Document:

EXHIBIT 10.6

INVESTMENT AGREEMENT

 

This INVESTMENT
AGREEMENT (the “Agreement”), dated as of February 13, 2017 (the “Execution Date”), is entered
into by and between Helix TCS, Inc. (the “Company”), a Delaware corporation, with its principal executive offices
at 4950 South Yosemite Street, F2-210, Greenwood Village, CO 80111, and RedDiamond Partners LLC (the “Investor”),
a Delaware limited liability company, with its principal executive offices at 156 West Saddle River Road Saddle River, NJ 07458.

RECITALS:

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Three Million
Dollars ($3,000,000) (the “Commitment Amount”) to purchase the Company’s common stock, par value of $.001 per
share (the “Common Stock”);

WHEREAS,
such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities
Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act,
and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or
all of the investments in Common Stock to be made hereunder; and

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”)
pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations
promulgated thereunder, and applicable state securities laws.

NOW THEREFORE,
in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements
set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and the Investor hereby agree as follows:

SECTION I.

DEFINITIONS

For all purposes
of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable
to the singular and plural forms of such defined terms.

 

“1933 Act”
shall have the meaning set forth in the recitals.

 

“1934 Act”
shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the
SEC thereunder, all as the same will then be in effect.

 

“Affiliate”
shall mean any individual or entity that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with another individual or entity as such terms are used in and construed under Rule 405 under the
1933 Act.

 

“Agreement”
shall have the meaning set forth in the preamble.

 

“Articles of Incorporation”
shall have the meaning set forth in Section 4.3.

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“By-laws”
shall have the meaning set forth in Section 4.3.

 

“Certificate”
shall have the meaning set forth in Section 2.5.

 

“Closing”
shall have the meaning set forth in Section 2.5.

 

“Closing Date”
shall have the meaning set forth in Section 2.5.

 

“Commitment Fee Note” 
shall have the meaning set forth in  
Section 10.17

 

“Commitment Amount”
shall have the meaning set forth in the recitals.

 

“Common Stock”
shall have the meaning set forth in the recitals.

 

“Company”
shall have the meaning set forth in the preamble.

 

“DTC” shall
have the meaning set forth in Section 2.5.

 

“DWAC”
shall mean Deposit and Withdrawal at Custodian service provided by the Depository Trust Company.

 

“Effective Date”
shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Environmental Laws”
shall have the meaning set forth in Section 4.13.

 

“Execution Date”
shall have the meaning set forth in the preamble.

 

“FAST”
shall have the meaning set forth in Section 2.5.

 

“Investor”
shall have the meaning set forth in the preamble.

 

“Material Adverse
Effect” shall have the meaning set forth in Section 4.1.

 

“Maximum Common Stock
Issuance” shall have the meaning set forth in Section 2.6.

 

“Open Period”
shall mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the earlier
to occur of (i) the date which is thirty-six (36) months from the Effective Date; or (ii) termination of the Agreement in accordance
with Section 8.

 

“PCAOB”
shall have the meaning set forth in Section 4.6.

 

“Pricing Period”
shall mean, with respect to a particular Put Notice, the five (5) consecutive Trading Days beginning two Trading Days prior to
the applicable Put Notice Date ending two Trading Days immediately following the applicable Put Notice Date.

 

“Principal Market”
shall mean the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the OTC Bulletin Board or the OTC Markets Group, whichever is the principal market on which the Common Stock is traded.

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“Purchase Amount”
shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities, calculated by multiplying
the Purchase Price by the Put Amount.

 

“Purchase Price”
shall mean 85% of the lowest trading price of the Common Stock during the Pricing Period applicable to the Put Notice, provided,
however, an additional 10% will be added to the discount of each Put if (i) the Company is not DWAC eligible and (ii) an additional
15% will be added to the discount of each Put if the Company is under DTC “chill” status on the applicable Put Notice
Date.

 

“Put” shall
have the meaning set forth in Section 2.2.

 

“Put Amount”
shall have the meaning set forth in Section 2.3.

 

“Put Notice”
shall mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that the Company intends
to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued and outstanding
on such date.

 

“Put Notice Date”
shall mean the Trading Day on which the Investor receives a Put Notice, determined as follows: a Put Notice shall be deemed delivered
on (a) the Trading Day it is received by electronic mail or otherwise by the Investor if such notice is received prior to 9:30
a.m. (Pacific time), or (b) the immediately succeeding Trading Day if it is received by electronic mail or otherwise after 9:30
a.m. (Pacific time) on a Trading Day. No Put Notice may be deemed delivered on a day that is not a Trading Day.

 

“Put Settlement Sheet”
shall mean a written letter to the Company by the Investor, evidencing acceptance of the Put and providing instructions for delivery
of the Securities to the Investor.

 

“Put Shares Due”
shall mean the Shares to be sold to the Investor pursuant to the Put.

 

“Registered Offering
Transaction Documents” shall mean this Agreement and the Registration Rights Agreement between the Company and the Investor
as of the date herewith.

 

“Registration Rights
Agreement” shall have the meaning set forth in the recitals.

 

“Registration Statement”
means the registration statement of the Company filed under the 1933 Act covering the resale of the Securities issuable hereunder
by the Investor, in the manner described in such Registration Statement.

 

“Resolutions”
shall have the meaning set forth in Section 7.5.

 

“SEC” shall
mean the U.S. Securities and Exchange Commission.

 

“SEC Documents”
shall have the meaning set forth in Section 4.6.

 

“Securities”
shall mean the shares of Common Stock issued pursuant to the terms of the Agreement.

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“Shares”
shall mean the shares of the Company’s Common Stock.

 

“Subsidiaries”
shall have the meaning set forth in Section 4.1.

 

“Trading Day”
shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00
pm.

 

“VWAP”  shall
mean, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by (i) Bloomberg Financial
L.P. or (ii) Stock Charts/Quote Media if the Investor does not promptly provide the Company the Bloomberg quote/pricing charts
for the days involved upon the Company’s request (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m.
(New York City time)) and (b) in all other cases, the fair market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the Investor and to the Company.

 

“Waiting Period”
shall have the meaning set forth in Section 2.3.

 

SECTION II

PURCHASE AND SALE OF COMMON STOCK

 

2.1              
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue
and sell to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase
Price of Three Million Dollars ($3,000,000).

 

2.2              
DELIVERY OF PUT NOTICES. Subject to the terms and conditions of the Registered Offering Transaction Documents, and
from time to time during the Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor which states
the share amount (designated in whole shares of the Company’s Common Stock), which the Company intends to sell to the Investor
on a Closing Date (the “Put”). The Put Notice shall be in the form attached hereto as Exhibit B and incorporated
herein by reference. Upon receipt of the Put Notice, the Investor shall deliver to the Company a Put Settlement Sheet on the Put
Notice Date. The Put Settlement Sheet shall be in the form attached hereto as Exhibit C and incorporated herein by reference.

