, 2020, between Senseonics Holdings, Inc., a Delaware corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser”
and collectively, the “Purchasers”).

 

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 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of
the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and each 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 Designation (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 4.5.

 

“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.

 

“Agreement”
shall have the meaning ascribed to such term in the Preamble.

 

“Anti-Corruption Laws”
are any laws, rules, or regulations relating to bribery or corruption, including without limitation the Foreign Corrupt Practices
Act and UK Bribery Act.

 

“Anti-Terrorism Laws”
are any laws, rules, regulations or orders relating to terrorism, sanctions or money laundering, including without limitation Executive
Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy
Act, and the laws administered by OFAC.

 

“Attributable Debt”
means in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of
the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction, including
any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP;
provided, however, that if such sale and leaseback transaction results in a Capital Lease Obligation, the amount of Attributable
Debt represented thereby will be the amount of liability in respect thereof determined in accordance with the definition of “Capital
Lease Obligation”.

 

“Blocked Person”
is any Person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; (b) a
Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject
to the provisions of, Executive Order No. 13224; (c) a Person with which any Purchaser is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law; (d) a Person that commits, threatens or conspires to commit
or supports “terrorism” as defined in Executive Order No. 13224; or (e) a Person that is named a “specially
designated national” or “blocked person” on the most current list published by OFAC or other similar list.

 

“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.

 

“Capital Lease Obligations”
means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that
time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease on or prior to the first date upon which such lease
may be prepaid by the lessee without payment of a penalty; provided that such determination shall be made without giving effect
to Accounting Standards Codification 842, Leases (or any other Accounting Standards Codification having similar result or effect)
(and related interpretations) to the extent any lease (or similar arrangement) would be required to be treated as a capital lease
thereunder where such lease (or arrangement) would have been treated as an operating lease under GAAP as in effect immediately
prior to the effectiveness of such Accounting Standards Codification.

 

     

     

    

 

“Capital Stock”
means, for any entity, any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents
of or interests in (however designated) stock issued by that entity, but shall not include any debt securities convertible into
or exchangeable for any securities otherwise constituting Capital Stock pursuant to this definition. Unless the context otherwise
requires, Capital Stock shall refer to Capital Stock of the Company.

 

“Certificate of Designation”
means the Certificate of Designation to be filed prior to the Initial Closing by the Company with the Secretary of State of the
State of Delaware, in the form of Exhibit A attached hereto.

 

“Closing”
means each of the Initial Closing and the Conditional Closing.

 

“Closing Date”
means each of the Initial Closing Date and the Conditional Closing Date.

 

“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 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”
shall have the meaning ascribed to such term in the Preamble.

 

“Company Counsel”
means Cooley LLP, with offices located at 11951 Freedom Drive, Reston, VA 20190.

 

“Conditional Closing”
means the first sale of the Securities pursuant to Section 2.1(b).

 

“Conditional Closing
Date” means, following the election by the Purchasers to effectuate the Conditional Closing pursuant to Section 2.1(b),
the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and
all conditions precedent to (i) the Purchasers’ obligations to pay the Conditional Subscription Amount and (ii) the
Company’s obligations to deliver the Conditional Closing Shares, in each case, have been satisfied or waived.

 

“Conditional Closing
Shares” means the shares of Series A Preferred Stock sold in the Conditional Closing.

 

“Conditional Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Series A Preferred Stock that the Purchasers
have elected to purchase hereunder in the Conditional Closing pursuant to Section 2.1(b), in United States dollars and in
immediately available funds.

 

“Consulting Agreement”
means a Consulting Agreement to be entered into between the Company and Masters Special Situations, LLC, which the Company and
the Purchasers shall negotiate in good faith to become effective no later than ten (10) Business Days following the Initial
Closing Date and which shall reflect the terms set forth on Exhibit D attached hereto.

 

“Disqualified Stock”
means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable,
in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock,
in whole or in part; provided that only the portion of the Capital Stock which so matures or is mandatorily redeemable, is so convertible
or exchangeable or is so redeemable at the option of the holder thereof prior to such date will be deemed to be Disqualified Stock;
provided, further, that if such Capital Stock is issued to any employee or to any plan for the benefit of employees of Issuer or
the Subsidiaries or by any such plan to such employees, such Capital Stock will not constitute Disqualified Stock solely because
it may be required to be repurchased by the Company in order to satisfy applicable statutory or regulatory obligations or as a
result of such employee’s termination, death or disability. The amount of Disqualified Stock deemed to be outstanding at
any time for purposes of this Agreement will be the maximum amount that the Company any and the Subsidiaries may become obligated
to pay upon the maturity of, or pursuant to any mandatory repurchase or redemption provisions of, such Disqualified Stock exclusive
of accrued dividends (other than the accretion, accumulation or payment-in-kind of dividends).

 

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“Effective Date”
means the earliest of the date that (a) the initial Registration Statement has been declared effective by the Commission,
(b) all of the Underlying Shares have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without
the requirement for the Company to be in compliance with the current public information required under Rule 144 and without
volume or manner-of-sale restrictions, (c) following the one year anniversary of the Initial Closing Date provided that a
holder of Underlying Shares is not an Affiliate of the Company, or (d) all of the Underlying Shares may be sold pursuant to
an exemption from registration under Section 4(1) of the Securities Act without volume or manner-of-sale restrictions
and Company Counsel has delivered to such holders a standing written unqualified opinion that resales may then be made by such
holders of the Underlying Shares pursuant to such exemption which opinion shall be in form and substance reasonably acceptable
to such holders.

 

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

 

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

 

“Fair Market Value”
means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress
or necessity of either party, determined in good faith by the Board of Directors.

 

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

 

“FDA” shall
mean the Food and Drug Administration.

 

“GAAP” shall
mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession
in the United States, which are applicable to the circumstances as of the date of determination.

 

“Governmental Approval”
is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or
notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental Authority”
is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory
body (including, without limitation, the FDA), court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory
organization.

 

“Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person under:

 

(1)            interest
rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate
collar agreements, in each case, not entered into by such Person for speculative purposes;

 

(2)            other
agreements or arrangements designed to manage interest rates or interest rate risk, in each case, not entered into by such Person
for speculative purposes;

 

(3)            other
agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices,
in each case, not entered into by such Person for speculative purposes; and

 

(4)            any
similar transaction or combination of the foregoing, in each case, not entered into by such Person for speculative purposes,

 

provided that the aggregate
amount of Hedging Obligations aggregate amount not to exceed Five Hundred Thousand Dollars ($500,000) at any time outstanding.

