Document:

wndw_ex102.htm

EXHIBIT 10.2

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (this “Agreement”) is entered into as of July 7, 2017 (the “Effective Date”), by and between SolarWindow Technologies, Inc., a Nevada corporation (“WNDW”) and Custom LED Systems, a State of Ohio business (“CLEDS”). WNDW and CLEDS may hereinafter be referred to individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, WNDW is developing **** that include electricity-generating coatings for application to **** and **** (collectively, the “WNDW ****”);

 

WHEREAS, WNDW’s technologies are at a stage of development where **** is one of its near term goals;

 

WHEREAS, WNDW requires strategic partners who have the knowledge and capability to support the **** of WNDW’s technologies into ****;

 

WHEREAS, CLEDS is able to help secure the partnerships required in order to enable such **** and otherwise assist WNDW in the **** of the WNDW ****; and

 

WHEREAS, the Parties have entered into a Non-Binding Memorandum of Understanding dated as of March 28, 2017 (the “MOU”), setting forth their understanding related to certain milestones and related compensation; and

 

WHEREAS, the MOU contemplates the Parties entering into this Agreement as the definitive agreement on the subject matter set forth in the MOU.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

	1.	ENGAGEMENT AS NON-EXCLUSIVE INDEPENDENT CONSULTANT

 

1.1 Engagement. WNDW hereby engages CLEDS as an independent, non-exclusive consultant, and CLEDS hereby agrees to accept such engagement, on the terms and conditions set forth in this Agreement.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

1.2 Term and Termination.

 

1.2.1 Term. This Agreement shall commence on the Effective Date and shall continue until terminated in accordance with Section 1.2.2 (the “Term”). 

 

1.2.2 Termination.

 

	
 
	(c)	Subject to the termination of this Agreement pursuant to Section 1.2.2(b), this Agreement will terminate automatically, without any further action of either of the Parties, at 12:00 am Eastern Time on the earlier to occur of (i) the 3-year anniversary of the Effective Date or (ii) on the **** Expiration Date (as defined below) if a **** (as defined in Section 2.5), in an amount and on terms as may be acceptable to WNDW in its sole discretion, is not consummated before the **** Expiration Date. For purposes of this Agreement, the term “**** Expiration Date” means the date which is **** days following the Effective Date.
	
 
	
 
	
 

	
 
	(d)	Either Party may terminate this Agreement for any reason or no reason by providing written notice specifying the date of termination of this Agreement (the “Specified Termination Date”) to the other Party (the “Termination Notice”) as follows:

 

(1) if the Termination Notice is delivered within **** months following the Effective Date, such Termination Notice must be delivered at least thirty (30) days prior to the Specified Termination Date;

 

(2) if the Termination Notice is delivered after **** months following the Effective Date but before the **** year anniversary of the Effective Date, such Termination Notice must be delivered at least forty-five (45) days prior to the Specified Termination Date;

 

(3) if the Termination Notice is delivered after **** year anniversary date of the Effective Date but before the **** month anniversary date of the Effective Date, such Termination Notice must be delivered at least sixty (60) days prior to the Specified Termination Date; and

 

(4) if the Termination Notice is delivered after the **** month anniversary date of the Effective Date such Termination Notice must be delivered at least seventy-five (75) days prior to the Specified Termination Date

 

1.2.3 Effect of Termination. In the event this Agreement is terminated pursuant to Section 1.2.2(a) or (b), except as otherwise specifically provided in this Agreement, the Parties respective rights and obligations under this Agreement shall cease (as of the Specified Termination Date.

 

1.3 Nature of Services. In connection with his engagement hereunder, CLEDS will provide WNDW with the services described in Sections 2 and 3 of this Agreement and such other services as WNDW may reasonably request, from time to time (collectively, the “Services”), in order to achieve the Goals (as defined below). CLEDS will perform such services in a diligent and workmanlike manner and in accordance with the schedule, if any, set forth in the Plan (as defined below). The content, style, form and format of any work product of the Services shall be completely satisfactory to WNDW and shall be consistent with WNDW’s standards.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

1.4 Compensation

 

CLEDS’ compensation for the Services will be determined and paid pursuant to, and in accordance with the subsections, as applicable, of Section 2.6.

 

	2.	GOALS AND SERVICES; BEST EFFORTS

 

1. WNDW’s Goals. WNDW’s goals (each a “Goal” and collectively, the “Goals”) are to execute specific ****, ****, and **** and **** goals which are intended to **** WNDW and WNDW ****.

 

2. Purpose of Services. The Services to be provided by CLEDS pursuant to this Agreement are intended to facilitate WNDW’s achievement of the Goals; without limiting the generality of the foregoing, CLEDS will assist WNDW in with those matters specified in Sections 2.1, 2.2, 2.3, 2.4, 2.5 and Section 3.

 

2.1 **** Development. WNDW is seeking to **** with **** involved in **** in which the WNDW **** may be of ****, including, but not limited to: **** (each a “****”). In connection therewith, CLEDS will be tasked with **** and ****, and if agreed to by WNDW, reaching out to such **** and introducing such ****. CLEDS shall provide WNDW with all requested information regarding each ****. 

 

2.2 **** Support ****/****. WNDW is seeking to engage ****; and, in connection therewith, CLEDS will assist WNDW in **** and/or ****, who substantially support ****. Such **** may include, but not be limited to (collectively, “****”):

 

(a) ****;

(b) ****;

(c) ****; and

(d) ****

 

CLEDS will be tasked with **** having the **** and **** to **** WNDW and, if agreed to by WNDW, reaching out to such ****. CLEDS shall provide WNDW with all requested information regarding **** including, but not limited to, ****.

 

2.3 ****. WNDW is seeking **** with **** that may be **** by WNDW for the **** of WNDW ****. In connection therewith, CLEDS will assist WNDW with ****, as well as **** (each, a “****”) which include, but are not necessarily limited to:

 

(a) ****;

(b) ****;

(c) ****;

(d) ****;

(e) ****;

(f) ****;

(g) ****; and

(h) ****.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

CLEDS will be tasked with ****’ and, if agreed to by WNDW, **** to such ****. CLEDS shall provide WNDW with all requested information regarding ****. It is agreed and understood that nothing herein shall be deemed to require WNDW to enter into any agreement, arrangement or understanding with a ****.

 

2.4 ****. CLEDS will assist WNDW in **** by no later than ****, which plan may from time to time be amended and updated (the “****”), based upon the following contemplated framework:

 

(a) During the period from the Effective Date through **** (the “Section 2.4(a)(i) ****”) the Parties will establish the **** used to achieve mutually defined **** for Section 2.4(a)(i) **** consistent with the following:

 

(i) WNDW, with the assistance of CLEDS will strive to accomplish the following **** during the Section 2.4(a)(i) **** (collectively, the “Section 2.4 (a)(i) Goals”) :

 

7. ****;

8. ****;

9. ****;

10. ****;

11. ****; and

12. ****.

 

(ii) The parties understand that due to numerous factors, many of which are beyond the control of the Parties, WNDW **** may not be **** during the Section 2.4(a)(i) ****. Accordingly, at any time during the Section 2.4(a)(i) ****, either Party may request by written notice (the “Extension Request Notice”) to the other Party that this Agreement be amended so as to extend the Section 2.4(a)(i) **** to a date that is no later than **** (as so extended, the “Section 2.4(a)(i) ****”). The Extension Request Notice shall state the reasons for the requested extension and the requested date to which the Section 2.4(a)(i) **** should be extended. If the other party does not agree, in writing, to such request within 10 Business dates of its receipt of the Extension Request Notice, the Section 2.4(a)(i) ****.

 

(b) During the period from **** through **** (the “Section 2.4(b)(i) ****”) the Parties will establish the **** used to achieve mutually defined **** for Section 2.4(b)(i) **** as follows:

 

(i) during the Section 2.4(b)(i) ****, WNDW with the assistance of CLEDS, will strive to achieve a **** WNDW ****, and in connection therewith, CLEDS will assist WNDW to (collectively, the “Section 2.4 (b)(i) ****”):

 

11. ****;

12. ****;

13. ****;

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

14. ****;

15. ****;

16. ****;

17. ****;

18. ****;

19. ****; and

20. ****.

 

(ii) If the Section 2.4(a)(i) **** is extended in accordance with Section 2.4(a)(ii), then the 2.4(b)(i) **** will be automatically extended for an equal amount of time.

 

2.5 Funding.

 

2.5.1 The Parties acknowledge and agree that in order for WNDW to be able to undertake the **** of the WNDW **** as contemplated herein, WNDW will need to **** (the “****) in the **** (the “Section 2.5.1 ****”). WNDW expects to **** no later than **** (the “****”).

 

2.5.2 Currently, WNDW expects to obtain **** from a ****, including but not limited to, (i) **** obtained through the **** (collectively, “****”) and (ii) **** not involving **** (collectively, “****”), in either case on terms and conditions acceptable to WNDW in its sole and absolute discretion.

 

2.5.3 CLEDS will assist WNDW in **** the **** by helping to identify and locate, for contact by WNDW, **** and ****, who CLEDS believes may have an ****.

 

2.5.4 In addition to his representations set forth in Section 5, CLEDS further represents that he is not and is not required ****, as amended (the “****”). At no time will CLEDS be expected to, or obligated to provide, nor will he provide any services which might otherwise be characterized as ****, **** or that may be otherwise subject to **** or otherwise requiring any **** of the CLEDS under any Applicable Law, unless CLEDS is so ****. CLEDS also represents that he has not acted as a **** based in whole or in part on the ****. In connection with any **** that consists in whole or in part of a ****, CLEDS will not:

 

(a) ****;

(b) ****,

(c) ****;

(d) ****;

(e) ****; and 

(f) ****. 

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

2.6 ****.

 

As **** for the ****, WNDW will pay CLEDS the following:

 

2.6.1 ****.

 

(a) Commencing on the date that WNDW ****, and continuing through the completion of the Section 2.4(a)(i) **** 2.4(b)(i) **** (the “****”), a **** (the “****”), by delivery of a **** to CLEDS, which **** will be ****. 

 

(b) WNDW shall **** CLEDS the **** within five (5) Business Days of the end of each month during ****; for purposes of this Agreement “Business Day” means any day or days during which commercial banks are open for business in the State of New York.

 

2.6.2 ****. 

 

(a) ****. Subject to the further provisions of this Agreement and together with the execution of this Agreement, WNDW shall **** CLEDS an option (the “****”) to purchase up to an **** of WNDW’s **** (the “****”) at **** of WNDW’s stock on the ****, as determined by WNDW’s Board of Directors (“Board”). The **** is discretionary and dependent upon the ****. Generally, it is anticipated that the **** shall vest as follows:

 

	
 
	(i)	**** of Section 2.4(a)(i) **** with each individual Section 2.4(a)(i) **** allocated such portion thereof as may be determined by the Board in its sole and absolute discretion; such allocated **** upon the achievement of the associated Section 2.4(a)(i) ****;
	
 
	
 
	
 

	
 
	(ii)	an aggregate of up to **** are allocated to the achievement of the of Section 2.4(b)(i) **** with each individual Section 2.4(b)(i) **** allocated such portion thereof as may be determined by the Board in its sole and absolute discretion; such allocated **** upon the achievement Section 2.4(b)(i) ****; and
	
 
	
 
	
 

	
 
	(iii)	a number of ****, not to **** ****, will vest in such amount as may be determined by the Board, in its sole and absolute discretion, as an additional **** on the **** day following the ****, provided that this Agreement has not terminated.

 

(b) ****. All determinations regarding whether and when any of the ****, including without limitation any factors considered by the Board in determining **** pursuant to Section 2.6.2 (a) (iii) above, have been reached or achieved and **** allocable to such **** shall be made by WNDW in its sole and absolute discretion as determined by its Board.

 

(c) ****. The **** will have a term of **** subject to earlier termination as provided in the ****, as defined below (the “****”). Upon termination of this Agreement, the **** will terminate as to any **** and as to ****, the **** will terminate upon the earlier of the expiration of the **** or the date of **** of all of the ****.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

(d) ****. The **** will be evidenced by a **** to be entered into between WNDW and CLEDS as of the Effective Date, in such form as WNDW deems appropriate, setting forth the terms set out in this Section 2.6.2 and such other terms and conditions, including, but not limited to, representations and warranties relating to the 1933 Act and the 1934 Act, as are customarily included in such agreements (the “****”).

 

(e) **** are ****. CLEDS understands, acknowledges and agrees that:

 

	
 
	(i)	the **** under the United States Securities Act of 1933, as amended (the “1933 Act”) for resale;
	
 
	
 
	
 

	
 
	(ii)	as if and when issued the **** will be deemed **** as that term is defined in Rule 144 as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) pursuant to the 1933 Act (“Rule 144”);
	
 
	
 
	
 

	
 
	(iii)	that such **** may not be **** unless such **** is effected pursuant to an **** under the 1933 Act with respect to such **** or an applicable exemption from the **** of the 1933 Act; and
	
 
	
 
	
 

	
 
	(iv)	the certificates representing the **** in a form that WNDW deems appropriate, reflecting the foregoing and CLEDS shall be solely responsible for any and all costs associated with the ****, including but not limited to legal costs for rendering an **** and **** costs.
	
 
	
 
	
 

	
 
	(v)	the **** of the ****.

