Document:

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “SECURITIES ACT”), AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

COMMON
STOCK PURCHASE WARRANT

CEMTREX, INC.

 

	Warrant
    Shares: 200,000	Issuance
    Date: March 22, 2019

 

THIS
COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received, __________________ or its
assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the Issuance Date and on or prior to the close of business on the 3-year anniversary
of the Issuance Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Cemtrex,
Inc., a Delaware corporation (the “Company”), upon payment of Exercise Price in cash, up to the number of Warrant
Shares of Common Stock stated above. The purchase price of each one share of Common Stock under this Warrant shall be equal to
the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated March 22, 2019, by and between Company and
the purchaser(s) signatory thereto.

 

For
purposes of this Warrant, the following terms shall have the following meanings:

 

a)
“Approved Stock Plan” means any employee benefit plan which has been approved by a majority of the disinterested
members of the Board of Directors of Company, pursuant to which Company’s securities may be issued to any employee, officer,
consultant or director for services provided to Company.

 

b)
“Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of the
Holder’s request pursuant to Section 3(i), which value is calculated using the Black Scholes Option Pricing Model obtained
from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest
Closing Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the announcement of
the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending
on the Trading Day of the Holder’s request pursuant to Section 3(i) and (2) the sum of the price per share being offered
in cash in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable
Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s
request pursuant to Section 3(i), (iii) a risk-free Accrual Rate corresponding to the U.S. Treasury rate for a period equal to
the greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 3(i) and
(2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date
of the Holder’s request pursuant to Section 3(i) if such request is prior to the date of the consummation of the applicable
Fundamental Transaction, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 100 day
volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as
of the Trading Day immediately following the earliest to occur of (A) the public disclosure of the applicable Fundamental Transaction,
(B) the consummation of the applicable Fundamental Transaction and (C) the date on which the Holder first became aware of the
applicable Fundamental Transaction.

 

c) “Bloomberg” means Bloomberg, L.P.

 

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d)
“Closing Price” means the closing price of Company’s Common Stock as reported by Company’s Principal
Market.

 

e)
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the
holder thereof to acquire, any shares of Common Stock.

 

f)
“Eligible Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the
Nasdaq Global Market, the Nasdaq Capital Market, the OTCQB or the OTCQX.

 

g)
“Excluded Securities” means the Conversion Shares, the Warrant Shares, and any shares of Common Stock issued
or issuable, or deemed issued or issuable pursuant to Section 2(a): (i) in connection with any Approved Stock Plan, (ii), upon
conversion, exercise or exchange of any Options or Convertible Securities which are outstanding on the day immediately preceding
the Effective Date; provided, that the terms of such Options or Convertible Securities are not amended or modified after the Effective
Date, and (iv) securities issued pursuant to acquisitions (whether by merger, consolidation, purchase of equity, purchase of assets,
reorganization or otherwise), mergers, consolidations, reorganizations or strategic transactions approved by a majority of the
disinterested directors of Company, provided that any such issuance shall only be to a Person (or to the equity holders of a Person)
which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business complementary with the
business of Company and shall provide to Company additional benefits in addition to the investment of funds, but shall not include
a transaction in which Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities.

 

h)
“Fundamental Transaction” means (A) that Company shall, directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not Company is
the surviving corporation) a third party and as a result thereof which the stockholders of Company immediately prior to such transaction
do not own at least 50% of the aggregate voting power represented by issued and outstanding shares of Common Stock of Company
or the Successor Entity (if other than Company), or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of Company to a third party, or (iii) a third party acquires or otherwise becomes the beneficial
owner (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the aggregate voting power represented by issued and outstanding
shares of Common Stock of Company, or (iv) that Company shall, directly or indirectly, including through subsidiaries, Affiliates
or otherwise, in one or more related transactions, allow any third party to be or become the beneficial owner (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender
offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of at least 50% of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock.

 

i)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

j)
“Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating
to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during
the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise
designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price determinations
relating to the Common Stock, any day on which the New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

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k)
“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal
securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New
York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market
on the electronic bulletin Board of Directors for such security during the period beginning at 9:30:01 a.m., New York time, and
ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any
of the market makers for such security as reported by the Principal Market. If the VWAP cannot be calculated for such security
on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually
determined by Company and the Holder. If Company and the Holder are unable to agree upon the fair market value of such security,
then such dispute shall be resolved in accordance with the procedures in Section 5(p). All such determinations shall be appropriately
adjusted for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.

 

Section
2. Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to Company (or such other
office or agency of Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of Company) of a duly executed facsimile copy (or e-mail attachment) of a notice of exercise in the form annexed
hereto as Exhibit A (a “Notice of Exercise”) and within three (3) Trading Days of the date said Notice
of Exercise is delivered to Company, Company shall have received payment of the aggregate Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a United States bank. No ink-original Notice of Exercise shall be
required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to Company
until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which
case, the Holder shall surrender this Warrant to Company for cancellation within three (3) Trading Days of the date the final
Notice of Exercise is delivered to Company. Partial exercises of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any
Notice of Exercise within one (1) Trading Day of receipt of such notice. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the
amount stated on the face hereof.

 

b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be equal to $0.75 per share,
subject to adjustment hereunder (the “Exercise Price”).

 

c)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. Within one (1) Trading Day of receipt of payment, Company shall have provided
instructions to the Transfer Agent for the issuance of the Warrant Shares. Warrant Shares purchased hereunder shall be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker or its designee’s balance
account with the DTC through its Deposit or Withdrawal at Custodian system (“DWAC”) if Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder pursuant to Rule 144,
and otherwise by physical delivery of a certificate, registered in Company’s share register in the name of the Holder or
its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is two (2) Trading Days after the later of (A) the delivery to Company
of the Notice of Exercise and (B) payment of the aggregate Exercise Price as set forth above (such date, the “Warrant
Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated
to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant
has been exercised, with payment to Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant
to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If Company fails for any reason to deliver to the
Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the
VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading
Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery
Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

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ii.
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder
a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant.

 

iii.
Rescission Rights. If Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to
Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available
to the Holder, if Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the
provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date (a “Delivery
Failure”), and if after such date the Holder is required by its broker to purchase (in an open market transaction or
otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale
by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1)
the number of Warrant Shares that Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have
been issued had Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence Company shall be required to pay the Holder $1,000. The Holder shall provide Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of Company, evidence of the amount of such loss. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to Company’s failure to timely deliver
shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, Company
shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

 

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vi.
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer
tax or other incidental expense in respect of the issuance of Warrant Shares, all of which taxes and expenses shall be paid by
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form, attached hereto as Exhibit B, duly
executed by the Holder and Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Warrant Shares.

 

vii.
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

viii.
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number
of Warrant Shares to be issued pursuant to the terms hereof, Company shall promptly issue to the Holder the number of Warrant
Shares that are not disputed and resolve such dispute in accordance with Section 5(p).

 

d)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s affiliates), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially
owned by the Holder or any of its affiliates and (ii) exercise or conversion of the unexercised or non-converted portion of any
other securities of Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as
set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance
with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that
Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the 1934 Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned
by the Holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliates) and of which portion
of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder. For
purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) Company’s most recent periodic or annual report filed with the
SEC, as the case may be, (B) a more recent public announcement by Company or (C) a more recent written notice by Company or the
Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, Company
shall within two (2) Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of Company, including this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise
of this Warrant. The Holder, upon not less than 61 days’ prior notice to Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(e), but not in excess of 9.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.
Any such increase or decrease will not be effective until the 61st day after such notice is delivered to Company. The
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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e)
Call Provision. If the VWAP for each of 30 consecutive Trading Days (the “Measurement Period”) exceeds
$2.00 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like, within one
(1) Trading Day of the end of such Measurement Period, call for cancellation of all or any portion of this Warrant for which a
Notice of Exercise has not yet been delivered (such right, a “Call”) for consideration equal to $.001 per Warrant
Share. To exercise this right, Company must deliver to the Holder an irrevocable written notice (a “Call Notice”),
indicating therein the portion of unexercised portion of this Warrant to which such notice applies. If the conditions set forth
below for such Call are satisfied from the period from the date of the Call Notice through and including the Call Date (as defined
below), then any portion of this Warrant subject to such Call Notice for which a Notice of Exercise shall not have been received
by the Call Date will be cancelled at 6:30 p.m. (New York City time) on the tenth Trading Day after the date the Call Notice is
received by the Holder (such date and time, the “Call Date”). Any unexercised portion of this Warrant to which
the Call Notice does not pertain will be unaffected by such Call Notice. In furtherance thereof, Company covenants and agrees
that it will honor all Notices of Exercise with respect to Warrant Shares subject to a Call Notice that are tendered through 6:30
p.m. (New York City time) on the Call Date.

 

f)
Registration Statement. For as long as the Warrant remains outstanding, Company covenants that it shall at all times maintain
one or more current and effective registration statements that the Holder may utilize for the resale of all Warrant Shares.

 

Section
3. Certain Adjustments.

 

a)
Stock Dividends and Splits. If Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by Company upon
exercise of this Warrant or any dividends issued by Company in connection with the Preferred Shares), (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares
of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of
capital stock of Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which
the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares
issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant
shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or re-classification.