 

2.3              
PUT FORMULA. The maximum amount that the Company shall be entitled to Put to the Investor per any applicable Put
Notice an amount of shares of Common Stock up to or equal to two hundred percent (200%) of the average of the daily trading volume
(U.S. market only) of the Common Stock for the ten (10) consecutive Trading Days immediately prior to the applicable Put Notice
Date (the “Put Amount”) so long as such amount is at least $5,000 and does not exceed $100,000, as calculated
by multiplying the Put Amount by the average daily VWAP for the ten (10) consecutive Trading Days immediately prior to the applicable
Put Notice Date. During the Open Period, the Company shall not be entitled to submit a Put Notice until after the previous Closing
has been completed. Notwithstanding the foregoing, the Company may not deliver a Put Notice on or earlier of the tenth (10th) Trading
Day immediately following the preceding Put Notice Date (the “Waiting Period”).

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2.4              
CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement,
the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing
unless each of the following conditions are satisfied:

 

		i.	a Registration Statement shall have been declared effective and shall remain effective and available
for the resale of all the Put Shares Due at all times until the Closing with respect to the applicable Put Notice;

 

		ii.	at all times during the period beginning on the related Put Notice Date and ending on and including
the related Closing Date, the Common Stock shall have been listed or quoted for trading on the Principal Market and shall not have
been suspended from trading thereon during the Pricing Period;

 

		iii.	the Company has complied with its obligations and is otherwise not in material breach of or in
material default under, this Agreement, the Registration Rights Agreement or any other agreement executed in connection herewith
which has not been cured prior to delivery to the Investor of the applicable Put Notice;

 

		iv.	no injunction shall have been issued and remain in force, or action commenced by a governmental
authority which has not been stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and

 

		v.	the issuance of the Securities will not violate any shareholder approval requirements of the Principal
Market.

If any of the
events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation to
purchase the Put Amount of Common Stock set forth in the applicable Put Notice.

2.5              
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections
2.6 and 7 of this Agreement, the closing of the purchase by the Investor of Securities (a “Closing”) shall
occur on the date which is no earlier than five (5) Trading Days following and no later than seven (7) Trading Days following the
applicable Put Notice Date (each a “Closing Date”). On each such Closing Date, if the Company’s transfer
agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”)
program and that the Securities are eligible for inclusion in the FAST program, the Company shall use all commercially reasonable
efforts to cause its transfer agent to electronically transmit the Securities to be issued to the Investor on such date by crediting
the account of the Investor’s prime broker (as specified by the Investor in a Put Settlement Sheet) with DTC through its
DWAC service. If the Company is not DWAC eligible or the Company is under DTC “chill” on such Closing Date, the Company
shall deliver to the Investor pursuant to this Agreement, certificates representing the Securities to be issued to the Investor
on such date and registered in the name of the Investor (the “Certificate”). On such Closing Date, after receipt
of confirmation of delivery of such Securities to the Investor, the Investor shall disburse the funds constituting the Purchase
Amount to the Company’s designated account by wire transfer of (i) immediately available funds if the Investor receives the
Securities by 9:30 a.m. (Pacific time) or (ii) next day available funds if the Investor receives the Securities thereafter.

 

2.6              
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the
Open Period the Company becomes listed on an exchange that limits the number of shares of Common Stock that may be issued without
shareholder approval, then the  

 

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number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that
number of the shares of Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”).
If such issuance of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance
shall first be approved by the Company’s shareholders in accordance with applicable law and the By-laws and the Articles
of Incorporation of the Company, if such issuance of shares of Common Stock could cause a delisting on the Principal Market. The
parties understand and agree that the Company’s failure to seek or obtain such shareholder approval shall in no way adversely
affect the validity and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance
with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance limitation,
and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section
2.6.

 

2.7              
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall
the Investor be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock
beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed
9.99% of the number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of
the 1934 Act.

 

SECTION III

INVESTOR’S REPRESENTATIONS,
WARRANTIES AND COVENANTS

The Investor
represents and warrants to the Company, and covenants, that:

3.1              
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (i) evaluating
the merits and risks of an investment in the Securities and making an informed investment decision; (ii) protecting its own interest;
and (iii) bearing the economic risk of such investment for an indefinite period of time.

 

3.2              
AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf
of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms,
subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and
remedies.

 

3.3              
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section
9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor
agrees not to short sell the Company’s stock either directly or indirectly through its affiliates, principals or advisors,
the Common Stock during the term of this Agreement. The Investor will only sell Company stock that it has in its possession.

 

3.4              
ACCREDITED INVESTOR. The Investor is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D of the 1933 Act.

 

3.5              
NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Investor
and the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of limited
liability company agreement or other  

 

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organizational documents of the Investor.

 

3.6              
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance
and operations which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs
of the Company with the Company’s management.

 

3.7              
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not
with a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration
provisions of the 1933 Act (or pursuant to an exemption from such registration provisions).

 

3.8              
NO REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a “dealer”
under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

3.9              
GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing
in the State of Delaware.

 

3.10          
TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

3.11          
REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

3.12          
GENERAL SOLICITATION. The Investor is not purchasing the Securities
as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine
or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general
advertisement.

 

3.13          
TRANSFER RESTRICTIONS. The Securities may only be disposed of in compliance with federal and state securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or to an affiliate of the Investor, the Company may require the transferor thereof to provide to the Company an opinion of counsel
selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under
the 1933 Act; provided, however, that in connection with any transfer of Securities pursuant to Rule 144, the Company may require
the transferor to provide a customary Rule 144 sellers representation letter. As a condition of transfer, any such transferee shall
agree in writing to be bound by the terms of this Agreement and shall have the rights of the Investor under this Agreement and
the Registration Rights Agreement, as to issued Securities only.

 

SECTION IV

REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

Except as set
forth in the Schedules attached hereto, or as disclosed on the Company’s SEC Documents, the Company represents and warrants
to the Investor that:

4.1              
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing
under the laws of the State of Delaware, and has the requisite corporate power and authorization to own its properties and to carry
on its business as now being conducted.  

 

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Both the Company and the companies it owns or controls (“Subsidiaries”)
are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or
be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse
effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company
and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments
to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Registered
Offering Transaction Documents.

 

4.2              
AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

 

		i.	The Company has the requisite corporate power and authority to enter into and perform the Registered
Offering Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof.

 

		ii.	The execution and delivery of the Registered Offering Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby, including without limitation the issuance of the Securities
pursuant to this Agreement, have been duly and validly authorized by the Company’s board of directors and no further consent
or authorization is required by the Company, its board of directors, or its shareholders.

 

		iii.	The Registered Offering Transaction Documents have been duly and validly executed and delivered
by the Company.

 

		iv.	The Registered Offering Transaction Documents constitute the valid and binding obligations of the
Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of creditors’ rights and remedies.

 

4.3              
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of, 200,000,000 shares
of the Common Stock, par value $.001 per share, of which 30,000,000 were issued and outstanding as of February 13, 2017. All of
such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and non-assessable.