 

2.6.3 ****. Upon WNDW **** from which it receives from a **** in addition to the **** set forth in Sections 2.6.1 and 2.6.2 above, WNDW shall **** CLEDS a **** (the “****”); The **** is ****, with the **** within **** of ****.

 

2.6.4 Expense Reimbursement. In addition to the above stated ****, CLEDS shall be entitled to reimbursement for his pre-approved reasonable expenses incurred in the course of this Agreement. CLEDS hereby agrees that he will not expend funds for any item he intends to request reimbursement for without first obtaining WNDW’s written consent. WNDW shall pay CLEDS the undisputed amounts due pursuant to submitted reports and invoices within thirty (30) days of receipt thereof.

 

2.7 ****.

 

2.7.1 CLEDS acknowledges and agrees that with respect to all or any portion of any **** required to be made to CLEDS as a result of the **** him under this Agreement (other than the ****) through the ****, WNDW may, in its sole and absolute discretion, make and satisfy **** to CLEDS, in **** (the “****”). Each **** shall consist of **** (the “****”) equal to quotient obtained by dividing (i) **** by (ii) **** (as defined below) (the “****”).

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

2.7.2 If WNDW intends to **** then, no later than the date on which ****, WNDW shall forward CLEDS a written notice delivered in accordance with Section XI (the “****”) setting forth **** to CLEDS. WNDW shall forward or cause to be forwarded to CLEDS a ****, evidence of delivery of ****, and/or other evidence of the **** to CLEDS within five (5) Business Days of the ****.

 

2.7.3 CLEDS understands, acknowledges, and represents, that:

 

	
 
	(i)	the **** will be issued in accordance with WNDW’s ****; accordingly no more than **** may be **** pursuant to the **** (the “****”) forming a part of WNDW’s **** on ****, **** (the “****”), unless CLEDS is included as a **** therein.
	
 
	
 
	
 

	
 
	(ii)	WNDW agrees to **** to include **** on a periodic basis, as if and when the **** issued to CLEDS hereunder reaches ****, and thereafter **** each time an additional **** to CLEDS hereunder.
	
 
	
 
	
 

	
 
	(ii)	absent inclusion in the ****, as if and when issued, the **** will be **** as that term is defined in Rule 144 as promulgated under the 1933 Act and **** with Rule 144;
	
 
	
 
	
 

	
 
	(iv)	the **** representing the **** not included in the **** in a form that WNDW deems appropriate, reflecting the foregoing and CLEDS shall be solely responsible for any and all costs associated with the ****, including but not limited to legal costs for ****.

 

2.8 No other Compensation. Except as set forth in Section 2, no other fees and/or expenses will be paid to CLEDS, unless such fees and/or expenses have been approved in advance by the appropriate WNDW executive in writing.

 

	3.	ADDITIONAL ONGOING SERVICES

 

3.1. Additional Services to be Provided by CLEDS. In addition to the Services to be provided by CLEDS under Section 2 and in furtherance of WNDW ****, CLEDS shall:

 

	
 
	(a)	provide to WNDW with ongoing **** support to assist with its advancement of WNDW and the WNDW ****, as well as support for the **** of other **** and/or ****.
	
 
	
 
	
 

	
 
	(b)	make available to WNDW product and customer testimonials, and other related materials. Such materials may be used by WNDW in public marketing. CLEDS shall take such action as necessary to ensure WNDW receives permission for the use of such materials, including, but not limited to, written permission from customers, for the purposes of marketing and public relations.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

	
 
	(c)	provide to WNDW his public endorsement of WNDW ****. CLEDS hereby agrees that such endorsement shall consist of his truthful and unbiased opinion regarding the WNDW ****, based upon his familiarity with the WNDW **** and other ****.
	
 
	
 
	
 

	
 
	(d)	participate in meetings to discuss progress and plan activities with WNDW management personnel.
	
 
	
 
	
 

	
 
	(e)	hereby grant WNDW the right, but not the obligation, to use CLEDS’ name, voice, photograph, likeness and biographical information in connection with and related to the Services.

 

3.2 WNDW Information. WNDW shall provide CLEDS with such information regarding the company and the WNDW Products at it deems necessary, in its sole and absolute discretion, to accomplish ****.

 

	4.	CONFIDENTIALITY

 

4.1 Mutual Confidentiality. In connection with this Agreement and solely for the purpose of achieving the Goals (the “Purpose”), either party (”Disclosing Party”) may disclose Confidential Information (as defined below) to the other party (”Recipient”). Recipient shall use the Confidential Information solely for the Purpose and, subject to Section 4.3, shall not disclose such Confidential Information other than to its, attorneys, accountants, and financial advisors (collectively, “Representatives”) who: (a) need access to such Confidential Information for the Purpose; (b) are informed of its confidential nature; and (c) are bound by confidentiality obligations no less protective of the Confidential Information than the terms contained herein. Recipient shall safeguard the Confidential Information from unauthorized use, access, or disclosure using no less than a commercially reasonable degree of care. Recipient will be responsible for any breach of this Agreement caused by its Representatives. Recipient agrees to notify Disclosing Party in writing within five Business Days of any misuse or misappropriation of the Confidential Information of Disclosing Party that may come to Recipient’s attention.

 

4.2 Confidential Information.

 

(a) For purposes of this Agreement “Confidential Information” means all non-public proprietary or confidential information, including, but not limited to, any trade secrets as defined under New York law or the federal Defend Trade Secrets Act, of Disclosing Party/relating to Disclosing Party’s Confidential Information, in oral, visual, written, electronic, or other tangible or intangible form, whether or not marked or designated as “confidential,” that, if disclosed in writing or other tangible form, is clearly labeled as “confidential,” or if disclosed orally, is identified as confidential when disclosed and within five Business Days thereafter, is summarized in writing and confirmed as confidential, and all notes, analyses, summaries, and other materials prepared by Recipient or any of its Representatives that contain, are based on, or otherwise reflect, to any degree, any of the foregoing (”Notes”); Confidential Information also includes (d) the facts that the parties are in discussions regarding the Purpose and that Confidential Information has been disclosed; (e) any terms, conditions, or arrangements discussed; and (f) as to WNDW, Confidential Information includes not only information disclosed by WNDW, but also information developed or learned by CLEDS during CLEDS' performance of the Services. WNDW Information is to be broadly defined and includes all information which has or could have commercial value or other utility in the business in which WNDW is engaged or contemplates engaging or the unauthorized disclosure of which could be detrimental to the interests of WNDW, whether or not such information is identified by WNDW. By way of example and without limitation, WNDW Information includes any and all information concerning discoveries, developments, designs, improvements, inventions, formulas, software programs, processes, techniques, know-how, data, research techniques, customer and supplier lists, marketing, sales or other financial or business information, scripts, and all derivatives, improvements and enhancements to any of the above. WNDW Information also includes like third-party information which is in WNDW's possession under an obligation of confidential treatment.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

(b) Anything in this Agreement to the contrary notwithstanding, Confidential Information does not include any information that: (i) is or becomes generally available to the public other than as a result of Recipient’s or its Representatives’ breach of this Agreement; (ii) is obtained by Recipient or its Representatives on a non-confidential basis from a third-party that, to Recipient’s knowledge, was not legally or contractually restricted from disclosing such information; (iii) Recipient establishes by documentary evidence, was in Recipient’s or its Representatives’ possession prior to Disclosing Party’s disclosure hereunder; or (iv) Recipient establishes by documentary evidence, was or is independently developed by Recipient or its Representatives without using any Confidential Information.

 

4.3 Permitted Disclosure. If Recipient or any of its Representatives is required by applicable law or a valid legal order to disclose any Confidential Information, Recipient shall notify Disclosing Party of such requirements so that Disclosing Party may seek, at Disclosing Party’s expense, a protective order or other remedy, and Recipient shall reasonably assist Disclosing Party therewith. If Recipient remains legally compelled to make such disclosure, it shall: (a) only disclose that portion of the Confidential Information that it is required to disclose; and (b) use reasonable efforts to ensure that such Confidential Information is afforded confidential treatment.

 

4.4 Return or Destruction of Confidential Information. On Disclosing Party’s request, Recipient shall, at Disclosing Party’s discretion, promptly return to Disclosing Party or destroy all Confidential Information in its and its Representatives’ possession other than Notes, and destroy all Notes, and, at Disclosing Party’s written request, certify in writing the destruction of such Confidential Information; provided, however, that Recipient may retain copies of Confidential Information that are stored on Recipient’s IT backup and disaster recovery systems until the ordinary course deletion thereof. Recipient shall continue to be bound by the terms and conditions of this Agreement with respect to such retained Confidential Information.

 

4.5 Ownership. Disclosing Party retains its entire right, title, and interest in and to all Confidential Information, and no disclosure of Confidential Information hereunder will be construed as a license, assignment or other transfer of any such right, title, and interest to Recipient or any other person.

 

4.6 Expiration of Rights. The rights and obligations of the parties under this Agreement expire 2 years after the termination of this Agreement; provided that with respect to Confidential Information that constitutes a trade secret under applicable law, such rights and obligations will survive such expiration until, if ever, such Confidential Information loses its trade secret protection other than due to an act or omission of Recipient or its Representatives.

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

4.7. Relief for Breach. Recipient acknowledges and agrees that any breach of this Agreement will cause irreparable harm and injury to Disclosing Party for which money damages would be an inadequate remedy and that, in addition to remedies at law, Disclosing Party is entitled to equitable relief as a remedy for any such breach or potential breach, including without limitation, injunctive relief without the posting of bond or other security. Recipient waives any claim or defense that Disclosing Party has an adequate remedy at law in any such proceeding. Nothing herein shall limit the equitable or available remedies at law for Disclosing Party.

 

	5.	REPRESENTATIONS OF CLEDS

 

CLEDS hereby represents and warrants to WNDW as follows:

 

5.1 Authority. CLEDS has the right, power, capacity and authority to enter into this Agreement and to fully perform all of his obligations hereunder and when executed and delivered this Agreement will constitute a valid and binding obligation of CLEDS enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

5.2 No Violation. CLEDS’ entry into this Agreement will not violate any other agreement, whether written or oral, to which CLEDS is a party and shall not interfere with CLEDS’ current employment.

 

5.3 Necessary Skills and Experience. CLEDS has the requisite skill and knowledge to perform the **** set forth in this Agreement.

 

	6.	REPRESENTATIONS OF WNDW

 

WNDW hereby represents and warrants to CLEDS as follows:

 

6.1 Due Organization and Authority. WNDW is a corporation duly organized and is validly existing under the laws of the State of Nevada and has all requisite power and authority to enter into this Agreement.

 

6.2 No Violation. The execution, delivery and performance of this Agreement has been duly and validly authorized and when executed and delivered this Agreement will constitute a valid and binding obligation of WNDW, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

	7.	INDEPENDENT CONTRACTOR; NO AUTHORITY TO BIND

 

7.1 Independent Contractor; No Employee/Employer Relationship. This Agreement does not create a principal or agent, employer or employee partnership, joint venture, or any other relationship except that of independent contractors between the Parties. Nothing contained herein shall be construed to create or imply a joint venture, principal and agent, employer or employee, partnership, or any other relationship except that of independent contractors between the Parties, and neither Party shall have any right, power or authority to create any obligation, express or implied, on behalf of the other in connection with the performance hereunder. Furthermore, nothing in this Agreement shall be deemed to grant CLEDS any form of exclusivity and WNDW will be entitled to act independent, or to retain the services of others, for the purposes of achieving the Goals or otherwise.

 

7.2 No Authority to Bind WNDW. Notwithstanding anything herein to the contrary, CLEDS shall not represent to any ****, **** or **** that he has the ability or authority to negotiate the terms and conditions of, or to bind WDWN to, any proposed agreement between WNDW and any such **** or ****; or, to bind WNDW to any agreement and shall not reach out to any of the foregoing on behalf of WNDW without the written consent of WNDW. Entering into an agreement, and the terms and conditions of such agreements, with any person or entity identified by CLEDS shall be in the sole and absolute discretion of WNDW.

 

7.3 No Withholdings. It is understood WNDW will not withhold any amounts for payment of taxes from the compensation of CLEDS hereunder. It is solely the responsibility of CLEDS to comply with any obligations towards tax authorities, which may result from this Agreement and CLEDS shall indemnify WNDW, and hold WNDW harmless from, any taxes, social security contributions, costs, penalties, losses, claims, fees, interest or liabilities regarding the potential tax and social security consequences resulting from CLEDS’ failure to comply with this Section 7.3.

 

	 
	12
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

	8.	TRADING IN WNDW COMMON STOCK 

 

CLEDS acknowledges that WNDW is a U.S. “public” company with its common stock currently quoted for trading on the OTC Markets Group Inc. QB. As WNDW’s independent contractor, CLEDS acknowledges that he may have access to certain material, non-public information of WNDW that, if used in connection with any transaction in WNDW’s securities, could constitute a violation of the securities laws of the United States. As such, CLEDS agrees that he shall not engage, directly or indirectly, in any transactions in WNDW’s common stock on the basis of any such information, including, but not limited to, providing any other individual with such information. Additionally, CLEDS acknowledges and agrees that in order to sell any of WNDW’s securities he owns he may be required to enter into an insider trading plan that complies with the requirements of, among others, Rule 10b-1 of the Securities Act. Without limiting the foregoing, CLEDS agrees that during the term of this Agreement he will not, and will not direct any broker, dealer or other individual on his behalf, to engage in any transactions related to WNDW’s securities except in compliance with such laws.