 

“Indebtedness”
shall mean with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables),
whether or not contingent and without duplication:

 

(1)            in
respect of borrowed money;

 

(2)            evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

 

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(3)            in
respect of banker’s acceptances;

 

(4)            representing
Capital Lease Obligations or Attributable Debt in respect of sale and leaseback transactions;

 

(5)            representing
the balance deferred and unpaid of the purchase price of any property or services, which purchase price is more than six months
after the date of placing the property in service or taking delivery and title thereto; or

 

(6)            representing
any Hedging Obligations, in each case, if and to the extent any of the preceding items would appear as a liability upon a balance
sheet (excluding the footnotes) of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness”
includes (i) to the extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any other
Person and (ii) all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness
is assumed by the specified Person) equal to the lesser of (x) the Fair Market Value of such asset as of the date of determination
and (y) the amount of such Indebtedness.

 

Notwithstanding
anything to the contrary in the foregoing paragraph, the term “Indebtedness” will not include (a) in connection
with any Permitted Investment (as defined in the PHC Note Purchase Agreement) or other acquisition or any transfer or other disposition,
purchase price adjustments, indemnities or royalty, earn-out, contingent or other deferred payments of a similar nature, unless
such payments are required under GAAP to appear as a liability on the balance sheet (excluding the footnotes); provided that at
the time of closing, the amount of any such payment is not determinable or, to the extent such payment has become fixed and determined,
the amount is paid within 30 days thereafter; (b) contingent obligations incurred in the ordinary course of business and not
in respect of borrowed money; (c) deferred or prepaid revenues; (d) any Capital Stock other than Disqualified Stock;
(e) purchase price holdbacks in respect of a portion of the purchase price of an asset to satisfy warranty or other unperformed
obligations of the respective seller; or (f) deferred compensation and severance, pension, health and welfare retirement and
equivalent benefits to current or former employees, directors or managers of such Person and its subsidiaries. Indebtedness shall
be calculated without giving effect to the effects of Accounting Standards Codification Topic 815 “Derivatives and Hedging”
and related interpretations to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose
under this Agreement as a result of accounting for any embedded derivatives created by the terms of such Indebtedness.

 

“Initial
Closing” means the first sale of the Securities pursuant to Section 2.1(a).

 

“Initial Closing Date”
means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (a) the Purchasers’ obligations to pay the Initial Subscription Amount and (b) the
Company’s obligations to deliver the Initial Closing Shares, in each case, have been satisfied or waived.

 

“Initial Closing Shares”
means the shares of Series A Preferred Stock sold in the Initial Closing.

 

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

 

“Investor Rights Agreement”
means the Investor Rights Agreement, dated the date hereof, among the Company and the Purchasers, in the form of Exhibit C
attached hereto.

 

“Knowledge”
means to the “best of” Company’s knowledge, or with a similar qualification, knowledge or awareness means the
actual knowledge, after reasonable investigation, of the Responsible Officers.

 

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

 

“Material Adverse Effect”
is a material adverse change in the business, operations or condition (financial or otherwise) of the Company and its Subsidiaries,
when taken as a whole; provided that the impacts of COVID-19 on the operations, business or financial condition of the Issuer or
any of its Subsidiaries that occurred and were disclosed to the Purchasers as of the Effective Date or otherwise publicly available
on or prior to the Effective Date will be disregarded.

 

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“Material Agreement”
is any license, agreement or other contractual arrangement required to be disclosed (including amendments thereto) under regulations
promulgated under the Securities Act or the Exchange Act, as may be amended; provided, however, that “Material Agreements”
shall exclude all real estate leases and all employee or director compensation agreements, arrangements or plans, or any amendments
thereto.

 

“Maximum Rate”
shall have the meaning ascribed to such term in Section 5.17.

 

“OFAC” is the
U.S. Department of Treasury Office of Foreign Assets Control.

 

“Open Source Licenses”
shall have the meaning ascribed to such term in Section 3.1(b).

 

“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.

 

“PHC Note Purchase Agreement”
shall have the meaning ascribed to such term in Section 3.1(b).

 

“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.

 

“Proxy Statement”
shall have the meaning ascribed to such term in Section 4.15.

 

“Purchaser”
shall have the meaning ascribed to such term in the Preamble.

 

“Purchaser Party”
shall have the meaning ascribed to such term in Section 4.8.

 

“Registration Rights
Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company and the Purchasers, in the
form of Exhibit B attached hereto.

 

“Registration Statement”
means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale
by the Purchasers of the Series A Preferred Stock and the Underlying Shares.

 

“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future
pursuant to the Transaction Documents, including the Underlying Shares issuable upon conversion in full of all shares of Series A
Preferred Stock, ignoring any conversion limits set forth therein.

 

“Requirement of Law”
is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Responsible Officer”
is any of the President, Chief Executive Officer, or Chief Financial Officer of the Company acting alone.

 

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

 

“Securities”
means the Series A Preferred Stock and the Underlying Shares.

 

“Securities Act”
shall have the meaning ascribed to such term in the Preamble.

 

“Series A Preferred
Stock” means the up to 30,000 shares of the Company’s Series A Convertible Preferred Stock issued hereunder
having the rights, preferences and privileges set forth in the Certificate of Designation, in the form of Exhibit A
hereto.

 

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

 

“Solvent”
means, with respect to any Person, that (a) the fair salable value of such Person’s consolidated assets exceeds the
fair value of such Person’s liabilities, (b) the fair salable value of such Person’s consolidated property exceeds
the fair value of such Person’s liabilities, (c) such Person is not left with unreasonably small capital giving effect
to the transactions contemplated by this Agreement and the other Transaction Documents, and (d) such Person is able to pay
its debts (including trade debts) as they become due (whether at maturity or otherwise) (without taking into account any forbearance
and extensions related thereto).

 

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“Stated Maturity”
means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of
interest or principal, as applicable, was scheduled to be paid in the documentation governing such Indebtedness, and will not include
any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled
for the payment thereof.

 

“Stated Value”
means $1,000 per share of Series A Preferred Stock.

 

“Stockholder Approval”
shall have the meaning ascribed to such term in Section 4.15.

 

“Stockholder Meeting”
shall have the meaning ascribed to such term in Section 4.15.

 

“Subsidiary”
means any wholly owned subsidiary of the Company.