 

b)
[Left intentionally blank]

 

c)
Other Events. In the event that Company (or any Subsidiary) shall take any action to which the provisions hereof are not
strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type
contemplated by the provisions of this Section 3 but not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then Company’s board
of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price so as to protect the
rights of the Holder, provided that no such adjustment pursuant to this Section 3(c) will increase the Exercise Price or decrease
the number of Warrant Shares as otherwise determined pursuant to this Section 3, provided further that if the Holder does not
accept such adjustments as appropriately protecting its interests hereunder against such dilution, then Company’s board
of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing
to make such appropriate adjustments, whose determination shall be final and binding absent manifest error. The fees and expenses
of such investment bank shall be borne by Company.

 

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d)
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant, with the prior written consent
of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board
of directors of Company.

 

e)
[Left intentionally blank]

 

f)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard
to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the
Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right
to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and
such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would
not result in the Holder exceeding the Beneficial Ownership Limitation).

 

g)
Pro Rata Distributions. During such time as this Warrant is outstanding, if Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

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h)
Fundamental Transaction. If, at any time while this Warrant is outstanding, Company effects a Fundamental Transaction,
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock
of the successor or acquiring corporation or of Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of
this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction,
at the request of the Holder delivered at any time commencing on the earliest to occur of (x) the public disclosure of any Fundamental
Transaction, (y) the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of any Fundamental Transaction
through the date that is ninety (90) days after the public disclosure of the consummation of such Fundamental Transaction by Company
pursuant to a Current Report on Form 8-K filed with the SEC, Company or the Successor Entity (as the case may be) shall purchase
this Warrant from the Holder on the date of such request by paying to the Holder cash in an amount equal to the Black Scholes
Value. The Company shall cause any successor entity in a Fundamental Transaction in which Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of Company under this Warrant and the other Transaction Documents
in accordance with the provisions of this Section 3(h) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the
option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares
of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable
upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction,
and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account
the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of
this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form
and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other
Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every
right and power of Company and shall assume all of the obligations of Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as Company herein.

 

i)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

j)
Notice to Holder.

 

i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, Company
shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.
Notice to Allow Exercise by Holder. If (A) Company shall declare a dividend (or any other distribution in whatever form)
on the Common Stock, (B) Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which Company is a party, any sale or transfer of
all or substantially all of the assets of Company, or any compulsory share exchange whereby the Common Stock is converted into
other securities, cash or property, (E) Company shall authorize the voluntary or involuntary dissolution, liquidation or winding
up of the affairs of Company, or (F) Company enters into an agreement with respect to a Fundamental Transaction, then, in each
case, Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of Company,
at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date
on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record
is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
Company or any of the Subsidiaries, Company shall simultaneously file such notice with the SEC pursuant to a Current Report on
Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to
the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	 	8	 

    	 

    

 

Section
4. Warrant Register.

 

a)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to
be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial
Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

b)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by Company for that purpose (the
“Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat
the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

c)
Transfer Restrictions. This Warrant may not be offered for sale, sold, transferred or assigned by Holder.

 

d)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section
5. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth
in Section 3.

 

b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next
succeeding Trading Day.

 

    	 	9	 

    	 

    

 

d)
Authorized Shares.

 

i.
From and after the Capital Event Increase Date, Company covenants that, during the remainder of the period this Warrant or any
portion hereof is outstanding, it will reserve from its authorized and unissued Common Stock, solely for the purpose of the exercise
of this Warrant, no less than 150% of such aggregate maximum number of Warrant Shares then issuable upon the exercise of this
Warrant (the “Required Reserve Amount”). The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise
of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Principal Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be
issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges created by Company in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

 

ii.
If, notwithstanding Section 5(d)(i) and not in limitation thereof, while this Warrant remain outstanding, Company does not have
a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve
Amount (an “Authorized Share Failure”), then Company shall immediately take all action necessary to increase Company’s
authorized shares of Common Stock to an amount sufficient to allow Company to reserve the Required Reserve Amount for all the
Warrants then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of
the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized
Share Failure, Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares
of Common Stock. In connection with such meeting, Company shall provide each stockholder with a proxy statement and shall use
its reasonable best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its board of directors to recommend to the stockholders that they approve such proposal. In the event that Company
is prohibited from issuing shares of Common Stock upon an exercise of this Warrant due to the failure by Company to have sufficient
shares of Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number of shares
of Common Stock, the “Authorization Failure Shares”), in lieu of delivering such Authorization Failure Shares
to the Holder, Company shall pay cash in exchange for the cancellation of such portion of this Warrant exercisable into such Authorized
Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorization Failure Shares and (y) the greatest
Closing Sale Price (as defined in the Certificate of Designations) of the Common Stock on any Trading Day during the period commencing
on the date the Holder delivers the applicable Notice of Exercise with respect to such Authorization Failure Shares to Company
and ending on the date of such issuance and payment under this Section 5(d); and (ii) to the extent the Holder purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorization
Failure Shares, any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.
In lieu of holding a meeting of stockholders, Company may take such action by consent of its stockholders by the above date in
compliance with the 1934 Act.

 

iii.
Except and to the extent as waived or consented to by the Holder, Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant and (iii) use reasonable best efforts to obtain all such authorizations, exemptions or consents from
any public regulatory body having jurisdiction thereof, as may be, necessary to enable Company to perform its obligations under
this Warrant.

 

    	 	10	 

    	 

    

 

iv.
Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable
or in the Exercise Price, Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the provisions of the Purchase Agreement.

 

f)
[Left intentionally blank]

 

g)
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Termination Date. If Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the Holder, Company shall pay to the Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

 

h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by Company
shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of Company, whether such liability is asserted by
Company or by creditors of Company.

 

j)
Remedies. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under
this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other
injunctive relief or ensuring performance of any obligation herein or preventing a breach of any obligation herein), and nothing
herein shall limit the right of the Holder to pursue actual and consequential damages for any failure by Company to comply with
the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument
other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the
like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided
herein, be subject to any other obligation of Company (or the performance thereof). The Company acknowledges that a breach by
it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be
inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant
shall be entitled, in addition to all other available remedies, to specific performance and an injunction restraining any breach,
without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide
all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm Company’s
compliance with the terms and conditions of this Warrant. The issuance of shares and certificates for shares as contemplated hereby
upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs
in respect thereof, provided that Company shall not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf. If (a) this
Warrant is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding
or the holder otherwise takes action to collect amounts due under this Warrant or to enforce the provisions of this Warrant or
(b) there occurs any bankruptcy, reorganization, receivership of Company or other proceedings affecting Company creditors’
rights and involving a claim under this Warrant, then Company shall pay the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without
limitation, attorneys’ fees and disbursements.

 

    	 	11	 

    	 

    

 

k)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)
Amendment. This Warrant (other than Section 2(e)) may be modified or amended or the provisions hereof waived with the written
consent of Company and the Majority Holders. The Holder shall be entitled, at its option, to the benefit of any amendment, modification
or waiver of (i) any other similar warrant issued under the Purchase Agreement or (ii) any other similar warrant. No consideration
(other than reimbursement of legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the
Transaction Documents. No waiver shall be effective unless it is in writing and signed by an authorized representative of the
waiving party.

 

m)
Severability. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

n)
Headings. This Warrant shall be deemed to be jointly drafted by Company and the Holder and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have
the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing
by the Holder.

 

o)
Governing Law. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State
of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware.
The Company hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to Company at the address set forth on its signature page to the Purchase 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 manner permitted by law. Nothing contained herein shall
be deemed or operate to preclude the Holder from bringing suit or taking other legal action against Company in any other jurisdiction
to collect on Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court ruling in favor of the Holder.

 

    	 	12	 

    	 

    

 

p)
DISPUTE RESOLUTION

 

i.
Submission to Dispute Resolution.

 

(A)
In the case of a dispute relating to the Exercise Price, the Closing Sale Price, the Bid Price, Black Scholes Value or fair market
value or the arithmetic calculation of the number of Warrant Shares (as the case may be) (including, without limitation, a dispute
relating to the determination of any of the foregoing), Company or the Holder (as the case may be) shall submit the dispute to
the other party via facsimile (A) if by Company, within two (2) Trading Days after the occurrence of the circumstances giving
rise to such dispute or (B) if by the Holder, at any time after the Holder learned of the circumstances giving rise to such dispute.
If the Holder and Company are unable to promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price,
such Bid Price, Black Scholes Value or such fair market value or such arithmetic calculation of the number of Warrant Shares (as
the case may be), at any time after the second (2nd) Trading Day following such initial notice by Company or the Holder
(as the case may be) of such dispute to Company or the Holder (as the case may be), then the Holder may, at its sole option, select
an independent, reputable investment bank to resolve such dispute.

 

(B)
The Holder and Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in
accordance with the first sentence of this Section 5(p) and (B) written documentation supporting its position with respect to
such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Trading Day immediately following
the date on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents
referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute
Documentation”) (it being understood and agreed that if either the Holder or Company fails to so deliver all of the Required
Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation
shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to
such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required
Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed
to in writing by both Company and the Holder or otherwise requested by such investment bank, neither Company nor the Holder shall
be entitled to deliver or submit any written documentation or other support to such investment bank in connection with such dispute
(other than the Required Dispute Documentation).

 

(C)
The Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify Company and
the Holder of such resolution no later than ten (10) Trading Days immediately following the Dispute Submission Deadline. Such
investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error. The fees
and expenses of such investment bank shall be borne by Company.