 

	9.	INTELLECTUAL PROPERTY RIGHTS AND ASSIGNMENT

 

9.1 Inventions. As used in this Agreement, the term “Inventions” means discoveries, developments, concepts, designs, ideas, know how, improvements, inventions, trade secrets and/or original works of authorship, whether or not patentable, copyrightable or otherwise legally protectable, including, but not limited to, any new product, machine, article of manufacture, method, procedure, process, technique, use, equipment, device, apparatus, system, compound, formulation, composition of matter, design or configuration of any kind, or any improvement thereon. The term “WNDW Inventions” means any and all Inventions that CLEDS may solely or jointly with others author, discover, develop, conceive, or reduce to practice in connection with, or that relate to or result from WNDW Business, work, research, investigations, products, or services of WNDW, or that result to any extent from use of WNDW’s premises or property, except as otherwise provided below. “WNDW Business” means WNDW’s business activities and operations as conducted during the term of this Agreement, together with all services provided or planned by WNDW during CLEDS’ relationship with WNDW. The WNDW Business may change from time to time.

 

9.2 Disclosure of WNDW Inventions. CLEDS agree to promptly disclose to WNDW in writing any and all WNDW Inventions. CLEDS specifically acknowledges that his engagement as an independent consultant includes the invention by him of any WNDW Inventions described in this Section 9. CLEDS acknowledges and agrees that WNDW is the sole owner of any and all property rights in all WNDW Inventions, including, but not limited to, the right to use, sell, license, or otherwise transfer or exploit the Inventions and the right to make such changes to them or to the uses thereof as WNDW may from time to time determine.

 

	 
	13
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

9.3 Prior Knowledge and Relationships.

 

9.3.1 Prior Inventions and Innovations. CLEDS has disclosed on Exhibit A, a complete list of all inventions or innovations made by CLEDS prior to commencement of the Services for WNDW and which CLEDS desires to exclude from the application of this Agreement. CLEDS will disclose to WNDW such additional information as WNDW may request regarding such inventions or innovations to enable WNDW to assess their extent and significance. WNDW agrees to receive and hold all such disclosures in confidence.

 

9.3.2 Other Commitments. Except as disclosed on Exhibit A to this Agreement, CLEDS has no other agreements, relationships or commitments to any other person or entity which conflict with CLEDS obligations to WNDW under this Agreement. CLEDS agrees not to enter into any agreement, either written or oral, in conflict with this Agreement.

 

9.4 Assignment of Inventions.

 

9.4.1 CLEDS hereby assigns to WNDW, or its designee(s), and CLEDS agree that he will promptly make full written disclosure to WNDW of and to hold in trust for the sole right and benefit of WNDW, all his right, title and interest throughout the world in and to any and all WNDW Inventions and all patent, copyright, trademark, trade secret and other intellectual property rights therein. CLEDS hereby waiver and irrevocably quitclaims to WNDW or its designee(s) any and all claims, of any nature whatsoever, that CLEDS now has or may hereafter have for infringement of any and all WNDW Inventions. Any assignment of WNDW Inventions includes all rights of attribution, paternity, integrity, modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively, “Moral Rights”). To the extent that Moral Rights cannot be assigned under applicable law, CLEDS hereby waives and agrees not to enforce any and all Moral Rights, including, without limitation, any limitation on subsequent modification, to the extent permitted under applicable law.

 

9.4.2 Subject to the requirements of applicable state law, if any, CLEDS understands that WNDW Inventions will not include, and the provisions of this Agreement requiring assignment of inventions to WNDW do not apply to, any invention which qualifies fully for exclusion under the provisions of applicable state law, if any. In order to assist in the determination of which inventions qualify for such exclusion, CLEDS will advise WNDW promptly in writing, during and for a period of twelve (12) months immediately following the termination of this Agreement, of all Inventions solely or jointly conceived or developed or reduced to practice by CLEDS or as a result of, the services performed for WNDW during the Term (as defined below).

 

9.4.3 Power of Attorney. CLEDS hereby irrevocably designates and appoints each of WNDW and its Secretary as CLEDS agent and attorney‐in‐fact, to act for and in CLEDS' behalf and stead, for the limited purpose of executing and filing any such document and doing all other lawfully permitted acts to further the prosecution, issuance and enforcement of patents, copyrights or other protections which employ or are based on Innovations with the same force and effect as if executed and delivered by CLEDS.

 

	 
	14
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

	10.	NON-COMPETITION; NON-SOLICITATION AND NON-CIRCUMVENTION.

 

10.1 Non-Competition. Except as authorized by the Board, during the term of this Agreement and for a period of twelve (12) months thereafter, CLEDS will not (except as an officer, director, stockholder, employee, agent or consultant of WNDW or any subsidiary or affiliate thereof) either directly or indirectly, whether or not for consideration, (i) in any way, directly or indirectly, solicit, divert, or take away the business of any person who is or was a customer of WNDW, or in any manner influence such person to cease doing business in part or in whole with WNDW; (ii) engage in a Competing Business (as defined below; or (iii) engage in any practice the purpose or effect of which is to intentionally evade the provisions of this covenant. For purposes of this section, “Competing Business” means any Person which is engaged directly or indirectly in any business competing with WNDW’s Building Integrated Organic Photovoltaic business as then carried on or planned to be carried on (if such plans were developed during the Term) by WNDW or any of its subsidiaries or affiliates.

 

10.2 Non-Solicitation. During the Term and for a period of nine (9) months following the termination of this Agreement, CLEDS will not directly or indirectly, whether for his account or for the account of any other individual or entity, solicit or canvas the trade, business or patronage of, or sell to, any individuals or entities that were or are customers of WNDW during the term of this Agreement, or prospective customers with respect to whom a sales effort, presentation or proposal was made by WNDW or its affiliates which are Competing Businesses with the Company, during the one year period prior to the termination of this Agreement. 

 

10.3 Reasonableness of Restrictions. CLEDS hereby acknowledges that this provision is reasonable and necessary for the proper protection of the business, property and goodwill of WNDW and WNDW’s Business and is a material inducement for WNDW entering into this Agreement.

 

	11.	NOTICES

 

All notices, demands or requests made pursuant to, under or by virtue of this Agreement must be in writing and sent to the party to which the notice, demand or request is being made by (i) certified mail, return receipt requested; (ii) nationally recognized overnight courier delivery; (iii) by facsimile transmission provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party; (v) by email at the email address set forth below, provided confirmation of receipt is received and kept on file by the sending party; or (v) hand delivery as follows:

 

To WNDW:

 

SolarWindow Technologies, Inc.

10632 Little Patuxent Parkway,

Suite 406

Columbia, MD 21044

Phone: (301) 579-5053

Attention: John Conklin

Email: john@solarwindow.com

Facsimile: (607) 348-1417

 

	 
	15
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

To CLEDS:

 

1301 Dublin Road

Columbus, OH 43215

Phone: (330) 760-6364

Attention: Andy Bittner

Email: abittner@customledsystems.com

 

	12.	INDEMNIFICATION

 

12.1 Indemnification by WNDW. WNDW shall indemnify, defend and hold harmless CLEDS from any damages, loss, injury, death, costs, fees or expenses which arise from, or are alleged to have arisen from, any claim, lawsuit or other action by a third party, resulting from violation or breach by WNDW of any term of this Agreement or of any statute, law or regulation governing WNDW.

 

12.2 Indemnification by CLEDS CLEDS shall indemnify, defend and hold harmless, WNDW and its officers, directors, counsel and other affiliates from any damages, loss, injury, death, costs, fees or expenses which arise from, or are alleged to have arisen from any claim, lawsuit or other action by a third party, resulting from violation or breach by CLEDS of any term of this Agreement or of any statute, law or regulation governing the services provided by CLEDS pursuant to this Agreement.

 

12.3 Limitation on Indemnification. Indemnification hereunder shall not apply to the extent any liability, damage, loss or expense is attributable to any negligent or wrongful act or omission, or willful malfeasance, by the party claiming indemnification. Under no circumstances will a Party be liable for consequential, special or indirect damages of the other Party. It shall be a condition precedent to the indemnifying Party’s obligations hereunder that (a)the Party claiming indemnification immediately notifies the other Party of any risk or possible damage once the Party claiming indemnification is aware of the same, (b) that the Party claiming indemnification permits the indemnifying Party to exercise control over the defense thereof, and (c) that the Party claiming indemnification cooperates fully in connection with such defense.

 

	13.	MISCELLANEOUS

 

13.1 Entire Agreement. This Agreement sets forth the entire understanding with respect to the subject matter hereof and supersedes all existing agreements, whether written or oral, between the Parties, including, but not limited to, the MOU, and may be modified only by a written instrument duly executed by each of the Parties.

 

13.2 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon WNDW and its successors and assigns. In view of the personal nature of the services to be performed under this Agreement by CLEDS, CLEDS shall not have the right to assign or transfer any of his rights, obligations or benefits under this Agreement, except with the written consent of WNDW, such consent shall be in WNDW’s sole and absolute discretion.

 

	 
	16
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

13.3 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term.

 

13.4 Waivers. Any waiver by either Party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a Party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver of a breach of any provision hereof must be in writing.

 

13.5 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by WNDW and CLEDS and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” shall mean including without limitation. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. The headings in this Agreement are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Agreement. Section references are to sections of this Agreement unless otherwise specified.

 

13.6 Counterparts; Delivery by Email or Facsimile. 

 

13.6.1 This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by WNDW and CLEDS and delivered to the other, it being understood that WNDW and CLEDS need not sign the same counterpart. This Agreement may be executed by facsimile or email signature and a facsimile or email signature shall constitute an original for all purposes.

 

13.6.2 This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or email, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of a Party hereto or to any such agreement or instrument, each other Party hereto or thereto shall re-execute original forms thereof and deliver them to all other parties. No Party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or email as a defense to the formation or enforceability of a contract and each such Party forever waives any such defense.

 

	 
	17
	

 
	 

 

CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

13.7 Further Assurances. The Parties will execute such further instruments and take such further actions as may be reasonably necessary to carry out the intent of this Agreement.

 

13.8 Arbitration. By signing this Agreement, the Parties agree that any controversy or claim arising will be resolved by binding arbitration. Binding arbitration will be conducted by a panel of three arbitrators, selected from the American Arbitration Association National Panel of Commercial Arbitrators. The arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator’s decision will be final and non-appealable and may be entered in any court having jurisdiction. Unless and until the arbitrators decide that one Party is to pay for all (or a share) of the arbitrators’ fees and expenses, both Parties shall share equally in the payment of the arbitrators’ fees as and when billed by the arbitrators. The arbitration will be held in New York, New York unless the Parties mutually agree in writing to another place.

 

13.9 No Obligation to Consummate Transactions.

 

13.9.1 Nothing in this Agreement shall be deemed to require WNDW to undertake obligation, enter into any agreement or otherwise consummate any transaction contemplated by this Agreement, including, without limitation (i) the entry into any agreement, arrangement or understanding with a ****, (ii) the ****, in any capacity, any ****, (iii) the entry into any agreement, arrangement or understanding with ****, or (iv) entry into any agreement, arrangement or understanding with respect to a **** (collectively, “****”).

 

13.9.2 It is agreed that CLEDS has no rights or claims for damages, loss or other liability against WNDW as a result of WNDW’s refusal or failure, for any reason or no reason whatsoever, to enter into or to otherwise consummate any Contemplated Transactions. 

 

13.10 Survival of Certain Provisions. Notwithstanding anything to the contrary contained herein, if this Agreement is terminated the provisions of Sections 4, 5, 7, 8, 9, 10, 11, 12, and 13 of this Agreement shall survive such termination of this Agreement for any reason, or no reason, whatsoever, and continue in full force and effect.

 

13.11 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the New York without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

	 
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CONFIDENTIAL TREATMENT REQUEST-REDACTED COPY

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 

SEPARATELY. THE REDACTED TERMS HAVE BEEN MARKED AT THE APPROPRIATE 

PLACE WITH FOUR ASTERISKS ****.

 

IN WITNESS WHEREOF, the Parties have executed this Consulting Agreement as of the date first written above.

 

	
WNDW

 

SolarWindow Technologies, Inc.
	 	
CLEDS

 

Custom LED Systems
	 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
		 	By:		 
	
Name: 
	John Conklin 	 	Name: 	
Andy Bittner
	 
	
Title: 
	President & CEO 	 	Title: 	
President
	 

 

 

	
19FORM
OF PLACEMENT AGENCY AGREEMENT

 

Boxlight
Corporation

 

Up to 1,000,000 Shares of Class A
Common Stock

 

$0.0001
par value per share

 

[●],
2017

 

Aegis
Capital Corp.

810 Seventh Avenue, 18th Floor

New York, New York 10019

 

Ladies
and Gentlemen:

 

This
letter (this “Agreement”) constitutes the agreement between Boxlight Corporation, a Nevada corporation (the “Company”)
and Aegis Capital Corp. (the “Placement Agent”) pursuant to which the Placement Agent shall serve as the placement
agent (the “Services”) for the Company, on a reasonable “best efforts” basis, in connection with the proposed
offer and placement (the “Offering”) by the Company of up to an aggregate of 1,000,000 shares (the “Shares”)
of class A common stock, par value $0.0001 per share (the “Common Stock”).