 

“Taxes” means
all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees
or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Technology”
means, collectively, all Software, information, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how,
research and development, technical data, programs, subroutines, tools, materials, specifications, processes, inventions (whether
patentable or unpatentable and whether or not reduced to practice), apparatus, creations, improvements, works of authorship and
other similar materials, and all recordings, graphs, drawings, reports, analyses, and other writings, and other tangible embodiments
of the foregoing, in any form whether or not specifically listed herein, and all related technology, that are used in, incorporated
in, embodied in, displayed by or relate to, or are used in connection with the foregoing.

 

“Trademarks”
means any trademarks, service mark rights, trade names and other identifiers indicating the business or source of goods or services,
whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill
of the business of the Company and each of its Subsidiaries connected with and symbolized by such trademarks.

 

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

 

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

 

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

 

“Transfer Agent”
means Computershare Trust Company, N.A., the current transfer agent of the Corporation, with a mailing address of Meidinger Tower,
462 South 4th Street, Louisville, KY 40202, and any successor transfer agent of the Corporation.

 

“Underlying Shares”
means the shares of Common Stock issued and issuable upon conversion of the Series A Preferred Stock.

 

ARTICLE II. 

PURCHASE AND SALE

 

2.1 Closing

 

(a) Initial Closing.
On the Initial Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto and in any event on or prior to August 14, 2020, the Company agrees to
sell, and the Purchasers, severally and not jointly, agree to purchase, an aggregate of $3,000,000 of Series A Preferred Stock,
as calculated pursuant to Section 2.2(a). Each Purchaser acquiring shares of Series A Preferred Stock at the Initial
Closing shall deliver to the Company, via wire transfer, immediately available funds equal to its Initial Subscription Amount pursuant
to Section 2.2(b)(ii), and the Company shall deliver to each Purchaser its respective shares of Series A Preferred Stock,
as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2
deliverable at the Initial Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Initial
Closing shall occur remotely.

 

(b) Conditional Closing.
Upon the later to occur of (i) the date which is 90 days following the Initial Closing Date and (ii) the date which is
10 days after the Company receives the Stockholder Approval, to the Purchasers, but in any event no later than the date which is
150 days from the Initial Closing Date (such closing date the “Conditional Closing Date”), upon the terms and
subject to the conditions set forth herein, the Purchasers shall have the right, but not the obligation, to elect, at the Purchasers’
sole and absolute discretion, to purchase, and the Company agrees to sell to the Purchasers or their designees, up to an aggregate
of $27,000,000 of Series A Preferred Stock, such amount as designated in writing by the Purchasers to the Company prior to
the Conditional Closing Date, as calculated pursuant to Section 2.2(c), in a single Conditional Closing. To the extent that
the Purchasers exercise their option to purchase Conditional Closing Shares, each Purchaser acquiring shares at the Conditional
Closing shall deliver to the Company, via wire transfer, immediately available funds equal to its Conditional Subscription Amount
pursuant to Section 2.2(d)(i), and the Company shall deliver to each such Purchaser its respective shares of Series A
Preferred Stock, as determined pursuant to Section 2.2(c), and the Company and each such Purchaser shall deliver the other
items set forth in Section 2.2 deliverable at the Conditional Closing. Upon satisfaction of the covenants and conditions set
forth in Sections 2.2 and 2.3, the Conditional Closing shall occur at the offices of Company Counsel or such other location as
the parties shall mutually agree.

 

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2.2 Deliveries.

 

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

 

(i) this Agreement duly
executed by the Company;

 

(ii) for each Purchaser,
evidence of a book entry transfer evidencing a number of shares of Series A Preferred Stock equal to such Purchaser’s
Initial Subscription Amount divided by the Stated Value, registered in the name of such Purchaser, and evidence of the filing and
acceptance of the Certificate of Designation from the Secretary of State of the State of Delaware;

 

(iii) the Company shall
have provided each Purchaser with the Company’s wire instructions;

 

(iv) the Registration Rights
Agreement duly executed by the Company;

 

(v) the Investor Rights
Agreement duly executed by the Company; and

 

(vi) a legal opinion of
Company Counsel, substantially in the form of Exhibit E attached hereto.

 

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

 

(i) this Agreement duly
executed by such Purchaser;

 

(ii) such Purchaser’s
Initial Subscription Amount by wire transfer to the account specified in writing by the Company;

 

(iii) the Registration
Rights Agreement duly executed by such Purchaser; and

 

(iv) the Investor Rights
Agreement duly executed by such Purchaser.

 

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

 

(i) for each Purchaser,
evidence of a book entry transfer evidencing a number of shares of Series A Preferred Stock equal to such Purchaser’s
Initial Subscription Amount divided by the Stated Value, registered in the name of such Purchaser or its designee;

 

(ii) the Consulting Agreement
duly executed by the Company; and

 

(iii) a legal opinion of
Company Counsel, substantially in the form of Exhibit E attached hereto.

 

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

 

(i) such Purchaser’s Conditional Subscription
Amount by wire transfer to the account specified in writing by the Company; and

 

(ii) the Consulting Agreement duly executed by
Masters Special Situations, LLC.

 

2.3 Closing Conditions.

 

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

 

(i) the accuracy in all
material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in
all respects) on the applicable Closing Date of the representations and warranties of the Purchasers 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 each Purchaser required to be performed at or prior to the applicable Closing Date shall have been performed;
and

 

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(iii) the delivery by each
Purchaser of the items set forth in Section 2.2(b) or Section 2.2(d), as applicable, of this Agreement.

 

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

 

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

 

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

 

(iii) the delivery by the
Company of the items set forth in Section 2.2(a) or Section 2.2(c), as applicable, of this Agreement;

 

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

 

(v) from the date hereof
to the 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 such Purchaser, makes it impracticable or inadvisable to purchase the Securities
at the Closing.

 

(c) The respective obligations
of the Company and the Purchasers hereunder in connection with the Conditional Closing are subject to receipt of the Stockholder
Approval no later than 150 days following the Initial Closing Date.

 

ARTICLE III. 

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and Warranties of
the Company. The Company hereby makes the following representations and warranties to each Purchaser, except as disclosed in
the Company’s filings with the Commission following December 31, 2019, excluding any disclosures set forth in risk factors
or any “forward looking statements” within the meaning of the Securities Act:

 

(a) Due Organization,
Authorization: Power and Authority. The Company and each of its Subsidiaries is duly existing and in good standing in its jurisdictions
of organization or formation and the Company and each of its Subsidiaries is qualified and licensed to do business and is in good
standing in any jurisdiction in which the conduct of its businesses or its ownership of property requires that it be so qualified
except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

The execution,
delivery and performance by the Company of the Transaction Documents to which it is a party do not and will not (i) conflict
with the Company’s or any of its Subsidiaries’ organizational documents, including their respective certificate of
incorporation and bylaws, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of
Law applicable thereto, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination
or award of any Governmental Authority by which the Company, or any of its property or assets may be bound or affected, (iv) require
any action by, filing, registration, notice to or qualification with, or Governmental Approval from, any Governmental Authority
or any other Person (except for the Stockholder Approval and such Governmental Approvals which have already been obtained and are
in full force and effect), or (v) constitute an event of default or material breach under any Material Agreement by which
the Company, any of its Subsidiaries or any of their respective properties, is bound. Neither the Company nor any of its Subsidiaries
is in default or material breach under any Material Agreement to which it is a party or by which it or any of its assets is bound
in which such default could reasonably be expected to have a Material Adverse Effect.

