Document:

Exhibit 10.1

 

EXECUTION VERSION

 

PROPELL
TECHNOLOGIES GROUP, Inc.

 

SERIES C
PREFERRED STOCK PURCHASE AGREEMENT

 

    	 

    	 

    

  

EXECUTION VERSION

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	Authorization; Closings	1
	 	 	 
	 	1.1	Authorization	1
	 	1.2	Sale and Issuance of Stock	1
	 	 	 
	2.	Closing Dates and Delivery	2
	 	 	 
	 	2.1	Closings	2
	 	2.2	Use of Proceeds	3
	 	2.3	Defined Terms Used in this Agreement	3
	 	 	 
	3.	Representations and Warranties of the Company	5
	 	 	 
	 	3.1	Organization, Good Standing and Qualification	5
	 	3.2	Capitalization	5
	 	3.3	Subsidiaries	7
	 	3.4	Authorization	7
	 	3.5	Valid Issuance of Securities	8
	 	3.6	Governmental Consents and Filings	8
	 	3.7	Litigation	8
	 	3.8	Intellectual Property	8
	 	3.9	Compliance with Other Instruments	10
	 	3.10	Agreements; Actions	10
	 	3.11	Disclosure	12
	 	3.12	No Conflict of Interest	12
	 	3.13	Voting Rights	12
	 	3.14	Title to Property and Assets	12
	 	3.15	SEC Documents, Financial Statements	13
	 	3.16	Employee Benefit Plans	13
	 	3.17	Insurance	13
	 	3.18	Labor Agreements and Actions; Employment Matters	14
	 	3.19	Tax Returns and Payments	15
	 	3.20	Confidential Information and Invention Assignment Agreements	15
	 	3.21	Permits	15
	 	3.22	Corporate Documents	15
	 	3.23	83(b) Elections	16
	 	3.24	Real Property Holding Corporation	16
	 	3.25	No “Bad Actor” Disqualification	16
	 	3.26	Customers	16
	 	3.27	Anti-Bribery Compliance	16
	 	3.28	Brokers or Finders	17
	 	3.29	Equipment, Fixtures, etc.	17
	 	 	 
	4.	Representations and Warranties of the Investor	17
	 	 	 
	 	4.1	Authorization	17
	 	4.2	Purchase Entirely for Own Account	17
	 	4.3	Disclosure of Information	17
	 	4.4	Restricted Securities	18

 

    	 

    	 

    

  

EXECUTION VERSION

 

TABLE OF CONTENTS

 

(Continued)

 

	 	Page
	 	 
	 	4.5	Legends	18
	 	4.6	Brokers or Finders	18
	 	 	 	 
	5.	Conditions of the Investor’s Obligations at Closing	18
	 	 	 
	 	5.1	Conditions of the Investor’s Obligations at Initial Closing	18
	 	5.2	Conditions of the Investor’s Obligations at the Second Closing	20
	 	5.3	Conditions of the Investor’s Obligations at each Optional Closing	21
	 	 	 	 
	6.	Conditions of the Company’s Obligations at Closing	21
	 	 	 
	 	6.1	Representations and Warranties	21
	 	6.2	Performance	21
	 	6.3	Qualifications	21
	 	 	 	 
	7.	Miscellaneous	21
	 	 	 
	 	7.1	Amendments and Waivers	21
	 	7.2	Notices	21
	 	7.3	Governing Law	22
	 	7.4	Successors and Assigns	22
	 	7.5	Entire Agreement	22
	 	7.6	Delays or Omissions	22
	 	7.7	Severability	22
	 	7.8	Titles and Subtitles	23
	 	7.9	Counterparts	23
	 	7.10	Electronic Execution and Delivery	23
	 	7.11	Jurisdiction; Venue	23
	 	7.12	Survival; Nature of Investor’s Obligations	23
	 	7.13	Efforts to Consummate	23
	 	7.14	Expenses	23
	 	7.15	Waiver of Jury Trial	24
	 	7.16	Finder’s Fee	24
	 	7.17	Confidentiality	24
	 	7.18	Consistent Reporting	25
	 	7.19	Knowledge of the Company	25

 

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EXECUTION VERSION

 

PROPELL
TECHNOLOGIES GROUP, Inc.

 

SERIES C
PREFERRED STOCK PURCHASE AGREEMENT

 

This Series C Preferred
Stock Purchase Agreement (this “Agreement”) is made as of February 19, 2015, by and among Propell Technologies
Group, Inc., a Delaware corporation (the “Company”), and Ervington Investments Limited, duly organized under
the laws of the Republic of Cyprus (the “Investor”).

 

RECITALS

 

WHEREAS, the
Company desires to sell to the Investor, and the Investor desires to purchase from the Company, up to four million five hundred
thousand (4,500,000) shares of Series C Preferred Stock of the Company at two or more closings in accordance with the terms and
provisions hereof;

 

WHEREAS, in
connection with the purchase and sale of the Series C Preferred Stock under this Agreement, and as an inducement to the Investor
to make such investment, the existing stockholders of the Company listed on Schedule 1 of this Agreement (the “Selling
Stockholders”) will sell to the investor pursuant to the Secondary Share Stock Purchase Agreement up to an additional
64,302,467 shares of outstanding Common Stock, plus an additional 3,137,500 shares of Series A-1 Convertible Preferred Stock
of the Company (representing 31,375,000 shares of common stock on an as-converted basis) (collectively, the “Secondary
Shares”), in such amounts and at such times as set forth on Schedule 1, and the Selling Stockholders will also
grant certain additional rights to the Investor pursuant to the Stockholders Agreement;

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.          Authorization;
Closings

 

1.1           Authorization. 
The Company has authorized (a) the sale and issuance of up to one four million five hundred thousand (4,500,000) shares
(the “Stock”) of the Company’s Series C Preferred Stock, par value $0.001 per share (the “Series C
Preferred Stock”), having the rights, privileges, preferences and restrictions set forth in the certificate of designation
for the Series C Preferred Stock, in the form of Exhibit A (the “Certificate of Designation”), and (b)
the reservation of shares of Common Stock for issuance upon conversion of the Stock (the “Conversion Shares”).

 

1.2           Sale
and Issuance of Stock.  Subject to the terms and conditions of this Agreement, (a) the Investor agrees to purchase
at the Initial Closing, and the Company agrees to sell and issue to the Investor at the Initial Closing, one million five hundred
and twenty five thousand four hundred and twenty four (1,525,424) shares of Series C Preferred Stock (the “First Tranche”),
at a cash purchase price of $3.277777778 per share (the “Purchase Price”), and (b) the Investor agrees
to purchase at the Second Closing or at one or more Optional Closings, and the Company agrees to sell and issue to the Investor
at the Second Closing and/or at one or more Optional Closings, up to an additional two million nine hundred and seventy four thousand
five hundred and seventy six (2,974,576) shares in aggregate of Series C Preferred Stock (the “Second Tranche”)
at the Purchase Price.

 

    	 

    	 

    

 

EXECUTION VERSION

 

2.          Closing
Dates and Delivery

 

2.1           Closings.
The purchase, sale and issuance of the Stock shall take place at one or more closings (each, a “Closing”).
Each of the Closings shall take place at 10:00 a.m. local time at the offices of Wilson Sonsini Goodrich & Rosati, Professional
Corporation, 650 Page Mill Road, Palo Alto, CA 94304, or at such other time or place as the Company and the Investor mutually agree.
At each Closing, the Company will deliver to the Investor a certificate registered in the Investor’s name representing the
number of shares of Stock that the Investor is purchasing in such Closing against payment of the Purchase Price therefor, by (a)
check payable to the Company, (b) wire transfer in accordance with the Company’s instructions, or (c) any combination of
the foregoing.

 

(a)          First
Closing.  The initial Closing (the “Initial Closing”) shall take place on a date determined by
agreement but no later than the fifth (5th) Business Day after the satisfaction (or waiver) of the conditions set forth in Section
5.1 and Section 6 (other than those conditions to be satisfied by delivery of documents or taking of any action at the Closing
by a party hereto, but subject to the satisfaction and/or delivery thereof). The Company shall sell and issue to the Investor at
the Initial Closing one million five hundred and twenty five thousand four hundred and twenty four (1,525,424) shares of Series
C Preferred Stock. At the Initial Closing, the Investor shall also acquire from the Selling Stockholders 7,624,990 shares of Common
Stock and an additional 2,437,500 shares of Series A-1 Convertible Preferred Stock (representing 24,375,000 shares of Common
Stock on an as-converted basis), all pursuant to the Secondary Share Stock Purchase Agreement and as set forth on Schedule 1.

 

(b)          Second
Closing. The second Closing (the “Second Closing”) shall take place at any time prior to May 31, 2015
on a date determined by agreement but no later than (i) the fifth (5th) Business Day after the satisfaction (or waiver)
of the conditions set forth in Section 5.2 and Section 6 (other than those conditions to be satisfied by delivery of documents
or taking of any action at the Closing by a party hereto, but subject to the satisfaction and/or delivery thereof) or (ii) May
31, 2015. The Company shall sell and issue at the Second Closing an additional two million nine hundred and seventy four thousand
five hundred and seventy six (2,974,576) shares of Series C Preferred Stock to the Investor, or such number of shares that remain
unissued and available under the Second Tranche if one or more Optional Closings have occurred pursuant to Section 2.1(c) below.
At the Second Closing, the Investor shall also acquire from the Selling Stockholders an additional 56,677,477 shares of Common
Stock and an additional 700,000 shares of Series A-1 Convertible Preferred Stock (representing 7,000,000 shares of
Common Stock on an as-converted basis), or the number of remaining Secondary Shares if one or more Optional Closings have occurred
pursuant to Section 2.1(c) below. If one or more Optional Closings occur pursuant to Section 2.1(c) below, the Second Closing shall
be the Closing at which the final shares of Stock under the Second Tranche are issued and sold to the Investor. If the Second Closing
has not occurred by May 31, 2015, the Investor shall no longer have any right to acquire any additional shares of Series C Preferred
Stock from the Company unless otherwise agreed by the Company and the Investor.

 

(c)          Optional
Closings.  Notwithstanding Section 2.1(b) above, the Investor shall have the option to purchase from time-to-time
any portion of the shares under the Second Tranche at one or more optional Closings (each, an “Optional Closing”)
during the period between the date of the Initial Closing and the earlier to occur of (i) the Second Closing, and (ii) May 31,
2015. The option shall be exercised by providing at least five (5) Business Days’ prior written notice to the Company (an
“Optional Closing Notice”) specifying the date and number of shares of Stock to be purchased by the Investor
at the Optional Closing. Provided that authorized but unissued Stock remains available under the Second Tranche, the Company shall
sell and issue to the Investor the number of shares of Stock on the date specified in the Subsequent Subscription Notice. At each
Optional Closing, the Investor may acquire from the Selling Stockholders pursuant to the Secondary Share Stock Purchase Agreement
the equivalent pro rata portion of the Secondary Shares that the number of shares specified in the Optional Closing Notice bears
to the remaining number of shares of Stock available under the Second Tranche.

 

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EXECUTION VERSION

 

2.2           Use
of Proceeds. The proceeds to the Company from the Initial Closing will be used for research and development, commercialization
of new products, sales, marketing and administrative compensation. The proceeds to the Company from the Second Closing will be
used to acquire, enhance and maintain an oil field for the deployment of the Company’s technology and for the payment of
certain debt set forth in the next sentence. The proceeds to the Company from the Closings shall not be used to repay any indebtedness
of the Company, redeem shares or pay any deferred compensation except as permitted in this Section 2.2. The Company shall use the
proceeds to repay the following indebtedness of the Company promptly following the Initial Closing, provided that any such indebtedness
that is subject to a prepayment penalty shall be repaid as and when directed by the Investor: (i) a loan in the principal amount
of $105,000 from JAZ-CEH Holdings LLC evidenced by a promissory note dated October 21, 2013, (ii) a loan in the principal amount
of $84,000 from KBM Worldwide, Inc. evidenced by a promissory note dated December 10, 2014, (iii) a loan in the principal amount
of $107,000 from LG Capital Funding, LLC evidenced by a promissory note dated October 31, 2014, (iv) two loans, each in the principal
amount of $25,000 from Strategic IR, Inc. evidenced by a promissory note dated January 8, 2015 and a promissory note dated January
22, 2015, (v) a loan in the principal amount of $75,000 from Irina Galikhanova evidenced by a promissory note dated January 29,
2015 and (iv) certain accounts payable.

 

2.3           Defined
Terms Used in this Agreement.  In addition to the terms defined above, the following terms used in this Agreement shall
be construed to have the meanings set forth or referenced below.