 

The Placement Agent will
act on a reasonable “best efforts” basis with respect to up to 1,000,000 Shares (the “IPO Shares”). The
IPO Shares will be offered to investors with the Placement Agent acting on a reasonable “best efforts” basis with a
minimum offering amount of 342,857 Shares ($2,399,999) (the “Minimum Amount”) and a maximum offering amount of 1,000,000
Shares ($7,000,000) (the “Maximum Amount”). The Company agrees and acknowledges that there is no guarantee of the successful
placement of the Shares, or any portion thereof, in the prospective Offering. No Closing (as defined below) will occur unless the
Minimum Amount has been subscribed.

 

1.
Appointment of Placement Agent.

 

(a)
On the basis of the representations, warranties and agreements of the Company herein contained and subject to all the terms and
conditions of this Agreement, the Company hereby appoints the Placement Agent as the Company’s exclusive placement agent
for the IPO Shares to be offered and sold by the Company pursuant to a registration statement filed under the Securities Act of
1933, as amended (the “Securities Act”) on Form S-1(File No. 333-204811), and the Placement Agent agrees to act as
the Company’s exclusive placement agent. Pursuant to this appointment, the Placement Agent will solicit offers for the purchase
of or attempt to place all or part of the IPO Shares of the Company in the proposed Offering. Until the final closing or earlier
upon termination of this Agreement pursuant to Section 5 hereof, the Company shall not, without the prior written consent of the
Placement Agent, solicit or accept offers to purchase the Securities other than through the Placement Agent. The Company acknowledges
that the Placement Agent will act as and agent of the Company and use its reasonable “best efforts” to solicit offers
to purchase the IPO Shares from the Company on the terms, and subject to the conditions, set forth in the Prospectus (as defined
below). The Placement Agent shall use its reasonable efforts to assist the Company in obtaining performance by each Purchaser
whose offer to purchase IPO Shares has been solicited by the Placement Agent, but the Placement Agent shall not, except as otherwise
provided in this Agreement, be obligated to disclose the identity of any potential purchaser or have any liability to the Company
in the event any such purchase is not consummated for any reason. Under no circumstances will the Placement Agent be obligated
to underwrite or purchase any Securities for its own account and, in soliciting purchases of the IPO Shares, the Placement Agent
shall act solely as an agent of the Company. The Services provided pursuant to this Agreement shall be on an “agency”
basis and not on a “principal” basis.

 

    	1 

    	 

    

 

Aegis
Capital Corp.

May
[●], 2017

Page
2

 

(b)
The Placement Agent will solicit offers for the purchase of the IPO Shares in the Offering at such times and in such amounts as
the Placement Agent deem advisable. The Company shall have the sole right to accept offers to purchase IPO Shares and may reject
any such offer, in whole or in part. The Placement Agent may retain other brokers or dealers to act as sub-agents on its behalf
in connection with the Offering and may pay any sub-agent a solicitation fee with respect to any IPO Shares placed by it.

 

2.
Fees; Expenses; Other Arrangements.

 

(a)
Placement Fee. As compensation for the Services rendered, the Company shall pay to the Placement Agent in cash by wire
transfer in immediately available funds to an account or account designated by the Placement Agent and amount (the “Placement
Fee”) equal to 7% of the gross offering proceeds received from the sale of the IPO Shares at the closing (the “Closing”
and each date on which a Closing occurs, the “Closing Date”).

 

(b)
Warrants. In addition to the foregoing, the Company shall issue to the Placement Agent or its designees at the Closing
five-year warrants to purchase a number of shares equal to an aggregate of [●],% of the aggregate number of IPO Shares sold
in this Offering at an exercise price of $[●] per share (the “Placement Agent Warrants” and together with the
shares of Common Stock (as defined below) underlying such warrants, the “Placement Agent Securities”).

 

(c)
Offering Expenses. The Company shall reimburse the Placement Agent (or pay in advance at the request of the Placement Agent)
for all reasonable expenses incurred (as and when incurred or requested) in connection with the Offering, up to, but not exceeding,
the aggregate sum of $94,500.

 

(d)
Tail Fee. The Company shall pay the Placement Agent the compensation under clauses (a) and (b) hereunder, calculated in
the manner set forth therein, with respect to any public or private offering or other financing or capital-raising transaction
of any kind (“Tail Financing”) to the extent that such financing is both (i) provided to the Company by investors
that were introduced to the Company or were contacted by the Placement Agent during the term of this Agreement or were contacted
by the Placement Agent, and (ii) such Tail Financing is consummated at any time within the 12-month period following the termination
of this Agreement pursuant to Section 5. Notwithstanding anything to the contrary herein, the compensation due hereunder shall
expressly not include any stock or equity of the Company issued to its officers, directors, employees, or consultants.

 

    	2 

    	 

    

 

Aegis
Capital Corp.

May
[●], 2017

Page
3

 

(e)
Future Financings. During the period ending 14 months after the final Closing Date, the Company grants the Placement Agent
the right of first refusal to act as sole investment banker, book runner, or placement agent, for any and all future public or
private equity, equity-linked or debt offerings during such period, of the Company, or any successor to or any subsidiary of the
Company.

 

3.
Subscription Procedures.

 

(a)
Each prospective investor subscribing to purchase IPO Shares (each an “IPO Investor”) will be required to complete
and execute a Subscription Agreement in the form of Exhibit A attached hereto and any other required documentation as set forth
in Subscription Agreement and to deliver the Subscription Agreement to the Placement Agent pursuant to instructions provided in
the Subscription Agreement, together with the Investor’s payment of the full amount of the purchase price for the number
of IPO Shares desired to be purchased.

 

(b)
All funds for subscriptions to purchase IPO Shares received by the Placement Agent shall be paid directly, to a non-interest bearing
escrow account (the “Escrow Account”) established for such purpose established pursuant to an escrow agreement (the
“Escrow Agreement”) by and among the Placement Agent, the Company and SunTrust Bank, Atlanta, Georgia, as escrow agent
(the “Escrow Agent”).

 

(c)
Any checks or wire transfers received from IPO Investors in the Offering by the Placement Agent shall be transmitted to the Escrow
Account by noon of the next business day following such receipt in compliance with Securities Exchange Act Rule 15c2-4.

 

(d)
The Company will pay all fees related to the establishment and maintenance of the Escrow Account. Subject to the receipt of subscriptions
for the Minimum Amount, the Company will either accept or reject, for any or no reason, the Subscription Agreements in a timely
fashion and at the Closing will countersign the Subscription Agreements and provide duplicate copies of such documents to the
Placement Agent for distribution to the Investors. The Placement Agent on the Company’s behalf, will promptly return to
subscribers incomplete, improperly completed, improperly executed and rejected Subscription Agreements.

 

    	3 

    	 

    

 

Aegis
                                         Capital Corp.

May
[●], 2017

Page
4

 

4.
Closing; Delivery and Payment.

 

(a)
If subscriptions for at least the Minimum Amount have been accepted prior to the Termination Date (defined below), the funds therefor
have been collected by the Escrow Agent and all of the conditions set forth elsewhere in this Agreement are fulfilled, then the
Company and the Placement Agent shall schedule the Closing as promptly as practicable.

 

(b)
Settlement of the Securities purchased by an Investor shall be made by 5:00 p.m. on the Closing Date by wire transfer in federal
(same day) funds, payable to the order of the Company after delivery of the certificates (in form and substance satisfactory to
the Placement Agent) or via electronic delivery. On the Closing Date, the Common Stock to which the Closing relates shall be delivered
via The Depository Trust Company Deposit or Withdrawal at Custodian (DWAC) system for the accounts of the Placement Agent or as
otherwise designated by the Placement Agent. The Securities shall be registered in such name or names and in such authorized denominations
as the Placement Agent may request in writing at least one Business Day prior to the Closing Date. The term “Business Day”
means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions are authorized or obligated
by law to close in New York, New York.

 

(c)
The Closing shall occur at such place as shall be agreed upon by the Placement Agent and the Company. In the absence of an agreement
to the contrary, the Closing shall take place at the offices of Gusrae Kaplan Nusbaum PLLC, 120 Wall Street, 25th Floor,
New York, NY 10005. Deliveries of the documents with respect to the purchase of the IPO Shares, if any, shall be made at the offices
of Gusrae Kaplan Nusbaum PLLC on the Closing Date. All actions taken at a Closing shall be deemed to have occurred simultaneously.

 

(d)
If Subscription Documents for the Minimum Amount have not been received and accepted by the Company on or before the Termination
Date for any reason, the Offering will be terminated, no Units will be sold, and the Escrow Agent will, at the request of the
Placement Agent, cause all monies received from subscribers for the Units to be promptly returned to such subscribers without
interest, penalty, expense or deduction.

 

5.
Term and Termination of Agreement.

 

The
term of this Agreement will commence upon the execution of this Agreement and will terminate at the earlier of the Closing of
the Offering or 11:59 p.m. (New York Time) on [ ̃], 2017. Notwithstanding anything to the contrary contained herein, any provision
in this Agreement concerning or relating to confidentiality, indemnification, contribution, advancement, the Company’s representations
and warranties and the Company’s obligations to pay fees and reimburse expenses will survive any expiration or termination
of this Agreement. If any condition specified in Section [8] is not satisfied when and as required to be satisfied, this Agreement
may be terminated by the Placement Agent by notice to the Company at any time on or prior to a Closing Date, which termination
shall be without liability on the part of any party to any other party, except that those portions of this Agreement specified
in Section [19] shall at all times be effective and shall survive such termination. Notwithstanding anything to the contrary in
this Agreement, in the event that this Agreement shall not be carried out for any reason whatsoever, within the time specified
herein or any extensions thereof pursuant to the terms herein, the Company shall be obligated to pay to the Placement Agent its
actual and accountable out-of-pocket expenses as provided for in Section 2.B. above and upon demand the Company shall pay the
full amount thereof to the Placement Agent.

 

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6.
Permitted Acts.

 

Nothing
in this Agreement shall be construed to limit the ability of the Placement Agent, its officers, directors, employees, agents,
associated persons and any individual or entity “controlling,” controlled by,” or “under common control”
with the Placement Agent (as those terms are defined in Rule 405 under the Securities Act) to conduct its business including without
limitation the ability to pursue, investigate, analyze, invest in, or engage in investment banking, financial advisory or any
other business relationship with any 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.

 

7.
Representations, Warranties and Covenants of the Company.

 

As
of the date and time of the execution of this Agreement, the Closing Date and the Initial Sale Time (as defined herein), the Company
represents, warrants and covenants to the Placement Agent, other than as disclosed in any of its filings with the Securities and
Exchange Commission (the “Commission”), that:

 

(a)
Registration Matters.

 

(i)
The Company has filed with the Commission a post-effective amendment to its registration statement on Form S-1 (File No. 333-204811)
including a related prospectus, for the registration of the Common Stock and the Placement Agent Securities under the Securities
Act, and the rules and regulations thereunder (the “Securities Act Regulations”). The registration statement has been
declared effective under the Securities Act by the Commission. The “Registration Statement,” as of any time, means
such registration statement as amended by any post-effective amendments thereto at such time, including the exhibits and any schedules
thereto at such time, the documents incorporated or deemed to be incorporated by reference therein at such time under the Securities
Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430A (“Rule 430A”) or
Rule 430B under the Securities Act Regulations (“Rule 430B”); provided, however, that the “Registration Statement”
without reference to a time means such registration statement as amended by any post-effective amendments thereto as of the time
of the first contract of sale for the Securities, which time shall be considered the “new effective date” of such
registration statement with respect to the Securities within the meaning of paragraph (f)(2) of Rule 430B, including the exhibits
and schedules thereto as of such time, the documents incorporated or deemed incorporated by reference therein at such time pursuant
the Securities Act and the documents otherwise deemed to be a part thereof as of such time pursuant to the Rule 430A or Rule 430B.
Any registration statement filed pursuant to Rule 462(b) of the Securities Act Regulations is hereinafter called the “Rule
462(b) Registration Statement,” and after such filing the term “Registration Statement” shall include the Rule
462(b) Registration Statement. The prospectus set forth in the Registration Statement in the form first used to confirm sales
of the Securities (or in the form first made available to the Placement Agent by the Company to meet requests of purchasers pursuant
to Rule 173 under the Securities Act), is hereinafter referred to, collectively, as the “Prospectus,” and the term
“Preliminary Prospectus” means the preliminary form of the Prospectus dated [●], 2017.

 

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                                         Capital Corp.

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(ii)
All references in this Agreement to financial statements and schedules and other information which is “contained,”
“included” or “stated” (or other references of like import) in the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to include all such financial statements and schedules and other information set
forth in or, if applicable, incorporated or deemed incorporated by reference in the Registration Statement, such Preliminary Prospectus
or the Prospectus, as the case may be, prior to the execution and delivery of this Agreement; and all references in this Agreement
to amendments or supplements to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to include
the filing of any document under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules
and regulations thereunder (the “Exchange Act Regulations”), incorporated or deemed to be incorporated by reference
in the Registration Statement, such Preliminary Prospectus or the Prospectus, as the case may be, at or after the execution and
delivery of this Agreement.

 

(iii)
The term “Disclosure Package” means (i) the Preliminary Prospectus, as most recently amended or supplemented immediately
prior to the Initial Sale Time (as defined herein), (ii) the Issuer Free Writing Prospectuses (as defined below), if any, identified
in Schedule I hereto, and (iii) any other Free Writing Prospectus (as defined below) that the parties hereto shall hereafter expressly
agree to treat as part of the Disclosure Package.