 

ii.
The Company expressly acknowledges and agrees that (i) this Section 5(p) constitutes an agreement to arbitrate between Company
and the Holder (and constitutes an arbitration agreement) under the rules then in effect under § 7501, et seq. of the New
York Civil Practice Law and Rules (“CPLR”) and that the Holder is authorized to apply for an order to compel
arbitration pursuant to CPLR §7503(a) in order to compel compliance with this Section 5(p), (ii) a dispute relating to the
Exercise Price includes, without limitation, disputes as to (A) whether an issuance or sale or deemed issuance or sale of Common
Stock occurred under Section 3(b), (B) the consideration per share at which an issuance or deemed issuance of Common Stock occurred,
(C) whether any issuance or sale or deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale
of Excluded Securities, (D) whether an agreement, instrument, security or the like constitutes an Option or Convertible Security
and (E) whether a Dilutive Issuance occurred, (iii) the terms of this Warrant and each other applicable Transaction Document shall
serve as the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be
entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines
are required to be made by such investment bank in connection with its resolution of such dispute (including, without limitation,
determining (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section 3(b), (B) the consideration
per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or sale or deemed issuance
or sale of Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities, (D) whether an agreement, instrument,
security or the like constitutes an Option or Convertible Security and (E) whether a Dilutive Issuance occurred) and in resolving
such dispute such investment bank shall apply such findings, determinations and the like to the terms of this Warrant and any
other applicable Transaction Documents, (iv) the Holder (and only the Holder), in its sole discretion, shall have the right to
submit any dispute described in this Section 5(p) to any state or federal court sitting in The City of New York, Borough of Manhattan
in lieu of utilizing the procedures set forth in this Section 5(p) and (v) nothing in this Section 5(p) shall limit the Holder
from obtaining specific performance or any other injunctive relief or other equitable remedies (including, without limitation,
with respect to any matters described in this Section 5(p)).

 

IN
WITNESS WHEREOF, Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the Initial
Exercise Date.

 

	 	CEMTREX, INC.
	 	 	         
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	13	 

    	 

    

 

EXHIBIT
A

 

CEMTREX,
INC.

EXERCISE
NOTICE

 

The
holder named below (“Holder”) hereby exercises the right to purchase shares of Common Stock (“Warrant
Shares”) of Cemtrex, Inc., a Delaware corporation (the “Company”), evidenced by the Common Stock
Purchase Warrant, dated March 22, 2019 (the “Warrant”). Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Warrant.

 

	 	Holder:	 	 

 

	 	Date
    of Exercise:	 	 

 

	 	Number
    of Warrant Shares to be Issued:	 	 

 

	 	Exercise
    Price: $	 	 

 

Payment
of Exercise Price. Holder shall pay the aggregate Exercise Price in the sum of $_______________ to Company in accordance with
the terms of the Warrant.

 

Please
issue the Warrant Shares into which the applicable Warrant is being exercised to Holder, or for its benefit, as follows:

 

	___	Check
    here if requesting delivery as a certificate to the following name and to the following address:

 

	 	Issue
    to:	 	 
	 	 	 	 
	 	 	 	 

 

	___	Check
    here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	 	DTC
    Participant:	 	 

 

	 	DTC
    Number:	 	 

 

	 	Account
    Number:	 	 

 

    	 	Exhibit A-1SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (“Agreement”) is made and entered into on March 22, 2019 (“Effective
Date”), by and between Cemtrex, Inc., a Delaware corporation (“Company”), and the investor
whose name appears on the signature page hereto (“Investor”).

 

Recitals

 

A.
The parties desire that, upon the terms and subject to the conditions herein, Investor will purchase $1 million in shares
of Series B Redeemable Convertible Preferred Stock of Company, which are convertible into Common Stock, and a Warrant; and

 

B.
The offer and sale of the Securities provided for herein are being made pursuant to a current and effective shelf Registration
Statement.

 

Agreement

 

In
consideration of the foregoing, the receipt and adequacy of which are hereby acknowledged, Company and Investor agree as follows:

 

I.
Definitions. In addition to the terms defined elsewhere in this Agreement and the Transaction Documents, capitalized
terms that are not otherwise defined have the meanings set forth in the Glossary of Defined Terms attached hereto as Exhibit
1.

 

II.
Purchase and Sale.

 

A.
Purchase Amount. Subject to the terms and conditions herein and the satisfaction of the conditions to Closing set forth
below, for an aggregate purchase price of $1,000,000.00 (“Purchase Amount”), Company hereby irrevocably agrees
to sell 2,100 Preferred Shares at $500.00 per share with a 5.0% original issue discount (OID) and a Warrant, all in accordance
with the terms, provisions, and schedule set forth in this Agreement and in the Transaction Documents.

 

B.
Deliveries. The following documents will be fully executed and delivered at the Closing:

 

1.
This Agreement;

 

2.
Certificate of Designations, in the form attached hereto as Exhibit 2;

 

3.
Transfer Agent Instructions, in the form attached hereto as Exhibit 3;

 

4.
Legal Opinion, in the form attached hereto as Exhibit 4;

 

5.
Officer’s Certificate, in the form attached hereto as Exhibit 5;

 

6.
Secretary’s Certificate, in the form attached hereto as Exhibit 6;

 

7.
Warrant, in the form attached hereto as Exhibit 7;

 

8.
Disclosure Schedule, attached hereto as Exhibit 8; and

 

9.
Transfer agent book entry in the name of Investor for 20,000 shares of Common Stock and 1,050 Preferred Shares.

 

    	 	 	 

    	 

    

 

C.
Closing Conditions. The consummation of the transactions contemplated by this Agreement (“Closing”) is
subject to the satisfaction of each of the following conditions:

 

1.
All documents, instruments and other writings required to be delivered by Company to Investor pursuant to any provision of
this Agreement or in order to implement and effect the transactions contemplated herein have been fully executed and delivered,
including without limitation those enumerated in Section II.B above;

 

2.
The Common Stock is listed for and currently trading on the same or higher Trading Market and Company is in compliance with
all requirements to maintain listing on the Trading Market, Company has received no notice of any suspension or delisting with
respect to the trading of the shares of Common Stock on such Trading Market, and Company is not aware of any current facts or
circumstances that, with the passage of time, would reasonably be expected to cause such disqualification;

 

3.
The representations and warranties of Company and Investor set forth in this Agreement are true and correct in all material
respects as if made on such date (except for representations and warranties expressly made as of a specified date, which will
be true as of such date);

 

4.
No material breach or default has occurred under any Transaction Document or any other agreement between Company and Investor;

 

5.
Company has the number of duly authorized shares of Common Stock reserved for issuance as required pursuant to the terms of
this Agreement;

 

6.
There is not then in effect any law, rule or regulation prohibiting or restricting the transactions contemplated in any Transaction
Document, or requiring any consent or approval which will not have been obtained, nor is there any completed, ongoing, pending,
threatened or, to Company’s knowledge, contemplated proceeding or investigation which may have the effect of prohibiting
or adversely affecting any of the transactions contemplated by this Agreement, including without limitation the sale, issuance,
listing, trading or resale of any Shares on the Trading Market; no statute, rule, regulation, executive order, decree, ruling
or injunction will have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction
that prohibits the transactions contemplated by this Agreement, and no actions, suits or proceedings will be completed, ongoing,
pending, threatened or, to Company’s knowledge, contemplated by any person other than Investor or any Affiliate of Investor,
that seek to enjoin or prohibit the transactions contemplated by this Agreement;

 

7.
Any rights of first refusal, preemptive rights, rights of participation, or any similar right to participate in the transactions
contemplated by this Agreement, if any, have been waived in writing; and

 

8.
The Registration Statement is current and effective.

 

D.
Closing. Immediately when all conditions set forth in Section II.C have been fully satisfied, Company will issue and
sell to Investor and Investor will purchase 1,050 Preferred Shares and the Warrant by payment to Company of $500,000.00
in cash, by wire transfer of immediately available funds to an account designated by Company.

 

E. Investor
Option.  At any time until 10 Trading Days after Approval, Investor may deliver written notice to Company of its
election to purchase up to an additional 1,050 Preferred Shares at $500.00 per share with a 5.0% OID for the sum of $500,000.00. 
Subject to the terms and conditions herein, immediately when all conditions in Section II.C have been fully satisfied as of such
date, Investor will purchase and make payment for the specified number of additional Preferred Shares by payment to Company in
cash, by wire transfer of immediately available funds to an account designated by Company, and Company will deliver to Purchaser
a certificate or Transfer Agent book entry for the number of purchased Preferred Shares in the name of Investor. 

 

III.
Representations and Warranties.

 

A.
Representations Regarding Transaction. Except as set forth under the corresponding section of the Disclosure Schedules,
if any, Company hereby represents and warrants to, and as applicable covenants with, Investor as of the Closing:

 

1.
Organization and Qualification. Company and each Subsidiary is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents, except as would not reasonably be expected to result in
a Material Adverse Effect. Each of Company and each Subsidiary is duly qualified to conduct business and is in good standing as
a foreign corporation or other entity 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, would
not reasonably be expected to result in a Material Adverse Effect and there is no completed, pending, threatened or, to the knowledge
of Company, contemplated proceeding in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

    	 	2	 

    	 

    

 

2.
Authorization; Enforcement. Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder.
The execution and delivery of each of the Transaction Documents by Company and the consummation by it of the transactions contemplated
hereby or thereby have been duly authorized by all necessary action on the part of Company and no further consent or action is
required by Company. Each of the Transaction Documents has been, or upon delivery will be, duly executed by Company and, when
delivered in accordance with the terms hereof, will constitute the valid and binding obligation of Company, enforceable against
Company in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (c)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

3.
No Conflicts. The execution, delivery and performance of the Transaction Documents by Company, the issuance and sale
of the Securities and the consummation by Company of the other transactions contemplated thereby do not and will not (a) conflict
with or violate any provision of Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or
other organizational or charter documents, (b) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of Company
or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any material agreement, credit facility, debt or other instrument (evidencing Company or Subsidiary
debt or otherwise) or other understanding to which Company or any Subsidiary is a party or by which any property or asset of Company
or any Subsidiary is bound or affected, (c) conflict with or result in a violation of any material law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which Company or a Subsidiary is subject
(including U.S. federal and state securities laws and regulations), or by which any property or asset of Company or a Subsidiary
is bound or affected, or (d) conflict with or violate the terms of any material agreement by which Company or any Subsidiary is
bound or to which any property or asset of Company or any Subsidiary is bound or affected; except in the case of each of clauses
(b), (c) and (d), such as would not reasonably be expected to result in a Material Adverse Effect.