 

“Affiliate”
means (i) with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person, or (ii) with respect to any Person that is controlled by a trust,
any other Person that is directly or indirectly controlling, controlled by or under common control with such trust or a Person
who is a beneficiary of such trust or another trust with a common beneficiary. The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise, and the terms “controlled” and “controlling”
have meanings correlative thereto.

 

“Business Day”
means a day, other than a Saturday or Sunday, on which commercial banks in New York City (USA), Riga (Latvia) and Zurich (Switzerland)
are open for the general transaction of business.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share.

 

“Designated
Holders” means the Selling Stockholders and the members of management of the Company holding or receiving equity incentives
in excess of 500,000 shares of Common Stock.

 

“GAAP”
means United States generally accepted accounting principles.

 

“Governmental Entity”
means any United States or non-United States (i) federal, state, local, municipal or other government, (ii) governmental or quasi-governmental
entity of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal)
or (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature, including any arbitral tribunal.

 

    	-3-

    	 

    

  

EXECUTION VERSION

 

“Government
Official” means any officer, employee or agent of a Governmental Entity or any department, agency or instrumentality
thereof, including state-owned entities, or of a public organization or any person acting in an official capacity for or on behalf
of any such government, department, agency, or instrumentality or on behalf of any such public organization.

 

“Immediate Family
Members” means, with respect to any Person, such Person’s children, stepchildren, grandchildren, parents, stepparents,
grandparents, spouse, siblings, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law and sister-in-law.

 

“Intellectual
Property” means any and all intellectual property, including (i) patents and patent applications (including all continuations,
continuations in part, divisionals and extensions of the foregoing); (ii) copyrights, copyrightable works and other works of authorship,
including registrations and applications for registration thereof; (iii) trade secrets, know-how, and other confidential or proprietary
information; (iv) trademarks, service marks, trade names, domain names, trade dress, social media identifiers and other indicators
or designations of source or origin, including registrations and applications for registration thereof; and (iv) Software.

 

“Investors’
Rights Agreement” means the agreement between the Company and the Investor, to be dated as of the date of the
Initial Closing, in the form of Exhibit B attached hereto.

 

“Laws”
means all laws, judgments, orders, proceedings, injunction, writ, decree, decisions, rulings, awards, statutes, codes, regulations,
ordinances, rules or other requirements with similar effect of any Governmental Entity.

 

“Material Adverse
Effect” means a material adverse effect on the business, assets (including intangible assets), liabilities, condition
(financial or otherwise), property, prospects or results of operation of the Company and its Subsidiaries.

 

“Person”
means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association,
trust, joint venture, association or other similar entity, whether or not a legal entity.

 

“Preferred Stock”
means the Series A-1 Convertible Preferred Stock and Series B Convertible Preferred Stock of the Company, collectively.

 

“Securities”
means the Stock and the Conversion Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Secondary Share
Stock Purchase Agreement” means the agreement among the Investor and the Selling Stockholders, to be dated as of the
date of this Agreement, in form and substance satisfactory to the Investor in its sole discretion.

 

“Side Agreement”
means the agreement between the Investor, Alexander Lustig and Vladimir Skigin, in the form of Exhibit I attached hereto.

 

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EXECUTION VERSION

 

“Software”
means all software (including assemblers, applets, compilers, source code, object code, executable code, specifications, embodiments
of algorithms, tools, user interfaces, data, databases (including scripts required to build and/or maintain such databases), firmware,
and related documentation), together with any error corrections, updates, modifications or enhancements thereto.

 

“Stockholders
Agreement” means the agreement among the Company, the Designated Holders and the Investor, to be dated as of the
date of the Initial Closing, in the form of Exhibit C attached hereto.

 

“Subordination
and Voting Agreement” means the agreement among the Investor and the sole holder of the Series B Convertible Preferred
Stock, to be dated as of the date of the Initial Closing, in the form of Exhibit H. 

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, association, or other business entity
of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof or (ii) if a limited
liability company, partnership, association, or other business entity (other than a corporation), a majority of the partnership
or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by such Person or one
or more Subsidiaries of such Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership
interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business
entity’s gains or losses or shall be a, or control any, managing director or general partner of such business entity (other
than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary.

 

“Transaction
Agreements” means this Agreement, the Director Indemnification Agreement, the Investors’ Rights Agreement, the
Stockholders Agreement and the Secondary Share Stock Purchase Agreement.

 

“Transaction
Expenses” means the fees, costs, expenses and payments incurred by legal advisors, financial advisors and other professionals
on behalf of the Investor in connection with the transactions contemplated by this Agreement, which amounts shall not exceed $170,000.

 

3.          Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that, except as set forth on
a Schedule of Exceptions delivered separately by the Company on date hereof to the Investor, which exceptions shall be deemed to
apply to the corresponding representations and warranties made hereunder, the following representations and warranties are true
and complete as of the date hereof and as of the applicable Closing.

 

3.1           Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted
and as proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure so to qualify would have, or would reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

3.2           Capitalization.
The authorized capital stock of the Company consists, or will consist, immediately prior to the Initial Closing, of:

 

    	-5-

    	 

    

  

EXECUTION VERSION

 

(a)          Ten
million (10,000,000) shares of Preferred Stock, of which (i) five million (5,000,000) shares have been designated Series A-1
Convertible Preferred Stock, of which three million five hundred and twelve thousand five hundred (3,512,500) are issued
and outstanding immediately prior to the Initial Closing, and (ii) five hundred thousand (500,000) shares have been designated
Series B Convertible Preferred Stock, of which seventy five thousand (75,000) are issued and outstanding immediately prior to the
Initial Closing; and

 

(b)          Five
hundred million (500,000,000) shares of Common Stock, of which two hundred and sixty one million six hundred and sixty nine thousand
four hundred and ninety nine (260,169,499) shares are issued and outstanding immediately prior to the Initial Closing.

 

(c)          The
rights, preferences and privileges of the Stock, the Series A-1 Convertible Preferred Stock, the Series B Convertible Preferred
Stock and the Common Stock are as stated in the certificate of incorporation of the Corporation, as amended, and the certificate
of designations, preferences and rights of the Series A-1 Convertible Preferred Stock, the certificate of designations, rights
and preferences of the Series B Convertible Preferred Stock and the certificate of designation for the Series C Preferred Stock,
each as set forth on Exhibit G (collectively, the “Charter”) and as provided by the Delaware General
Corporation Law. All of the outstanding shares of Common Stock, Series A-1 Convertible Preferred Stock and Series B Convertible
Preferred Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal
and state securities Laws.

 

(d)          The
Company has reserved two million one hundred thousand (2,100,000) shares of Common Stock for issuance to officers, directors,
employees and consultants of the Company pursuant to its 2008 Stock Option Plan duly adopted by the Board of Directors and approved
by the Company’s holders of outstanding voting stock (the “Stock Plan”). Of such reserved shares, options
to purchase three hundred and eighty thousand nine hundred and fifty (380,950) shares of Common Stock have been granted pursuant
to the Stock Plan and are currently outstanding. Options to purchase 1,719,050 shares of Common Stock remain available for issuance
to officers, directors, employees and consultants pursuant to the Stock Plan. The Company has furnished to the Investor true and
complete copies of the Stock Plan and forms of agreements used thereunder.

 

(e)          The
Company has issued (i) warrants convertible into six million thirty nine thousand four hundred and ninety eight (6,039,498) shares
of Common Stock upon exercise (the “Warrants”), and (ii) convertible long-term notes convertible into six hundred
and thirty six thousand and ten (636,010) shares of Common Stock (the “Convertible Notes”).

 

(f)          The
Company has issued grants of restricted stock for fourteen million five hundred thousand shares of Common Stock which are not yet
fully vested (the “Unvested Restricted Stock”).

 

    	-6-

    	 

    

  

EXECUTION VERSION

 

(g)          Except
for (i) the conversion privileges of the Series A-1 Convertible Preferred Stock and Series B Convertible Preferred
Stock as set forth in the Charter, (ii) the outstanding options issued pursuant to the Stock Plan, (iii) the Warrants, (iv)
the Convertible Notes, (v) the convertible notes of the Company being repaid in accordance with Section 2.2 hereof, and (vi) the
Unvested Restricted Stock, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights
of first refusal or similar rights) or agreements, orally or in writing, for the issuance, purchase or acquisition from the Company
or any of its Subsidiaries of any shares of the Company’s or any of its Subsidiaries’ capital stock or any securities
convertible, exchangeable or redeemable into the Company’s or any of its Subsidiaries’ capital stock, nor any phantom
equity or similar rights. Except as set forth on Section 3.2(g) of the Schedule of Exceptions, none of the Company’s or its
Subsidiaries’ stock purchase agreements or stock option documents contains a provision for acceleration of vesting (or lapse
of a repurchase right) or other changes in the terms of such agreement or document upon the occurrence of any event. Except as
set forth on Section 3.2(g) of the Schedule of Exceptions, the Company and its Subsidiaries have never adjusted or amended the
exercise price of any stock options previously awarded, whether through amendment, cancellation, replacement grant, repricing or
any other means. Except as set forth in the Charter, neither the Company, nor any of its Subsidiaries, has an obligation (contingent
or otherwise) to purchase or redeem any of their respective capital stock.

 

(h)          Section
3.2(h) of the Schedule of Exceptions sets forth the capitalization of the Company immediately prior to the Initial Closing, including
the number of shares of the following: (i) issued and outstanding shares of Common Stock, including, with respect to any restricted
Common Stock, vesting schedule and repurchase price; (ii) stock options granted, including vesting schedule and exercise price;
(iii) shares of Common Stock reserved for future award grants under the Stock Plan; (iv) issued and outstanding shares of the Series
A-1 Convertible Preferred Stock and Series B Convertible Preferred Stock; and (v) warrants, convertible notes or stock purchase
rights, if any.

 

(i)          The
Company has obtained valid waivers of any rights by other parties to perform its obligations under the Transaction Agreements or
consummate the transactions contemplated thereby.

 

3.3           Subsidiaries.
Except as set forth in Section 3.3 of the Schedule of Exceptions (which shall include the name of each such Person, its jurisdiction
of formation and the owners thereof), the Company does not currently own or control, directly or indirectly, any interest in any
other corporation, partnership, trust, joint venture, limited liability company, association or other business entity. Each of
the Company’s Subsidiaries is duly organized, validly existing and in good standing under the laws of its jurisdiction of
formation or incorporation and has all requisite power and authority to carry on its business as presently conducted and as proposed
to be conducted. Each of Company’s Subsidiaries is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure so to qualify would have, or would reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. The Company is not a participant in any joint venture, partnership or similar arrangement. The equity interest
of each Subsidiary of the Company are duly authorized, fully paid and nonassessable and issued in compliance with all applicable
foreign, federal and state securities Laws. The Company owns all of the outstanding equity interests in each of its Subsidiaries,
free and clear of all liens and encumbrances.

 

3.4           Authorization.
All corporate action on the part of the Company, its officers, directors and current holders of capital stock necessary for the
authorization, execution and delivery of (x) this Agreement, the performance of all obligations of the Company hereunder and the
authorization, issuance and delivery of the Securities has been taken and (y) the other Transaction Agreements, the performance
of all obligations of the Company thereunder will be taken prior to the Initial Closing, and this Agreement constitutes, and the
other Transaction Agreements, when executed and delivered by the Company, shall constitute, in each case, valid and legally binding
obligations of the Company, enforceable against the Company in accordance with their respective terms except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating
to or affecting the enforcement of creditors’ rights generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, or (c) to the extent the indemnification provisions contained in the
Investors’ Rights Agreement may be limited by applicable federal or state securities laws (the “Enforceability Exceptions”).

 

    	-7-

    	 

    

  

EXECUTION VERSION

 

3.5           Valid
Issuance of Securities. The Securities sold and delivered in accordance with the terms hereof for the consideration expressed
herein, will be upon issuance duly and validly issued, fully paid and nonassessable and free of liens, encumbrances, preemptive
rights and restrictions on transfer other than restrictions on transfer applicable to an Investor under this Agreement, the Investors’
Rights Agreement, the Stockholders Agreement and applicable state and federal securities Laws. Based upon the representations of
the Investor in Section 4.2, Section 4.4 and Section 4.5 of this Agreement and subject to any filings required by Section 3.6,
the Securities will be issued in compliance with all applicable federal and state securities Laws. The Conversion Shares have been
duly reserved for issuance, and upon issuance in accordance with the terms of the Charter and Certificate of Designation for the
Series C Preferred Stock, will be duly and validly issued, fully paid and nonassessable and free of liens, encumbrances, preemptive
rights and restrictions on transfer other than restrictions on transfer applicable to the Investor under this Agreement, the Investors’
Rights Agreement, the Stockholders Agreement and applicable state and federal securities Laws. Based upon the representations of
the Investor in Section 4.2, Section 4.4 and Section 4.5 of this Agreement and subject to any filings required by Section 3.6,
the Conversion Shares will be issued in compliance with all applicable federal and state securities Laws.