 

(iv)
The term “Issuer Free Writing Prospectus” means any issuer free writing prospectus, as defined in Rule 433 of the
Securities Act Regulations. The term “Free Writing Prospectus” means any free writing prospectus, as defined in Rule
405 of the Securities Act Regulations.

 

(v)
Any Preliminary Prospectus when filed with the Commission, and the Registration Statement as of each effective date and as of
the date hereof, complied or will comply, and the Prospectus and any further amendments or supplements to the Registration Statement,
any Preliminary Prospectus or the Prospectus will, when they become effective or are filed with the Commission, as the case may
be, comply, in all material respects, with the requirements of the Securities Act and the Securities Act Regulations; and, if
applicable, the documents incorporated by reference in the Registration Statement, any Preliminary Prospectus or the Prospectus
complied, and any further documents so incorporated will comply, when filed with the Commission, in all material respects to the
requirements of the Exchange Act and Exchange Act Regulations.

 

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                                         Capital Corp.

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(vi)
The issuance by the Company of the Securities and Placement Agent Securities has been registered under the Securities Act. The
Securities and Placement Agent Securities will be issued pursuant to the Registration Statement and each of the Securities and
Placement Agent Securities will be freely transferable and freely tradable by each of the Investors or the Placement Agent, as
applicable, without restriction, unless otherwise restricted by applicable law or regulation.

 

(b)
Stock Exchange Listing. The Shares have been approved for listing on Nasdaq Capital Market (the “Exchange”)
and the Company has taken no action designed to, or likely to have the effect of, delisting the shares of Common Stock from the
Exchange, nor has the Company received any notification that the Exchange is contemplating terminating such listing.

 

(c)
No Stop Orders, etc. Neither the Commission nor, to the Company’s knowledge, any state regulatory authority has issued
any order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or the Prospectus or has
instituted or, to the Company’s knowledge, threatened to institute, any proceedings with respect to such an order. The Company
has complied with each request (if any) from the Commission for additional information.

 

(d)
Subsidiaries. The Company does not own or control, directly or indirectly, any corporation, association or other entity
other than the subsidiaries (collectively, the “Subsidiaries” and each a “Subsidiary”) described in the
Registration Statement. The Subsidiaries are herein collectively called the “Group Entities” and each of them is herein
called a “Group Entity.” Each Group Entity has been duly organized and is validly existing as a corporation in good
standing under the laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate
its properties and to conduct its business as described in the Registration Statement, the Disclosure Package and the Prospectus
and is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where
the failure so to qualify or to be in good standing would not result in a Material Adverse Change (as hereinafter defined); except
as otherwise disclosed in the Registration Statement, the Disclosure Package and the Prospectus, all of the issued and outstanding
capital stock of each Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and is owned by
the Company, directly or through the Subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance,
claim or equity; none of the outstanding shares of capital stock of any Group Entity was issued in violation of the preemptive
or similar rights of any securityholder of such Group Entity. The constitutive documents of each of the Group Entities comply
with the requirements of applicable law in their respective jurisdictions of incorporation and are in full force and effect. Unless
otherwise set forth, all references in this Section 7 to the “Company” shall include references to all of the Company’s
Subsidiaries.

 

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                                         Capital Corp.

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(e)
Disclosures in Registration Statement.

 

(i)
Compliance with Securities Act and 10b-5 Representation.

 

(1)
Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all
material respects with the requirements of the Securities Act and the Securities Act Regulations. The Preliminary Prospectus and
the Prospectus, at the time each was filed with the Commission, complied in all material respects with the requirements of the
Securities Act and the Securities Act Regulations. The Preliminary Prospectus delivered to the Placement Agent for use in connection
with this Offering and the Prospectus was or will be identical to the electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

 

(2)
Neither the Registration Statement nor any amendment thereto, at its effective time, as of 4:30 p.m. (Eastern time) on the date
of this Agreement (the “Initial Sale Time”),and at the Closing Date, contained, contains or will contain an untrue
statement of a material fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to statements
made or statements omitted in reliance upon and in conformity with written information furnished to the Company with respect to
the Placement Agent by the Placement Agent expressly for use in the Registration Statement or any amendment thereof or supplement
thereto. The parties acknowledge and agree that such information provided by or on behalf of any Placement Agent consists solely
of the following disclosure contained in the following paragraphs in the “Plan of Distribution” section of the Prospectus:
(i) the name of the Placement Agent, and (ii) the information under the subsection “Fees and Expenses” (the “Placement
Agent’s Information”)

 

(3)
The Disclosure Package, as of the Initial Sale Time and at the Closing Date, did not, does not and will not include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; and each Issuer Free Writing Prospectus does not conflict with
the information contained in the Registration Statement, any Preliminary Prospectus, or the Prospectus, and each such Issuer Free
Writing Prospectus, as supplemented by and taken together with the Preliminary Prospectus as of the Initial Sale Time, did not
include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading; and

 

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                                         Capital Corp.

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(4)
Neither the Prospectus nor any amendment or supplement thereto, as of its issue date, at the time of any filing with the Commission
pursuant to Rule 424(b), at the Closing Date, included, includes or will include an untrue statement of a material fact or omitted,
omits or will 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; provided, however, that this representation and warranty shall not apply to the Placement
Agent’s Information.

 

(ii)
Disclosure of Agreements. The agreements and documents described in the Registration Statement, the Disclosure Package
and the Prospectus conform in all material respects to the descriptions thereof contained therein and there are no agreements
or other documents required by the Securities Act and the Securities Act Regulations to be described in the Registration Statement,
the Disclosure Package and the Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have
not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is
a party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement, the Disclosure
Package and the Prospectus, and (ii) is material to the Company’s business, has been duly authorized and validly executed
by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s
knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification
or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought. None of such agreements or instruments has been assigned by the Company,
and neither the Company nor, to the Company’s knowledge, any other party is in default thereunder and, to the Company’s
knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder,
except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus. To the Company’s knowledge,
performance by the Company of the material provisions of such agreements or instruments will not result in a violation of any
existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign,
having jurisdiction over the Company or any of its assets or businesses (each, a “Governmental Entity”), including,
without limitation, those relating to environmental laws and regulations.

 

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                                         Capital Corp.

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(iii)
Prior Securities Transactions. Since the beginning of the period covered by the financial statement included in the Registration
Statement, no securities of the Company have been sold by the Company or by or on behalf of, or for the benefit of, any person
or persons controlling, controlled by or under common control with the Company, except as disclosed in the Registration Statement,
the Disclosure Package and the Preliminary Prospectus.

 

(iv)
Regulations. The disclosures in the Registration Statement, the Disclosure Package and the Prospectus concerning the effects
of federal, state, local and all foreign regulation on the Offering and the Company’s business as currently contemplated
are correct in all material respects and no other such regulations are required to be disclosed in the Registration Statement,
the Disclosure Package and the Prospectus, which are not so disclosed.

 

(v)
Changes After Dates in Registration Statement.

 

(1)
No Material Adverse Change. Since the respective dates as of which information is given in the Registration Statement,
the Disclosure Package and the Prospectus, except as otherwise specifically stated therein: (i) there has been no material adverse
change in the financial position or results of operations of the Company, nor any change or development that, singularly or in
the aggregate, would involve a material adverse change or a prospective material adverse change, in or affecting the condition
(financial or otherwise), results of operations, business, assets or prospects of the Company (a “Material Adverse Change”);
(ii) there have been no material transactions entered into by the Company, other than as contemplated pursuant to this Agreement;
and (iii) no officer or director of the Company has resigned from any position with the Company.

 

(2)
Recent Securities Transactions, etc. Subsequent to the respective dates as of which information is given in the Registration
Statement, the Disclosure Package and the Prospectus, and except as may otherwise be indicated or contemplated herein or disclosed
in the Registration Statement, the Disclosure Package and the Prospectus, the Company has not: (i) issued any securities (other
than (i) grants under any stock compensation plan and (ii) shares of common stock issued upon exercise or conversion of option,
warrants or convertible securities described in the Registration Statement, the Disclosure Package and the Prospectus) or incurred
any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or made any other
distribution on or in respect to its capital stock.

 

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(f)
Independent Accountants. To the knowledge of the Company, GBH CPAs, PC and Heaton & Company, PLLC, during such time
as each firm was engaged by the Company (collectively, the “Auditors”), was an independent registered public accounting
firm as required by the Securities Act and the Securities Act Regulations and the Public Company Accounting Oversight Board. During
such time period in which the Auditors served as the Company’s independent registered public accounting firm the Auditors
did not or have not, during the periods covered by the financial statements included in the Registration Statement, the Disclosure
Package and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange
Act.

 

(g)
SEC Reports; Financial Statements, etc. The Company has complied in all material respects with requirements to file all
reports, schedules, forms, statements and other documents required to be filed by it under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof (the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, being collectively referred to herein as the “SEC Reports”). As of their respective
dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and
the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of
the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and the Group Entities as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.
The financial statements, including the notes thereto and supporting schedules included in the Registration Statement, the Disclosure
Package and the Prospectus, fairly present in all material respects the financial position and the results of operations of the
Company at the dates and for the periods to which they apply; and such financial statements have been prepared in conformity with
GAAP, consistently applied throughout the periods involved (provided that unaudited interim financial statements are subject to
year-end audit adjustments that are not expected to be material in the aggregate and do not contain all footnotes required by
GAAP); and the supporting schedules included in the Registration Statement present fairly in all material respects the information
required to be stated therein. Except as included therein, no historical or pro forma financial statements are required to be
included in the Registration Statement, the Disclosure Package or the Prospectus under the Securities Act or the Securities Act
Regulations. The pro forma and pro forma as adjusted financial information and the related notes, if any, included in the Registration
Statement, the Disclosure Package and the Prospectus have been properly compiled and prepared in accordance with the applicable
requirements of the Securities Act and the Securities Act Regulations and present fairly in all material respects the information
shown therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate
to give effect to the transactions and circumstances referred to therein. All disclosures contained in the Registration Statement,
the Disclosure Package or the Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules
and regulations of the Commission), if any, comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the
Securities Act, to the extent applicable. Each of the Registration Statement, the Disclosure Package and the Prospectus discloses
all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships
of the Company with unconsolidated entities or other persons that may have a material current or future effect on the Company’s
financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources,
or significant components of revenues or expenses. Except as disclosed in the Registration Statement, the Disclosure Package and
the Prospectus, (a) the Company has not incurred any material liabilities or obligations, direct or contingent, or entered into
any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid any dividends
or made any distribution of any kind with respect to its capital stock, (c) there has not been any change in the capital stock
of the Company (other than (i) grants under any stock compensation plan and (ii) shares of common stock issued upon exercise or
conversion of option, warrants or convertible securities described in the Registration Statement, the Disclosure Package and the
Prospectus), and (d) there has not been any Material Adverse Change in the Company’s long-term or short-term debt.

 

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(h)
Authorized Capital; Options, etc. The Company had, at the date or dates indicated in the Registration Statement, the Disclosure
Package and the Prospectus, the duly authorized, issued and outstanding capitalization as set forth therein. Based on the assumptions
stated in the Registration Statement, the Disclosure Package and the Prospectus, the Company will have on the Closing Date the
adjusted stock capitalization set forth therein. Except as set forth in, or contemplated by, the Registration Statement, the Disclosure
Package and the Prospectus, on the Effective Date, as of the Initial Sale Time, on the Closing Date, there will be no stock options,
warrants, or other rights to purchase or otherwise acquire any authorized, but unissued shares of Common Stock of the Company
or any security convertible or exercisable into shares of Common Stock of the Company, or any contracts or commitments to issue
or sell shares of Common Stock or any such options, warrants, rights or convertible securities.

 

(i)
Valid Issuance of Securities, etc.

 

(i)
Outstanding Securities. All issued and outstanding securities of the Company issued prior to the transactions contemplated
by this Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have
no rights of rescission with respect thereto, and are not subject to personal liability by reason of being such holders; and none
of such securities were issued in violation of the preemptive rights of any holders of any security of the Company or similar
contractual rights granted by the Company. The authorized shares of Common Stock and other outstanding securities conform in all
material respects to all statements relating thereto contained in the Registration Statement, the Disclosure Package and the Prospectus.
The offers and sales of the outstanding shares of Common Stock were at all relevant times either registered under the Securities
Act and the applicable foreign or state securities or “blue sky” laws or, based in part on the representations and
warranties of the purchasers of such shares, exempt from such registration requirements.

 

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(ii)
Securities Sold Pursuant to this Agreement. The Securities and Placement Agent Securities have been duly authorized for
issuance and sale and, when issued and paid for, will be validly issued, fully paid and non-assessable; the holders thereof are
not and will not be subject to personal liability by reason of being such holders; the Securities and Placement Agent Securities
are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual
rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Securities
and Placement Agent Securities has been duly and validly taken. The Common Stock underlying the Placement Agent Warrants have
been duly authorized and reserved for issuance by all necessary corporate action on the part of the Company and when paid for,
if applicable, and issued in accordance with the Placement Agent Warrants, such Common Stock will be validly issued, fully paid
and non-assessable; and the holders thereof are not and will not be subject to personal liability by reason of being such holders.
The Securities conform in all material respects to all statements with respect thereto contained in the Registration Statement,
the Disclosure Package and the Prospectus.