 

4.
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation completed, ongoing,
pending, threatened or, to the knowledge of Company, contemplated against or affecting Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal,
state, county, local or foreign) (collectively, an “Action”), which would reasonably be expected to have a
Material Adverse Effect or challenge the legality, validity or enforceability of any of the Transaction Documents. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by Company or any
Subsidiary under the Exchange Act or the Act.

 

5.
Filings, Consents and Approvals. Neither Company nor any Subsidiary is required to obtain any consent, waiver, authorization
or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by Company of the Transaction Documents,
other than required federal and state securities filings, and such filings and approvals as are required to be made or obtained
under the applicable Trading Market rules in connection with the transactions contemplated hereby, each of which has been, or
if not yet required to be filed will be, timely filed.

 

6.
Issuance of Shares. The Conversion Shares and Warrant Shares will be duly authorized and, when issued upon the conversion
of the Preferred Shares or the exercise of the Warrant, respectively, in accordance with their respective terms, will be duly
and validly issued, fully paid and nonassessable, free and clear of all Liens except those created by the Investor.

 

    	 	3	 

    	 

    

 

7.
Disclosure; Non-Public Information. Company will timely file a Prospectus Supplement, and a current report on Form
8-K (“Current Report”) describing the material terms and conditions of this Agreement, a copy of which has
been provided to Investor prior to the Effective Date. There is no adverse material information regarding Company that has not
been disclosed to Investor prior to the Effective Date. All information that Company has provided to Investor that constitutes
or might constitute material, non-public information will be included in the Current Report. Notwithstanding any other provision,
except with respect to information that will be, and only to the extent that it actually is, timely publicly disclosed by Company
pursuant to the foregoing sentence, neither Company nor any other Person acting on its behalf has provided Investor or its representatives,
agents or attorneys with any information that constitutes or might constitute material, non-public information, including without
limitation this Agreement and the Exhibits and Disclosure Schedules hereto. No information contained in the Disclosure Schedules
constitutes material non-public information. Company understands and confirms that Investor will rely on the foregoing representations
and covenants in effecting transactions in securities of Company.

 

8.
No Integrated Offering. Neither Company, nor any of its Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering to be integrated with prior offerings by Company that cause a violation of the Act or any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of the Trading Market.

 

9.
Financial Condition. The Public Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness
of Company or any Subsidiary, or for which Company or any Subsidiary has commitments, and any material default with respect to
any Indebtedness. Company does not intend to incur debts beyond its ability to pay such debts as they mature, taking into account
the timing and amounts of cash to be payable on or in respect of its debt, and represents that it will not do so.

 

10.
Section 5 Compliance. All information provided to Investor regarding Company, its business and the transactions contemplated
hereby, including without limitation the Disclosure Schedules and the representations and warranties in this Agreement, and the
other statements made by Company in the Transaction Documents, do not contain any material untrue statement or omit to state a
material fact necessary to make any of them, in light of the circumstances in which it was made, not misleading. Company is not
aware of any facts or circumstances that would cause the transactions contemplated by the Transaction Documents, when consummated,
to violate Section 5 of the Act or other federal or state securities laws or regulations.

 

11.
Investment Company. Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Preferred
Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act
of 1940, as amended. Company will conduct its business in a manner so that it will not become subject to the Investment Company
Act.

 

12.
Acknowledgments Regarding Investor. Company’s decision to enter into this Agreement has been based solely on
the independent evaluation by Company and its representatives, and Company acknowledges and agrees that:

 

a.
Investor is not, has never been, and as a result of the transactions contemplated by the Transaction Documents will not become
an officer, director, insider or control person of Company, or to Company’s knowledge 10% or greater shareholder or otherwise
an affiliate of Company as defined under Rule 12b-2 of the Exchange Act;

 

b.
Investor and its representatives have not made and do not make any representations, warranties or agreements with respect
to the Securities, this Agreement, or the transactions contemplated hereby other than those specifically set forth in Section
III.C below; Company has not relied upon, and expressly disclaims reliance upon, any and all written or oral statements or
representations made by any persons prior to this Agreement;

 

    	 	4	 

    	 

    

 

c.
The conversion of Preferred Shares and resale of Conversion Shares will result in dilution, which may be substantial; the
number of Conversion Shares will increase in certain circumstances; and Company’s obligation to issue and deliver Conversion
Shares in accordance with this Agreement and the Preferred Shares are absolute and unconditional regardless of the dilutive effect
that such issuances may have; and

 

d.
Investor is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions
contemplated hereby; neither Investor nor any of its Affiliates, agents or representatives has or is acting as a legal, financial,
investment, accounting, tax or other advisor to Company, or fiduciary of Company, or in any similar capacity; neither Investor
nor any of its Affiliates, agents or representatives has provided any legal, financial, investment, accounting, tax or other advice
to Company; any statement made in connection with this Agreement or the transactions contemplated hereby is not advice or a recommendation,
and is merely incidental to Investor’s purchase of the Shares.

 

13.
No Bad Actor Disqualification. Neither Company, any predecessor of Company, any affiliate of Company, any director,
executive officer, other officer of Company participating in the offering, or any beneficial owner of 20% or more of Company’s
outstanding voting equity securities is subject to any bad actor disqualification as provided in Rule 506(d) of Regulation D,
and Company is not aware of any current facts or circumstances that, with the passage of time, would reasonably be expected to
cause such disqualification.

 

14.
Not a Shell. Company is not now, and has never been, a shell company as defined in Rule 12b-2 of the Exchange Act.

 

15.
Registration Statement. The Registration Statement is current and effective.

 

B.
Representations Regarding Company. Except as set forth in any Public Reports and attached exhibits, or under the corresponding
section of the Disclosure Schedules, if any, Company hereby represents and warrants to, and as applicable covenants with, Investor
as of the Closing:

 

1.
Capitalization. The capitalization of Company as of the Effective Date is as described in the Public Reports or Disclosure
Schedules. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents which has not been waived or satisfied. Except as a result of the
purchase and sale of the Securities, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving
any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements
by which Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or securities convertible
into or exercisable for shares of Common Stock. The issuance and sale of the Shares will not obligate Company to issue shares
of Common Stock or other securities to any Person, other than Investor, and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange, or reset price under such securities. All of the outstanding shares of
capital stock of Company are validly issued, fully paid and nonassessable, have been issued in material compliance with all federal
and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors of Company
or others is required for the issuance and sale of the Shares. There are no existing or contemplated subscription or investment
agreements, stockholder agreements, voting agreements or other similar agreements with respect to Company’s capital stock
to which Company is a party or, to the knowledge of Company, between or among any of Company’s stockholders.

 

2.
Subsidiaries. All of the direct and indirect subsidiaries of Company are set forth in the Public Reports or the corresponding
section of the Disclosure Schedules. Company owns, directly or indirectly, all of the capital stock or other equity interests
of each Subsidiary, and all of such directly or indirectly owned capital stock or other equity interests are owned free and clear
of any Liens. All the issued and outstanding shares of capital stock of each Subsidiary are duly authorized, validly issued, fully
paid, nonassessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

    	 	5	 

    	 

    

 

3.
Public Reports; Financial Statements. Company has filed all required Public Reports for the one year preceding the
Effective Date. As of their respective dates or as subsequently amended, the Public Reports complied in all material respects
with the requirements of the Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder,
as applicable, and none of the Public Reports, when filed and, as applicable, amended, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The financial statements of Company included in the Public
Reports, as amended, comply in all material respects with applicable accounting requirements and the rules and regulations of
the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with GAAP, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position
of Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for
the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

4.
Material Changes. Since the end of the most recent year for which an Annual Report on Form 10-K has been filed with
the Commission, (a) there has been no event, occurrence or development that has had, or that would reasonably be expected to result
in, a Material Adverse Effect, (b) Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice, and (ii) liabilities not required
to be reflected in Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the
Commission, (c) Company has not altered its method of accounting, (d) Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock, and (e) Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company equity incentive plans. Company does not have pending before the Commission any request for confidential treatment
of information.

 

5.
Litigation. There is no Action completed, ongoing, pending, threatened or, to the knowledge of Company, contemplated,
that would reasonably be expected to result in a Material Adverse Effect. Neither Company nor any Subsidiary, nor any current
director or officer thereof, nor to the knowledge of Company any former director or officer of Company, and greater than 5% shareholder
of Company, or any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, is not ongoing, pending
or threatened, and to the knowledge of Company is not contemplated, any investigation by the Commission or any law enforcement
agency involving Company or any current director or officer of Company, or to the knowledge of Company any former director or
officer of Company, and greater than 5% shareholder of Company, or any director or officer thereof.