Except as disclosed
in the Company’s publicly available filings with the SEC or as otherwise set forth on Schedule 4.3:

		i.	no shares of the Company’s capital stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the Company;

 

		ii.	there are no outstanding debt securities;

 

		iii.	there are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries;

-8-  

 

		iv.	there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated
to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement);

 

		v.	there are no outstanding securities of the Company or any of its Subsidiaries which contain any
redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;

 

		vi.	there are no securities or instruments containing anti-dilution or similar provisions that will
be triggered by the issuance of the Securities as described in this Agreement;

 

		vii.	the Company does not have any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement; and

 

		viii.	there is no dispute as to the classification of any shares of the Company’s capital stock.

The Company
has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s
Articles of Incorporation, as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s
By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or
exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

4.4              
ISSUANCE OF SHARES. As of the Effective Date, the Company will have reserved the amount of Shares included in the
Registration Statement for issuance pursuant to the Registered Offering Transaction Documents, which will have been duly authorized
and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to
this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable
and free from all taxes, liens and charges with respect to the issuance thereof. In the event the Company cannot reserve a sufficient
number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance
the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

4.5              
NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and thereby will not (i)
result in a violation of the Articles of Incorporation or the By-laws; or (ii)
conflict with, or constitute a material default (or an event which with notice
or lapse of time or both would become a material default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any material agreement, contract, indenture mortgage, indebtedness or instrument
to which the Company or any of its Subsidiaries is a party, or to the Company's
knowledge result in a violation of any law, rule, regulation, order, judgment or
decree (including United States federal and state securities laws and
regulations and the rules and regulations of the Principal Market or principal
securities exchange or trading market 

 

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on which the Common Stock is traded or listed) applicable to the
Company or any of its Subsidiaries or by which any property or asset of the
Company or any of its Subsidiaries is bound or affected. Neither the Company nor
its Subsidiaries is in violation of any term of, or in default under, the
Articles of Incorporation or the By-laws or their organizational charter or
by-laws, respectively, or any contract, agreement, mortgage, indebtedness,
indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations that would not individually or in the aggregate have or constitute a
Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, statute,
ordinance, rule, order or regulation of any governmental authority or agency,
regulatory or self-regulatory agency, or court, except for possible violations
the sanctions for which either individually or in the aggregate would not have a
Material Adverse Effect. Except as specifically contemplated by this Agreement
and as required under the 1933 Act or any securities laws of any states, to the
Company's knowledge, the Company is not required to obtain any consent,
authorization, permit or order of, or make any filing or registration (except
the filing of a registration statement as outlined in the Registration Rights
Agreement between the parties) with, any court, governmental authority or
agency, regulatory or self-regulatory agency or other third party in order for
it to execute, deliver or perform any of its obligations under, or contemplated
by, the Registered Offering Transaction Documents in accordance with the terms
hereof or thereof. All consents, authorizations, permits, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof and are
in full force and effect as of the date hereof. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the
foregoing. The Company is not, and will not be, in violation of the listing
requirements of the Principal Market as in effect on the date hereof and on each
of the Closing Dates and is not aware of any facts which would reasonably lead
to delisting of the Common Stock by the Principal Market in the foreseeable
future.

 

4.6              
 SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all
of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto
and documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”).
The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and complete copies
of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with the requirements
of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the
SEC Documents, at the time they were filed with the SEC or the time they were amended, if amended, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements
of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance
with generally accepted accounting principles, by a firm that is a member of the Public Companies Accounting Oversight Board (“PCAOB”)
consistently applied, 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 exclude  

 

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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 its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor which is not
included in the SEC Documents, including, without limitation, information referred to in Section 4.3 of this Agreement,
contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstance under which they are or were made, not misleading. The Company’s knowledge, neither the
Company nor any of its Subsidiaries or any of their officers, directors, employees or agents have provided the Investor with any
material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic information
provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, employees or agents prior to any
Closing Date shall be publicly disclosed by the Company prior to such Closing Date.

 

4.7              
ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change
the business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect
to take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge
or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8              
ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action,
suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened against or affecting
the Company, the Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’
officers or directors in their capacities as such, in which an adverse decision could have a Material Adverse Effect.

 

4.9              
ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of an arm’s length purchaser with respect to the Registered Offering Transaction Documents
and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial
advisor or fiduciary of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives
or agents in connection with the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to the Investor’s purchase of the Securities, and is not being relied on by the Company. The Company
further represents to the Investor that the Company’s decision to enter into the Registered Offering Transaction Documents
has been based solely on the independent evaluation by the Company and its representatives.

 

4.10          
NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents or required
with respect to the Registered Offering Transaction Documents, as of the date hereof, no event, liability, development or circumstance
has occurred or exists, or to the Company’s knowledge is contemplated to occur, with respect to the Company or its Subsidiaries
or their respective business, properties, assets, prospects, operations or financial condition, that would be required to be disclosed
by the Company under applicable securities laws on a registration statement filed with the SEC relating to an issuance and sale
by the Company of its Common Stock and which has not been publicly announced.

 

4.11          
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to
the knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries
is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees
are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to
leave the Company’s employ or otherwise terminate such officer’s employment with the Company.

-11-  

 

4.12          
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use
all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as
now conducted. Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service
mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations,
trade secrets or other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have
expired or terminated, or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company
and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name
rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade
secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical information
by others and, except as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against,
or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name,
patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or
other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any
of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties.

 

4.13          
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the management and directors of
the Company and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”); (ii) have, to the knowledge of the management and directors of the Company,
received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses as currently conducted; and (iii) are in compliance, to the knowledge of the management and directors of the Company,
with all terms and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure
to so comply would have, individually or in the aggregate, a Material Adverse Effect.

 

4.14          
TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which
is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities
held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings
by the Company and its Subsidiaries.

 

4.15          
INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary
in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been
refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

-12-  

 

4.16          
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies,
necessary to own, lease or operate their respective properties and assets and conduct their respective businesses in the manner
currently being conducted, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the
revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals,
authorizations or permits which if not obtained, or such revocations or modifications which, would not have a Material Adverse
Effect.

 

4.17          
INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership to the
PCAOB and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. The Company’s management has determined that the Company’s
internal accounting controls were not effective as of the date of this Agreement as further described in the SEC Documents.

 

4.18          
NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is
a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material
Adverse Effect.

 

4.19          
TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the
extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment
of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and
has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

4.20          
CERTAIN TRANSACTIONS. Except
as set forth in the SEC Documents and except for transactions pursuant to which
the Company makes payments in the ordinary course of business upon terms no less
favorable than the Company could obtain from disinterested third parties and
other than the grant of stock options disclosed in the SEC Documents, none of
the officers, directors, or employees of the Company is presently a party to any
transaction with the Company or any of its Subsidiaries (other than for services
as employees, consultants, officers and directors), including any contract,
agreement or other 

 

-13-  

arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, such that disclosure would be
required in the SEC Documents..