 

(j)
Registration Rights of Third Parties. Except as set forth in the Registration Statement, the Disclosure Package and the
Prospectus, no holders of any securities of the Company or any rights exercisable for or convertible or exchangeable into securities
of the Company have the right to require the Company to register any such securities of the Company under the Securities Act or
to include any such securities in a registration statement to be filed by the Company.

 

(k)
Validity and Binding Effect of Agreements. This Agreement and the Placement Agent Warrant each has been duly and validly
authorized by the Company, and, when executed and delivered, will constitute, the valid and binding agreement of the Company,
enforceable against the Company in accordance with its respective terms, except: (i) as such enforceability may be limited by
bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally; (ii) as enforceability of
any indemnification or contribution provision may be limited under the federal and state securities laws; and (iii) that the remedy
of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought.

 

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                                         Capital Corp.

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(l)
No Conflicts, etc. The execution, delivery and performance by the Company of this Agreement and the Placement Agent Warrants
and all ancillary documents, the consummation by the Company of the transactions herein and therein contemplated and the compliance
by the Company with the terms hereof and thereof do not and will not, with or without the giving of notice or the lapse of time
or both: (i) result in a material breach of, or conflict with any of the terms and provisions of, or constitute a material default
under, or result in the creation, modification, termination or imposition of any lien, charge or encumbrance upon any property
or assets of the Company pursuant to the terms of any agreement or instrument to which the Company is a party; (ii) result in
any violation of the provisions of the Company’s Amended and Restated Articles of Incorporation (as the same may be amended
or restated from time to time, the “Charter”) or the by-laws of the Company (as the same may be amended or restated
from time to time, the “Bylaws”); or (iii) violate any existing applicable law, rule, regulation, judgment, order
or decree of any Governmental Entity as of the date hereof.

 

(m)
Regulatory. Except as described in the Registration Statement, the Disclosure Package and the Prospectus or as would not
reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change: (i) the Company is and has been
in material compliance with statutes, laws, ordinances, rules and regulations applicable to the Company (collectively, “Applicable
Laws”); (ii) the Company possesses all licenses, certificates, approvals, clearances, consents, authorizations, qualifications,
registrations, permits, and supplements or amendments thereto required by any such Applicable Laws and/or to carry on its businesses
as now conducted (“Authorizations”) and such Authorizations are valid and in full force and effect and the Company
is not in violation of any term of any such Authorizations; (iii) the Company has not received notice of any claim, action, suit,
proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Entity or third party alleging
that any product, operation or activity is in violation of any Applicable Laws or Authorizations or has any knowledge that any
such Governmental Entity or third party is considering any such claim, litigation, arbitration, action, suit, investigation or
proceeding, nor, to the best of the Company’s knowledge, has there been any material noncompliance with or violation of
any Applicable Laws by the Company that could reasonably be expected to require the issuance of any such communication or result
in an investigation, corrective action, or enforcement action by any Governmental Entity; and (iv) the Company has not received
notice that any Governmental Entity has taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations
or has any knowledge that any such Governmental Entity has threatened or is considering such action. Neither the Company nor,
to the Company’s knowledge, any of its directors, officers, employees or agents has been convicted of any crime under any
Applicable Laws.

 

(n)
No Defaults; Violations. No material default exists in the due performance and observance of any term, covenant or condition
of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement
or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which the Company
is a party or by which the Company may be bound or to which any of the properties or assets of the Company is subject. The Company
is not (i) in violation of any term or provision of its Charter or Bylaws, or (ii) in violation of any franchise, license, permit,
applicable law, rule, regulation, judgment or decree of any Governmental Entity applicable to the Company.

 

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                                         Capital Corp.

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(o)
Corporate Power; Licenses; Consents.

 

(i)
Except as described in the Registration Statement, the Disclosure Package and the Prospectus, the Company has all requisite corporate
power and authority, and has all necessary authorizations, approvals, orders, licenses, certificates and permits of and from all
governmental regulatory officials and bodies that it needs as of the date hereof to conduct its business purpose as described
in the Registration Statement, the Disclosure Package and the Prospectus.

 

(ii)
The Company has all corporate power and authority to enter into this Agreement and to carry out the provisions and conditions
hereof, and all consents, authorizations, approvals and orders required in connection therewith have been obtained. No consent,
authorization or order of, and no filing with, any court, government agency or other body is required for the valid issuance,
sale and delivery of the Securities and Placement Agent Securities and the consummation of the transactions and agreements contemplated
by this Agreement and as contemplated by the Registration Statement, the Disclosure Package and the Prospectus, except with respect
to applicable federal and state securities laws and the rules and regulations of the Financial Industry Regulatory Authority,
Inc. (“FINRA”).

 

(p)
Litigation; Governmental Proceedings. There is no material action, suit, proceeding, inquiry, arbitration, investigation,
litigation or governmental proceeding pending or, to the Company’s knowledge, threatened against, or involving the Company
or, to the Company’s knowledge, any executive officer or director which has not been disclosed in the Registration Statement,
the Disclosure Package and the Prospectus or in connection with the Company’s listing application for the Shares on the
Exchange.

 

(q)
Good Standing. The Company has been duly organized and is validly existing as a corporation and is in good standing under
the laws of the State of Nevada as of the date hereof, and is duly qualified to do business and is in good standing in each other
jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except where
the failure to qualify, singularly or in the aggregate, would not have or reasonably be expected to result in a Material Adverse
Change.

 

(r)
Insurance. The Company and its Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the business in which they are engaged in, and have insurance
covering their respective properties, operations, personnel and businesses, including business interruption insurance, which insurance
is in amounts and insures against such losses and risks as are adequate to protect the Company and its Subsidiaries and their
respective businesses; and neither the Company nor any of its Subsidiaries has (i) received notice from any insurer or agent of
such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such insurance
or (ii) any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage at a cost that would not have a Material Adverse Effect.

 

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May
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(s)
Transactions Affecting Disclosure to FINRA.

 

(i)
Finder’s Fees. Except as described in the Registration Statement, the Disclosure Package and the Prospectus, there
are no claims, payments, arrangements, agreements or understandings relating to the payment of a finder’s, consulting or
origination fee by the Company or any executive officer or director of the Company (each an, “Insider”) with respect
to the sale of the Securities hereunder or any other arrangements, agreements or understandings of the Company or, to the Company’s
knowledge, any of its stockholders that may affect the Placement Agent’ compensation, as determined by FINRA.

 

(ii)
Payments Within Twelve (12) Months. Except as described in the Registration Statement, the Disclosure Package and the Prospectus,
the Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s
fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company
persons who raised or provided capital to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct
or indirect affiliation or association with any FINRA member, within the twelve (12) months prior to the date hereof, other than
the payment to the Placement Agent as provided hereunder in connection with the Offering.

 

(iii)
Use of Proceeds. None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member
or its affiliates, except as specifically authorized herein.

 

(iv)
FINRA Affiliation. There is no (i) officer or director of the Company, (ii) beneficial owner of 5% or more of any class
of the Company’s securities or (iii) beneficial owner of the Company’s unregistered equity securities which were acquired
during the 180-day period immediately preceding the original filing of the Registration Statement, that (a) is an affiliate or
associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and regulations
of FINRA); (b) is required to register as a “broker” or “dealer” in accordance with the provisions of
the Exchange Act or the Exchange Act Regulations, or (c) has any direct or indirect affiliation or association with any member
firm of FINRA (as determined in accordance with the rules and regulations of FINRA).

 

(v)
Information. To the Company’s knowledge, all information provided by the Company’s officers and directors in
their FINRA Questionnaires to counsel to the Placement Agent specifically for use by counsel to the Placement Agent in connection
with its Public Offering System filings (and related disclosure) with FINRA is true, correct and complete in all material respects.

 

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Capital Corp.

May
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17

 

(t)
Foreign Corrupt Practices Act. Neither the Company nor, to the Company’s knowledge, any director, officer, agent,
employee or affiliate of the Company or any other person acting on behalf of the Company, has, directly or indirectly, given or
agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business)
to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any Governmental Entity or
any political party or candidate for office (domestic or foreign) or other person who was, is, or may be in a position to help
or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) that (i) might subject
the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding, (ii) if not given in the
past, might have had a Material Adverse Change or (iii) if not continued in the future, might adversely affect the assets, business,
operations or prospects of the Company. The Company has taken reasonable steps to ensure that its accounting controls and procedures
are sufficient to cause the Company to comply in all material respects with the Foreign Corrupt Practices Act of 1977, as amended.
The Company has not violated any provision of the anti-corruption laws in China, Hong Kong, Samoa, Malaysia or the British Virgin
Islands.

 

(u)
Compliance with OFAC. Neither of the Company nor, to the Company’s knowledge, any director, officer, agent, employee
or affiliate of the Company or any other person acting on behalf of the Company, is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), and the Company will not,
directly or indirectly, use the proceeds of the Offering hereunder, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person
currently subject to any U.S. sanctions administered by OFAC.

 

(v)
Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money
Laundering Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(w)
Officers’ Certificate. Any certificate signed by any duly authorized officer of the Company and delivered to the
Placement Agent or to Placement Agent’ Counsel shall be deemed a representation and warranty by the Company to the Placement
Agent as to the matters covered thereby.

 

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Capital Corp.

May
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(x)
Related Party Transactions. There are no business relationships or related party transactions involving the Company or
any other person required to be described in the Registration Statement, the Disclosure Package and the Prospectus that have not
been described as required.

 

(y)
Board of Directors. The qualifications of the persons serving as board members and the overall composition of the board
comply with the Exchange Act, the Exchange Act Regulations, the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder
(the “Sarbanes-Oxley Act”) applicable to the Company and the listing rules of the Exchange. At least one member of
the Audit Committee of the Board of Directors of the Company qualifies as an “audit committee financial expert,” as
such term is defined under Regulation S-K and the listing rules of the Exchange. In addition, at least a majority of the persons
serving on the Board of Directors qualify as “independent,” as defined under the listing rules of the Exchange.

 

(z)
Sarbanes-Oxley Compliance. Except as disclosed in the Registration Statement, Disclosure Package and Prospectus:

 

(i)
The Company has developed and currently maintains disclosure controls and procedures that will comply with Rule 13a-15 or 15d-15
under the Exchange Act Regulations applicable to it, and such controls and procedures are effective to ensure that all material
information concerning the Company will be made known on a timely basis to the individuals responsible for the preparation of
the Company’s Exchange Act filings and other public disclosure documents.

 

(ii)
The Company is, or at the Initial Sale Time and on the Closing Date will be, in material compliance with the provisions of the
Sarbanes-Oxley Act applicable to it, and has implemented or will implement such programs and taken reasonable steps to ensure
the Company’s future compliance (not later than the relevant statutory and regulatory deadlines therefor) with all of the
material provisions of the Sarbanes-Oxley Act.

 

(aa)
Accounting Controls. The Company maintains a system of “internal control over financial reporting” (as defined
under Rules 13a-15 and 15d-15 under the Exchange Act Regulations) that comply with the requirements of the Exchange Act and have
been designed by, or under the supervision of, its principal executive and principal financial officers, or persons performing
similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP, including, but not limited to, internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization;
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus,
the Company is not aware of any material weaknesses in its internal controls. The Auditors (during the time of their engagement)
and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant deficiencies and material
weaknesses, if any, in the design or operation of internal controls over financial reporting which are known to the Company’s
management and that have adversely affected or are reasonably likely to adversely affect the Company’ ability to record,
process, summarize and report financial information; and (ii) any fraud, if any, known to the Company’s management, whether
or not material, that involves management or other employees who have a significant role in the Company’s internal controls
over financial reporting.

 

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                                         Capital Corp.

May
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(bb)
No Investment Company Status. The Company is not and, after giving effect to the Offering and the application of the proceeds
thereof as described in the Registration Statement, the Disclosure Package and the Prospectus, will not be, required to register
as an “investment company,” as defined in the Investment Company Act of 1940, as amended.

 

(cc)
No Labor Disputes. No material labor dispute with the employees of the Company exists or, to the knowledge of the Company,
is imminent.

 

(dd)
Intellectual Property Rights. To the Company’s knowledge, the Company has, or can acquire on reasonable terms, ownership
of and/or license to, or otherwise has the right to use, all inventions, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures), patents and patent rights trademarks, service
marks and trade names, copyrights, (collectively “Intellectual Property”) material to carrying on its business as
described in the Prospectus. The Company has not received any correspondence relating to (A) infringement or misappropriation
of, or conflict with, any Intellectual Property of a third party; (B) asserted rights of others with respect to any Intellectual
Property of the Company; or (C) assertions that any Intellectual Property of the Company is invalid or otherwise inadequate to
protect the interest of the Company, that in each case (if the subject of any unfavorable decision, ruling or finding), individually
or in the aggregate, would have or would reasonably be expected to result in a Material Adverse Change. There are no third parties
who have been able to establish any material rights to any Intellectual Property, except for the retained rights of the owners
or licensors of any Intellectual Property that is licensed to the Company. There is no pending or, to the Company’s knowledge,
threatened action, suit, proceeding or claim by others: (A) challenging the validity, enforceability or scope of any Intellectual
Property of the Company or (B) challenging the Company’s rights in or to any Intellectual Property or (C) that the Company
materially infringes, misappropriates or otherwise violates or conflicts with any Intellectual Property or other proprietary rights
of others. The Company has complied in all material respects with the terms of each agreement described in the Registration Statement,
Disclosure Package or Prospectus pursuant to which any Intellectual Property is licensed to the Company, and all such agreements
related to products currently made or sold by the Company, or to product candidates currently under development, are in full force
and effect. All patents issued in the name of, or assigned to, the Company, and all patent applications made by or on behalf of
the Company (collectively, the “Company Patents”) have been duly and properly filed. To the Company’s knowledge,
the Company is the sole owner of the Company Patents.