 

    - 8 - 

     

    

 

The Company
has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the this Agreement
and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of each of this Agreement and the other Transaction Documents by the Company and the consummation 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.

 

(b) Intellectual Property.
The Company and each of its Subsidiaries is the sole owner of the Intellectual Property each respectively purports to own, free
and clear of all Liens other than Permitted Liens (as defined in that certain Note Purchase Agreement, by and among the Company,
Senseonics, Incorporated, certain affiliates of PHC Holdings Corporation, as purchasers, and Alter Domus (US) LLC as collateral
agent for the Noteholders, dated as of August 9, 2020, the “PHC Note Purchase Agreement”) and non-exclusive licenses
for off-the-shelf software that is commercially available to the public.

 

None of the Company or any of
its Subsidiaries has used any software or other materials that are subject to an open-source or similar license (including the
General Public License, Lesser General Public License, Mozilla Public License, or Affero License) (collectively, “Open Source
Licenses”) in a manner that would cause any software or other materials owned by the Company or used in any Company products
to have to be (i) distributed to third parties at no charge or a minimal charge, (ii) licensed to third parties for the
purpose of creating modifications or derivative works, or (iii) subject to the terms of such Open Source License.

 

Each employee and contractor of
the Company and its Subsidiaries involved in development or creation of any material Intellectual Property has assigned any and
all inventions and ideas of such Person in and to such Intellectual Property to the Company or such Subsidiary, except where failure
to do so could not reasonably be expected to have a Material Adverse Effect, in each case individually or in the aggregate.

 

No settlement or consents, covenants
not to sue, nonassertion assurances, or releases have been entered into by the Company or any of its Subsidiaries or exist to which
the Company or such Subsidiary is bound that adversely affect its rights to own or use any Intellectual Property except as could
not be reasonably expected to result in a Material Adverse Effect, in each case individually or in the aggregate.

 

(c) Subsidiaries’
Equity Interests. All of the issued ownership interests of each of the Subsidiaries of the Company are duly authorized and
validly issued, fully paid, nonassessable, and directly owned by the Company or its applicable Subsidiary and are free and clear
of all Liens other than Permitted Liens and not subject to any preemptive rights, rights of first refusal, option, warrant, call,
subscription, and similar rights, other than as required by law.

 

(d) Litigation. There
are no actions, suits, investigations, or proceedings pending or, to the Knowledge of the Responsible Officers, threatened in writing
by or against the Company or any of its Subsidiaries involving more than Five Hundred Thousand Dollars ($500,000.00).

 

(e) No Broker’s
Fees. None of the Company nor any of its Subsidiaries are party to any contract, agreement or understanding with any Person
that would give rise to a valid claim against them or the Purchasers for a brokerage commission, finder’s fee or like payment
in connection with the Transaction Documents and the transactions contemplated thereby.

 

(f) No Material Adverse
Effect; Financial Statements. All consolidated financial statements for the Company and its consolidated Subsidiaries, delivered
to the Purchasers fairly present, in conformity with GAAP, and in all material respects the consolidated financial condition of
the Company and its consolidated Subsidiaries, and the consolidated results of operations of the Company and its consolidated Subsidiaries
as of and for the dates presented. Since December 31, 2019, there has not been a Material Adverse Effect.

 

    - 9 - 

     

    

 

(g) No General Solicitation.
Neither the Company nor any of its Subsidiaries or any of their affiliates (as defined in Rule 501(b) of Regulation D)
or any person or entity acting on its or their behalf has engaged directly or indirectly in any form of general solicitation or
general advertising (within the meaning of Rule 502(c) of Regulation D) in connection with the offering, issuance and
sale of the Series A Preferred Stock in any manner involving a public offering within the meaning of Section 4(a)(2) of
the Securities Act.

 

(h) Accredited Investors.
Neither the Company nor any of its Subsidiaries has offered or sold any of the Series A Preferred Stock to any person or entity
whom it reasonably believes is not an “accredited investor” (as defined in Rule 501(a) of Regulation D).

 

(i) Solvency. The
Company is, and upon consummation of the transactions contemplated by the Transaction Documents will be, Solvent. The Company and
each of its Subsidiaries, when taken as a whole, is, and upon consummation of the transactions contemplated by the Transaction
Documents will be, Solvent.

 

(j) Exchange Act Compliance.
All documents filed with the Commission by the Company under the Exchange Act are hereinafter referred to herein as the “Exchange
Act Reports”. The Exchange Act Reports, when they were or are filed with the Commission, conformed or will conform in all
material respects to the applicable requirements of the Exchange Act and the applicable rules and regulations of the Commission
thereunder. The Exchange Act Reports did not, when filed with the Commission, contain an untrue statement of material fact or omit
to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading.

 

(k) Regulatory Compliance.
Neither the Company nor any of its Subsidiaries is an “investment company” or a company “controlled” by
an “investment company” under the Investment Company Act of 1940, as amended. Neither the Company nor any of its Subsidiaries
is engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal
Reserve Board of Governors). The Company and each of its Subsidiaries has complied in all material respects with the Federal Fair
Labor Standards Act. Neither the Company nor any of its Subsidiaries is a “holding company” or an “affiliate”
of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined
and used in the Public Utility Holding Company Act of 2005. Neither the Company nor any of its Subsidiaries has violated any laws,
order, ordinances or rules, the violation of which could reasonably be expected to have a Material Adverse Effect. Neither the
Company’s nor any of its Subsidiaries’ properties or assets has been used by the Company or such Subsidiary or, to
the Company’s Knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance
other than in material compliance with material applicable laws. The Company and each of its Subsidiaries has obtained all material
consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities
that are necessary to continue their respective businesses as currently conducted.