 

6.
No Bankruptcy. The Company has not filed and, to Company’s knowledge no other Person has filed or commenced,
any petition or application, or any judicial or administrative proceeding commenced which has not been discharged, with respect
to Company or any Subsidiary or with respect to any of the properties or assets of Company or any Subsidiary under any applicable
law relating to bankruptcy, insolvency, reorganization, fraudulent transfer, compromise, arrangement of debt, creditors’
rights and no general assignment has been made by Company or any Subsidiary for the benefit of creditors.

 

7.
Labor Relations. No material labor dispute exists or, to the knowledge of Company, is imminent with respect to any
of the employees of Company, which would reasonably be expected to result in a Material Adverse Effect.

 

8.
Compliance. Neither Company nor any Subsidiary (a) is in material default under or in material violation of (and no
event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by Company or
any Subsidiary under), nor has Company or any Subsidiary received notice of a claim that it is in material default under or that
it is in material violation of, any indenture, loan or credit agreement or any other similar agreement or instrument to which
it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (b)
is in violation of any order of any court, arbitrator or governmental body, or (c) is or has been in violation of any statute,
rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable
to its business, except in each case as would not reasonably be expected to have a Material Adverse Effect.

 

    	 	6	 

    	 

    

 

9.
Regulatory Permits. Company and each Subsidiary possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the Public Reports, except where the failure to possess such permits would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Effect (“Material Permits”), and neither Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

10.
Title to Assets. Company and each Subsidiary have good and marketable title in fee simple to all real property owned
by them that is material to the business of Company and each Subsidiary and good and marketable title in all personal property
owned by them that is material to the business of Company and each Subsidiary, in each case free and clear of all Liens, except
for Liens that do not materially affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by Company and each Subsidiary and Liens for the payment of federal, state or other taxes, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by Company and each
Subsidiary are held by them under leases which, to Company’s knowledge, are valid, subsisting and enforceable leases and
as to which Company and each Subsidiary are in compliance, except where such noncompliance could not reasonably be expected to
have a Material Adverse Effect.

 

11.
Patents and Trademarks. Company and each Subsidiary have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary
or material for use in connection with their respective businesses as described in the Public Reports and which the failure to
so have would have a Material Adverse Effect (collectively, “Intellectual Property Rights”). Neither Company
nor any Subsidiary has received a written notice that the Intellectual Property Rights used by Company or any Subsidiary violates
or infringes upon the rights of any Person. To the knowledge of Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the Intellectual Property Rights of Company or each Subsidiary.

 

12.
Insurance. Company and each Subsidiary are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which Company and each Subsidiary are engaged,
including but not limited to directors and officers insurance coverage at least equal to the Purchase Amount. To Company’s
knowledge, such insurance contracts and policies are in full force and complete in all material respects. Neither Company nor
any Subsidiary 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 without an increase in
cost that would constitute a Material Adverse Effect.

 

13.
[Left intentionally blank].

 

14.
Sarbanes-Oxley; Internal Accounting Controls. Company is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002, which are applicable to it as of the date of the Closing. Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the effectiveness of Company’s disclosure controls
and procedures based on their evaluations as of the evaluation date. Since the date of the most recently filed Public Report,
there have been no significant changes in Company’s internal accounting controls or its disclosure controls and procedures
or, to Company’s knowledge, in other factors that could materially affect Company’s internal accounting controls or
its disclosure controls and procedures.

 

15.
[Left intentionally blank].

 

16.
Registration Rights. No Person has any right to cause Company to effect the registration under the Act of any securities
of Company.

 

    	 	7	 

    	 

    

 

17.
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12 of the Exchange Act, and
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has Company received any notification that the Commission is contemplating terminating
such registration. Company has not, in the 12 months preceding the Effective Date, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that Company is not in compliance with the listing or maintenance
requirements of such Trading Market. Company is, and has no reason to believe that it will not in the foreseeable future continue
to be, in compliance with all listing and maintenance requirements of the Trading Market on which the Common Stock is currently
quoted.

 

18.
Application of Takeover Protections. Company and its Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under Company’s Certificate of Incorporation (or similar charter
documents) or the laws of its state of incorporation that is or could become applicable to Investor as a result of Investor and
Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
Company’s issuance of the Shares and Investor’s ownership of the Shares.

 

19.
Tax Status. Company and each of its Subsidiaries has made or filed all federal, state and foreign 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
Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes). Company has not executed a waiver with respect to the statute of limitations relating to the assessment or
collection of any foreign, federal, statute or local tax. None of Company’s tax returns is presently being audited by any
taxing authority.

 

20.
Foreign Corrupt Practices. Neither Company, nor to the knowledge of Company, any agent or other person acting on behalf
of Company, has (a) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (b) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) failed to disclose fully any
contribution made by Company, or made by any person acting on its behalf of which Company is aware, which is in violation of law,
or (d) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

21.
Accountants. Company’s accountants are set forth in the Public Reports and such accountants are an independent
registered public accounting firm.

 

22.
No Disagreements with Accountants or Lawyers. There are no material disagreements presently existing, or reasonably
anticipated by Company to arise, between Company and the accountants or lawyers formerly or presently employed by Company.

 

23.
Powers of Attorney. There are no outstanding powers of attorney executed on behalf of Company or any Subsidiary.

 

24.
Computer and Technology Security. Company has taken reasonable steps to safeguard the information technology systems
utilized in the operation of the business of Company, including the implementation of procedures designed to minimize the risk
that such information technology systems have any disabling codes or instructions, timer, copy protection device, clock, counter
or other limiting design or routing and any back door, virus, malicious code or other software routines or hardware components
that in each case permit unauthorized access or the unauthorized disablement or unauthorized erasure of data or other software
by a third party, and, to Company’s knowledge, to date there have been no successful unauthorized intrusions or breaches
of the security of its information technology systems.

 

    	 	8	 

    	 

    

 

25.
Data Privacy. Company has: (a) complied with, and is presently in compliance in all material respects with, all applicable
laws in connection with data privacy, information security, data security and/or personal information; (b) complied in all material
respects with, and is presently in material compliance with, its policies and procedures applicable to data privacy, information
security, data security, and personal information; (c) not experienced any material incident in which personal information or
other sensitive data was or may have been stolen or improperly accessed; and Company is not aware of any facts suggesting the
likelihood of the foregoing, including without limitation, any breach of security or receipt of any notices or complaints from
any Person regarding personal information or other data.

 

C.
Representations and Warranties of Investor. Investor hereby represents and warrants to Company as of the Closing as
follows:

 

1.
Organization; Authority. Investor is an entity validly existing and in good standing under the laws of the jurisdiction
of its organization with full right, company power and authority to enter into and to consummate the transactions contemplated
by the Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by
Investor of the transactions contemplated by this Agreement have been duly authorized by all necessary company or similar action
on the part of Investor. Each Transaction Document to which it is a party has been, or will be, duly executed by Investor, and
when delivered by Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of Investor,
enforceable against it in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies,
and (c) insofar as indemnification and contribution provisions may be limited by applicable law.

 

2.
Investor Status. At the time Investor was offered the Shares, it was, and at the Effective Date it is: (a) an accredited
investor as defined in Rule 501(a) under the Act; and (b) not a registered broker-dealer, member of FINRA, or an affiliate thereof.

 

3.
Experience of Investor. Investor, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Investor is able to bear the economic risk of
an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

4.
Ownership. Investor is acquiring the Preferred Shares and Warrant as principal for its own account.

 

5.
No Short Sales. Neither Investor nor any Affiliate holds any short position in, nor has engaged in any Short Sales
of the Common Stock, or engaged in any hedging transactions with regard to the Shares prior to the Effective Date.

 

IV.
Securities and Other Provisions.

 

A.
Investor Due Diligence. Investor will have the right and opportunity to conduct customary due diligence with respect
to any Registration Statement or Prospectus in which the name of Investor or any Affiliate of Investor appears.

 

B.
Furnishing of Information. As long as Investor owns any Securities, Company will timely file all reports required to
be filed by Company after the Effective Date pursuant to the Exchange Act. As long as Investor owns any Securities, Company will
prepare and make publicly available such information as is required for Investor to sell its Conversion Shares under Rule 144.
Company further covenants that, as long as Investor owns any Securities, Company will take such further action as Investor may
reasonably request, all to the extent required from time to time to enable Investor to sell its Conversion Shares without registration
under the Act within the limitation of the exemptions provided by Rule 144.

 

C.
Integration. Company will not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security, as defined in Section 2 of the Act, that would be integrated with the offer or sale of the Securities to Investor for
purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing
of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

    	 	9	 

    	 

    

 

D.
Disclosure and Publicity. Company will provide to Investor, for review and approval prior to filing or issuing, that
portion of any current, periodic or public report, registration statement, press release, public statement or communication relating
to or referencing Investor, any Transaction Documents or the transactions contemplated thereby, any such approval not to be unreasonably
withheld.

 

E.
Shareholders Rights Plan. No claim will be made or enforced by Company or, to the knowledge of Company, any other Person
that Investor is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect
or hereafter adopted by Company, or that Investor could be deemed to trigger the provisions of any such plan or arrangement, in
either such case, by virtue of receiving Shares under the Transaction Documents or under any other agreement between Company and
Investor. Company will conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940,
as amended.

 

F.
No Non-Public Information. Company covenants and agrees that neither it nor any other Person acting on its behalf will,
provide Investor or its agents or counsel with any information that Company believes or reasonably should believe will constitute
material non-public information after Closing. On and after Closing, neither Investor nor any Affiliate of Investor will have
any duty of trust or confidence that is owed directly, indirectly, or derivatively, to Company or the stockholders of Company,
or to any other Person who is the source of material non-public information regarding Company. Company understands and confirms
that Investor will be relying on the foregoing in effecting transactions in securities of Company, including without limitation
sales of the Shares.