 

4.21          
DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon
purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance
wherein the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period.
The Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated
by this Agreement and recognize that they have a potential dilutive effect on the shareholders of the Company. The board of directors
of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance
is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly
set forth in the Registered Offering Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant
to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership
interests of other shareholders of the Company.

 

4.22          
LOCK-UP. The Company shall cause its officers, insiders, directors, and affiliates or other related parties under
control of the Company, to refrain from selling Common Stock during each Pricing Period.

 

4.23          
NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the
offer or sale of the Common Stock to be offered as set forth in this Agreement.

 

4.24          
NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or
commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement.

 

SECTION V

COVENANTS OF THE COMPANY

 

5.1              
BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions
set forth in Section 7 of this Agreement.

 

5.2              
REPORTING STATUS. During the Open Period and until one of the following occurs, the Company shall file all reports
required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or
fail to take any action, which would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates
pursuant to Section 8 and the Investor has the right to sell all of the Securities without volume restrictions pursuant
to Rule 144 promulgated under the 1933 Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities
and this Agreement has been terminated pursuant to Section 8.

 

5.3              
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding amounts paid or to
be paid by the Company for fees as set forth in the Registered Offering Transaction Documents, if any) for general corporate and
working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the board of directors
of the Company, in its good faith deem to be in the best interest of the Company.

-14-  

 

5.4              
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or
other electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports
on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other
information made available or given to the shareholders of the Company generally, contemporaneously with the making available or
giving thereof to the shareholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents
filed with, and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry
Regulatory Association, unless such information is material nonpublic information.

 

5.5              
RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved
the amount of Shares included in the Registration Statement for issuance pursuant to the Registered Offering Transaction Documents.
In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve
and keep available for issuance as described in this Section 5.5, the Company shall use all commercially reasonable efforts
to increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional
shares.

 

5.6              
LISTING. The Company shall use all commercially reasonable efforts to promptly secure and maintain the listing of
all of the Registrable Securities (as defined in the Registration Rights Agreement) on the Principal Market and each other national
securities exchange and automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official
notice of issuance) and shall maintain, such listing of all Registrable Securities from time to time issuable under the terms of
the Registered Offering Transaction Documents. Neither the Company nor any of its Subsidiaries shall take any action which would
be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market (excluding suspensions
of not more than one (1) Trading Day resulting from business announcements by the Company). The Company shall promptly provide
to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock
for listing on such automated quotation system or securities exchange. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 5.6.

 

5.7              
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall
file a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Registered Offering
Transaction Documents in the form required by the 1934 Act, if such filing is required.

 

5.8              
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate
existence of the Company.

 

5.9              
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify
the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in
respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal
or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of
the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening
of any event that makes any statement made in such Registration  

 

-15-  

Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain any
untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective
amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor
any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any Put Notice during the
continuation of any of the foregoing events in this Section 5.9.

 

5.10          
TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for so long as the Registration Statement is
effective, following delivery of a Put Notice, the Company shall deliver instructions to its transfer agent to issue Shares to
the Investor that are covered for resale by the Registration Statement free of restrictive legends.

 

5.11          
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily
entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms
of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing
review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.

SECTION VI

CONDITIONS OF THE COMPANY’S
ELECTION TO SELL

There is no
obligation hereunder of the Company to issue and sell the Securities to the Investor. However, an election by the Company to issue
and sell the Securities hereunder, from time to time as permitted hereunder, is further subject to the satisfaction, at or before
each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion.

6.1               The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company.

 

6.2               The Investor shall have delivered to the Company a Put Settlement Sheet in the form attached here to as Exhibit C
on the Put Notice Date.

 

6.3               No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

SECTION VII

FURTHER CONDITIONS OF THE INVESTOR’S
OBLIGATION TO PURCHASE

The obligation
of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of each of the
following conditions set forth below.

-16-  

7.1                  The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor.

 

7.2                  The Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have
been suspended by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective
Closing Date (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company,
provided that such suspensions occur prior to the Company’s delivery of the Put Notice related to such Closing).

 

7.3                  The representations and warranties of the Company shall be true and correct in all material respects as of the date when
made and as of the applicable Closing Date as though made at that time and the Company shall have materially performed, satisfied
and complied with the covenants, agreements and conditions required by the Registered Offering Transaction Documents to be performed,
satisfied or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing
Date regarding the representation contained in Section 4.3.

 

7.4                  The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic
book-entry transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at
such Closing.

 

7.5                  The board of directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”)
and such Resolutions shall not have been materially amended or rescinded prior to such Closing Date.

 

7.6                  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

7.7                  The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the
Registration statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each
Closing Date (i) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a
stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of
such Registration Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns
have been addressed), and (ii) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement
or related prospectus shall exist.

 

7.8                  At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein)
and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure
or an update supplement to the prospectus.

 

7.9                  If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common
Stock Issuance in accordance with Section 2.6 or the Company shall have obtained appropriate approval pursuant to the requirements
of Nevada law and the Company’s Articles of Incorporation and By-laws.

-17-  

 

7.10              The conditions to such Closing set forth in Section 2.4 shall have been satisfied on or before such Closing Date.

 

7.11              The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given
to the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of
the existence of the necessary number of shares of Common Stock reserved for issuance.

SECTION VIII

TERMINATION

This Agreement
shall terminate upon any of the following events:

		i.	when the Investor has purchased an aggregate of Three Million Dollars ($3,000,000) in the Common
Stock of the Company pursuant to this Agreement;

 

		ii.	on the date which is thirty-six (36) months after the Effective Date; or

 

		iii.	at such time that the Registration Statement is no longer in effect; or

 

		iv.	at any time at the election of the Company upon 15 days written notice.

 

Any and all shares, or penalties,
if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.

SECTION IX

SUSPENSION

This Agreement
shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:

		i.	The trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period
of two (2) consecutive Trading Days during the Open Period; or,

 

		ii.	During the Open Period the Common Stock ceases to be registered under the 1934 Act or listed or
traded on the Principal Market or the Registration Statement is no longer effective (except as permitted hereunder).

 

Immediately upon the occurrence
of one of the above-described events, the Company shall send written notice of such event to the Investor.

SECTION X

MISCELLANEOUS

10.1       LAW
GOVERNING THIS AGREEMENT. This Agreement shall be governed by, and construed and interpreted in accordance with, the
substantive laws of the state of California without giving effect to any conflict of laws rule or principle that might require
the application of the laws of another jurisdiction. Any dispute, claim, suit, action or other legal proceeding arising out of
the transactions contemplated by this Agreement or the rights and obligations of each of the parties shall be brought only in a
state courts of California or in the federal courts located in San Diego County, California. The parties to this Agreement hereby
irrevocably waive  

-18-  

any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based
on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and other agreements
referred to herein or delivered in connection herewith agree to submit to the in personam jurisdiction of such courts. The
prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event
that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under
any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith
and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement or any other Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any other manner permitted by law.