 

None of the
Company, any of its Subsidiaries, or any of the Company’s or its Subsidiaries’ Affiliates or any of their respective
agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation
of any Anti-Terrorism Law or Anti-Corruption Law, (ii) engaging in or conspiring to engage in any transaction that evades
or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law or Anti-Corruption Law, or (iii) is a Blocked Person. None of the Company, any of its Subsidiaries, or to the Knowledge
of the Company and any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions
contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods
or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating
to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other
Anti-Terrorism Law.

 

    - 10 - 

     

    

 

(l) Tax Returns and Payments;
Pension Contributions. The Company and each of its Subsidiaries have timely filed all required tax returns and reports (or
extensions thereof), and the Company and each of its Subsidiaries, have timely paid all foreign, federal, state, and local Taxes,
assessments, deposits and contributions owed by the Company and such Subsidiaries in a cumulative amount greater than One Hundred
Thousand Dollars ($100,000), in all jurisdictions in which the Company or any such Subsidiary is subject to Taxes, including the
United States, unless such Taxes are being contested in accordance with the next sentence. The Company and each of its Subsidiaries,
may defer payment of any contested Taxes, provided that the Company or such Subsidiary, (a) in good faith contests its obligation
to pay the Taxes by appropriate proceedings promptly and diligently instituted and conducted; (b) maintains adequate reserves
or other appropriate provisions on its books in accordance with GAAP. Neither the Company nor any of its Subsidiaries is aware
of any claims or adjustments proposed for any of the Company’s or such Subsidiary’s, prior Tax years which could result
in additional taxes in a cumulative amount greater than One Hundred Thousand Dollars ($100,000) becoming due and payable by the
Company or its Subsidiaries. the Company and each of its Subsidiaries have paid all amounts necessary to fund all present pension,
profit sharing and deferred compensation plans in accordance with their terms, and neither the Company nor any of its Subsidiaries
has, withdrawn from participation in, has permitted partial or complete termination of, or has permitted the occurrence of any
other event with respect to, any such plan which could reasonably be expected to result in any liability of the Company or its
Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.

 

(m) Full Disclosure. No
written representation, warranty or other statement of the Company or any of its Subsidiaries in any certificate or written statement,
when taken as a whole, given to any Purchaser, as of the date such representation, warranty, or other statement was made, taken
together with all such written certificates and written statements given to any Purchaser, contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading
(it being recognized that projections and forecasts provided by the Company in good faith and based upon reasonable assumptions
are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ
from the projected or forecasted results).

 

(n) Enforceability.
The Transaction Documents have been duly executed by the Company and, upon the consummation of the transactions contemplated by
the Transaction Documents, shall constitute the legal, valid, and binding obligations of the Company, enforceable against the Company
in accordance with their terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, transfer, moratorium, and other laws relating to or affecting creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(o) Valid Issuance of
Series A Preferred Stock. The Initial Closing Shares and the Conditional Closing Shares (a) have been duly authorized
by the Company and, upon their issuance pursuant to this Agreement in accordance with Section 2.1, will be validly issued,
fully paid and non-assessable, (b) will not, as of each applicable Closing Date, be subject to any preemptive, participation,
rights of first refusal or other similar rights, and (c) assuming the accuracy of each Purchaser’s representations and
warranties hereunder, (i) will be issued exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of
the Securities Act and (ii) will be issued in compliance with all applicable state and federal laws concerning the issuance
of the Shares.

 

The shares of Common Stock issuable
upon conversion of the Initial Closing Shares have been duly and validly authorized and reserved by the Company (to the extent
required to be converted under the terms hereof) and, when issued upon conversion in accordance with this Agreement and the Certificate
of Designation, will be validly issued, fully paid and non-assessable, and the issuance of such shares of Common Stock shall not
be subject to any preemptive or similar rights.

 

    - 11 - 

     

    

 

The shares of Common Stock issuable
upon conversion of the Conditional Closing Shares will be duly and validly authorized and reserved by the Company (to the extent
required to be converted under the terms hereof) and, when issued upon conversion in accordance with this Agreement and the Certificate
of Designation, will be validly issued, fully paid and non-assessable, and the issuance of such shares of Common Stock shall not
be subject to any preemptive or similar rights.

 

(n) Capitalization.
The Company’s capitalization as disclosed in its filings with the Commission is true and complete, in all material respects,
as of the date hereof.

 

(o) No Integrated Offering.
Assuming the accuracy of the Purchasers’ 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 shareholder approval provisions of any Trading Market
on which any of the securities of the Company are listed or designated.

 

(p) Listing Rules.
The Company is not required to obtain any consent or approval from its stockholders in connection with the consummation of the
transactions contemplated by this Agreement or any of the Transaction Documents pursuant to the rules of any Trading Market
on which any of the securities of the Company are listed or designated.

 

(q) Additional Preferred
Ranking. The Company represents, warrants and covenants that any shares of Preferred Stock issued to PHC Holdings Corporation
(including to any affiliate thereof) shall be pari passu to the Series A Preferred Stock with respect to payments made
pursuant to Section 5 of the Certificate of Designation.

 

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

 

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

 

(b) Own Account.
Such Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities
Act or any applicable state securities law and is acquiring the Securities 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 such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise
in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary
course of its business.

 

    - 12 - 

     

    

 

(c) Purchaser Status.
At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it converts
any Series A Preferred Stock, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act.

 

(d) Experience of Such
Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment
in the Securities and, at the present time, is able to afford a complete loss of such investment. Such Purchaser and its advisors,
if any, have been furnished with all materials relating to the business, financial condition and results of operations of the Company,
and materials relating to the offer and sale of the Securities, that have been requested by such Purchaser or its advisors, if
any. Such Purchaser acknowledges and understands that its investment in the Securities involves a significant degree of risk.

 

(e) General Solicitation.
Such 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, to such Purchaser’s knowledge, any other general solicitation or general advertisement.

 

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

 

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

 

(h) No Governmental Review.
Such Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed
on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities
nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

    - 13 - 

     

    

 

(i) No Conflicts.
The execution, delivery and performance by such Purchaser of this Agreement and the consummation by such Purchaser of the transactions
contemplated hereby will not (i) result in a violation of the organizational documents of such Purchaser or (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such
Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such
that are not material and do not otherwise affect the ability of such Purchaser to consummate the transactions contemplated hereby.

 

(j) No Legal, Tax or
Investment Advice. Such Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf
of the Company to the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment advice.
Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate
in connection with its purchase of the Securities.

 

The Company acknowledges and agrees that the representations
contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s
representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction
Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of
the transactions contemplated hereby.

 

ARTICLE IV. 

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer Restrictions.