 

3.6           Governmental
Consents and Filings. Assuming the accuracy of the representations made by the Investor in Section 4 of this Agreement,
no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with or notice
to (each, a “Consent”) any Governmental Entity is required in connection with the consummation of the transactions
contemplated by this Agreement, except (i) the filing of the Certificate of Designation for the Series C Preferred Stock with the
office of the Secretary of State of Delaware, and (ii) filings pursuant to applicable state securities laws, which have been made
or will be made in a timely manner.

 

3.7           Litigation.
Except for the matters disclosed in Section 3.7 of the Schedule of Exceptions, there is no claim (including as contained in any
Intellectual Property assertion letter), action, suit, proceeding, arbitration, complaint, charge or investigation pending or,
to the Company’s knowledge, currently threatened against the Company, any of its Subsidiaries or any of their respective
officers, directors or employees nor, to the Company’s knowledge, is there any basis for the foregoing. Neither the Company,
nor its Subsidiaries, nor, to the Company’s knowledge, any of their respective officers, directors or employees, is a party
or is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or Governmental Entity.
The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or
any basis therefor known to the Company) involving the prior employment of any of the Company’s or its Subsidiaries’
respective employees, their services provided in connection with the Company’s or its Subsidiaries’ respective business,
or any Intellectual Property allegedly proprietary to any of their former employers or consultants, or their obligations under
any agreements with prior employers.

 

3.8           Intellectual
Property.

 

(a)          Section
3.8(a) of the Schedule of Exceptions sets forth all (i) patents and other registrations for Intellectual Property owned by the
Company or any of its Subsidiaries and all applications therefor filed by the Company or any of its Subsidiaries; and (ii) material
Software owned by the Company or any of its Subsidiaries. The material Intellectual Property owned by the Company and its Subsidiaries
is valid, enforceable and subsisting. To the Company’s knowledge, each of the Company and its Subsidiaries owns or possesses
sufficient legal rights (pursuant to a written agreement) to all patents that are used in or necessary for the conduct by the Company
of and by each of its Subsidiaries of their respective current and/or presently contemplated business. Each of the Company and
its Subsidiaries owns or possesses sufficient legal rights (pursuant to a written agreement) to all such other Intellectual Property
that is used in or necessary for the conduct by the Company of and by each of its Subsidiaries of their respective current and/or
presently contemplated business. There are no outstanding options, licenses, agreements, claims, encumbrances, liens or adverse
or shared ownership interests or claims of any kind relating to the foregoing, nor is the Company or any of its Subsidiaries bound
by or a party to any options, licenses or agreements of any kind with respect to the Intellectual Property of any other Person,
except as may be entered into by the Company or any of its Subsidiaries in the course of its normal business consistent with past
practice;

 

    	-8-

    	 

    

 

EXECUTION VERSION

 

(b)          No
product or services marketed or sold (or proposed to be marketed or sold), or the conduct of the business, by the Company or any
of its Subsidiaries violates or will violate any license or infringes, misappropriates, or otherwise violates or will infringe,
misappropriate, or otherwise violate any Intellectual Property of any other Person. Neither the Company, nor any of its Subsidiaries,
has received any communications alleging that the Company or any of its Subsidiaries has infringed, misappropriated, or otherwise
violated or, by conducting its business, would infringe, misappropriate, or otherwise violate any of the Intellectual Property
of any other Person. To the Company’s knowledge, no other Person is infringing, misappropriating or otherwise violating the
Intellectual Property owned by the Company or any of its Subsidiaries;

 

(c)          The
Company and each of its Subsidiaries has obtained and possesses valid licenses to use all of the software programs present on the
computers and other Software-enabled electronic devices that each owns or leases or that each has otherwise provided to its employees
for their use in connection with the Company’s or its Subsidiaries’ respective business.

 

(d)          To
the Company’s knowledge, it will not be necessary to use any inventions of any of the Company’s or any of its Subsidiaries’
employees or consultants (or Persons the Company or any of its Subsidiaries currently intends to hire) made prior to their employment
by the Company or any of its Subsidiaries, as applicable. Each current and former employee and consultant of Company and each Subsidiary
of the Company has assigned to the Company or a Subsidiary of the Company all Intellectual Property rights he or she owns that
are related to the Company’s or such Subsidiary’s respective business as now conducted and as presently proposed to
be conducted;

 

(e)          No
source code for any material Software owned by the Company or any Subsidiary of the Company has been delivered, licensed, or made
available to any escrow agent or other person who or entity that is not, as of the date of this Agreement, an employee or independent
contractor of the Company or any Subsidiary of the Company;

 

(f)          The
conduct of the Company’s and each of its Subsidiaries’ respective business and the collection, use, disclosure, storage,
security and dissemination of personally identifiable information in connection therewith have not violated, and the Company and
the Subsidiaries of the Company have not violated, in any material respect, and the Company and the Subsidiaries of the Company
have complied at all times in all material respects with, any (i) applicable Laws; (ii) of the Company’s or its Subsidiaries’,
as applicable, posted rules, policies or procedures relating to data protection or privacy; and (iii) agreements or other arrangements
into which the Company or a Subsidiary of the Company, as applicable, has entered or is otherwise bound relating to data protection
or privacy. No written claim has been made and there is no proceeding pending or, to the knowledge of the Company, threatened against
the Company or a Subsidiary of the Company alleging a violation of any of the foregoing. With respect to the Company’s and
its Subsidiaries’ systems and the data stored therein, in the past three (3) years, there has been no unauthorized access
to or other misuse of such systems or data that gave rise to any damages or liability and neither the Company nor any Subsidiary
has received written notice alleging, or been required by applicable Law to notify any Person of, any such unauthorized access
or other misuse;

 

    	-9-

    	 

    

  

EXECUTION VERSION

 

(g)          Neither
the execution or delivery of this Agreement, nor the carrying on of the Company’s or its Subsidiaries’ respective business
by the employees of the Company or a Subsidiary of the Company, as applicable, nor the conduct of the Company’s business
or a Subsidiary’s business, as applicable, as proposed, will, to the Company’s knowledge, (i) conflict with or result
in a breach of the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under
which the Company or a Subsidiary of the Company is now obligated; or (ii) impair any right, title or interest of the Company or
a Subsidiary of the Company in any Intellectual Property owned by the Company or any of its Subsidiaries; and

 

(h)          The
Company and each of its Subsidiaries is in compliance with all agreements applicable to any open source, copy left or community
source code that the Company or a Subsidiary of the Company incorporates, combines or distributes with any of its products distributed
to its respective customers, including but not limited to any GNU or GPL libraries or code.

 

3.9           Compliance
with Other Instruments. The Company and each Subsidiary of the Company is not in violation, breach or default (with or
without notice the passage of time, giving notice or both) (a) in the case of the Company, of any provisions of its Charter or
Bylaws, or in the case of any Subsidiary of the Company, its governing documents, or (b) of any instrument, judgment, order, writ,
or decree, or under any note, indenture, mortgage, lease, agreement, contract, franchise, permit, license or purchase order (including
any Material Contracts) to which it is a party or by which it is bound or of any Law applicable to the Company or a Subsidiary
of the Company, as applicable, except in the case of clause (b) the violation, breach or default of which would not be material
to the Company and its Subsidiaries, taken as a whole. The execution, delivery and performance of this Agreement and the other
Transaction Agreements and the consummation of the transactions contemplated hereby or thereby will not (i) after effecting the
contemplated amendment of the Charter set forth in the Subordination and Voting Agreement, conflict with or result in any breach,
violation or default of any provision of the Company’s Charter, the Certificate of Designation for the Series C Preferred
Stock or Bylaws or any governing documents of any Subsidiary of the Company, (ii) result in any breach, violation or be in conflict
with or cause the acceleration or loss of rights under, or constitute (with or without the passage of time, giving of notice or
both) a default (or give rise to any right of termination, cancellation or acceleration) under any such provision, instrument,
judgment, order, writ, decree, contract note, indenture, mortgage, lease, franchise, permit, license or purchase order, (iii) violate
any Laws applicable to the Company, any Subsidiary of the Company or any of their respective properties or assets or (iv) result
in the creation of any lien, charge or encumbrance upon any assets of the Company or its Subsidiaries or the suspension, revocation,
forfeiture or nonrenewal of any material permit or license applicable to the Company or any of its Subsidiaries.

 

3.10         Agreements;
Actions.

 

(a)          Except
as set forth on Section 3.10 of the Schedule of Exceptions, other than (i) employee benefits generally made available to all employees,
(ii) director and officer indemnification agreements properly entered into by the Company, and (iii) the purchase of shares of
the Company’s Common Stock and the issuance of options to purchase shares of the Company’s Common Stock, in each instance,
approved by the Board of Directors, there are no agreements, understandings or proposed transactions by the Company or any of its
Subsidiaries, on the one hand, and any of their respective officers, employees, directors, Affiliates, or any Affiliate thereof,
on the other hand.

 

    	-10-

    	 

    

  

EXECUTION VERSION

 

(b)          Except
for the Transaction Agreements, and those agreements listed in Section 3.10(b) of the Schedule of Exceptions, the Company and each
of its Subsidiaries are not party to or bound by any agreements, understandings, instruments, contracts or proposed transactions:
(i) involving obligations or liabilities (contingent or otherwise) of the Company or any of its Subsidiaries in excess of
$200,000, (ii) involving the license of any Intellectual Property to or from the Company or any of its Subsidiaries or any
restriction on the use or ownership of any Intellectual Property (other than licenses for off-the-shelf software and other agreements
entered into by the Company or any of its Subsidiaries in the ordinary course of business consistent with past practice) or the
development of any Intellectual Property, (iii) involving the grant of rights to manufacture, produce, assemble, license,
market, or sell its products to any other Person, (iv) that constitute a collective bargaining agreement or other contract with
any labor organization or similar employee representative, or involves any employee benefit, (v) that restricts in any material
respect the conduct of business by the Company or any of its Subsidiaries or their ability to compete in any line of business or
with any Person in any geographical area; (vi) that is a contract with any officer, individual employee or independent contractor
on a full time, part time, consulting or other basis other than any “at-will” contract that may be terminated by the
Company upon thirty (30) days or less advance notice), including contracts with respect to employment, severance, separation, change
in control, retention or similar arrangements for the provision of services to the Company or a Subsidiary of the Company on a
full or part time basis; (vii) that involves any joint venture, legal partnership or similar arrangement; (viii) that provides
any customer of the Company or a Subsidiary of the Company with pricing discounts or benefits that change based on the pricing,
discounts and benefits offered to other customers, including contracts containing “most favored nation” provisions;
or (ix) any other agreement, understanding, instrument, contract or proposed transaction that is otherwise material to the Company
and its Subsidiaries, taken as a whole. The agreements listed or required to be listed under Section 3.10(b) of the Schedule of
Exceptions, together with the agreements between the Company and the Top Customers, are referred to as the “Material Contracts”
and each referred to as a “Material Contract.” The Company has made available to the Lead Investor a true and
complete copy of each Material Contract prior to the date hereof.

 

(c)          Each
of the Material Contracts constitutes a valid, legal and binding obligation of the Company or a Subsidiary of the Company, as applicable
and, to the knowledge of the Company, each other party thereto, enforceable in accordance with its terms, subject to the Enforceability
Exceptions. Each of the Material Contracts is in full force and effect, and will be in full force and effect upon the consummation
of the transactions contemplated hereby, and the Company or a Subsidiary of the Company, as applicable, is entitled to all its
respective benefits, rights and privileges under each such Material Contract in accordance with its terms. Since January 1, 2013,
the Company or a Subsidiary of the Company has not received written notice of any material breach by the Company or any of its
Subsidiaries under any such Material Contract or of the cancellation, amendment or termination of any such Material Contract.

 

(d)          Except
as set forth on Schedule 3.10(d), the Company and its Subsidiaries have not (i) declared or paid any dividends, or authorized
or made any distribution upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness
for money borrowed, (iii) except as set forth on Schedule 3.10(d) of the Schedule of Exceptions, incurred any other liabilities
(or any guarantee or other contingent liability with respect to the foregoing), except accounts payable in the ordinary course
of business consistent with past practices and not older than 90 days, (iv) except as set forth on Schedule 3.10(d) of the
Schedule of Exceptions, made any loans or advances to any Person, other than ordinary advances to employees of the Company or its
Subsidiaries for travel expenses, or (v) sold, exchanged or otherwise disposed of any of its assets or rights, other than
the sale of its inventory in the ordinary course of business consistent with past practices.