10.2       LEGAL
FEES; AND MISCELLANEOUS FEES. EXCEPT AS OTHERWISE SET FORTH IN THE Registered Offering Transaction Documents (including
but not limited to Section 5 of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. Any attorneys’ fees and expenses incurred by either the Company or
the Investor in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating
to the enforcement of the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party
or any default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which
breached the Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied
in connection with the issuance of any Securities.

10.3       COUNTERPARTS.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the
same force and effect as if such signature page were an original thereof.

10.4       HEADINGS;
SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and
masculine shall include the feminine.

10.5       SEVERABILITY.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

10.6       ENTIRE
AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to the terms
and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the Parties.

-19-  

10.7       NOTICES.
Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and
will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii)
one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same. The addresses and email addresses for such communications shall be:

	
        If to the Company:

         

         

         

         

         
	 	
        Helix TCS, Inc.

        5300 DTC Parkway

        Geenwood Village, CO

        T: 720-328-5372

        Email: sogur@helixtcs.com

         

	 	 	 
	
    If to the Investor:	 	
        RedDiamond Partners LLC.

        156 West Saddle River Road

        Saddle River, NJ 07458

        Attn: Managing Member

         

Each party shall provide five (5) business days prior written notice to the other party of any change in address or email address.

10.8       NO
ASSIGNMENT. This Agreement may not be assigned.

10.9       NO
THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit of,
nor may any provision hereof be enforced by, any other person.

10.10       SURVIVAL.
The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements and covenants
set forth in Section 5 and this Section 11, shall survive each of the Closings and the termination of this Agreement.

10.11       PUBLICITY.
The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such
public statement without the prior consent of the other party, which consent shall not be unreasonably withheld or delayed, except
that no prior consent shall be required if such disclosure is required by law, as determined solely by the Company in consultation
with its counsel. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents
may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the
Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933
Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as material contracts shall be
determined solely by the Company, in consultation with its counsel.

10.12       EXCLUSIVITY.
The Company shall not pursue an equity line transaction similar to the transactions contemplated in this Agreement with any other
person or entity until the earlier of (i) the Effective Date and (ii) termination of this Agreement in accordance with Section
8.

-20-  

10.13       FURTHER
ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

10.14       NO
STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree that
each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.

10.15       REMEDIES.
The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement and all rights
and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which
the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision
of this Agreement, including the recovery of reasonable attorney’s fees and costs, and to exercise all other rights granted
by law.

10.16       PAYMENT
SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration Rights
Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds
of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver
or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had
not occurred.

10.17       COMMITMENT
FEE. Upon the Execution Date of this Agreement, the Company shall be required to issue to the Purchaser a 10% $25,000 promissory
note as a commitment fee (the “Commitment Fee Note”). In the event that the S-1 is declared effective within
90 days following document execution, $12,500 will be automatically deducted from the balance of the Commitment Fee Note. In the
event that the S-1 is declared effective within 135 days (but more than 90 days) following document execution, $6,250 will be automatically
deducted from the balance of the Commitment Fee Note. The Company agrees that the issuance of the Commitment Fee Note is a material
obligation and that the Commitment Fee Note is considered fully earned as of the Execution Date of this Agreement, regardless of
whether or not the Company files the S-1 or is successful in having it deemed effective by the SEC.

 

SECTION XI

NON-DISCLOSURE OF NON-PUBLIC INFORMATION

 

The Company shall
not disclose non-public information to the Investor, its advisors, or its representatives.

Nothing in
the Registered Offering Transaction Documents shall require or be deemed to require the Company to disclose non-public information
to the Investor or its advisors or representatives, and the Company represents that it does not disseminate non-public information
to any investors who purchase stock in the Company in a public offering, to money Managing Members or to securities analysts, provided,
however, that notwithstanding anything herein to the contrary,  

-21-  

the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without
any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non-public information (whether
or not requested of the Company specifically or generally during the course of due diligence by such persons or entities), which,
if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement
or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances
in which they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean that such persons
or entities other than the Investor (without the written consent of the Investor prior to disclosure of such information) may not
obtain non-public information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing
herein shall prevent any such persons or entities from notifying the Company of their opinion that based on such due diligence
by such persons or entities, that the Registration Statement contains an untrue statement of material fact or omits a material
fact required to be stated in the Registration Statement or necessary to make the statements contained therein, in light of the
circumstances in which they were made, not misleading.

SECTION XII

ACKNOWLEDGEMENTS OF THE PARTIES

Notwithstanding
anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor
makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor
will not short or pre-sell, either directly or indirectly through its affiliates, principals or advisors, the Common Stock at any
time during the Open Period; (ii) the Company shall comply with its obligations under Section 5.8 in a timely manner; (iii) the
Company has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have
executed a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms
that the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects
any transactions in the securities of the Company.

[Signature Page to Follow.]

-22-  

 

Your signature
on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as of the date
first written above. The undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and
the representations made by the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms.

REDDIAMOND PARTNERS LLC. 

 

 

By: _________________________________

Name:

Title: Managing Member

 

HELIX TCS, INC.  

 

 

By: __________________________________

Name:

Title:

 

 

[SIGNATURE PAGE OF INVESTMENT AGREEMENT]

-23- 

LIST OF EXHIBITS

 

EXHIBIT ARegistration Rights
Agreement

EXHIBIT BPut Notice

EXHIBIT CPut Settlement Sheet

-24-  

EXHIBIT A

REGISTRATION RIGHTS AGREEMENT

See attached.

 

-25-  

 

EXHIBIT B

FORM OF PUT NOTICE

 

Date:

RE: Put Notice Number __

Dear Mr.__________,

This is to inform you that as of
today, Helix TCS, Inc., a Delaware corporation (the “Company”), hereby elects to exercise its right pursuant to the
Investment Agreement to require Tangiers Investment Group, LLC to purchase shares of its common stock. The Company hereby certifies
that:

Put Amount in Shares__________.

The Pricing Period runs from _______________
until _______________.

The current number of shares of
common stock issued and outstanding is: _________________.

The number of shares currently
available for resale on the S-1 is: ________________________.

 

Regards,

Helix TCS, Inc.

 

By: __________________________________

 

Name: 

 

Title:

 

-26-  

EXHIBIT C

PUT SETTLEMENT SHEET

 

 

Date: ________________

 

Dear ________,

 

Pursuant to the Put given by Helix TCS,
Inc., a Delaware corporation (the “Company”), to RedDiamond Partners LLC (the “Investor”) on _________________,
2017, we are now submitting the purchase price for the shares of common stock.

 

Purchase Price per Share _________________.

 

Shares Being Purchased ___________________.

 

Total Purchase Price _____________________.

 

Please have a certificate bearing no
restrictive legend issued to the Investor immediately and sent via DWAC to the following account:

 

[INSERT]

 

If not DWAC eligible, please send FedEx
Priority Overnight to:

 

[INSERT ADDRESS]

 

Once these shares are received by us,
we will have the funds wired to the Company.