 

(a) The Securities may only
be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant
to an effective registration statement or Rule 144, to the Company or to an Affiliate of a 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 transferred Securities
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 the Registration Rights Agreement and shall have the rights and obligations of a Purchaser under this Agreement and
the Registration Rights Agreement.

 

(b) The Purchasers agree
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:

 

“The
securities represented hereby have not been registered with the Securities and Exchange Commission or the securities commission
of any state in reliance upon an exemption from registration under the Securities Act of 1933, as amended, and, accordingly, may
not be transferred unless (i) such securities have been registered for sale pursuant to the Securities Act of 1933, as amended,
(ii) such securities may be sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel reasonably
satisfactory to it that such transfer may lawfully be made without registration under the Securities Act of 1933, as amended.”

 

The Company acknowledges and
agrees that a 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 Securities to a financial institution that is an “accredited investor”
as defined in Rule 501(a) under the Securities Act and, if required under the terms of such arrangement, such Purchaser
may transfer pledged or secured Securities 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 appropriate Purchaser’s expense, the Company will
execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection
with a pledge or transfer of the Securities, including, if the Securities are subject to registration pursuant to the Registration
Rights Agreement, the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities
Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Securityholders (as defined
in the Registration Rights Agreement) thereunder.

 

    - 14 - 

     

    

 

(c) Instruments, whether
certificated or uncertificated, evidencing the Underlying Shares shall not contain any legend (including the legend set forth in
Section 4.1(b) hereof), (i) while a registration statement (including the Registration Statement) covering the resale
of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144,
(iii) if such Underlying Shares are eligible for sale under Rule 144, without the requirement for the Company to be in
compliance with the current public information required under Rule 144 as to such Underlying Shares and without volume or
manner-of-sale restrictions, or (iv) 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). Promptly after the Effective Date, the Company
shall cause its counsel to issue a legal opinion to the Transfer Agent if required by the Transfer Agent to effect the removal
of the legend hereunder. If all or any Series A Preferred Stock is converted at a time when there is an effective registration
statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 and the Company
is then in compliance with the current public information required under Rule 144, or if the Underlying Shares may be sold
under Rule 144 without the requirement for the Company to be in compliance with the current public information required under
Rule 144 as to such Underlying Shares 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 following the Effective Date or at such time as such legend is no longer
required under this Section 4.1(c), it will, no later than three Trading Days following the delivery by a Purchaser to the
Company or the Transfer Agent of a certificate or book entry (at the election of such Purchaser, provided absent instructions to
the contrary the default shall be book-entry) representing Underlying Shares, as the case may be, issued with a restrictive legend,
deliver or cause to be delivered to such Purchaser an unrestricted book entry 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. Instruments, whether certificated or uncertificated, for Securities
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 such Purchaser.

 

4.2 Furnishing of Information; Public
Information. Until no Purchaser owns Securities, 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 even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

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

 

4.4 Securities Laws Disclosure; Publicity.
The Company shall (a) by 5:00 p.m. (New York City time) on the Trading Day immediately following the date hereof, issue
a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K,
including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act. From
and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all
material, non-public information delivered to any of the Purchasers by the Company, or any of its officers, directors, employees
or agents. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make
any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without
the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the
other party with prior notice of such public statement or communication.

 

    - 15 - 

     

    

 

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

 

4.6 Non-Public Information. Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall be
disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting on its behalf
will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes,
material non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information and
agreed with the Company to keep such information confidential. The Company understands and confirms that each Purchaser shall be
relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that the Company delivers
any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees
that such purchaser shall not have any duty of confidentiality to Company, any of its Subsidiaries, or any of their respective
officers, directors, agents, employees or Affiliates, or a duty to the Company, and of its Subsidiaries or any of their respective
officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided
that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document
constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Company understands and confirms that each
Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

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

 

4.8 Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and
its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers,
shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any
action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder
of the Company who is not an Affiliate of such Purchaser Parties, with respect to any of the transactions contemplated by the
Transaction Documents (unless such action is based upon a breach of such Purchaser Party’s representations, warranties or
covenants under the Transaction Documents or any agreements or understandings such Purchaser Parties may have with any such stockholder
or any violations by such Purchaser Parties of state or federal securities laws or any conduct by such Purchaser Parties 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, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company
has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is,
in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position
of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one
such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to (A) any Purchaser
Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement
or in the other Transaction Documents, or (B) any conduct by such Purchaser Party which constitutes gross negligence or willful
misconduct. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained
herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any
liabilities the Company may be subject to pursuant to law.

 

    - 16 - 

     

    

 

4.9 Reservation and Listing of Securities.
The Company shall maintain and keep available at all times, free of preemptive rights, a reserve of the Required Minimum 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.

 

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

 

4.11 Conversion Procedures. The
form of Notice of Conversion included in the Certificate of Designation sets forth the totality of the procedures required of the
Purchasers in order to convert the Series A Preferred Stock. Without limiting the preceding sentences, no ink-original Notice
of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of
Conversion form be required in order to convert the Series A Preferred Stock, unless required by the Transfer Agent. No additional
legal opinion, other information or instructions shall be required of the Purchasers to convert their Series A Preferred Stock.
The Company shall honor conversions of the Series A Preferred Stock and shall deliver Underlying Shares in accordance with
the terms, conditions and time periods set forth in the Transaction Documents.

 

4.13 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales, of any of the Company’s securities during the period commencing with the execution of
this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4. Each Purchaser, severally and not jointly with the
other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by
the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the
confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents.
Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company
expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it
will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4,
(ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in
accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are
first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser
shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company after the
issuance of the initial press release as described in Section 4.4. Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such
Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply
with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Securities covered by this Agreement.

 

    - 17 - 

     

    

 

4.14 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 any Purchaser. The Company shall 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 Purchasers at the Closing 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 any Purchaser.