 

    	-11-

    	 

    

  

EXECUTION VERSION

 

(e)          The
Company is not currently, and has not previously been, in breach, violation or in conflict with and no act, occurrence, event or
omission has caused, or may be reasonably expected to cause (with or without the passage of time, giving of notice or both) the
acceleration or loss of rights under, or constituted, or may be reasonably expected to constitute (with or without the passage
of time, giving of notice or both) a default under any of the agreements listed on Section 3.10(b) of the Schedule of Exceptions.

 

3.11         Disclosure.
No representation or warranty of the Company contained in this Agreement and the exhibits attached hereto or any certificate furnished
or to be furnished to the Investor at any Closing (when read together) contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances
under which they were made. It is understood that this representation is qualified by the fact that the Company has not delivered
to the Investor, and has not been requested to deliver, a private placement or similar memorandum or any “Risk Factors”
or “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the type typically
contained therein.

 

3.12         No
Conflict of Interest. Except as set forth on Section 3.12 of the Schedules of Exceptions, the Company and its Subsidiaries
are not indebted, directly or indirectly, to any of their respective holders of capital stock, officers, directors employees or
to their respective immediate family members in any amount whatsoever other than in connection with expenses or advances of expenses
incurred in the ordinary course of business consistent with past practice or relocation expenses of employees (which are not material
in amount). None of the Company’s or any of its Subsidiaries’ respective stockholders, officers, employees or directors,
or any of their respective Immediate Family Members, are, directly or indirectly, indebted to the Company or a Subsidiary of the
Company or, to the Company’s knowledge, have any direct or indirect ownership interest or other material interest in any
Person with which the Company or a Subsidiary of the Company is affiliated or with which the Company or a Subsidiary of the Company
has a business relationship, or any Person that competes with the Company or a Subsidiary of the Company except that the officers,
directors and/or holders of capital stock of the Company may own stock in (but not in an amount exceeding two percent of the outstanding
capital stock of) any publicly traded company that may compete with the Company. None of the Company’s holders of capital
stock, officers, employees or directors or, to the knowledge of the Company, any of their respective Immediate Family Members,
directly or indirectly, (a) has a material interest in any contract with the Company or a Subsidiary of the Company or (b) has
any material interest in any property or assets used by the Company or a Subsidiary of the Company or in connection with their
respective businesses. None of the Company and its Subsidiaries is a guarantor or indemnitor of any indebtedness of any Person.

 

3.13         Voting
Rights. To the Company’s knowledge, except as contemplated in the Stockholders Agreement, no holder of capital stock
of the Company or any Subsidiary of the Company has entered into any agreements with respect to the voting of capital shares of
the Company.

 

3.14         Title
to Property and Assets.

 

(a)          Except
as set forth on Section 3.14 of the Schedule of Exceptions, the Company and each Subsidiary of the Company owns or leases its respective
property and assets, as applicable, free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for
statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary
course of business consistent with past practices and do not impair the Company’s or such Subsidiary’s ownership
or use of such property or assets in any material respect.

 

    	-12-

    	 

    

  

EXECUTION VERSION

 

(b)          With
respect to the property and assets it leases, the Company and each Subsidiary of the Company is in compliance in all material respects
with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances other than to
the lessors of such property or assets. With respect to each of the Company’s and its Subsidiaries’ respective leases
for real property: (i) such lease is legal, valid, binding, enforceable and in full force and effect; (ii) no event has occurred
or circumstance exists which, with the delivery of notice, the passage of time or both, would constitute a breach or default, or
permit the termination, modification or acceleration of any payment under such lease; and (iii) the Company or a Subsidiary of
the Company, as applicable, has not collaterally assigned or granted any other security interest in such lease or any interest
therein.

 

(c)          None
of the Company and its Subsidiaries own any real property.

 

3.15         SEC
Documents, Financial Statements. The Company has filed on a timely basis all reports, schedules, forms, statements and
other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), including material filed pursuant to Section 13(a) or 15(d) (the “SEC
Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the Securities Act or the Exchange Act as the case may be and the rules and regulations of the SEC promulgated thereunder and
other federal, state and local laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents 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 light of the circumstances under which they were made, not misleading. The financial statements
of the Company included in the SEC Documents comply as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC or other applicable rules and regulations with respect thereto. Such financial
statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except (i) as
may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements,
to the extent they may not include footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of 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 year-end audit adjustments).

 

3.16         Employee
Benefit Plans. Section 3.16 of the Schedule of Exceptions sets forth a complete and correct list of each “employee
benefit plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)),
and each other material benefit or compensation plan, program, policy, arrangement, agreement, or contract that is maintained,
established or sponsored by the Company or any of its Subsidiaries, or in or to which the Company or any of its Subsidiaries participates
or contributes, or with respect to which the Company or any of its Subsidiaries has any material current or contingent liability
or obligation (each, an “Employee Benefit Plan”). Each Employee Benefit Plan has been maintained, funded and
administered in compliance in all material respects with its terms and applicable Laws. Each Employee Benefit Plan that is intended
to meet the requirements of a “qualified plan” under Section 401(a) of the Code is so qualified and has received a
current favorable determination letter from the Internal Revenue Service. Neither the Company nor any of its Subsidiaries has any
current or contingent liability or obligation (i) under or with respect to a “defined benefit plan” (as such term is
defined in Section 3(35) of ERISA) or any other plan that is or was subject to Section 412 of the Code or Title IV of ERISA
or a “multiemployer plan” (as defined in Section 3(37) of ERISA), (ii) by reason of at any time being treated
as a single employer under Section 414 of the Code with any other person or entity, or (iii) with respect to the provision of post-retirement
or post-termination medical, health, or life insurance or other welfare-type benefits for any current or former service provider
(other than as required by Section 4980B of the Code).

 

    	-13-

    	 

    

 

EXECUTION VERSION

 

3.17         Insurance.
Section 3.17 of the Schedule of Exceptions contains a complete and accurate list of all insurance policies (specifying the insurer,
the amount of the coverage, the type of insurance, the policy number and the effective and expiration dates) currently owned or
held by or on behalf of, or providing insurance coverage to the Company, any Subsidiaries of the Company or the respective businesses
and any assets relating thereto. The insurance coverage of the Company and each Subsidiary of the Company (a) is on such terms,
(b) covers such categories of risk, (c) contains such deductibles and retentions, and (d) is in such amounts, in each case, as
is adequate and suitable for the assets and operations of each of the Company and its Subsidiaries, as is customary for a company
of a similar size engaged in a similar line of business. All such policies of insurance are in full force and effect and the Company
or a Subsidiary of the Company, as applicable, is not in default, as to the payment of premiums, under the terms of any such policy,
and, except as set forth on Section 3.17 of the Schedule of Exceptions, no notice of cancellation or termination has been received
with respect to any such policy. There is no material claim made and pending under any such policies as to which coverage has been
questioned, denied or disputed or for which the underwriter of such policy has reserved their rights. The Company has made available
to the Investor as of the date hereof a true and complete copy of each insurance policy referred to in Schedule 3.17. Each claim
for which insurance coverage is available has been timely and properly submitted to the carrier/underwriter of the policy for which
coverage is available.

 

3.18         Labor
Agreements and Actions; Employment Matters.

 

(a)          Neither
the Company, nor a Subsidiary of the Company, is bound by or subject to (and none of their respective assets or properties is bound
by or subject to) any written or oral, express or implied, contract, commitment or arrangement with any labor organization, and
no labor organization has requested or, to the Company’s knowledge, has sought to represent any of their respective
employees, representatives or agents. There is and has been no strike or other material labor dispute involving the Company or
a Subsidiary of the Company pending, or to the Company’s knowledge threatened, nor is the Company aware of any labor organization
activity involving its or its Subsidiaries’ employees.

 

(b)          The
employment of each officer and employee of the Company and its Subsidiaries is terminable at the will of the Company or the Subsidiary
of the Company, as applicable. Except as disclosed in Section 3.18 of the Schedule of Exceptions, neither the Company, nor
a Subsidiary of the Company, is a party to any agreements with past or present employees, agents or independent contractors in
connection with the business of the Company or any of its Subsidiaries. Except as disclosed in Section 3.18 of the Schedules of
Exceptions, there are no written contracts of employment entered into with any employees of the Company or any of its Subsidiaries
or any oral contracts of employment which are not terminable on the giving of reasonable notice in accordance with applicable Laws.

 

(c)          Except
as would not result in material liability for the Company or any Subsidiary of the Company, neither the Company, nor any of its
Subsidiaries: (i) is liable for any arrears of wages, overtime, commissions, or other compensation or for any penalty related to
any such arrearage, (ii) has liability with respect to any misclassification of any employee currently or formerly classified as
exempt for purposes of overtime payment. No claims for discrimination, sexual or other harassment, or retaliation are pending or,
to the Company’s knowledge, threatened, nor is the Company aware that there is any basis for such a claim.

 

(d)          Except
as set forth in Section 3.18(d) of the Schedule of Exceptions, neither the execution of this Agreement nor any of the transactions
contemplated by this Agreement will (either alone or upon the occurrence of any additional or subsequent events): (i) entitle any
current or former director, officer, employee, independent contractor or consultant of the Company to severance pay or any other
payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of compensation due to any such individual;
(iii) increase the amount payable under or result in any other material obligation pursuant to any Benefit Plan; (iv) result in
“excess parachute payments” within the meaning of Section 280G(b) of the Code; or (v) require a “gross-up”
or other payment to any “disqualified individual” within the meaning of Section 280G(c) of the Code.

 

    	-14-

    	 

    

  

EXECUTION VERSION

 

3.19         Tax
Returns and Payments. There are no federal, state, local or foreign taxes due and payable by the Company or a Subsidiary
of the Company which have not been timely paid. There are no accrued and unpaid federal, state, local or foreign taxes of the Company
or a Subsidiary of the Company which are due, whether or not assessed or disputed. There have been no examinations or audits of
any tax returns or reports by any Governmental Entity. The Company and its Subsidiaries have each duly and timely filed all federal,
state, local and foreign tax returns required to have been filed by it and all such tax returns are correct and complete in all
respects. Neither the Company, nor any of its Subsidiaries, has granted a waiver of applicable statutes of limitations with respect
to taxes for any year. Except as set forth on Section 3.19 of the Schedule of Exceptions: (a) neither the Company, nor a Subsidiary
of the Company, has consented to extend the time, or is the beneficiary of any extension of time, in which any tax may be assessed
or collected by any taxing authority; (b) no claim has been made by any taxing authority in a jurisdiction where the Company and
its Subsidiaries do not file Tax Returns that any such Person is or may be subject to taxation by that jurisdiction; (c) neither
the Company, nor any of its Subsidiaries, has been a member of any affiliated, combined, consolidated or unitary tax group other
than a group the common parent of which is the Company; (d) each of Company and its Subsidiaries has complied in all material respects
with all applicable rules and regulations relating to the withholding of taxes; (e) neither the Company, nor any of its Subsidiaries,
is a party to or bound by any contract the principal purpose of which relates to the sharing or allocation of taxes; (f) neither
the Company, nor any Subsidiary of the Company, (i) has participated in any “listed transaction” within the meaning
of Treasury Regulation Section 1.6011-4(b), (ii) has distributed stock of another Person, or has had its stock distributed
by another Person, in the past two (2) years in a transaction that was purported or intended to be governed in whole or in
part by Section 355 of the Code, or (iii) has any actual liability for taxes of another Person under Treasury Regulation Section
1.1502-6 (or any similar provision of tax Law), as a transferee or successor or by contract (other than any contract the principal
purpose of which does not relate to taxes); and (g) the Company is, and at all times since January 1, 2011 has been, properly
classified in the manner set forth on Section 3.19 of the Schedule of Exceptions for U.S. federal income tax purposes.

 

3.20         Confidential
Information and Invention Assignment Agreements. Each present and former employee, consultant and officer of the
Company and its Subsidiaries has executed an agreement with the Company regarding confidentiality and proprietary information substantially
in the form provided to the Investor as of the date hereof. The Company is not aware that any of its current or former employees,
officers or consultants is in violation thereof, and the Company will use its best efforts to prevent any such violation. Except
as set forth on Section 3.20 of the Schedule of Exceptions, no present or former employee, consultant or officer of the Company
or any of its Subsidiaries has excluded works or inventions from his or her assignment of inventions pursuant to any such agreement.

 

3.21         Permits.
The Company and each of its Subsidiaries have all material franchises, permits, licenses and any similar authority necessary for
the conduct of their respective businesses. Neither the Company, nor a Subsidiary of the Company, is in default in any material
respect under any of such franchises, permits, licenses or other similar authority necessary for the conduct of its business.