 

Regards,

 

REDDIAMOND PARTNERS LLC

 

 

By: _________________________________

 

Name:

 

Title: Managing Member

-27-  

SCHEDULE 4.3

 

See attached.

-28-EXHIBIT 10.7

 

SUBSIDIARY GUARANTEE

This SUBSIDIARY
GUARANTEE, dated as of February 13, 2017 (this “Guarantee”), is made by each of the signatories hereto (together
with any other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of RedDiamond
Partners, LLC (together with their permitted assigns, the “Secured Parties”).

 

W I T N E S S E T H:

WHEREAS,
Helix TCS, Inc. (the “Company”) has agreed to sell and issue to the Secured Parties, and the Secured Parties
have agreed to purchase from the Company, certain debt securities (collectively, the “Notes”), subject to the
terms and conditions set forth therein;

WHEREAS,
each Guarantor will directly benefit from the extension of credit to the Company represented by the issuance of the Notes; and

WHEREAS,
as a material inducement to the Secured Parties to purchase the Notes and to enter into all of the other agreements to be entered
into in connection with the transactions contemplated thereby (collectively, the “Transaction Documents”), the
Secured Parties have requested the Guarantors and the Company enter into this Guarantee;

NOW, THEREFORE,
in consideration of the premises and for such other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Guarantor hereby agrees with the Secured Parties as follows:

1.                 
Definitions. The words “hereof,” “herein,” “hereto”
and “hereunder” and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and
not to any particular provision of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified.
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The
following terms shall have the following meanings:

“Guarantee”
means this Subsidiary Guarantee, as the same may be amended, supplemented, or otherwise modified from time to time.

“Obligations”
means, in addition to all other costs and expenses of collection incurred by Secured Parties in enforcing any of such Obligations
and/or this Guarantee, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several)
due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor
to the Secured Parties, including, without limitation, all obligations under this Guarantee, the Notes, that certain Security Agreement
(the “Security Agreement”), dated as of the date hereof, among the Company, the Guarantors and the Secured Parties,
and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each
case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated,
whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created
or incurred, and all or  

-1-  

any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment
is avoided or recovered directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise
as such obligations may be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality
of the foregoing, the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Notes
and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Company
or any Guarantor from time to time under or in connection with this Guarantee, the Notes, the Security Agreement, and any other
instruments, agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts
(including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the
obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company or any Guarantor.

2.   
Guarantee. 

(a)              
Guarantee. 

(i)                
The Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to
the Secured Parties and their respective successors, endorsees, transferees and assigns, the prompt and complete payment and performance
when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations. 

(ii)             
Anything herein or in any other Transaction Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Transaction Documents shall in no event exceed the amount which
can be guaranteed by such Guarantor under applicable federal and state laws, including laws relating to the insolvency of debtors,
fraudulent conveyance or transfer or laws affecting the rights of creditors generally (after giving effect to the right of contribution
established in Section 2(b)). 

(iii)           
Each Guarantor agrees that the Obligations may at any time and from time to time exceed the
amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the
rights and remedies of the Secured Parties hereunder.

(iv)            
The guarantee contained in this Section 2 shall remain in full force and effect until all
the Obligations and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied
by indefeasible payment in full. 

(v)              
No payment made by the Company, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Secured Parties from the Company, any of the Guarantors, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or
in payment of the Obligations shall be deemed to modify, 

-2-  

reduce, release or otherwise affect the liability of any Guarantor hereunder
which shall, notwithstanding any such payment (other than any payment made by
such Guarantor in respect of the Obligations or any payment received or
collected from such Guarantor in respect of the Obligations), remain liable for
the Obligations up to the maximum liability of such Guarantor hereunder until
the Obligations are indefeasibly paid in full.

(vi)            
Notwithstanding anything to the contrary in this Guarantee, with respect to any defaulted
non-monetary Obligations the specific performance of which by the Guarantors is not reasonably possible (e.g. the issuance of the
Company’s Common Stock), the Guarantors shall only be liable for making the Secured Parties whole on a monetary basis for
the Company’s failure to perform such Obligations in accordance with the Transaction Documents. 

(b)              
Right of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that to
the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall
be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate
share of such payment. Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2(c).
The provisions of this Section 2(b) shall in no respect limit the obligations and liabilities of any Guarantor to the Secured Parties
and each Guarantor shall remain liable to the Secured Parties for the full amount guaranteed by such Guarantor hereunder.

(c)              
No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by the Secured Parties, no Guarantor shall be entitled to be subrogated to any
of the rights of the Secured Parties against the Company or any other Guarantor or any collateral security or guarantee or right
of offset held by the Secured Parties for the payment of the Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Company or any other Guarantor in respect of payments made by such Guarantor hereunder,
until all amounts owing to the Secured Parties by the Company on account of the Obligations are indefeasibly paid in full. If any
amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have
been paid in full, such amount shall be held by such Guarantor in trust for the Secured Parties, segregated from other funds of
such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Agent in the exact form received by
such Guarantor (duly indorsed by such Guarantor to the Agent, if required), applied against the Obligations, whether matured or
unmetered, in such order as the Secured Parties may determine.

(d)              
Amendments, Etc. With Respect to the Obligations. Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent
by any Guarantor, any demand for payment of any of the Obligations made by the Secured Parties may be rescinded by the Secured
Parties and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
the Secured Parties, and the Transaction Documents and any other documents
executed and delivered in connection therewith may be amended, modified,
supplemented or terminated, 

-3-  

in whole or in part, as the Secured Parties may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held
by the Secured Parties for the payment of the Obligations may be sold,
exchanged, waived, surrendered or released. The Secured Parties shall have no
obligation to protect, secure, perfect, or insure any Lien at any time held by
them as security for the Obligations or for the guarantee contained in this
Section 2 or any property subject thereto. 

(e)              
Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the
creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Secured Parties upon
the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings between the Company and any of the Guarantors, on the
one hand, and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2. Each Guarantor waives to the extent permitted by law diligence, presentment,
protest, and demand for payment and notice of default or nonpayment to or upon the Company or any of the Guarantors with respect
to the Obligations. Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as
a continuing, absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability
of any Transaction Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by the Secured Parties, (b) any defense, set-off or counterclaim (other than
a defense of payment or performance or fraud by Secured Parties) which may at any time be available to or be asserted by the Company
or any other Person against the Secured Parties, or (c) any other circumstance whatsoever (with or without notice to or knowledge
of the Company or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the
Company for the Obligations, or of such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Secured
Parties may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as they
may have against the Company, any other Guarantor or any other Person or against any collateral security or guarantee for the Obligations
or any right of offset with respect thereto, and any failure by the Secured Parties to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Company, any other Guarantor or any other Person or to realize upon any
such collateral security or guarantee or to exercise any such right of offset, or any release of the Company, any other Guarantor
or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation
or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter
of law, of the Secured Parties against any Guarantor. For the purposes hereof, “demand” shall include the commencement
and continuance of any legal proceedings.