 

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                                         Capital Corp.

May
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(ee)
Taxes. The Company has filed all returns (as hereinafter defined) required to be filed with taxing authorities prior to
the date hereof or has duly obtained extensions of time for the filing thereof. The Company has paid all taxes (as hereinafter
defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed against the Company, except
for such exceptions as could not be expected, individually or in the aggregate, to have a Material Adverse Change. The provisions
for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient
for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated
financial statements. Except as disclosed in writing to the Placement Agent, (i) no issues have been raised (and are currently
pending) by any taxing authority in connection with any of the returns or taxes asserted as due from the Company, and (ii) no
waivers of statutes of limitation with respect to the returns or collection of taxes have been given by or requested from the
Company. The term “taxes” mean all federal, state, local, foreign and other net income, gross income, gross receipts,
sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments or
charges of any kind whatever, together with any interest and any penalties, additions to tax or additional amounts with respect
thereto. The term “returns” means all returns, declarations, reports, statements and other documents required to be
filed in respect to taxes.

 

(ff)
Compliance with Laws. The Company: (A) is and at all times has been in compliance with all Applicable Laws, except as would
not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change; (B) has not received any
correspondence from any Governmental Entity alleging or asserting noncompliance with any Applicable Laws or any Authorizations;
(C) possesses all material Authorizations and such Authorizations are valid and in full force and effect and the Company is not
in material violation of any term of any such Authorizations, in each case except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Change; (D) has not received written notice of any claim, action, suit, proceeding,
hearing, enforcement, investigation, arbitration or other action from any Governmental Entity or third party alleging that any
product operation or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that any such Governmental
Entity or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; (E) has
not received written notice that any Governmental Entity has taken, is taking or intends to take action to limit, suspend, modify
or revoke any Authorizations; and (F) has filed, obtained, maintained or submitted all material reports, documents, forms, notices,
applications, records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations
and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments
were complete and correct in all material respects on the date filed (or were corrected or supplemented by a subsequent submission).

 

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Capital Corp.

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(gg)
Industry Data. The statistical and market-related data included in each of the Registration Statement, the Disclosure Package
and the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and
accurate or represent the Company’s good faith estimates that are made on the basis of data derived from such sources.

 

(hh)
Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act) contained in the Registration Statement, the Disclosure Package or the Prospectus has been made or reaffirmed
without a reasonable basis or has been disclosed other than in good faith.

 

(ii)
Margin Securities. The Company owns no “margin securities” as that term is defined in Regulation U of the Board
of Governors of the Federal Reserve System (the “Federal Reserve Board”), and none of the proceeds of Offering will
be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or
retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which
might cause any of the shares of Common Stock to be considered a “purpose credit” within the meanings of Regulation
T, U or X of the Federal Reserve Board.

 

(jj)
Integration. 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 the Offering to be integrated with prior offerings by the Company for purposes of the Securities Act that would require
the registration of any such securities under the Securities Act.

 

(kk)
Confidentiality and Non-Competition. To the Company’s knowledge, no director, officer, key employee or consultant
of the Company is subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with
any employer or prior employer, other than the Company, that could reasonably be expected to materially affect his ability to
be and act in his respective capacity of the Company or be expected to result in a Material Adverse Change.

 

(ll)
Dividends. Except to the extent described in the Registration Statement, the Disclosure Package and the Prospectus, all
dividends and other distributions declared and payable on the equity interests of the Company and its Subsidiaries may under current
laws and regulations of the foreign jurisdictions in which such Subsidiaries are incorporated may be converted into foreign currency
that may be freely transferred out of such forieng jurisdictions, and all such dividends and other distributions will not be subject
to withholding or other taxes under the laws and regulations of such jurisdictions and are otherwise free and clear of any other
tax, withholding or deduction in such jurisdictions without the necessity of obtaining any governmental authorization.

 

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                                         Capital Corp.

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(mm)
No Commodity Contracts. The Company is not engaged in any trading activities involving commodity contracts or other trading contracts
which are not currently traded on a securities or commodities exchange and for which the market value cannot be determined.

 

8.
Conditions of the Obligations of the Placement Agent.

 

The
obligations of the Placement Agent hereunder shall be subject to the accuracy of the representations and warranties, in all material
respects, on the part of the Company set forth in Section 7 hereof, in each case as of the date hereof and as of the Closing Date
as though then made, to the timely performance by each of the Company of its covenants and other obligations hereunder on and
as of such dates, and to each of the following additional conditions:

 

(a)
Regulatory Matters.

 

(i)
Effectiveness of Registration Statement; Rule 424 Information. The Registration Statement is effective on the date of this
Agreement, and, on the Closing Date no stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto has been issued under the Securities Act, no order preventing or suspending the use of any Preliminary Prospectus
or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the
Company’s knowledge, contemplated by the Commission. The Company has complied with each request (if any) from the Commission
for additional information. All filings with the Commission required by Rule 424 under the Securities Act to have been filed by
the Closing Date shall have been made within the applicable time period prescribed for such filing by Rule 424.

 

(ii)
FINRA Clearance. On or before the Closing Date of this Agreement, the Placement Agent shall have received clearance from
FINRA as to the amount of compensation allowable or payable to the Placement Agent as described in the Registration Statement.

 

(b)
Company Counsel Matters.

 

(i)
Opinion of U.S. Counsel. On the Closing Date, the Placement Agent shall have received the favorable opinion of Loeb &
Loeb, LLP, U.S. counsel for the Company, dated the Closing Date and addressed to the Placement Agent, substantially in form and
substance reasonably satisfactory to the Placement Agent.

 

(ii)
Opinion of Mexico Counsel. On the Closing Date, the Placement Agent shall have received the favorable opinion of [●], Mexico
counsel for the Company, dated the Closing Date and addressed to the Placement Agent, substantially in form and substance reasonably
satisfactory to the Placement Agent.

 

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Capital Corp.

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(c)
Comfort Letters.

 

(i)
Comfort Letter. At the time this Agreement is executed, Placement Agent shall have received from each of the Auditors a
cold comfort letter containing statements and information of the type customarily included in accountants’ comfort letters
with respect to the financial statements and certain financial information contained in the Registration Statement, the Disclosure
Package and the Prospectus, addressed to the Placement Agent and in form and substance satisfactory in all respects to Placement
Agent and to the Auditors, dated as of the date of this Agreement.

 

(ii)
Bring-down Comfort Letter. At the Closing Date, the Placement Agent shall have received from each of the Auditors a letter,
dated as of the Closing Date, to the effect that such Auditor reaffirms the statements made in the letter furnished pursuant to
Section 8(c)(i) except that the specified date referred to shall be a date not more than three (3) business days prior to the
Closing Date.

 

(d)
Officers’ Certificates.

 

(i)
Officers’ Certificate. The Company shall have furnished to the Placement Agent a certificate, dated the Closing Date,
of its Chief Executive Officer and its Chief Financial Officer stating that (i) such officers have carefully examined the Registration
Statement, the Disclosure Package, any Issuer Free Writing Prospectus and the Prospectus and, in their opinion, the Registration
Statement and each amendment thereto, as of the Initial Sale Time and through the Closing Date did not include any untrue statement
of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Disclosure Package, as of the Initial Sale Time through the Closing Date, any Issuer Free Writing
Prospectus as of its date and as of the Closing Date, the Prospectus and each amendment or supplement thereto, as of the respective
date thereof and as of the Closing Date, did not include any untrue statement of a material fact and did not omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances in which they were made, not misleading,
(ii) since the filing of the most recent Registration Statement, no event has occurred which should have been set forth in a supplement
or amendment to the Registration Statement, the Disclosure Package or the Prospectus, (iii) to their knowledge after reasonable
investigation, as of the Closing Date, the representations and warranties of the Company in this Agreement are true and correct,
in all material respects, and the Company has complied, in all material respects, with all agreements and satisfied all conditions
on its part to be performed or satisfied hereunder at or prior to the Closing Date, and (iv) there has not been, subsequent to
the date of the most recent audited financial statements included in the Disclosure Package, any Material Adverse Change in the
financial position or results of operations of the Company, or any change or development that, singularly or in the aggregate,
would involve a Material Adverse Change or a prospective Material Adverse Change, in or affecting the condition (financial or
otherwise), results of operations, business, assets or prospects of the Company, except as set forth in the Prospectus.

 

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                                         Capital Corp.

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(ii)
Secretary’s Certificate. At of the Closing Date the Placement Agent shall have received a certificate of the Company
signed by the Secretary of the Company, dated the Closing Date, certifying: (i) that each of the Company’s Charter and Bylaws
attached to such certificate is true and complete, has not been modified and is in full force and effect; (ii) that each of the
Group Entities charter documents attached to such certificate is true and complete, has not been modified and is in full force
and effect; (iii) that the resolutions of the Company’s Board of Directors relating to the Offering attached to such certificate
are in full force and effect and have not been modified; and (iv) the good standing of the Company and each of the Group Entities.
The documents referred to in such certificate shall be attached to such certificate.

 

(e)
No Material Changes. Prior to and on the Closing Date: (i) there shall have been no Material Adverse Change or development
involving a prospective Material Adverse Change in the condition or prospects or the business activities, financial or otherwise,
of the Company from the latest dates as of which such condition is set forth in the Registration Statement, the Disclosure Package
and the Prospectus; (ii) no action, suit or proceeding, at law or in equity, shall have been pending or threatened against the
Company or any affiliates of the Company before or by any court or federal or state commission, board or other administrative
agency wherein an unfavorable decision, ruling or finding may materially adversely affect the business, operations, prospects
or financial condition or income of the Company, except as set forth in the Registration Statement, the Disclosure Package and
the Prospectus; (iii) no stop order shall have been issued under the Securities Act and no proceedings therefor shall have been
initiated or threatened by the Commission; and (iv) the Registration Statement, the Disclosure Package and the Prospectus and
any amendments or supplements thereto shall contain all material statements which are required to be stated therein in accordance
with the Securities Act and the Securities Act Regulations and shall conform in all material respects to the requirements of the
Securities Act and the Securities Act Regulations, and neither the Registration Statement, the Disclosure Package nor the Prospectus
nor any amendment or supplement thereto shall contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading.

 

(f)
Financial Public Relations Firm. As of the Closing Date, the Company shall have retained a financial public relations firm
reasonably acceptable to the Placement Agent and the Company, and shall retain such firm or another firm reasonably acceptable
to the Placement Agent for a period of not less than two (2) years after the Closing Date.

 

(g)
Reservation of Common Stock. So long the Placement Agent Warrants, remain outstanding, the Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of issuance, no less than 100% of the maximum number of
Common Stock underlying such Placement Agent Warrants.

 

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                                         Capital Corp.

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(h)
Minimum Amount. There shall be subscription amounts for the purchase of the Securities equal to at least the Minimum Amount.

 

(i)
Additional Documents. At the Closing Date, Placement Agent Counsel shall have been furnished with such documents and opinions
as they may require in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of
the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Securities
as herein contemplated shall be satisfactory in form and substance to the Placement Agent and Placement Agent Counsel.

 

9.
Indemnification and Contribution; Procedures.

 

(a)
Indemnification of the Placement Agent. The Company agrees to indemnify and hold harmless all of the Placement Agent, their
respective affiliates and each person controlling such Placement Agent (within the meaning of Section 15 of the Securities Act),
and the directors, officers, agents and employees of such Placement Agent, their respective affiliates and each such controlling
person (each Placement Agent, and each such entity or person hereafter is referred to as an “Indemnified Person”)
from and against any losses, claims, damages, judgments, assessments, costs and other liabilities (collectively, the “Liabilities”),
and shall reimburse each Indemnified Person for all fees and expenses (including the reasonable fees and expenses of counsel for
the Indemnified Persons, except as otherwise expressly provided in this Agreement) (collectively, the “Expenses”)
and agrees to advance payment of such Expenses as they are incurred by an Indemnified Person in investigating, preparing, pursuing
or defending any actions, whether or not any Indemnified Person is a party thereto, arising out of or based upon any untrue statement
or alleged untrue statement of a material fact contained in (i) the Registration Statement, the Disclosure Package, the Preliminary
Prospectus, the Prospectus or in any Issuer Free Writing Prospectus (as from time to time each may be amended and supplemented);
(ii) any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing
of the Offering, including any “road show” or investor presentations made to investors by the Company (whether in
person or electronically); or (iii) any application or other document or written communication (in this Section 9, collectively
called “application”) executed by the Company or based upon written information furnished by the Company in any jurisdiction
in order to qualify the Securities under the securities laws thereof or filed with the Commission, any state securities commission
or agency, any national securities exchange; or the omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
unless such statement or omission was made in reliance upon, and in conformity with, the Placement Agent’ information. The
Company also agrees to reimburse each Indemnified Person for all Expenses as they are incurred in connection with such Indemnified
Person’s enforcement of his or its rights under this Agreement.