 

3.22         Corporate
Documents. As of the Initial Closing, the Charter shall be in the form attached hereto as Exhibit G. A true and
complete copy of the governing documents and the minute books of the Company and its Subsidiaries have been provided prior to the
date hereof to the Investor’s counsel and contains minutes of all meetings of directors and holders of capital stock and
all actions by written consent without a meeting by the directors and holders of capital stock since the date of incorporation
and reflects all actions by the directors (and any committee of directors) and holders of capital stock with respect to all transactions
referred to in such minutes accurately in all material respects.

  

    	-15-

    	 

    

 

EXECUTION VERSION

 

3.23         83(b)
Elections. To the Company’s knowledge, all elections and notices under Section 83(b) of the Code have been timely
filed by all individuals who have purchased shares of the Company’s Common Stock.

 

3.24         Real
Property Holding Corporation. The Company is not a “United States real property holding corporation” within
the meaning of the Code and any applicable regulations promulgated thereunder.

 

3.25         No
“Bad Actor” Disqualification. The Company has exercised reasonable care, in accordance with SEC rules and guidance,
to determine whether any Covered Person (as defined below) is subject to any of the “bad actor” disqualifications described
in Rule 506(d)(1) of the Securities Act or any proceeding or event that could result in any such disqualifying event (“Disqualification
Events”). The Company has not and, to the Company’s knowledge, no Covered Person is subject to a Disqualification
Event that would either require disclosure under the provisions of Rule 506(e) of the Securities Act or result in a disqualification
under Rule 506(d)(1) of any such Person’s use of the Rule 506 exemption. The Company has complied, to the extent applicable,
with any disclosure obligations under Rule 506(e) under the Securities Act. “Covered Persons” are those persons
specified in Rule 506(d)(1) under the Securities Act, including the Company; any predecessor or Affiliate of the Company; any director,
executive officer, other officer participating in the offering, general partner or managing member of the Company; any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power; any
promoter (as defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of the sale of
the Shares; and any Person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in
connection with the sale of the Shares (a “Solicitor”), any general partner or managing member of any Solicitor,
and any director, executive officer or other officer participating in the offering of any Solicitor or general partner or managing
member of any Solicitor.

 

3.26         Customers.
Section 3.26 of the Schedule of Exceptions sets forth the three most significant customer relationships of the Company and
its Subsidiaries based on business prospects (the “Top Customers”), taken as a whole. To the knowledge of the
Company, the Company or a Subsidiary of the Company, as applicable, has a good commercial working relationship with each Top Customer.
No Top Customer has cancelled, modified or otherwise terminated, or, to the knowledge of the Company, threatened to cancel, modify
or otherwise terminate, its relationship with the Company or a Subsidiary of the Company.

 

3.27         Anti-Bribery
Compliance. Neither the Company, nor a Subsidiary of the Company, has, nor any of their respective directors, officers,
employees, or agents acting at the direction of any of the Company or a Subsidiary of the Company, as applicable, provided, offered,
gifted or promised, directly or indirectly, anything of value to any Government Official, political party or candidate for government
office, nor provided or promised anything of value to any other Person while knowing that all or a portion of that thing of value
would or will be offered, given, or promised, directly or indirectly, to any Government Official, political party or candidate
for government office, for the purpose of:

  

    	-16-

    	 

    

  

EXECUTION VERSION

 

(a)          influencing
any act or decision of such official, party or candidate in his or her official capacity, inducing such official, party or candidate
to do or omit to do any act in violation of their lawful duty, or securing any improper advantage for the benefit of the Company
or any of its Subsidiaries; or

 

(b)          inducing
such official, party or candidate to use his or her influence with his or her government or instrumentality to affect or influence
any act or decision of such government or instrumentality, in order to assist the Company or a Subsidiary of the Company in obtaining
or retaining business for or with, or directing business to, any Person.

 

3.28         Brokers
or Finders. Neither the Company, nor a Subsidiary of the Company, has engaged any brokers, finders or agents, and neither
the Company nor any other Investor has, nor will, incur, directly or indirectly, as a result of any action taken by the Company,
any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the Agreement
or the Transaction Agreements.

 

3.29         Equipment,
Fixtures, etc. Except as set forth in Section 3.29 of the Schedule of Exceptions, all facilities, machinery, equipment,
fixtures, vehicles and other properties owned, leased or used by the Company are in good operating condition and repair and are
reasonably fit and usable for the purposes for which they are being used.

 

4.          Representations
and Warranties of the Investor. The Investor hereby represents and warrants to the Company that the following representations
and warranties are true and complete as of the date hereof and as of the date of each applicable Closing:

 

4.1           Authorization.
The Investor has full power and authority to enter into the Transaction Agreements to which it is a party. The Transaction
Agreements to which it is a party, when executed and delivered by the Investor, will constitute valid and legally binding obligations
of the Investor, enforceable in accordance with their terms, except as limited by the Enforceability Exceptions.

 

4.2           Purchase
Entirely for Own Account. This Agreement is made with the Investor in reliance upon the Investor’s representation
to the Company, which by the Investor’s execution of this Agreement the Investor hereby confirms, that the Securities to
be acquired by the Investor will be acquired for investment for the Investor’s own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that the Investor has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Agreement, the Investor further represents that the
Investor does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant
participations to such Person or to any third person, with respect to any of the Securities (other than the Transaction Agreements).

 

4.3           Disclosure
of Information. The Investor has had an opportunity to discuss the Company’s business, management, financial affairs
and the terms and conditions of the offering of the Stock with the Company’s management and has had an opportunity to review
the Company’s facilities. The Investor believes that it has received all the information the Investor considers necessary
or appropriate for deciding whether to purchase the Securities. The Investor acknowledges that any business plans prepared by the
Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise
are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will
not materialize or will vary significantly from actual results. The foregoing, however, does not limit or modify the representations
or warranties of the Company in Section 3 of this Agreement or the representations or warranties in the Transaction Agreements
or the right of the Investor to rely thereon.

 

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EXECUTION VERSION

 

4.4           Restricted
Securities. The Investor understands that the Securities have not been, and may not be, registered under the Securities
Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things,
the bona fide nature of the investment intent and the accuracy of the Investor’s representations as expressed herein. The
Investor understands that the Securities are “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, the Investor must hold the Securities indefinitely unless they are registered
with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available.

 

4.5           Legends.
The Investor understands that the Securities, and any securities issued in respect thereof or exchange therefor, may bear one or
all of the following legends:

 

(a)          “THE
SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.”

 

(b)          Any
legend set forth in or required by the other Transaction Agreements.

 

(c)          Any
legend required by the securities laws of any state to the extent such laws are applicable to the shares represented by the certificate
so legended.

 

4.6           Brokers
or Finders. The Investor has not engaged any brokers, finders or agents, and neither the Company nor any other Investor
has, nor will, incur, directly or indirectly, as a result of any action taken by the Investor, any liability for brokerage or finders’
fees or agents’ commissions or any similar charges in connection with this Agreement.

 

5.          Conditions
of the Investor’s Obligations at Closing.

 

5.1           Conditions
of the Investor’s Obligations at Initial Closing. The obligations of the Investor to the Company under this Agreement
are subject to the fulfillment, at or before the Initial Closing, of each of the following conditions, unless otherwise waived:

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained in Section 3 shall be true and correct
in all material respects on and as of the Initial Closing.

 

(b)          Performance.
The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it at or before the Initial Closing.

 

(c)          No
Material Adverse Effect. No event, fact, occurrence, omission or development shall have occurred since the date of this
Agreement that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

 

(d)          Qualifications.
All authorizations, approvals or permits, if any, of any Governmental Entity required in connection with the lawful issuance and
sale of the Securities pursuant to this Agreement shall be obtained and effective as of the Initial Closing.

 

    	-18-

    	 

    

  

EXECUTION VERSION

 

(e)          Opinion
of Company Counsel. The Investor shall have received from counsel for the Company, an opinion, dated as of the Initial
Closing, in substantially the form of Exhibit D.

 

(f)          Investors’
Rights Agreement. The Company and the Investor shall have executed and delivered the Investors’ Rights Agreement.

 

(g)          Stockholders
Agreement. The Company, the Designated Holders and the Investor shall have executed and delivered the Stockholders
Agreement.

 

(h)          Secondary
Share Stock Purchase Agreement. The Selling Stockholders and the Investor shall have executed and delivered the
Secondary Share Stock Purchase Agreement, the Secondary Shares specified in Section 2.1(a) of this Agreement shall have been sold
and delivered by the Selling Stockholders to the Investor and the remaining Secondary Shares shall have been delivered into escrow
by the Selling Stockholders in accordance with the terms and provisions of the Secondary Share Stock Purchase Agreement.

 

(i)          Certificate
of Designation. The Company shall have filed the Certificate of Designation for the Series C Preferred Stock with the Secretary
of State of Delaware at or prior to the Initial Closing, which shall continue to be in full force and effect as of the Initial
Closing, and delivered evidence to the reasonable satisfaction of the Lead Investor to the foregoing.

 

(j)          Board
of Directors. As of the Initial Closing, the Company’s Board of Directors shall be comprised of John Huemoeller and
John Zotos as the directors to be appointed by the holders of the Series A-1 Convertible Preferred Stock, Series B Convertible
Preferred Stock and Common Stock voting together as a single class, and Ivan Persiyanov, holding two votes individually in accordance
with Section 141(d) of the Delaware General Corporation Law and the Certificate of Designation, as the director appointed by the
holders of Series C Preferred Stock (the “Series C Director”).

 

(k)          Indemnification
Agreement. The Company shall have executed and delivered to each Series C Director an indemnification agreement in
the form of Exhibit E attached hereto (the “Director Indemnification Agreement”).

 

(l)          Secretary’s
Certificate. The Secretary of the Company shall have delivered to the Investor at the Initial Closing a certificate certifying
(a) the Charter (including the Certificate of Designation for the Series C Preferred Stock), (b) the Bylaws of the Company, (c)
resolutions of the Board of Directors of the Company approving the Transaction Agreements and the transactions contemplated hereby
and thereby, and (d) consent of the stockholders of the Company approving the Certificate of Designation for the Series C
Preferred Stock and, as applicable, the Transaction Agreements and the transactions contemplated hereby and thereby.

 

(m)          Officer’s
Certificate. An authorized officer of the Company shall have delivered to the Investor at the Initial Closing a certificate
certifying that the conditions specified in Sections 5.1(a), (b) and (c) have been satisfied by the Company.

 

(n)          Proceedings
and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Initial Closing
and all documents incident thereto shall be reasonably satisfactory in form and substance to the Investor, and the Investor (or
its counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested.
Such documents may include good standing certificates.

 

    	-19-

    	 

    

  

EXECUTION VERSION

 

(o)          Bylaws.
The Company shall have amended and restated the Bylaws of the Company to be in the form of Exhibit F.

 

(p)          Consents
and Waivers.  The Company shall have obtained any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated to be consummated at the Initial Closing by the Transaction Agreements.

 

(q)          Subordination
and Voting Agreement.  The Company and the sole holder of the Series B Convertible Preferred Stock shall have executed
and delivered the Subordination and Voting Agreement.

 

(r)          Side
Agreement. The Investor, Alexander Lustig and Vladimir Skigin shall have executed and delivered the Side Agreement.

 

5.2           Conditions
of the Investor’s Obligations at the Second Closing. The obligations of the Investor to the Company under this Agreement
are subject to the fulfillment, at or before the Second Closing, of each of the following conditions, unless otherwise waived:

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained in Section 3 shall be true and correct
in all material respects on and as of the Closing as may be modified solely with respect to events occurring after the Initial
Closing by an amended or supplemented Schedule of Exceptions delivered to the Investor three (3) days prior to the Closing (provided
that the delivery of such amended or supplemented Schedule of Exceptions shall in no way affect, limit or qualify the representations
or warranties of the Company made prior to the date of such Closing) (except for the representations and warranties contained in
Sections 3.1, 3.2, 3.3, 3.4, 3.5 and 3.28, which shall be true and correct in all respects on and as of each Closing and are not
subject to modification by the amended or supplemented Schedule of Exceptions).

 

(b)          Performance.
The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it at or before the Closing.

 

(c)          Oil
Field Acquisition. The Company shall have identified an oil field to be acquired by the Company or its Subsidiaries for
the deployment of the Company’s technology and shall have entered into definitive agreements (contingent on the Second Closing)
for the acquisition of such oil field, each to the satisfaction of the Investor in its sole discretion.