-4-  

(f)               
Reinstatement. The guarantee contained in this Section 2 shall continue to be effective,
or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must
otherwise be restored or returned by the Secured Parties upon the insolvency, bankruptcy, dissolution, liquidation or reorganization
of the Company or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee
or similar officer for, the Company or any Guarantor or any substantial part of its property, or otherwise, all as though such
payments had not been made.

(g)              
Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to
the Secured Parties without set-off or counterclaim in U.S. dollars at the address set forth or referred to in the Signature Pages
to the Notes or other Transaction Documents.

3. Representations
and Warranties. Each Guarantor hereby makes the following representations and warranties to Secured Parties as of the date
hereof:

(a)              
Organization and Qualification. The Guarantor is a corporation, duly incorporated,
validly existing and in good standing under the laws of the applicable jurisdiction set forth on Schedule 1, with the requisite
corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. The
Guarantor has no subsidiaries other than those that are signatories hereto. The Guarantor is duly qualified to do business and
is in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be,
could not, individually or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guaranty
in any material respect, (y) have a material adverse effect on the results of operations, assets, prospects, or financial condition
of the Guarantor or (z) adversely impair in any material respect the Guarantor’s ability to perform fully on a timely basis
its obligations under this Guaranty (a “Material Adverse Effect”).

(b)              
Authorization; Enforcement. The Guarantor has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by this Guaranty, and otherwise to carry out its obligations hereunder.
The execution and delivery of this Guaranty by the Guarantor and the consummation by it of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on the part of the Guarantor. This Guaranty has been duly executed
and delivered by the Guarantor and constitutes the valid and binding obligation of the Guarantor enforceable against the Guarantor
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

(c)              
No Conflicts. The execution, delivery and performance of this Guaranty by the Guarantor
and the consummation by the Guarantor of the transactions contemplated thereby do not and will not (i)
conflict with or violate any provision of its Certificate of Incorporation or
By-laws or (ii) conflict 

-5-  

with, constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Guarantor is a party, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Guarantor is
subject (including Federal and State securities laws and regulations), or by
which any material property or asset of the Guarantor is bound or affected,
except in the case of each of clauses (ii) and (iii), such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as could
not, individually or in the aggregate, have or result in a Material Adverse
Effect. The business of the Guarantor is not being conducted in violation of any
law, ordinance, or regulation of any governmental authority, except for
violations which, individually or in the aggregate, do not have a Material
Adverse Effect.

(d)              
Consents and Approvals. The Guarantor is not required to obtain any consent, waiver,
authorization, or order of, or make any filing or registration with, any court or other federal, state, local, foreign, or other
governmental authority or other person in connection with the execution, delivery, and performance by the Guarantor of this Guaranty.

(e)              
Universality of Representations and Warranties. The representations and warranties
of the Company set forth in any of the Transaction Documents, as they relate to such Guarantor, each of which is hereby incorporated
herein by reference, are true and correct as of each time such representations are deemed to be made pursuant to such Transaction
Document, and the Secured Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided that
each reference in each such representation and warranty to the Company’s knowledge shall, for the purposes of this Section
3, be deemed to be a reference to such Guarantor’s knowledge. 

(f)               
Foreign Law. If applicable, each Guarantor has consulted with appropriate foreign legal
counsel with respect to any of the above representations for which non-U.S. law is applicable. Such foreign counsel have advised
each applicable Guarantor that such counsel knows of no reason why any of the above representations would not be true and accurate.
Such foreign counsel were provided with copies of this Subsidiary Guarantee and the Transaction Documents prior to rendering their
advice. 

4. Covenants.

(a)        
Each Guarantor covenants and agrees with the Secured Parties that, from and after the date
of this Guarantee until the Obligations shall have been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain
from taking, as the case may be, each commercially reasonable action that is necessary to be taken or not taken, as the case may
be, so that no Event of Default (as defined in the Notes) is caused by the failure to take such action or to refrain from taking
such action by such Guarantor. 

(b)        
So long as any of the Obligations are outstanding, unless Secured Parties holding at least
67% of the aggregate principal amount of the then outstanding Notes shall otherwise consent in writing, each Guarantor will not
directly or indirectly on or after the date of this Guarantee:

-6-  

i.                       
Enter into, create, incur, assume or suffer to exist any indebtedness for borrowed money of
any kind, including but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

ii.                       
Enter into, create, incur, assume or suffer to exist any liens of any kind, on or with respect
to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom except
for permitted Liens;

iii.                       
Amend its certificate of incorporation, bylaws or other charter documents so as to adversely
affect any rights of any Secured Party;

iv.                       
Repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis
number of shares of its securities or debt obligations; 

v.                       
Pay cash dividends on any equity securities of the Company;

vi.                       
Enter into any transaction with any Affiliate of the Guarantor which would be required to
be disclosed in any public filing of the Company with the Commission, unless such transaction is made on an arm’s-length
basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise
required for board approval); or

vii.                       
Enter into any agreement with respect to any of the foregoing.

5. Miscellaneous.

(a)              
Amendments in Writing. None of the terms or provisions of this Guarantee may be waived,
amended, supplemented, or otherwise modified except in writing by the Secured Parties.

(b)              
Notices. All notices, requests, and demands to or upon the Secured Parties or any Guarantor
hereunder shall be effected in the manner provided for in any of the Transaction Documents, provided that any such notice, request,
or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule 5(b).

(c)              
No Waiver By Course Of Conduct; Cumulative Remedies.
The Secured Parties shall not by any act (except by a written instrument
pursuant to Section 5(a)), delay, indulgence, omission or otherwise be deemed to
have waived any right or remedy hereunder or to have acquiesced in any default
under the Transaction Documents or Event of Default. No failure to exercise, nor
any delay in exercising, on the part of the Secured Parties, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power, or privilege hereunder shall preclude 

-7-  

any other or further exercise thereof or the exercise of any other right, power,
or privilege. A waiver by the Secured Parties of any right or remedy hereunder
on any one occasion shall not be construed as a bar to any right or remedy which
the Secured Parties would otherwise have on any future occasion. The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any other rights or remedies provided by law.

(d)              
Enforcement Expenses; Indemnification.

(i)                
Each Guarantor agrees to pay, or reimburse the Secured Parties for, all its reasonable costs
and expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or
preserving any rights under this Guarantee and the other Transaction Documents to which such Guarantor is a party, including, without
limitation, the reasonable fees and disbursements of counsel to the Secured Parties.

(ii)             
Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities
with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or
determined to be payable in connection with any of the transactions contemplated by this Guarantee.

(iii)           
Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever
with respect to the execution, delivery, enforcement, performance and administration of this Guarantee to the extent the Company
would be required to do so pursuant to any of the Transaction Documents.

(iv)            
The agreements in this Section shall survive repayment of the Obligations and all other amounts
payable under any of the Transaction Documents.