 

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(b)
Procedure. Upon receipt by an Indemnified Person of actual notice of an action against such Indemnified Person with respect
to which indemnity may reasonably be expected to be sought under this Agreement, such Indemnified Person shall promptly notify
the Company in writing; provided that failure by any Indemnified Person so to notify the Company shall not relieve the Company
from any obligation or liability which the Company may have on account of this Section 9 or otherwise to such Indemnified Person,
except to the extent (and only to the extent) that its ability to assume the defense is actually impaired by such failure or delay.
The Company shall have the right to assume the defense of any such action (including the employment of counsel reasonably satisfactory
to the Placement Agent). Any Indemnified Person 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 Indemnified Person unless: (i)
the Company has failed promptly to assume the defense and employ counsel for the benefit of the Placement Agent and the other
Indemnified Persons or (ii) such Indemnified Person shall have been advised that in the opinion of counsel that there is an actual
or potential conflict of interest that prevents (or makes it imprudent for) the counsel engaged by the Company for the purpose
of representing the Indemnified Person, to represent both such Indemnified Person and any other person represented or proposed
to be represented by such counsel, it being understood, however, that the Company shall not be liable for the expenses of more
than one separate firm of attorneys for the Placement Agent and all Indemnified persons in any one action or series of related
actions in the same jurisdiction. The Company shall not be liable for any settlement of any action effected without its written
consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the
Placement Agent, settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened
action in respect of which advancement, reimbursement, indemnification or contribution may be sought hereunder (whether or not
such Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination (i) includes an unconditional
release of each Indemnified Person, acceptable to such Indemnified Party, from all Liabilities arising out of such action for
which indemnification or contribution may be sought hereunder and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any Indemnified Person. The advancement, reimbursement, indemnification and
contribution obligations of the Company required hereby shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as every Liability and Expense is incurred and is due and payable, and in such amounts as fully
satisfy each and every Liability and Expense as it is incurred (and in no event later than 30 days following the date of any invoice
therefore).

 

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                                         Capital Corp.

May
[●], 2017

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(c)
Indemnification of the Company. The Placement Agent agree to indemnify and hold harmless the Company, its directors, its
officers who signed the Registration Statement and persons who control the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act against any and all Liabilities, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions made in the Registration Statement, any Preliminary Prospectus, the Disclosure Package
or Prospectus or any amendment or supplement thereto, in reliance upon, and in strict conformity with, the Placement Agent’
Information. In case any action shall be brought against the Company or any other person so indemnified based on any Preliminary
Prospectus, the Registration Statement, the Disclosure Package or Prospectus or any amendment or supplement thereto, and in respect
of which indemnity may be sought against the Placement Agent, the Placement Agent shall have the rights and duties given to the
Company, and the Company and each other person so indemnified shall have the rights and duties given to the Placement Agent by
the provisions of Section 9.B. The Company agrees promptly to notify each of the Placement Agent of the commencement of any litigation
or proceedings against the Company or any of its officers, directors or any person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, in connection with the issuance and sale of the
Securities or in connection with the Registration Statement, the Disclosure Package, the Prospectus or any Issuer Free Writing
Prospectus; provided that failure by the Company so to notify the Placement Agent shall not relieve the Placement Agent from any
obligation or liability which the Placement Agent may have on account of this Section 9 or otherwise to the Company, except to
the extent (and only to the extent) that its ability to assume the defense is actually impaired by such failure or delay.

 

(d)
Contribution. In the event that a court of competent jurisdiction makes a finding that indemnity is unavailable to an Indemnified
Person, the Company shall contribute to the Liabilities and Expenses paid or payable by such Indemnified Person in such proportion
as is appropriate to reflect (i) the relative benefits to the Company, on the one hand, and to the Placement Agent and any other
Indemnified Person, on the other hand, of the matters contemplated by this Agreement or (ii) if the allocation provided by the
immediately preceding clause is not permitted by applicable law, not only such relative benefits but also the relative fault of
the Company, on the one hand, and the Placement Agent and any other Indemnified Person, on the other hand, in connection with
the matters as to which such Liabilities or Expenses relate, as well as any other relevant equitable considerations; provided
that in no event shall the Company contribute less than the amount necessary to ensure that all Indemnified Persons, in the aggregate,
are not liable for any Liabilities and Expenses in excess of the amount of commissions actually received by the Placement Agent
pursuant to this Agreement. The relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or the Placement Agent on the other and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission. The Company and the Placement Agent agree
that it would not be just and equitable if contributions pursuant to this subsection (D) were determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection
(D). For purposes of this paragraph, the relative benefits to the Company, on the one hand, and to the Placement Agent on the
other hand, of the matters contemplated by this Agreement shall be deemed to be in the same proportion as: (a) the total value
received by the Company in the Offering, whether or not such Offering is consummated, bears to (b) the commissions paid to the
Placement Agent under this Agreement. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the meaning
of Section 11(f) of the Securities Act shall be entitled to contribution from a party who was not guilty of fraudulent misrepresentation.

 

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                                         Capital Corp.

May
[●], 2017

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28

 

(e)
Survival. The advancement, reimbursement, indemnity and contribution obligations set forth in this Section 9 shall remain
in full force and effect regardless of any termination of, or the completion of any Indemnified Person’s services under
or in connection with, this Agreement.

 

10.
Limitation of Placement Agent’ Liability to the Company.

 

The
Placement Agent and the Company further agree that neither the Placement Agent nor any of its affiliates or any of its respective
officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act), employees or agents shall have any liability to the Company, its security holders or creditors, or any person asserting
claims on behalf of or in the right of the Company (whether direct or indirect, in contract or tort, for an act of negligence
or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable relief arising out of or relating to this
Agreement or the Services rendered hereunder, except for losses, fees, damages, liabilities, costs or expenses that arise out
of or are based on any action of or failure to act by the Placement Agent and that are finally judicially determined to have resulted
solely from the gross negligence or willful misconduct of the Placement Agent.

 

11.
Limitation of Engagement to the Company.

 

The
Company acknowledges that the Placement Agent has been retained only by the Company, that the Placement Agent is providing Services
hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement of
the Placement Agent is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or partner
of the Company or any other person not a party hereto as against the Placement Agent or any of its affiliates, or any of its officers,
directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), employees
or agents. Unless otherwise expressly agreed in writing by the Placement Agent, no one other than the Company is authorized to
rely upon any statement or conduct of the Placement Agent in connection with this Agreement. The Company acknowledges that any
recommendation or advice, written or oral, given by the Placement Agent to the Company in connection with the Placement Agent’
engagement is intended solely for the benefit and use of the Company’s management and directors in considering a possible
Offering, and any such recommendation or advice is not on behalf of, and shall not confer any rights or remedies upon, any other
person or be used or relied upon for any other purpose. The Placement Agent shall not have the authority to make any commitment
binding on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced to it by the
Placement Agent.

 

12.
Amendments and Waivers.

 

No
supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby.
The failure of a party to exercise any right or remedy shall not be deemed or constitute a waiver of such right or remedy in the
future. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (regardless of whether similar), nor shall any such waiver be deemed or constitute a continuing waiver unless otherwise
expressly provided.

 

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                                         Capital Corp.

May
[●], 2017

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13.
Confidentiality.

 

In
the event of the consummation or public announcement of any Offering, the Placement Agent shall have the right to disclose its
participation in such Offering, including, without limitation, the placement at its cost of “tombstone” advertisements
in financial and other newspapers and journals. The Placement Agent agrees not to use any confidential information concerning
the Company provided to the Placement Agent by the Company for any purposes other than those contemplated under this Agreement.

 

14.
Headings.

 

The
headings of the various sections of this Agreement have been inserted for convenience of reference only and will not be deemed
to be part of this Agreement.

 

15.
Counterparts.

 

This
Agreement may be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts
shall each be deemed to be an original and all such counterparts shall together constitute one and the same instrument.

 

16.
Severability.

 

In
case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

 

17.
Use of Information.

 

The
Company has furnished the Placement Agent such written information as the Placement Agent reasonably requests in connection with
the performance of its services hereunder. The Company understands, acknowledges and agrees that, in performing its services hereunder,
the Placement Agent will use and rely entirely upon such information as well as publicly available information regarding the Company
and other potential parties to an Offering and that the Placement Agent do not assume responsibility for independent verification
of the accuracy or completeness of any information, whether publicly available or otherwise furnished to it, concerning the Company
or otherwise relevant to an Offering, including, without limitation, any financial information, forecasts or projections considered
by the Placement Agent in connection with the provision of its services.

 

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Capital Corp.

May
[●], 2017

Page
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18.
Absence of Fiduciary Relationship.

 

The
Company acknowledges and agrees that: (a) the Placement Agent have been retained solely to act as Placement Agent in connection
with the sale of the IPO Shares and that no fiduciary, advisory or agency relationship between the Company and the Placement Agent
have been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether the Placement
Agent have advised or are advising the Company on other matters and that the Placement Agent owe the Company only those duties
and obligations set forth in this Agreement; (b) the Share Purchase Price and other terms of the Securities set forth in this
Agreement were established by the Company following discussions and arms-length negotiations with the Placement Agent and the
Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions
contemplated by this Agreement; (c) it has been advised that the Placement Agent and its affiliates are engaged in a broad range
of transactions that may involve interests that differ from those of the Company and that the Placement Agent have no obligation
to disclose such interest and transactions to the Company by virtue of any fiduciary, advisory or agency relationship; and (d)
it has been advised that the Placement Agent are acting, in respect of the transactions contemplated by this Agreement, solely
for the benefit of the Placement Agent, and not on behalf of the Company and that the Placement Agent may have interests that
differ from those of the Company. The Company waives to the full extent permitted by applicable law any claims it may have against
the Placement Agent arising from an alleged breach of fiduciary duty in connection with the Offering.

 

19.
Survival Of Indemnities, Representations, Warranties, Etc.

 

The
respective indemnities, covenants, agreements, representations, warranties and other statements of the Company and Placement Agent,
as set forth in this Agreement or made by them respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation made by or on behalf of the Placement Agent, the Company, the Purchasers or any person controlling
any of them and shall survive delivery of and payment for the Securities. Notwithstanding any termination of this Agreement, including
without limitation any termination pursuant to Section 5, the payment, reimbursement, indemnity, contribution and advancement
agreements contained in Sections 2, 9, 10, and 11, respectively, and the Company’s covenants, representations, and warranties
set forth in this Agreement shall not terminate and shall remain in full force and effect at all times. The indemnity and contribution
provisions contained in Section 9 and the covenants, warranties and representations of the Company contained in this Agreement
shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation
made by or on behalf of any Placement Agent, any person who controls any Placement Agent within the meaning of either Section
15 of the Securities Act or Section 20 of the Exchange Act or any affiliate of any Placement Agent, or by or on behalf of the
Company, its directors or officers or any person who controls the Company within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act, and (iii) the issuance and delivery of the Securities.

 

    	30 

    	 

    

 

Aegis
                                         Capital Corp.

May
[●], 2017

Page
31

 

20.
Governing Law.

 

This
Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made
and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination of this Agreement,
will be heard only in the state or federal courts located in the City of New York, State of New York. The parties hereto expressly
agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New York. The parties
hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City
and State of New York.

 

21.
Notices.

 

All
communications hereunder shall be in writing and shall be mailed, hand delivered or faxed and confirmed to the parties hereto
as follows:

 

If
to the Company:

 

Boxlight
Corporation

1045
Progress Circle

Lawrenceville,
Georgia 30043

Attn:
Sheri Lofgren, Chief Financial Officer

 

If
to the Placement Agent:

 

Aegis
Capital Corp.

810
Seventh Avenue, 18th Floor

New
York, New York 10019

Attention:
[●]

 

Any
party hereto may change the address for receipt of communications by giving written notice to the others.

 

22.
Miscellaneous.

 

This
Agreement shall not be modified or amended except in writing signed by the Placement Agent and the Company. This Agreement constitutes
the entire agreement of the Placement Agent and the Company, and supersedes any prior agreements, with respect to the subject
matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination
will not affect such provision in any other respect, and the remainder of this Agreement shall remain in full force and effect.
This Agreement may be executed in counterparts (including facsimile or .pdf counterparts), each of which shall be deemed an original
but all of which together shall constitute one and the same instrument.

 

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                                         Capital Corp.

May
[●], 2017

Page
32

 

23.
Successors.

 

This
Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and
directors and controlling persons referred to in Section 9 hereof, and to their respective successors, and personal representative,
and, except as set forth in Section 9 of this Agreement, no other person will have any right or obligation hereunder.

 

24.
Partial Unenforceability.

 

The
invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability
of any other section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason
determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as
are necessary to make it valid and enforceable.

 

[SIGNATURE
PAGE TO FOLLOW]

 

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Aegis
Capital Corp.

May
[●], 2017

Page
1

 

In
acknowledgment that the foregoing correctly sets forth the understanding reached by the Placement Agents and the Company, and
intending to be legally bound, please sign in the space provided below, whereupon this letter shall constitute a binding Agreement
as of the date executed.

 

	 	Very
    truly yours,
	 	 	 
	 	Boxlight
    Corporation
	 	 	 
	 	By:	 

 

	Accepted
    as of the date hereof:	 
	 	 	 
	Aegis
    Capital Corp.	 
	 	 	 
	By:	 	 

 

    	 	1

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