 

4.15 Stockholder Approval. The Company
agrees to use its reasonable best efforts to call and hold as promptly as reasonably practicable following the date of this Agreement
(and in any event within 75 days of the date of this Agreement) a meeting of the stockholders of the Company (the “Stockholder
Meeting”) to obtain the approval of the holders of a majority of the outstanding Common Stock, in accordance with applicable
law and the bylaws of the Company, of a reverse stock split and/or an increase in the number of authorized shares of Common Stock,
which permit the issuance of the Required Minimum (the “Stockholder Approval”). As promptly as reasonably practicable
following the date hereof (and in any event within 10 calendar days after the date hereof), the Company will prepare and file
with the Commission a revised preliminary proxy statement. The definitive form of such revised proxy statement shall be sent to
the Company’s stockholders in connection with the Stockholder Meeting (the “Proxy Statement”). The Proxy
Statement shall include the recommendation of the Board of Directors that the stockholders vote in favor of the Stockholder Approval.
The Company shall use commercially reasonable efforts to solicit from the stockholders proxies in favor of the Stockholder Approval
and to obtain the Stockholder Approval. The Company shall respond reasonably promptly to any comments received from the Commission
with respect to any Proxy Statement. The Company shall provide to the Purchasers, as promptly as reasonably practicable after receipt
thereof, any written comments from the Commission or any written request from the Commission or its staff for amendments or supplements
to the Proxy Statement or any preliminary proxy statement as it relates to the Stockholder Approval and shall provide the Purchasers
with copies of all correspondence between the Company, on the one hand, and the Commission and its staff, on the other hand, relating
to the Proxy Statement as it relates to the Stockholder Approval. Notwithstanding anything to the contrary stated above, prior
to filing or mailing the Proxy Statement (or, in each case, any amendment or supplement thereto) or responding to any comments
of the Commission or its staff with respect thereto as it relates to the Stockholder Approval, the Company shall provide the Purchasers
with a reasonable opportunity to review and comment on such document or response.

 

ARTICLE V. 

MISCELLANEOUS

 

5.1 Termination. This Agreement
may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on
the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Initial Closing has
not been consummated on or before August 14, 2020; provided, however, that the right to terminate this Agreement
under this Section 5.1 shall not be available to a Purchaser whose failure to fulfill any obligation under this Agreement
has been the proximate cause of or resulted in the failure of the transactions contemplated hereunder to occur on or before such
date; provided further, 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. At the Initial
Closing, the Company shall pay the reasonable fees and expenses of Willkie Farr & Gallagher LLP, the counsel for Masters
Special Situations, LLC, in an amount not to exceed, in the aggregate, $150,000. The Company shall pay all Transfer Agent fees
(including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and
any conversion notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery
of any Securities to the Purchasers.

 

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.

 

    - 18 - 

     

    

 

5.4 Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number or email attachment as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New
York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number or email attachment as set forth on the signature pages attached hereto
on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd)
Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual
receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set
forth on the signature pages attached hereto, with, in the case of the Purchasers, a copy to: Willkie Farr & Gallagher
LLP, 787 Seventh Avenue, New York, New York 10019, Attn: Matthew J. Rizzo (mrizzo@willkie.com), Sean M. Ewen (sewen@willkie.com)
and Eric S. Halperin (ehalperin@willkie.com). To the extent that any notice provided pursuant to any Transaction Document constitutes,
or contains material, non-public information regarding the Company, the Company shall simultaneously file such notice with the
Commission pursuant to a Current Report on Form 8-K.

 

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 Purchasers holding a majority of the Securities then outstanding or, in the case of a waiver, by the party
against whom enforcement of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately
and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group
of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely
affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall
require the prior written consent of such adversely affected Purchaser, Any amendment effected in accordance with accordance with
this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

 

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

 

5.7 Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other
than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such 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 “Purchasers.” Any Purchaser may assign any or all
of its rights to purchase shares of Series A Preferred Stock at a Conditional Closing pursuant to Section 2.1(b) to
any Person, provided that such Person agrees in writing to be bound, with respect to the shares of Series A Preferred Stock
purchased by such Person, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

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 4.8.

 

5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action
or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party hereto shall
commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations
of the Company under Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing
party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such Action or Proceeding.

 

    - 19 - 

     

    

 

5.10 Survival. The representations
and warranties contained herein shall survive the Closing and the delivery 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 were an original thereof.

 

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

 

5.13 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 such 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; provided, however, that in the case of a rescission of a
conversion of the Series A Preferred Stock, the applicable Purchaser shall be required to return any shares of Common Stock
subject to any such rescinded conversion notice concurrently.

 

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, each of the Purchasers 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.

 

    - 20 - 

     

    

 

5.17 Usury. To the extent it may
lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and
all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force,
in connection with any Action or Proceeding that may be brought by any Purchaser in order to enforce any right or remedy under
any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly
agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest
shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without
limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other
sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate.
It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased
or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless
such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate
is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall
be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner
of handling such excess to be at such Purchaser’s election.

 

5.18 Independent Nature of Purchasers’
Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of
the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Purchaser pursuant hereof or thereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser
shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and
negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction
Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It
is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between
the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the
Purchasers.

 

5.19 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 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.

 

5.20 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)

 

    - 21 - 

     

    

 

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

 

	SENSEONICS HOLDINGS, INC.	Address for Notice:
	 	 
	By:	/s/ Tim Goodnow	 	Senseonics Holdings, Inc.
	 	Name: Timothy T. Goodnow	24051 Seneca Meadows Parkway 
	 	Title: President and CEO 	Germantown, MD 20876
	 	Attn: Chief Financial Officer
	With a copy to (which shall not constitute notice):	 
	 	 
	Cooley LLP	 
	11951 Freedom Drive	 
	Reston, VA 20190	 
	Attn: Christian Plaza	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    - 22 -

     

    

  

[PURCHASER SIGNATURE PAGES TO SENSEONICS
HOLDINGS, INC. STOCK PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Marlin Fund, Limited Partnership
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Michael W. Masters
	 	 
	Name of Authorized Signatory:	Michael W. Masters
	 	 
	Title of Authorized Signatory:	Managing Member of the General Partner
	 	 	 	 	 	 

Address for Notice:

 

3060 Peachtree Road, NW, Ste 1425

Atlanta, GA 30305

 

Initial Subscription Amount: $1,725,000

 

Initial Shares of Series A Preferred Stock: 1,725

  

    - 23 -

     

    

 

[PURCHASER SIGNATURE PAGES TO SENSEONICS
HOLDINGS, INC. STOCK PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Marlin Fund II, Limited Partnership
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Michael W. Masters
	 	 
	Name of Authorized Signatory:	Michael W. Masters
	 	 
	Title of Authorized Signatory:	Managing Member of the General Partner
	 	 	 	 	 	 

Address for Notice:

 

3060 Peachtree Road, NW, Ste 1425

Atlanta, GA 30305

 

Initial Subscription Amount: $1,275,000

 

Initial Shares of Series A Preferred Stock: 1,275

  

    - 24 -

     

    

 

[PURCHASER SIGNATURE PAGES TO SENSEONICS
HOLDINGS, INC. STOCK PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Masters Special Situations, LLC
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Michael W. Masters
	 	 