 

(d)          No
Material Adverse Effect. No event, occurrence, omission or development shall have occurred since the date of the Initial
Closing that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

 

(e)          Officer’s
Certificate. An authorized officer of the Company shall have delivered to the Investor at the Closing a certificate certifying
that the conditions specified in Sections 5.2(a), (b) and (d) have been satisfied by the Company.

 

(f)          Qualifications.
All authorizations, approvals or permits, if any, of any Governmental Entity required in connection with the lawful issuance and
sale of the Securities pursuant to this Agreement shall be obtained and effective as of the Closing.

 

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EXECUTION VERSION

 

(g)          Secondary
Shares. The Secondary Shares specified in Section 2.1(b) of this Agreement shall have been sold and delivered by the Selling
Stockholders to the Investor in accordance with the Secondary Share Stock Purchase Agreement.

 

5.3           Conditions
of the Investor’s Obligations at each Optional Closing. Unless otherwise waived, the obligations of the Investor
to the Company under this Agreement are subject to the fulfillment, at or before each Optional Closing, of each of the conditions
specified in Sections 5.2(a), 5.2(b), 5.2(d), 5.2(e), 5.2(f) and 5.2(h), and the pro rata portion of the Secondary Shares specified
in Section 2.1(c) of this Agreement shall have been sold and delivered by the Selling Stockholders to the Investor in accordance
with the Secondary Share Stock Purchase Agreement.

 

6.          Conditions
of the Company’s Obligations at Closing. The obligations of the Company to the Investor under this Agreement are
subject to the fulfillment, at or before each Closing, of each of the following conditions, unless otherwise waived:

 

6.1           Representations
and Warranties. The representations and warranties of the Investor contained in Section 4 shall be true and correct
in all material respects on and as of the Closing.

6.2           Performance.
All covenants, agreements and conditions contained in this Agreement to be performed by the Investor at or prior to the Closing
shall have been performed or complied with in all material respects.

 

6.3           Qualifications.
All authorizations, approvals or permits, if any, of any Governmental Entity required in connection with the lawful issuance and
sale of the Stock pursuant to this Agreement shall be obtained and effective as of the Closing. 

 

7.          Miscellaneous

 

7.1           Amendments
and Waivers. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged
or terminated other than by a written instrument referencing this Agreement and signed by (i) the Investor and (ii) the Company.
Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon the Investor
and each transferee of the Securities, each future holder of all such Securities, and the Company.

 

7.2           Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed
to the Person’s address, facsimile number or electronic mail address as follows:

 

	(a)	if to the Company: [NTD: notice address to be provided.]
	 	 
	(b)	if to the Investor:
	 	Meritservus Secretaries Limited
	 	Attn: Ervington Investments Limited
	 	Eftapaton Court, 256 Makarios Avenue
	 	CY-3105 Limassol, Cyprus
	 	 
	 	With a copy to:

 

    	-21-

    	 

    

  

EXECUTION VERSION

 

	 	Attn: Mike Danaher
	 	Wilson Sonsini Goodrich & Rosati
	 	650 Page Mill Road
	 	Palo Alto, CA 94304

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand,
messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid,
specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier
of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United
States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if
sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal
business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next
business day.

 

7.3           Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto
shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

7.4           Successors
and Assigns. This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred,
delegated or sublicensed by the Company without the prior written consent of the Investor. Any attempt by the Company without such
permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall
be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. Notwithstanding
anything herein to the contrary, the Investor may assign its rights and obligations hereunder to any Affiliate of the Investor,
and upon such assignment, such Affiliate will be deemed the “Investor” for all purposes hereunder.

 

7.5           Entire
Agreement. This Agreement, and the documents referred to herein (including the Certificate of Designation for the Series
C Preferred Stock), constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof.
No party hereto shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any
warranties, representations or covenants except as specifically set forth herein.

 

7.6           Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing
to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right,
power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement,
shall be cumulative and not alternative.

 

7.7           Severability.
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement,
and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable
provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

    	-22-

    	 

    

 

EXECUTION VERSION

 

7.8           Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless
otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

7.9           Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute
such counterparts, and all of which together shall constitute one instrument.

 

7.10         Electronic
Execution and Delivery. A facsimile, telecopy, PDF, email or other reproduction of this Agreement may be executed by one
or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which
the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective
for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement
as well as any facsimile, telecopy, PDF, email or other reproduction hereof.

 

7.11         Jurisdiction;
Venue. Each of the parties hereby submits and consents irrevocably to the exclusive jurisdiction of the courts of the State
of Delaware and the United States District Court for the District of Delaware for the interpretation and enforcement of the provisions
of this Agreement. Each of the parties also agrees that the jurisdiction over the person of such parties and the subject matter
of such dispute shall be effected by the mailing of process or other papers in connection with any such action in the manner provided
for in Section 7.2 or in such other manner as may be lawful, and that service in such manner shall constitute valid and sufficient
service of process.

 

7.12         Survival;
Nature of Investor’s Obligations. Unless otherwise set forth in this Agreement, the warranties, representations and
covenants of the Company and the Investor contained in or made pursuant to this Agreement shall survive the execution and delivery
of this Agreement and the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof
made by or on behalf of the Investor or the Company. The Company agrees to indemnify and hold harmless the Investor and its affiliates
from and against all losses, liabilities, costs and expenses, including attorneys’ fees and disbursements, arising from or
relating to: (a) any inaccuracy in or breach of any of the representations and warranties of the Company contained in this Agreement
or any document to be delivered in accordance with the terms of this Agreement, or (b) the liabilities of the Company’s former
subsidiary Crystal Magic, Inc., or Crystal Magic Inc.’s past, present or future owners.

 

7.13         Efforts
to Consummate. Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability
company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things
as may be necessary to more fully effectuate this Agreement (including the satisfaction, but not waiver, of the closing conditions
set forth in Section 5 and Section 6).

 

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EXECUTION VERSION

  

7.14         Expenses.
The Company and the Investor shall each pay their own expenses in connection with the transactions contemplated by this Agreement;
provided, however, that if the Initial Closing is effected, the Company will reimburse the documented fees of financial, commercial
and legal representation to the Investor, including for work in connection with subsequent closings, amendments or modifications
to the Transaction Documents, if any, and SEC filings. Such reimbursement shall not exceed $170,000. Payment will be made, at the
Investor’s option, by direct payment at Closing to the parties listed on Schedule 2, by payment to Investor or by offset
against the funds to be paid by Investor at any Closing or any combination of the foreoing. In addition to the reimbursement specified
above in this Section 7.14, the Company will reimburse the Investor for the reasonable costs incurred by the Investor in connection
with recruiting new key employees to the Company following the Closing.

 

7.15         Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS
AGREEMENT.

 

7.16         Finder’s
Fee. Each party represents that it neither is nor will be obligated for any finder’s fee or commission in connection
with this transaction. The Investor agrees to indemnify and to hold harmless the Company from any liability for any commission
or compensation in the nature of a finder’s fee arising out of this transaction (and the costs and expenses of defending
against such liability or asserted liability) for which the Investor or any of its officers, employees, or representatives is responsible.
The Company agrees to indemnify and hold harmless the Investor from any liability for any commission or compensation in the nature
of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such
liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

 

7.17         Confidentiality.
The Investor agrees that, except with the prior written permission of the Company, it shall keep confidential and shall not disclose,
divulge or use for any purpose (other than to monitor its investment in the Company, including the prosecution or defense of any
of its rights or obligations) any confidential information obtained from the Company in connection with the negotiation, execution
or delivery of this Agreement or the other Transaction Agreements, unless such confidential information (a) is known or becomes
known to the public in general (other than as a result of a breach of this Section 7.17 by such Investor), (b) is or has been
independently developed or conceived by the Investor without use of the Company’s confidential information, or (c) is or
has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third
party may have to the Company; provided, however, that the Investor may disclose confidential information (i) to its attorneys,
accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring
its investment in the Company; (ii) to any prospective purchaser of any of the Securities from the Investor, if such prospective
purchaser signs a non-disclosure agreement reasonably satisfactory to the Company; (iii) to any Affiliate, partner, member, stockholder,
or wholly owned subsidiary of such Investor in the ordinary course of business, provided that the Investor informs such person
that such information is confidential and directs such person to maintain the confidentiality of such information; or (iv) as may
otherwise be required by law, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable
steps to minimize the extent of any such required disclosure. Notwithstanding the foregoing, nothing in this Section 7.17 shall
prohibit the Investor and its Affiliates, from on or after the Initial Closing, (A) making or disseminating any public announcement
or statement with respect to the transactions contemplated by this Agreement, regardless of form or medium, provided that such
announcement or statement does not disclose the Purchase Price or the minimum investment, (B) referring to this Agreement or the
transactions contemplated hereby in the Investor’s or its Affiliates’ marketing materials or website or (C) making
or disseminating any information to the Investor’s or its Affiliates’ respective current or prospective limited partners
and financing sources. The provisions of this Section 7.17 shall be in addition to, and not in substitution for, the provisions
of any separate nondisclosure agreement executed by the parties hereto with respect to the transactions contemplated hereby. Following
the Initial Closing, the Company shall provide the Investor with a draft press release announcing the financing, which press release
shall only be issued with the prior written approval of the Investor, acting reasonably.

 

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EXECUTION VERSION

  

7.18         Consistent
Reporting.  Unless otherwise required pursuant to a determination within the meaning of Section 1313(a) of the Code,
the Parties shall (i) treat the Series C Preferred Stock as stock which participates in corporate growth to a significant extent
within the meaning of Treasury Regulation Section 1.305-5(a), and not as preferred stock for purposes of Section 305 of the Code
and the Treasury Regulations thereunder, (ii) treat any conversion of a share of Series C Preferred Stock into Common Stock pursuant
to the terms thereof as a “recapitalization” pursuant to Section 368(a) of the Code in which no gain or loss is recognized
and no dividend income is includable, (iii) not treat the accumulating Series C Preference (as such term is defined in the Certificate
of Designation for the Series C Preferred Stock) as taxable pursuant to Section 305 of the Code and (v) file all Tax Returns on
a basis consistent with the foregoing.  In the event of any Tax audit or other proceeding regarding any of the foregoing,
the Company shall (x) promptly notify the Investor and keep the Investor apprised of all stages and developments concerning such
audit or other proceeding and (y) contest in good faith, taking into account the interests of the Investor, any such audit or proceeding
in a manner consistent with clauses (i) through (iv) of the first sentence of this Section 7.18.

 

7.19         Knowledge
of the Company. For all purposes of this Agreement, the phrase “to the Company’s knowledge” and “known
by the Company” and any derivations thereof shall mean as of the applicable date, the actual knowledge, after due inquiry,
of John Huemoeller and Alexander Lustig.

 

[Signature Pages
Follow]

 

    	-25-

    	 

    

  

The parties have executed
this Series C Preferred Stock Purchase Agreement as of the date first written above.

 

	 	the company:
	 	 
	 	PROPELL TECHNOLOGIES GROUP, Inc.
	 	 
	 	By:	/s/ John Huemoeller
	 	 	Name: John Huemoeller
	 	 	 
	 	 	Title: Chief Executive Officer

 

Signature
Page to Series C Preferred Stock Purchase Agreement of PROPELL TECHNOLOGIES GROUP, Inc.

 

 

    	 

    	 

    

 

EXECUTION VERSION

 

The parties have executed
this Series C Preferred Stock Purchase Agreement as of the date first written above.

 

	 	The Investor:
	 	 
	 	ERVINGTON INVESTMENTS LIMITED
	 	 
	 	By:  	/s/ Maria Damianou
	 	 	Name: Maria Damianou
	 	 	 
	 	 	Title:  Director

 

Signature
Page to Series C Preferred Stock Purchase Agreement of PROPELL TECHNOLOGIES GROUP, Inc.