 

G.
Indemnification of Investor.

 

1.
Obligation to Indemnify. Subject to the provisions of this Section IV.G, Company will indemnify and hold Investor,
its Affiliates, managers and advisors, and each of their officers, directors, shareholders, partners, employees, representatives,
agents and attorneys, and any person who controls Investor within the meaning of Section 15 of the Act or Section 20 of the Exchange
Act (collectively, “Investor Parties” and each a “Investor Party”), harmless from any and
all losses, liabilities, obligations, claims, contingencies, damages, reasonable costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”)
that any Investor Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties,
covenants or agreements made by Company in this Agreement or in the other Transaction Documents, (b) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement, Prospectus, Prospectus Supplement, or any information
incorporated by reference therein, or arising out of or based upon any omission or alleged omission to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (c)
any action by a creditor or stockholder of Company who is not an Affiliate of an Investor Party, challenging the transactions
contemplated by the Transaction Documents; provided, however, that Company will not be obligated to indemnify any Investor Party
for any Losses finally adjudicated to be caused solely by (i) a false statement of material fact contained within written information
provided by such Investor Party expressly for the purpose of including it in the applicable Registration Statement, Prospectus,
Prospectus Supplement, or (ii) such Investor Party’s unexcused material breach of an express provision of this Agreement
or another Transaction Document willful misconduct or violation of applicable law.

 

2.
Procedure for Indemnification. If any action will be brought against an Investor Party in respect of which indemnity
may be sought pursuant to this Agreement, such Investor Party will promptly notify Company in writing, and Company will have the
right to assume the defense thereof with counsel of its own choosing. Investor Parties will have the right to employ separate
counsel in any such action and participate in the defense thereof, but the reasonable fees and expenses of such counsel will be
at the expense of Investor Parties except to the extent that (a) the employment thereof has been specifically authorized by Company
in writing, (b) Company has failed after a reasonable period of time to assume such defense and to employ counsel or (c) in such
action there is, in the reasonable opinion of such separate counsel, a material conflict with respect to the dispute in question
on any material issue between the position of Company and the position of Investor Parties such that it would be inappropriate
for one counsel to represent Company and Investor Parties. Company will not be liable to Investor Parties under this Agreement
(i) for any settlement by an Investor Party effected without Company’s prior written consent, which will not be unreasonably
withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is either attributable
to Investor’s breach of any of the representations, warranties, covenants or agreements made by Investor in this Agreement
or in the other Transaction Documents. In no event will Company be liable for the reasonable fees and expenses for more than one
separate firm of attorneys (plus local counsel as applicable) to represent all Investor Parties.

 

    	 	10	 

    	 

    

 

3.
Other than the liability of Investor to Company for uncured material breach of the express provisions of this Agreement, no
Investor Party will have any liability to Company or any Person asserting claims on behalf of or in right of Company as a result
of acquiring the Securities under this Agreement.

 

H.
Reservation of Shares. Company has reserved from its duly authorized Common Stock for issuance pursuant to the Transaction
Documents authorized shares of Common Stock in the amount required by the Transaction Documents and will at all times maintain
a reserve equal to 5 times the number of shares sufficient to immediately issue all Conversion Shares potentially issuable at
such time, free from preemptive rights (the “Reserved Amount”). The Reserved Amount will, if necessary, be
increased from time to time in accordance with Company’s obligations hereunder. In addition, if Company shall issue any
securities or make any change to its capital structure which would change the number of shares of Common Stock into which the
Preferred Shares shall be convertible at the then current Conversion Price, Company will at the same time make proper provision
so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive
rights, for conversion of the outstanding Preferred Shares. Company (i) acknowledges that it has irrevocably instructed its transfer
agent to issue certificates for the Common Stock issuable upon conversion of the Preferred Shares, and agrees that its issuance
of the Preferred Shares will constitute full authority to its officers and agents who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions
of the Preferred Shares.

 

I.
Activity Restrictions. For so long as Investor or any of its Affiliates holds any Shares, neither Investor nor any
Affiliate will: (1) vote any shares of Common Stock owned or controlled by it, sign or solicit any proxies, attend or be present
at a shareholder meeting for purposes of determining a quorum, or seek to advise or influence any Person with respect to any voting
securities of Company, except in accordance with the recommendation of Company’s board of directors; (2) engage or participate
in any actions, plans or proposals which relate to or would result in (a) acquiring additional securities of Company, alone or
together with any other Person, which would result in beneficially owning or controlling more than 9.99% of the total outstanding
Common Stock or other voting securities of Company, (b) an extraordinary corporate transaction, such as a merger, reorganization
or liquidation, involving Company or any of its Subsidiaries, (c) a sale or transfer of a material amount of assets of Company
or any of its Subsidiaries, (d) any change in the present board of directors or management of Company, including any plans or
proposals to change the number or term of directors or to fill any existing vacancies on the board, (e) any material change in
the present capitalization or dividend policy of Company, (f) any other material change in Company’s business or corporate
structure, including but not limited to, if Company is a registered closed-end investment company, any plans or proposals to make
any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940, (g) changes
in Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control
of Company by any Person, (h) a class of securities of Company being delisted from a national securities exchange or to cease
to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association, (i) a class
of equity securities of Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act, or
(j) any action, intention, plan or arrangement similar to any of those enumerated above; or (3) request Company or its directors,
officers, employees, agents or representatives to amend or waive any provision of this section.

 

J.
No Shorting. For so long as Investor holds any Securities, neither Investor nor any of its Affiliates will engage in
or effect, directly or indirectly, any Short Sale of Common Stock. For the avoidance of doubt, selling against delivery of Conversion
Shares after delivery of a Conversion Notice is not a Short Sale. There will be no restriction or limitation of any kind on Investor’s
right or ability to sell or transfer any or all of the Conversion Shares at any time, in its sole and absolute discretion. Investor
may not sell, transfer or assign the Preferred Shares or any of its rights under this Agreement.

 

    	 	11	 

    	 

    

 

K.
Stock Splits. If Company at any time on or after the Effective Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) or combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater or lesser number of shares, the share numbers, prices and other amounts set forth in this
Agreement, as in effect immediately prior to such subdivision or combination, will be proportionately reduced or increased, as
applicable, effective at the close of business on the date the subdivision or combination becomes effective.

 

L.
Subsequent Financings.

 

1.
As long as Investor holds Series B Preferred Stock, Company will not enter into any agreement that in any way restricts its
ability to enter into any agreement, amendment or waiver with Investor, including without limitation any agreement to offer, sell
or issue to Investor Common Stock in conversion to Series B Preferred Stock.

 

2.
Until Approval has been obtained, Company will not agree or enter into any equity or convertible financing pursuant to which
shares of Common Stock or Common Stock equivalents may effectively be issued at a variable price or where the price or number
of shares are subject to any type of variability or reset feature. Provided, however, that Company may enter into any transaction:
(a) with Investor, (b) for unregistered, non-convertible debt, (c) for restricted stock with no registration rights, (d) for Common
Stock at a fixed price above the Market Price, (e) reasonably equivalent value given as consideration for a strategic acquisition,
or (f) that includes an immediate, unconditional offer to Investor to purchase the Preferred Shares by wire transfer of immediately
available funds in the amount of 150% of the then outstanding Liquidation Value.

 

M.
Principal Market.

 

1.
Company will promptly submit any necessary notification and supporting documentation required for the listing of all possible
Conversion Shares with Nasdaq and will use its commercially reasonable best efforts to obtain approval to list the Conversion
Shares as soon as practicable.

 

2.
Company may not issue a number of Conversion Shares in excess of 19.99% of its total outstanding common shares immediately
prior to the Effective Date without obtaining shareholder approval or a waiver of applicable Nasdaq rules.

 

3.
Company will file an information or proxy statement and use its commercially reasonable best efforts to obtain stockholder
approval of this Agreement and the issuance of all Conversion Shares in accordance with the requirements of Nasdaq rules (“Approval”)
as soon as practicable after the Effective Date. Company, its board of directors, and each of its directors will vote all proxies
given to them in favor of Approval.

 

N.
Default.

 

1.
Events of Default. Company shall, be in default under this Agreement upon the happening of any of the following events
or conditions (each, an “Event of Default”): (a) a failure to pay any amount due under the Preferred Shares,
this Agreement or any Transaction Document within 5 business days of the date the same is due; (b) the failure by Company to perform
any of its other obligations under the Preferred Shares, this Agreement or any Transaction Document within 10 business days of
notice from Investor of the same; (c) falsity, inaccuracy or material breach by Company of any written warranty, representation
or statement made or furnished to Investor by or on behalf of Company; or (d) the occurrence of any 3 or more Trigger Events under
the Preferred Shares.

 

2.
Remedies. Upon the occurrence of any Event of Default and at any time thereafter, Investor, after 5 days’ notice,
may declare all Obligations hereby immediately due and payable and shall have, in addition to any remedies provided herein, all
remedies under any applicable law or in equity.

 

    	 	12	 

    	 

    

 

O.
Preservation of Rights. No delay or omission on Investor’s part to exercise any right or power arising hereunder
will impair any such right or power or be considered a waiver of any such right or power, nor will Investor’s action or
inaction impair any such right or power. Investor ‘s rights and remedies hereunder are cumulative and not exclusive of any
other rights or remedies which Investor may have under other agreements, at law or in equity.