	Name of Authorized Signatory:	Michael W. Masters
	 	 
	Title of Authorized Signatory:	Managing Member
	 	 	 	 	 	 

Address for Notice:

 

3060 Peachtree Road, NW, Ste 1425

Atlanta, GA 30305

 

Initial Subscription Amount: $0

 

Initial Shares of Series A Preferred Stock: 0

  

    - 25 -

     

    

  

EXHIBIT A 

CERTIFICATE OF DESIGNATION

  

    - 26 -

     

    

 

EXHIBIT B  

REGISTRATION RIGHTS AGREEMENT

  

    - 27 -

     

    

 

EXHIBIT C 

INVESTOR RIGHTS AGREEMENT

  

    - 28 -

     

    

 

EXHIBIT D 

CONSULTING AGREEMENT TERMS

 

	Parties	
        Company

        

        Masters Special Situations, LLC

	Scope	Ongoing consulting services
	Term	Initial term of two years; subject to

 extension for additional one-year

 terms upon mutual written

 agreement of the parties
	Fees	Annual cash payments to Masters

 Special Situations, LLC of $150,000

 

    - 29 -

     

    

  

EXHIBIT E 

LEGAL OPINION OF COMPANY COUNSELEX-4.1

 Exhibit 4.1 

SPECIMEN UNIT CERTIFICATE 

NUMBER UNITS 
 U-                 
 SEE REVERSE FOR

 CERTAIN 
 DEFINITIONS 

Oaktree Acquisition Corp. II 

CUSIP [            ] 

UNITS CONSISTING OF ONE CLASS A ORDINARY SHARE AND ONE-FOURTH OF ONE WARRANT 

TO PURCHASE ONE CLASS A ORDINARY SHARE 

THIS CERTIFIES THAT
                                         
                                         
                   
 is the owner of
                                         
                                         
                   Units. 
 Each Unit (“Unit”)
consists of one (1) Class A ordinary share, par value $0.0001 per share (“Ordinary Shares”), of Oaktree Acquisition Corp. II, a Cayman Islands exempted company (the “Company”), and
one-fourth (1/4) of one warrant (each whole warrant, a “Warrant”). Each whole Warrant entitles the holder to purchase one (1) Ordinary Share for $11.50 per share (subject to adjustment). Each
Warrant will become exercisable on the later of (i) thirty (30) days after the Company’s completion of a merger, share exchange, asset acquisition, share purchase, reorganization or other similar business combination with one or more
businesses (each a “Business Combination”), or (ii) twelve (12) months from the closing of the Company’s initial public offering, and will expire unless exercised before 5:00 p.m., New York City Time, on the date that is five
(5) years after the date on which the Company completes its initial Business Combination, or earlier upon redemption or liquidation (the “Expiration Date”). The Ordinary Shares and Warrants comprising the Units represented by this
certificate are not transferable separately prior to             , 2020, unless Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. elect to allow earlier separate
trading, subject to the Company’s filing with the Securities and Exchange Commission of a Current Report on Form 8-K containing an audited balance sheet reflecting the Company’s receipt of the gross
proceeds of the initial public offering and issuing a press release announcing when separate trading will begin. No fractional warrants will be issued upon separation of the Units. The terms of the Warrants are governed by a Warrant Agreement, dated
as of             , 2020, between the Company and Continental Stock Transfer & Trust Company, as Warrant Agent, and are subject to the terms and provisions contained
therein, all of which terms and provisions the holder of this certificate consents to by acceptance hereof. Copies of the Warrant Agreement are on file at the office of the Warrant Agent at 1 State Street, 30th Floor, New York, New York 10004, and
are available to any Warrant holder on written request and without cost. 
 This certificate is not valid unless countersigned by the
Transfer Agent and Registrar of the Company. 
 This certificate shall be governed by and construed in accordance with the internal laws of
the State of New York. 
 Witness the facsimile signatures of its duly authorized officers. 

 

					
	By	 	  
	  	  

		 	Chief Executive Officer	  	Chief Financial Officer

 Oaktree Acquisition Corp. II 

The Company will furnish without charge to each unitholder who so requests, a statement of the powers, designations, preferences and relative,
participating, optional or other special rights of each class of shares or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences and/or rights. 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out
in full according to applicable laws or regulations: 
  

									
	TEN COM	  	—	  	as tenants in common	  	UNIF GIFT MIN ACT	  	—                   Custodian
                
		  		  		  		  	    (Cust)                        (Minor)
					
	TEN ENT	  	—	  	as tenants by the entireties	  		  	
					
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common	  		  	 under Uniform Gifts to
 Minors Act

                          
                                

(State)                       
       

 Additional abbreviations may also be used though not in the above list. 

  
 2 

 For value received,
                                        
hereby sells, assigns and transfers unto
                                        

  

                          
                                         
                                      

PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF
ASSIGNEE 
  

                          
                                         
                                         
                                         
                                         
                                         
            
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
ASSIGNEE) 

                          
                                         
              Units represented by the within Certificate, and do hereby irrevocably constitute and appoint
                                        
                     Attorney to transfer the said Units on the books of the within named Company with full power of substitution in the
premises. 
 Dated                      

  

			
	  

	Notice:	 	The signature to this assignment must correspond with the name as written upon the face of the certificate in every particular, without alteration or enlargement or any change whatever.

 Signature(s) Guaranteed: 
  

	
	  

	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C.
RULE 17Ad-15 OR ANY SUCCESSOR RULES).

 In each case, as more fully described in the Company’s final prospectus dated
            , 2020, the holder(s) of this certificate shall be entitled to receive a pro-rata portion of certain funds held in the trust
account established in connection with the Company’s initial public offering only in the event that (i) the Company redeems the Class A Ordinary Shares sold in its initial public offering and liquidates because it does not consummate
an initial business combination within the period of time set forth in the Company’s amended and restated memorandum and articles of association, (ii) the Company redeems the Class A Ordinary Shares sold in its initial public offering
in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (a) to modify the substance or timing of the Company’s obligation to redeem 100% of the Class A Ordinary
Shares if it does not consummate an initial business combination within the time period set forth therein or (b) with respect to any other provisions relating to the rights of holders of the Company’s Class A ordinary shares, or
(iii) if the holder(s) seek(s) to redeem for cash his, her or its respective Class A Ordinary Shares in connection with a tender offer (or proxy solicitation, solely in the event the Company seeks shareholder approval of the proposed
initial business combination) setting forth the details of a proposed initial business combination. In no other circumstances shall the holder(s) have any right or interest of any kind in or to the trust account. 

  
 3

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