 

 

    	 

    	 

    

  

EXHIBITS

 

	Exhibit A -	Form of Certificate of Designation for the Series C Preferred Stock
	 	 
	Exhibit B -	Form of Investors’ Rights Agreement
	 	 
	Exhibit C -	Form of Stockholders Agreement
	 	 
	Exhibit D -	Form of Legal Opinion of Counsel to the Company
	 	 
	Exhibit E - 	Form of Indemnification Agreement
	 	 
	Exhibit F -	Form of Amended and Restated Bylaws
	 	 
	Exhibit G - 	Corporate Charter
	 	 
	Exhibit H -	Form of Subordination and Voting Agreement
	 	 
	Schedule 1 -	Selling Stockholders
	 	 
	Schedule 2 - 	Transaction Expenses

 

    	 

    	 

    

    

  SCHEDULE 1

 

SELLING
STOCKHOLDERS

 

FIRST CLOSING

 

	Name of Stockholder	 	Number of
 Series A-1
 Preferred
 Shares	 	 	Number of
 Common
 Shares
 Equivalent	 	 	Number of
 Common
 Shares	 	 	Total
 Common
 Shares
 Equivalent	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stufforg Limited Company	 	 	1,250,000	 	 	 	12,500,000	 	 	 	 	 	 	 	12,500,000	 
	Landa Enterprises LTD SA	 	 	500,000	 	 	 	5,000,000	 	 	 	 	 	 	 	5,000,000	 
	Oxnard Universal	 	 	 	 	 	 	 	 	 	 	2,384,794	 	 	 	2,384,794	 
	Prind Consulting Limited	 	 	 	 	 	 	 	 	 	 	5,175,206	 	 	 	5,175,206	 
	Joseph W Abrams and Patricia G Abrams Family Trust	 	 	375,000	 	 	 	3,750,000	 	 	 	 	 	 	 	3,750,000	 
	Strategic IR, Inc.	 	 	312,500	 	 	 	3,125,000	 	 	 	64,990	 	 	 	3,189,990	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Totals	 	 	2,437,500	 	 	 	24,375,000	 	 	 	7,624,990	 	 	 	31,999,990	 

 

SECOND CLOSING

 

	Name of Stockholder	 	Number of
 Series A-1
 Preferred
 Shares	 	 	Number of
 Common
 Shares
 Equivalent	 	 	Number of
 Common
 Shares	 	 	Total
 Common
 Shares
 Equivalent	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Yuzhik Limited Company	 	 	300,000	 	 	 	3,000,000	 	 	 	 	 	 	 	3,000,000	 
	Landa Enterprises LTD SA	 	 	400,000	 	 	 	4,000,000	 	 	 	 	 	 	 	4,000,000	 
	Store and Navigation BVI	 	 	 	 	 	 	 	 	 	 	10,520,000	 	 	 	10,520,000	 
	Realcom Limited (Anguilla)	 	 	 	 	 	 	 	 	 	 	12,500,000	 	 	 	12,500,000	 
	Greencloud Limited (Nevis)	 	 	 	 	 	 	 	 	 	 	12,500,000	 	 	 	12,500,000	 
	Pansies Limited Company	 	 	 	 	 	 	 	 	 	 	3,000,000	 	 	 	3,000,000	 
	Prind Consulting Limited	 	 	 	 	 	 	 	 	 	 	3,780,000	 	 	 	3,780,000	 
	Anuta Limited (Seychelles)	 	 	 	 	 	 	 	 	 	 	12,500,000	 	 	 	12,500,000	 
	Strategic IR, Inc.	 	 	 	 	 	 	 	 	 	 	1,877,477	 	 	 	1,877,477	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Totals	 	 	700,000	 	 	 	7,000,000	 	 	 	56,677,477	 	 	 	63,677,477Exhibit 10.2

 

EXECUTION
VERSION

 

PROPELL TECHNOLOGIES GROUP, INC.

 

STOCKHOLDER AGREEMENT

 

February 19, 2015

 

  

    	 

    	 

    

 

PROPELL TECHNOLOGIES GROUP, INC.

STOCKHOLDER RIGHTS AGREEMENT

 

This Stockholder Agreement
(this “Agreement”) is dated as of February 19, 2015 and is made by and among Propell Technologies Group,
Inc., a Delaware corporation (the “Company”), Ervington Investments Limited, duly organized under the
laws of the Republic of Cyprus (the “Investor”), and the persons and entities listed on Exhibit A-1
(each, a “Holder” and collectively, the “Holders”).

 

Recitals

 

WHEREAS, the
Company has agreed to sell up to four million five hundred thousand (4,500,000) shares of its Series C Preferred Stock to the Investor
under a Series C Preferred Stock Purchase Agreement (“Purchase Agreement”) dated as of the date hereof;
and

 

WHEREAS, the
conclusion of this Agreement is a condition to the Investor’s purchase of shares under the Purchase Agreement.

 

The parties therefore
agree as follows:

 

Section 1

 

Definitions

 

1.1           Certain
Definitions.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

(a)          “Change
of Control Transaction” shall mean (a) the acquisition of the Company by another entity by means of any transaction
or series of related transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization,
merger or consolidation but excluding any sale of stock for capital raising purposes) other than (i) a transaction or series of
related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction
or series of related transactions retain, immediately after such transaction or series of related transactions, as a result of
shares in the Company held by such holders prior to such transaction or series of related transactions, at least a majority of
the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity
(or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition,
its parent), (ii) a merger effected exclusively to change the domicile of the Company, or (iii) a sale of stock for capital raising
purposes in which the Company is the surviving corporation; (b) a sale, lease or other disposition of all or substantially all
of the assets of the Company and its subsidiaries taken as a whole by means of any transaction or series of related transactions,
except where such sale, lease or other disposition is to a wholly-owned subsidiary of the Company; or (c) the sale or grant of
an exclusive license of all or substantially all of the intellectual property of the Company.

 

(b)          “Commission”
shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

(c)          “Common
Stock” shall mean the Common Stock of the Company.

 

    	 

    	 

    

 

(d)          “Private
Sale” shall mean a Transfer of Shares other than pursuant to a Public Sale, as defined herein, or a sale pursuant
to an underwritten public offering.

 

(e)          “Public
Sale” shall mean a sale of Shares into the public market through a broker or dealer in compliance with the manner
of sale requirements of subsections (f) and (g) of Rule 144 promulgated under the Securities Act of 1933, as amended.

 

(f)          “Seller”
means any Holder proposing to Transfer Shares.

 

(g)          “Shares”
means all shares of Common Stock, Series A-1 Convertible Preferred Stock and Series B Convertible Preferred Stock of the Company
owned as of the date hereof, as adjusted for any stock splits, stock dividends, combinations, subdivisions, recapitalizations and
the like.

 

(h)          “Transfer,”
“Transferring,” “Transferred,” or words of similar import, mean and include
any sale, assignment, encumbrance, hypothecation, pledge, conveyance in trust, gift, transfer by bequest, devise or descent, or
other transfer or disposition of any kind, including but not limited to transfers to receivers, levying creditors, trustees or
receivers in bankruptcy proceedings or general assignees for the benefit of creditors, whether voluntary or by operation of law,
directly or indirectly, except:

 

(i)          any
transfers of Shares by a Seller to Seller’s spouse, ex-spouse, domestic partner, lineal descendant or antecedent, brother
or sister, the adopted child or adopted grandchild, or the spouse or domestic partner of any child, adopted child, grandchild or
adopted grandchild of Seller, or to a trust or trusts for the exclusive benefit of Seller or those members of Seller’s family
specified in this Section 1.1(q)(i) or transfers of Shares by Seller by devise or descent; provided that, in all cases,
the transferee or other recipient executes a counterpart copy of this Agreement and becomes bound thereby as was Seller;

 

(ii)         any
bona fide gift effected for tax planning purposes, provided that the pledgee, transferee or donee or other recipient
executes a counterpart copy of this Agreement and becomes bound thereby as was Seller;

 

(iii)        by
operation of law; and

 

(iv)        any
transfer to the Company.

 

Section 2

 

Election of Directors

 

2.1           Voting. 
During the term of this Agreement, each Holder agrees to vote all Shares held or controlled by the Holder in such manner as may
be necessary to (i) maintain a board composition consisting of the Series C Directors (as defined in the Company’s Certificate
of Incorporation, as amended, Certificate of Designations, Preferences and Rights of the Series A-1 Convertible Preferred Stock,
Certificate of Designations, Rights and Preferences of the Series B Convertible Preferred Stock and Certificate of Designation
for the Series C Preferred Stock (collectively, the “Charter”)) plus two additional directors (the “Other
Directors”), and (ii) to elect and to maintain in office the persons chosen as Designees pursuant to Section 2.2.

 

2.2           Designation
of Directors.  The designees to the Company’s board of directors described above (each a “Designee”)
shall be selected as follows:

 

    	-2-

    	 

    

 

(a)          One
Designee shall be chosen by Vladimir Skigin (the “Skigin Designee”), as long as the holders listed in
Exhibit A-1 hold at least, in aggregate, 10,000,000 shares of either Common Stock, Series A-1 Preferred Stock, Series B Preferred
Stock of the Company, shares of Common Stock underlying the Series A-1 Preferred Stock and Series B Preferred Stock or any combination
thereof ( subject to adjustment for any stock splits, stock dividends, combinations, subdivisions, recapitalizations and the like)
..

 

(b)          One
Designee shall be chosen by Alexander Lustig (the “Lustig Designee”), as long as the holders listed in
Exhibit A-2 hold at least, in aggregate, 10,000,000 shares of either Common Stock, Series A-1 Preferred Stock, and Series B Preferred
Stock of the Company, shares of Common Stock underlying the Series A-1 Preferred Stock and Series B Preferred Stock or any combination
thereof (subject to adjustment stock splits, stock dividends, combinations, subdivisions, recapitalizations and the like).

 

(c)          If
at any time the voting thresholds required for Vladimir Skigin to choose a Designee are no longer met, but the holders listed in
Exhibit A-2 hold at least, in aggregate, 20,000,000 shares of either Common Stock, Series A-1 Preferred Stock, and Series B Preferred
Stock of the Company shares of Common Stock underlying the Series A-1 Preferred Stock and Series B Preferred Stock or any combination
thereof (subject to adjustment for stock splits, stock dividends, combinations, subdivisions, recapitalizations and the like) then
two Designees shall be selected by Alexander Lustig

 

(d)          If
at any time the voting thresholds required for Alexander Lustig to choose a Designee set forth in paragraph (b) above are no longer
met, but the holders listed in Exhibit A-1 hold at least, in aggregate, 20,000,000 shares of either Common Stock, Series A-1 Preferred
Stock, and Series B Preferred Stock of the Company shares of Common Stock underlying the Series A-1 Preferred Stock and Series
B Preferred Stock or any combination thereof (subject to adjustment for stock splits, stock dividends, combinations, subdivisions,
recapitalizations and the like) then two Designees shall be selected by Vladimir Skigin.

 

(e)          If
at any time the voting thresholds set forth in either paragraph (a) or (b) required for one of Vladimir Skigin or Alexander Lustig
to choose a Designee are no longer met and neither the holders listed in Exhibit A-1 or Exhibit A-2 hold at least, in aggregate,
20,000,000 shares of either Common Stock, Series A-1 Preferred Stock, and Series B Preferred Stock of the Company shares of Common
Stock underlying the Series A-1 Preferred Stock and Series B Preferred Stock or any combination thereof (subject to adjustment
for stock splits, stock dividends, combinations, subdivisions, recapitalizations and the like) but either the holders listed on
Exhibit A-1 or Exhibit A-2 hold at least, in aggregate, 10,000,000 shares of either Common Stock, Series A-1 Preferred Stock, and
Series B Preferred Stock of the Company shares of Common Stock underlying the Series A-1 Preferred Stock and Series B Preferred
Stock or any combination thereof (subject to adjustment for stock splits, stock dividends, combinations, subdivisions, recapitalizations
and the like) then one Designee shall be selected by either Vladimir Skigin or Alexander Lustig as determined above.

 

(f ) If at any time the
voting thresholds required for both Vladimir Skigin and Alexander Lustig to choose a Designee as set forth in paragraph (a) or
(b) above are no longer met and neither of the thresholds set forth in paragraphs (c) or (d) above are met then two Designees shall
be selected affirmative vote of the Holders of a majority of all Shares held by Holders.

 

2.3           Changes
in Designees.  As long as the applicable voting thresholds in Section 2.2 are met, Holders agree to vote to remove the
Skigin Designee from the Board if requested by Vladimir Skigin and to remove the Lustig Designee if requested by Alexander Lustig.

 

    	-3-

    	 

    

 

In the event of a request
by Vladimir Skigin or Alexander Lustig to remove or elect a Designee, the Company shall take such reasonable actions as are necessary
to facilitate such removal or election, including, without limitation, soliciting the votes of the appropriate stockholders.

 

2.4           No
“Bad Actor” Disqualification.  The Holders agree not to elect or to maintain in office any Designee that is
subject to any of the “bad actor” disqualifications described in Rule 506(d) under the Securities Act of 1933,
as amended (“Disqualification Events”).

 

2.5           Investor
Vote. As long as the applicable voting thresholds in Section 2.2 are met, Investor agrees to vote to appoint the Designees
chosen by Vladimir Skigin and Alexander Lustig.