 

V.
Conversion of Preferred Shares.

 

A.
Conversion.

 

1.
Mechanics of Conversion.

 

a.
All or any portion of the shares of Series B Preferred Stock may be converted into shares of Common Stock, at any time or
times after the Issuance Date, in the sole and absolute discretion of Investor or, subject to the terms and conditions hereof,
Company; (i) if at the option of Investor, by delivery of one or more written notices to Company (via email) and its transfer
agent (each, a “Investor Conversion Notice”), of the Investor’s election to convert any or all of Investor’s
shares of Series B Preferred Stock or (ii) if at the option of Company, if the Equity Conditions are met, delivery of written
notice to Investor (each, a “Company Conversion Notice” and, with the Investor Conversion Notice, each a “Conversion
Notice”), of Company’s election to convert all of any portion of Investor’s shares of Series B Preferred
Stock.

 

b.
Each Delivery Notice (as defined below) will set forth the number of Preferred Shares being converted, the Liquidation Value
and the minimum number of Conversion Shares and the amount of Accruals and Conversion Premium due as of the time the Delivery
Notice is given (the “Notice Time”), and the calculation thereof.

 

c.
As soon as practicable, and in any event within 1 Trading Day after the Notice Date, time being of the essence, Company will
do all of the following: (i) transmit the Delivery Notice by facsimile or electronic mail to Company’s transfer agent (the
“Transfer Agent”), copying Investor, with instructions to immediately comply with the Delivery Notice and deliver
the number of Conversion Shares stated in the Delivery Notice forthwith; (ii) either (A) if Company is approved through The Depository
Trust Company (“DTC”), authorize and instruct the credit by the Transfer Agent of the number of Conversion
Shares set forth in the Delivery Notice, to Investor’s or its designee’s balance account with the DTC Fast Automated
Securities Transfer (FAST) Program, through its Deposit/Withdrawal at Custodian (DWAC) system, or (B) only if Company is not approved
through DTC, issue and surrender to a common carrier for overnight delivery to the address as specified in the Delivery Notice
a certificate bearing no restrictive legend, registered in the name of Investor or its designee, for the number of Conversion
Shares set forth in the Delivery Notice; and (iii) if it contends that the Delivery Notice is in any way incorrect, so notify
Investor and provide a thorough written explanation and its own calculation, or the Delivery Notice and the calculations therein
will conclusively be deemed correct for all purposes. The Company will at all times diligently take or cause to be taken all actions
necessary to cause the Conversion Shares to be issued forthwith. If the Conversion Shares are not registered for resale, Investor
will provide a legal opinion that they are exempt from registration. Under no circumstances will Company issue a share certificate
bearing a restrictive legend.

 

d.
If during or at the end of the Measuring Period the Investor is entitled to receive additional Conversion Shares with regard
to an Initial Notice, Investor may at any time deliver one or more additional written notices to Company or its transfer agent
(each, an “Additional Notice” and with the Initial Notice, each a “Delivery Notice”) setting
forth the additional number of Conversion Shares to be delivered, and the calculation thereof.

 

e.
If Company for any reason does not issue or cause to be issued to the Investor within 2 Trading Days (T+2) after the date
of a Delivery Notice, the number of Conversion Shares stated in the Delivery Notice, then, in addition to all other remedies available
to the Investor, as liquidated damages and not as a penalty, Company will pay in cash to the Investor on each day after such 2nd
Trading Day that the issuance of such Conversion Shares is not timely effected an amount equal to 2% of the product of (i) the
aggregate number of Conversion Shares not issued to the Investor on a timely basis and to which the Investor is entitled and (ii)
the highest Closing Price of the Common Stock between the date on which Company should have issued such shares to the Investor
and the actual date of receipt of Conversion Shares by Investor. It is intended that the foregoing will serve to reasonably compensate
Investor for any delay in delivery of Conversion Shares, and not as punishment for any breach by Company. The Company acknowledges
that the actual damages likely to result from delay in delivery are difficult to estimate and would be difficult for Investor
to prove.

 

    	 	13	 

    	 

    

 

f.
Notwithstanding any other provision of any Transaction Document: all of the requirements of this Section V.A are each
independent covenants; Company’s obligations to issue and deliver Conversion Shares upon any Delivery Notice are absolute,
unconditional and irrevocable; any breach or alleged breach of any representation or agreement, or any violation or alleged violation
of any law or regulation, by any party or any other person will not excuse full and timely performance of any of Company’s
obligations under these sections; and under no circumstances may Company seek or obtain any temporary, interim or preliminary
injunctive or equitable relief to prevent or interfere with any issuance of Conversion Shares to Investor.

 

g.
Company acknowledges and agrees that monetary damages would be difficult to quantify and prove, and that Investor would not
have an adequate remedy at law for any failure to fully perform under this Section V. If for any reason whatsoever Investor
does not timely receive the number of Conversion Shares stated in any Delivery Notice, Investor will be entitled to a compulsory
remedy of immediate specific performance, temporary, interim and, preliminary and final injunctive relief requiring Company and
its transfer agent, attorneys, officers and directors to immediately issue and deliver the number of Conversion Shares stated
by Investor, which requirement will not be stayed for any reason, without the necessity of posting any bond, and which Company
may not seek to stay or appeal.

 

h.
No fractional shares of Common Stock are to be issued upon conversion of this Certificate of Designations, but rather Company
will round up to the nearest full share. Investor will not be required to deliver any original certificate reflecting the Series
B Preferred Stock in order to effect a conversion hereunder. Company will pay any and all taxes which may be payable by Company,
with respect to the issuance and delivery of any Conversion Shares.

 

2.
Investor Conversion. In the event of a conversion of any number of shares of Series B Preferred Stock pursuant to an
Investor Conversion Notice, Company will (a) satisfy the payment of Accruals and Conversion Premium as provided in Section I.C.2
of the Certificate of Designations, and (b) issue to the Investor of the shares of Series B Preferred Stock a number of
Conversion Shares equal to the Face Value divided by the applicable Conversion Price with respect to the number of shares of Series
B Preferred Stock converted; all in accordance with the procedures set forth in this Section V.

 

3.
Company Conversion. The Company will have the right to send Investor a Company Conversion Notice at any time in its
sole and absolute discretion, if the Equity Conditions are met as of the time such Company Conversion Notice is given. Upon any
conversion of any number of shares of Series B Preferred Stock pursuant to a Company Conversion Notice, Company will on the date
of such notice (a) satisfy the payment of Accruals and Conversion Premium as provided in Section I.C.2 of the Certificate of Designations,
and (b) issue to the Holder of the shares of Series B Preferred Stock a number of Conversion Shares equal to the Face Value divided
by the applicable Conversion Price with respect to the number of shares of Series B Preferred Stock converted; all in accordance
with the procedures set forth in this Section V.

 

4.
Approval. Notwithstanding any other provision, if Company is unable to deliver any Conversion Shares because it has
not obtained Approval as provided in Section IV.M, Company will immediately pay the Liquidation Value, Accruals and Conversion
Premium set forth in the Delivery Notice to Investor in cash by wire transfer of immediately available funds.

 

    	 	14	 

    	 

    

 

B.
Trigger Events.

 

1.
Any occurrence of any one or more of the following, at any time and for any reason whatsoever, will constitute a “Trigger
Event”:

 

a.
Holder does not timely receive the number of Conversion Shares stated in any Conversion Notice, time being of the essence;
or Holder does not timely receive the number of Warrant Shares stated in any Exercise Notice, time being of the essence

 

b.
The issuance of restricted shares if Holder provides a legal opinion that shares may be issued without restrictive legend,
or the issuance of a certificate if Holder requests electronic delivery via DTC;

 

c.
Any violation of or failure to timely perform any covenant or provision of this Certificate of Designations, the Securities
Purchase Agreement, or any Transaction Document, related to payment of cash, registration, authorization, reservation, issuance
or delivery of Conversion Shares or Warrant Shares, time being of the essence;

 

d.
Any violation of or failure to perform any covenant or provision of this Certificate of Designations, the Securities Purchase
Agreement, the Warrant, or any Transaction Document, which in the case of a default that is curable, is not related to payment
of cash, registration, reservation or delivery of Conversion Shares, and has not occurred before, is not cured within 5 Trading
Days of written notice thereof;

 

e.
Any representation or warranty made in the Securities Purchase Agreement or any Transaction Document is untrue or incorrect
in any respect as of the date when made or deemed made;

 

f.
The occurrence of any default or event of default under any material agreement, lease, document or instrument to which Company
or any subsidiary is obligated, including without limitation of an aggregate of at least $250,000 of indebtedness, not disclosed
in the Disclosure Schedules;

 

g.
While any Registration Statement is required to be maintained effective pursuant to any Transaction Document, the effectiveness
of the Registration Statement lapses for any reason, including, due to no fault of Company, without limitation, the issuance of
a stop order, or the Registration Statement, or the prospectus contained therein, is unavailable to Holder sale of all Conversion
Shares and all Warrant Shares for any 5 or more Trading Days, which may be non-consecutive;

 

h.
The suspension from trading or the failure of the Common Stock to be trading or listed on the Trading Market, or failure to
meet the requirements for continued listing on the Trading Market;

 

i.
The Company’s notice, written or oral, to Holder, including without limitation, by way of public announcement or through
any of its attorneys, agents, or representatives, of its intention not to comply, as required, with a Conversion Notice at any
time, including without limitation any objection or instruction to its transfer agent not to comply with any notice from Holder;