(e)              
Successor and Assigns. This Guarantee shall be binding upon the successors and assigns
of each Guarantor and shall inure to the benefit of the Secured Parties and their respective successors and assigns; provided that
no Guarantor may assign, transfer or delegate any of its rights or obligations under this Guarantee without the prior written consent
of the Secured Parties.

(f)               
Set-Off. Each Guarantor hereby irrevocably authorizes the Secured Parties at any time
and from time to time while an Event of Default under any of the Transaction Documents shall have occurred and be continuing, without
notice to such Guarantor or any other Guarantor, any such notice being expressly waived by each Guarantor, to set-off and appropriate
and apply any and all deposits, credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute
or contingent, matured or unmetered, at any time held or owing by the Secured Parties to or for the credit or the account of such
Guarantor, or any part thereof in such amounts as the Secured Parties may elect, against and on account of the obligations and
liabilities of such Guarantor to the Secured Parties hereunder and claims of every nature and description of the Secured Parties
against such Guarantor, in any currency, whether arising hereunder, under any Transaction Document or otherwise, as the Secured
Parties may elect, whether or not the Secured Parties have made  

-8-  

any demand for payment and although such obligations, liabilities
and claims may be contingent or unmetered. The Secured Parties shall notify such Guarantor promptly of any such set-off and the
application made by the Secured Parties of the proceeds thereof, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of the Secured Parties under this Section are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which the Secured Parties may have.

(g)              
Counterparts. This Guarantee may be executed by two or more of the parties to this
Guarantee on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. 

(h)              
Severability. Any provision of this Guarantee which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction. 

(i)                
Section Headings. The Section headings used in this Guarantee are for convenience of
reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

(j)                
Integration. This Guarantee and the other Transaction Documents represent the agreement
of the Guarantors and the Secured Parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Secured Parties relative to subject matter hereof and thereof not expressly set forth or referred
to herein or in the other Transaction Documents.

(k)              
Governing Laws. All questions
concerning the construction, validity, enforcement and interpretation of this
Guarantee shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each of the Company and the Guarantors agree that all
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Guarantee (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the
state and federal courts sitting in the City of New York. Each of the Company
and the Guarantors hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in the City of New York for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such proceeding
is improper. Each party hereto hereby 

-9-  

irrevocably waives personal service of process and consents to process being
served in any such proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Guarantee and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating to
this Guarantee or the transactions contemplated hereby.

(l)                
Acknowledgements. Each Guarantor hereby acknowledges that:

(i)                
It has been advised by counsel in the negotiation, execution and delivery of this Guarantee
and the other Transaction Documents to which it is a party; 

(ii)             
The Secured Parties have no fiduciary relationship with or duty to any Guarantor arising out
of or in connection with this Guarantee or any of the other Transaction Documents, and the relationship between the Guarantors,
on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor;
and 

(iii)           
No joint venture is created hereby or by the other Transaction Documents or otherwise exists
by virtue of the transactions contemplated hereby among the Guarantors and the Secured Parties. 

(m)            
Additional Guarantors. The Company shall cause each of its subsidiaries formed or acquired
on or subsequent to the date hereof to become a Guarantor for all purposes of this Guarantee by executing and delivering an

Assumption Agreement in the form of Annex 1 hereto.

(n)              
Release of Guarantors. Each Guarantor will be released from all liability hereunder
concurrently with the indefeasible repayment in full of all amounts owed under the Notes and the Transaction Documents. 

(o)              
Seniority. The Obligations of each of the Guarantors hereunder rank senior in priority
to any other Indebtedness (as defined in the Notes) of such Guarantor. 

(p)              
WAIVER OF JURY TRIAL. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF,
THE PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE
AND FOR ANY COUNTERCLAIM THEREIN.

[SIGNATURE
PAGES FOLLOW]

-10-  

IN WITNESS
WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first above written.

	
         

        HELIX TCS, LLC

         

         

	
        By:  _____________________________________________

        Name:
        

        Title:

	
         

        SECURITY CONSULTANTS GROUP

	
         

         

	
        By:_____________________________________________

        Name:

        Title:

	 
	
        BOSS SECURITY SOLUTIONS, INC.

         

	
        By:  _____________________________________________

        Name:
        

        Title:

         

	 
	 

Consented and agreed to:

	
        REDDIAMOND
        PARTNERS, LLC

         

         

	
        By:_____________________________________________

        Name:
        

        Title:

-11-  

SCHEDULE 1

GUARANTORS

The following are the names, notice
addresses, and jurisdiction of organization of each Guarantor.

	NAME/ADDRESS	JURISDICTION OF INCORPORATION	COMPANY PERCENTAGE OWNERSHIP
	
        Helix TCS, LLC

         
	Delaware	100%
	
        Security Consultants Group

         
	Colorado	100%
	
        BOSS Security Solutions, Inc.

         
	Colorado	100%
	 	 	 

-12-  

DISCLOSURE SCHEDULES

(Subsidiary Guarantee)

 

-13-  

ANNEX 1 TO

SUBSIDIARY GUARANTEE

ASSUMPTION
AGREEMENT, dated as of ___________ __, 201__ made by ______________________________, a ______________ corporation (the “Additional
Guarantor”), in favor of the Secured Parties pursuant to the Notes referred to below. All capitalized terms not defined
herein shall have the meaning ascribed to them in such Notes.

W I T N E S S E T H:

WHEREAS,
Helix TCS, Inc., a Nevada corporation (the “Company”) and the Secured Parties have entered into a series of
transactions, dated as of February __, 2017, including the purchase by the Secured Parties of certain debt securities of the Company
(as amended, supplemented, or otherwise modified from time to time, the “Transaction Documents”);

WHEREAS,
in connection with the Transaction Documents, the Subsidiaries of the Company (other than the Additional Guarantor) have entered
into the Subsidiary Guarantee, dated as of February __, 2017 (as amended, supplemented or otherwise modified from time to time,
the “Guarantee”) in favor of the Secured Parties;

WHEREAS,
one or more of the Transaction Documents requires the Additional Guarantor to become a party to the Guarantee; and

WHEREAS,
the Additional Guarantor has agreed to execute and

deliver this Assumption Agreement in order to become a party to the Guarantee;

NOW, THEREFORE,
IT IS AGREED:

1.                 
Guarantee. By executing and delivering this Assumption Agreement, the Additional Guarantor,
as provided in Section 5(m) of the Guarantee, hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force
and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly
assumes all obligations and liabilities of a Guarantor thereunder. The information set forth in Annex 1 hereto is hereby added
to the information set forth in Schedule 1 to the Guarantee. The Additional Guarantor hereby represents and warrants that
each of the representations and warranties contained in Section 3 of the Guarantee is true and correct on and as the date hereof
as to such Additional Guarantor (after giving effect to this Assumption Agreement) as if made on and as of such date.

2.                 
Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

-14-  

 

IN WITNESS
WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above
written.

[ADDITIONAL GUARANTOR]

By:9;
_______________________________________

Name:

 

Title:

-15-

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