 

DRAG-ALONG
RIGHTS

 

2.5           Drag-Along
Rights.  If the Company’s Board of Directors and the Investor approve a Change of Control Transaction, each of the
Holders agrees (i) to vote all shares of capital stock held by such party in favor of such Change of Control Transaction, (ii)
to sell or exchange all shares of capital stock then held by such party pursuant to the terms and conditions of such Change of
Control Transaction, (iii) not to exercise any dissenter’s rights or rights of appraisal under applicable law at any time
with respect to the Change of Control Transaction, and (iv) not to deposit, and to cause the Holder’s affiliates not to deposit,
except as provided in this Agreement, any shares of capital stock then held by such party or its affiliate in a voting trust or
subject any shares of capital stock then held by such party to any arrangement or agreement with respect to the voting of such
shares of capital stock, unless specifically requested to do so by the acquirer in connection with such Change of Control Transaction,
subject to the following conditions:

 

(a)          No
party shall be required to make any representation, covenant or warranty in connection with the Change of Control Transaction,
other than as to such party’s ownership and authority to sell, free of liens, claims and encumbrances, the shares of capital
stock proposed to be sold by such party;

 

(b)          The
consideration payable with respect to each share in each class or series as a result of such Change of Control Transaction is the
same (except for cash payments in lieu of fractional shares) as for each other share in such class or series;

 

(c)          Each
class and series of capital stock of the Company will be entitled to receive the same form of consideration (and be subject to
the same indemnity and escrow provisions) as a result of such Change of Control Transaction; and

 

(d)          The
payment with respect to each share of capital stock is an amount at least equal to the amount payable in accordance with the Charter,
if such Change of Control Transaction were deemed a liquidation, dissolution or winding up as contemplated by the Charter.

 

(e)          Notwithstanding
the foregoing, the restrictions provided in this Section  3.1 will not apply to the Change of Control Transaction if the
other party in transaction is an entity that controls, is controlled by, or is under common control with the Investor.

 

    	-4-

    	 

    

 

Section 3

 

RIGHT OF FIRST REFUSAL

 

3.1           General.
Before a Seller may Transfer any Shares in a Private Sale or in a Public Sale, Seller must comply with the provisions of this Section 4.

 

3.2           Right
of First Refusal on Private Sales.

 

(a)          Notice
of Proposed Private Transfer. Prior to Seller Transferring any of its Shares in a Private Sale, Seller shall deliver to the
Company and the Investor a written notice (the “Transfer Notice”), stating: (i) Seller’s bona
fide intention to Transfer such Shares; (ii) the name, address and phone number of each proposed purchaser or other transferee
(each, a “Proposed Transferee”); (iii) the aggregate number of Shares proposed to be Transferred
to each Proposed Transferee (the “Offered Shares”); (iv) the cash price for which Seller proposes
to Transfer the Offered Shares (the “Offered Price”); and (v) the Investor’s right to exercise
its right of first refusal with respect to the Offered Shares.

 

(b)          Exercise
by the Investor. The Investor shall have the right to purchase all or any part of the Offered Shares on the terms and conditions
set forth in the Transfer Notice by giving written notice to Seller within twenty days of the effective date of the Transfer Notice.
The closing of the Investor’s purchase of Offered Shares shall be completed within ten days of the Investor’s election
to purchase such shares. At such closing, the Investor will pay the Offered Price by cash or wire transfer as the Seller may elect,
and the Seller shall deliver to the Investor one or more certificates properly endorsed for transfer representing the Offered Shares
being purchased.

 

3.3           Right
of First Refusal on Public Sales.

 

(a)          Notice
of Proposed Public Sale. Prior to the Seller selling any of its Shares in a Public Sale, Seller shall deliver to the
Company and the Investor a written notice (the “Public Sale Notice”), stating: (i) Seller’s bona
fide intention to sell such Shares; (ii) the aggregate number of Shares proposed to be sold the (the “Public Sale
Offered Shares”); (iii) the cash price per share for which the Seller proposes to sell the Public Sale Offered Shares
(the “Public Sale Offered Price”); and (iv) the Investor’s right to exercise its right of first
refusal with respect to the Public Sale Offered Shares.

 

(b)          Exercise
by the Investor. The Investor shall have the right to purchase all or any part of the Public Sale Offered Shares at the Public
Sale Offered Price by written notice to the Seller within ten days of the effective date of the Public Sale Notice (the “Exercise
Period”). The closing of the Investor’s purchase of the Public Sale Offered Shares shall be completed within
ten days of the Investor’s election to purchase such shares. At such closing, the Investor will pay the Public Sale Offered
Price by cash or wire transfer as the Seller may elect, and the Seller shall deliver to the Investor one or more certificates properly
endorsed for transfer representing the Public Sale Offered Shares being purchased. Notwithstanding the foregoing, in the event
a Public Sale Notice is delivered by John Huemoeller or John Zotos, all references to “ten days” in this Section 4.3(b)
shall be replaced with “five Business Days”.

 

(c)          Remaining
Shares. For ninety (90) days following the expiration of the Exercise Period, Seller shall have the right to complete a Public
Sale of all or any part of the Public Sale Offered Shares at a price equal to or above the Public Sale Offered Price. After such
period, the Seller may not complete a Public Sale without again complying with this Section 4.3.

 

    	-5-

    	 

    

 

3.4           Restrictions
on Transfer.

 

(a)          Each
Holder consents to the Company making a notation on its records and giving instructions to any transfer agent in order to implement
the restrictions on transfer established in this Section 4 or in Section 5. Each certificate representing the Shares shall (unless
otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted with a legend substantially similar
to the following (in addition to any legend required under applicable state securities laws):

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND VOTING RESTRICTIONS, BOTH AS SET FORTH IN A STOCKHOLDER
RIGHTS AGREEMENT, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

 

Section 4

 

Market
Stand-Off

 

4.1           Market
Stand-off. Neither the Investor nor any Holder may sell or otherwise transfer, make any short sale of, grant any option for
the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, of any Shares prior
to the earlier of the Second Closing (as defined in the Purchase Agreement) or the expiration of the Seller’s obligations
to purchase the Second Tranche (as defined in the Purchase Agreement).

 

Section 5

 

Covenants

 

5.1           Additional
Holders. From the date of this Agreement, the Company shall require each member of management holding equity incentives granted
by the Company (including Common Stock, options to purchase Common Stock and restricted stock units) totaling 500,000 or more shares
of Common Stock or Common Stock equivalents to become a party to this Agreement as a Holder by signing a counterpart signature
page.

 

Section 6

 

Miscellaneous

 

6.1           Amendment. 
Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument referencing this Agreement and signed by (i) the Investor and (ii) the Holders holding a majority-in-interest
of the Common Stock and Series A-1 Preferred Stock; provided, however, that additional Holders may become parties to this
Agreement without any amendment of this Agreement or any consent or approval of any Holder. Any such amendment, waiver, discharge
or termination effected in accordance with this paragraph shall be binding upon each Holder and each future holder of all such
securities of Holder. Each Holder acknowledges that by the operation of this paragraph, the holders of a majority-in-interest and
the Investor will have the right and power to diminish or eliminate all rights of such Holder under this Agreement.

 

6.2           Notices. 
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed
to the Holder’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be updated
in accordance with the provisions hereof, with a copy (which shall not constitute notice) to Michael Danaher, Wilson Sonsini Goodrich
& Rosati, 650 Page Mill Road, Palo Alto, CA 94304;

 

    	-6-

    	 

    

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered
by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail,
at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit
of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile
transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address,
if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the
recipient’s next business day.

 

6.3           Governing
Law.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto
shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

6.4           Successors
and Assigns.  This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred,
delegated or sublicensed by any Holder without the prior written consent of the Investor. Any attempt by a Holder without such
permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall
be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. Notwithstanding
anything herein to the contrary, any Holder may assign its rights and obligations hereunder to any Affiliate of such Holder, and
upon such assignment, such Affiliate will be deemed an “Holder” for all purposes hereunder. For purposes of this Agreement,
“Affiliate” means (i) with respect to any Person, any other Person who directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common control with, such Person, or (ii) with respect to any
Person that is controlled by a trust, any other Person that is directly or indirectly controlling, controlled by or under common
control with such trust or a Person who is a beneficiary of such trust or another trust with a common beneficiary. The term “control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlled” and
“controlling” have meanings correlative thereto. The term “Person” means an individual, partnership,
corporation, limited liability company, joint stock company, unincorporated organization or association, trust, joint venture,
association or other similar entity, whether or not a legal entity.

 

6.5           Entire
Agreement.  This Agreement and the exhibits hereto constitute the full and entire understanding and agreement among the
parties with regard to the subjects hereof. No party hereto shall be liable or bound to any other party in any manner with regard
to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein.

 

6.6           Delays
or Omissions.  Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing
to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right,
power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement,
shall be cumulative and not alternative.

 

    	-7-

    	 

    

 

6.7           Severability. 
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement,
and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable
provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

6.8           Titles
and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless
otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

6.9           Counterparts. 
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute
such counterparts, and all of which together shall constitute one instrument.

 

6.10         Electronic
Execution and Delivery.  A facsimile, telecopy, PDF, email or other reproduction of this Agreement may be executed by
one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which
the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective
for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement
as well as any facsimile, telecopy, PDF, email or other reproduction hereof.

 

6.11         Jurisdiction;
Venue.  Each of the parties hereby submits and consents irrevocably to the exclusive jurisdiction of the courts of the
State of Delaware and the United States District Court for the District of Delaware for the interpretation and enforcement of the
provisions of this Agreement. Each of the parties also agrees that the jurisdiction over the person of such parties and the subject
matter of such dispute shall be effected by the mailing of process or other papers in connection with any such action in the manner
provided for in Section 7.2 or in such other manner as may be lawful, and that service in such manner shall constitute valid and
sufficient service of process.

 

6.12         Further
Assurances.  Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability
company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things
as may be necessary to more fully effectuate this Agreement.

 

6.13         Termination
Upon Change of Control.  Notwithstanding anything to the contrary herein, this Agreement (excluding any then-existing obligations)
shall terminate upon a Change of Control Transaction.

 

6.14         Conflict. 
In the event of any conflict between the terms of this Agreement and the Charter or the Company’s bylaws, the terms of the
Charter or the Company’s bylaws, as the case may be, will control.

 

6.15         Attorneys’
Fees.  In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party
in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such
prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys
and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

 

    	-8-

    	 

    

 

6.16         Aggregation
of Stock.  All securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons
shall be aggregated together for purposes of determining the availability of any rights under this Agreement.

 

6.17         Jury
Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

(signature page follows)

 

    	-9-

    	 

    

 

The parties are signing
this Stockholder Rights Agreement as of the date stated in the introductory clause.

 

	 	COMPANY
	 	 
	 	PROPELL TECHNOLOGIES GROUP, INC.
	 	 
	 	By:	/s/ John Huemoeller
	 	 	 
	 	Name:	John Huemoeller
	 	 	 
	 	Title:	Chief Executive Officer

 

(Signature page to the Stockholder
Rights Agreement)

 

    	 

    	 

    

 

The parties are signing
this Stockholder Rights Agreement as of the date stated in the introductory clause.

 

	 	INVESTOR
	 	 
	 	ERVINGTON INVESTMENTS LIMITED
	 	 	 
	 	By:	/s/ Maria Damianou
	 	 	 
	 	Name:	Maria Damianou
	 	 	 
	 	Title:	Director

 

(Signature page to the Stockholder
Rights Agreement)

 

    	 

    	 

    

 

The parties are signing
this Stockholder Rights Agreement as of the date stated in the introductory clause.

 

	 	HOLDER
	 	 
	 		/s/ Alexander Lustig
	 	Name:	Alexander Lustig

	 	 	 
	 		/s/ Vladimir Skigin
	 	Name:	Vladimir Skigin

	 	 	 
	 	Strategic IR, Inc.
	 	 	 
	 	By:	/s/ Anna Mosk
	 	Name:	Anna Mosk

	 	Title:	President
	 	 	 
	 	 	/s/ John Huemoeller
	 	Name:	John Huemoeller
	 	 	 
	 	 	/s/ John Zotos
	 	Name:	John Zotos

	 	 	 
	 	 	/s/ Viktoriia Akhmetova
	 	Name:	Viktoriia Akhmetova
	 	 	 

 

(Signature page to the Stockholder
Rights Agreement)

 

    	 

    	 

    

 

EXHIBIT A

 

HOLDERS

 

Alexander Lustig

Vladimir Skigin

Strategic IR, Inc.

John Huemoeller

John Zotos

Viktoriia Akhmetova

 

    	 

    	 

    

 

EXHIBIT A-1

 

Vladimir Skigin Viktoriia Akhmetova

or any entity controlled
by either Vladimir Skigin or Viktoriia Akhmetova

 

    	 

    	 

    

 

EXHIBIT A-2

 

Alexander Lustig

Strategic IR, Inc.

Viktoriia Akhmetova

or any entity controlled
by Alexander Lustig or Strategic IR, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]