 

j.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be
instituted by or against Company or any subsidiary and, if instituted against Company or any subsidiary by a third party, an order
for relief is entered or the proceedings are not dismissed within 30 days of their initiation;

 

k.
The appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, or other similar official
of Company or any subsidiary or of any substantial part of its property, or the making by it of an assignment for the benefit
of creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding,
or the admission by it in writing of its inability to pay its debts generally as they become due, the taking of corporate action
by Company or any Subsidiary in furtherance of any such action or the taking of any action by any person to commence a foreclosure
sale or any other similar action under any applicable law;

 

l.
A judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against Company or any of
its subsidiaries and are not stayed or satisfied within 30 days of entry;

 

    	 	15	 

    	 

    

 

m.
The Company does not for any reason timely comply with any applicable reporting requirement of the Securities Exchange Act
of 1934, as amended, and the regulations promulgated thereunder, including without limitation timely filing when first due all
public reports and filings;

 

n.
Any regulatory, administrative or enforcement proceeding is initiated against Company or any subsidiary (except to the extent
an adverse determination would not have a material adverse effect on Company’s business, properties, assets, financial condition
or results of operations or prevent the performance by Company of any material obligation under the Transaction Documents);

 

o.
Any material provision of this Certificate of Designations is at any time for any reason, other than pursuant to the express
terms thereof, cease to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability
thereof shall be contested by any party thereto, or a proceeding shall be commenced by Company or any subsidiary or any governmental
authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or Company or
any subsidiary denies that it has any liability or obligation purported to be created under this Certificate of Designations;
or

 

p.
The failure of one or more Equity Conditions other than (v).

 

2.
It is intended that all adjustments made following a Trigger Event will serve to reasonably compensate Holder for the change
in circumstances, potential consequences and increased risk in light of the occurrence of a Trigger Event, and not as a penalty
or punishment for any breach by Company. The Company acknowledges that the actual damages likely to result from a Trigger Event
are difficult to estimate and would be difficult for Holder to prove.

 

VI.
General Provisions.

 

A.
Notice. Unless a different time of day or method of delivery is specifically provided in the Transaction Documents,
any and all notices or other communications or deliveries required or permitted to be provided hereunder will be in writing and
will be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or electronic mail prior to 5:00 p.m. New York time on a Trading Day and an electronic confirmation of delivery
is received by the sender, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered
later than 5:00 p.m. New York time or on a day that is not a Trading Day, (c) the next Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given. The addresses for such notices and communications are such other address as may be designated in writing,
in the same manner, by such Person.

 

B.
Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed,
in the case of an amendment, by Company and Investor or, in the case of a waiver, by the party against whom enforcement of any
such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement will
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor will any delay or omission of either party to exercise any right hereunder in any manner impair the
exercise of any such right.

 

C.
No Third-Party Beneficiaries. Except as otherwise set forth in Section IV.G, this Agreement and the Transaction Documents
will inure solely to the benefit of the parties hereto, and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person. Other than the Investor Parties described in Section IV.G, a Person who is not a party to this Agreement
shall not have any rights to enforce any term of this Agreement or any Transaction Document.

 

D.
Fees and Expenses. Company has paid a flat rate documentation fee of $5,000 to Investor in connection with drafting
this Agreement and the other Transaction Documents. Except as otherwise provided in this Agreement, each party will pay the fees
and expenses of its own 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 the Transaction Documents. Company acknowledges
and agrees that Investor’s counsel solely represents Investor, and does not represent Company or its interests in connection
with the Transaction Documents or the transactions contemplated thereby. Company will pay all stamp and other taxes and duties,
if any, levied in connection with the sale or issuance of the Shares to Investor.

 

    	 	16	 

    	 

    

 

E.
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement will not in any way be affected or impaired thereby
and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, will incorporate such substitute provision in this Agreement.

 

F.
Replacement of Certificates. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed,
Company will issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to Company of such loss,
theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances will also pay any reasonable third-party costs associated with the issuance of such replacement certificates.

 

G.
Governing Law. All matters between the parties, including without limitation questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents will be governed by and construed and enforced in accordance
with the laws of the U.S. Virgin Islands, without regard to the principles of conflicts of law that would require or permit the
application of the laws of any other jurisdiction, except for corporation law matters applicable to Company which will be governed
by the corporate law of its jurisdiction of formation. The parties hereby waive all rights to a trial by jury. In any action,
arbitration or proceeding, including appeal, arising out of or relating to any of the Transaction Documents or otherwise involving
the parties, the prevailing party will be awarded its reasonable attorneys’ fees and other costs and expenses reasonably
incurred in connection with the investigation, preparation, prosecution or defense of such action or proceeding.

 

H.
Arbitration. Any dispute, controversy, claim or action of any kind arising out of, relating to, or in connection with
this Agreement, or in any way involving Company and Investor or their respective Affiliates, including any issues of arbitrability,
will be resolved solely by final and binding arbitration in English before a retired judge at JAMS, or its successor, in the Territory
of the Virgin Islands, pursuant to the most expedited and Streamlined Arbitration Rules and Procedures available. Any interim
or final award may be entered and enforced by any court of competent jurisdiction. The final award will include the prevailing
party’s reasonable arbitration, expert witness and attorney fees, costs and expenses. Notwithstanding the foregoing, Investor
may in its sole discretion bring an action in the State of Delaware or New York in aid of arbitration or for temporary, preliminary
or provisional relief pending completion of arbitration.

 

I.
Remedies.

 

1.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each
of Investor and Company will be entitled to specific performance under the Transaction Documents, and equitable and injunctive
relief to prevent any actual or threatened breach under the Transaction Documents, to the full extent permitted under applicable
laws.

 

2.
Without limitation of the foregoing, Company acknowledges that the rights and benefits of Investor pursuant to Section
V.A are unique and that no adequate remedy exists at law if Company breaches or fails timely perform any of its obligations
thereunder, that it would be difficult to determine the amount of damages resulting therefrom, that it would cause irreparable
injury to Investor, and that any potential harm to Company would be adequately and fully compensable with monetary damages; accordingly,
Investor will be entitled to a compulsory remedy of immediate specific performance, temporary, interim, preliminary and final
injunctive relief to enforce the provisions thereof, including without limitation requiring Company and its transfer agent, attorneys,
officers and directors to immediately take all actions necessary to issue and deliver the number of Conversion Shares stated by
Investor, and prohibiting any Common Stock from being issued or transferred until after all Conversion Shares have been received
by Investor in electronic form and fully cleared for trading, which requirements will not be stayed for any reason, without the
necessity of posting any bond. Company hereby absolutely, unconditionally and irrevocably waives all objections and rights to
oppose any motion, application or request by Investor to issue any number of Conversion Shares, and all rights to stay or appeal
any resulting order, and any appeal filed by Company or on its behalf will be immediately and automatically dismissed. Company
further acknowledges that it has an adequate remedy at law with respect to Section V.A in a claim for money damages; accordingly,
Company may not restrain or enjoin its transfer agent, Investor or any brokers from receiving or reselling any Conversion Shares,
and any action for temporary, preliminary or final injunctive relief filed by Company or on its behalf will be immediately and
automatically dismissed.

 

    	 	17	 

    	 

    

 

J.
Payment Set Aside. To the extent that Company makes a payment or payments to Investor pursuant to any Transaction Document
or Investor enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to 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 will 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.

 

K.
Headings. The titles and headings in this Agreement and the Transaction Documents are for convenience only, do not
constitute a part of this Agreement and will not be deemed to limit or affect any of the provisions hereof

 

L.
Time of the Essence. Time is of the essence with respect to all provisions of this Agreement, the Preferred Shares,
and all Transaction Documents.

 

M.
Survival. The representations and warranties contained herein will survive the Closing and the delivery of the Shares
until all Preferred Shares issued to Investor have been converted or redeemed. Neither party will be under any obligation to update
or supplement any of its representations or warranties following the Closing due to a change that occurred after the Closing.

 

N.
Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party will not be employed in the interpretation of the Transaction Documents or any amendments
hereto. 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. All currency references in any Transaction Document are
to U.S. dollars.

 

O.
Further Assurances. Each party will take all further actions and execute all further documents as may be reasonably
necessary to implement the provisions and carry out the intent of this Agreement fully and effectively.

 

P.
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together will be considered
one and the same agreement and will become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by portable document format, facsimile or electronic transmission, such signature will create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were
an original thereof.

 

Q.
Entire Agreement. This Agreement, including the Exhibits hereto, which are hereby incorporated herein by reference,
contains the entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term
sheets, letters, discussions, communications and understandings, both oral and written, which the parties acknowledge have been
merged into this Agreement. No party, representative, advisor, attorney or agent has relied upon any collateral contract, agreement,
assurance, promise, understanding, statement or representation not expressly set forth herein. The parties hereby absolutely,
unconditionally and irrevocably waive all rights and remedies, at law and in equity, directly or indirectly arising out of or
relating to, or which may arise as a result of, any Person’s reliance on any such statement or assurance.

 

    	 	18	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories
on the Effective Date.

 

	Company:	 
	 	 
	CEMTREX, INC.	 
	 	 
	By:	          	 
	Name:	 	 
	Title:	 	 

 

	Investor:	 
	 	 
	 	 
	Investor Name	 
	 	 	 
	By:	     	 
	Name:	 	 
	Title:	 	 

 

    	 	19	 

    	 

    

 

Exhibit
1

 

Glossary
of Defined Terms

 

“$”
means the currency of the United States of America, in which all dollar amounts in the Transaction Documents will be expressed.

 

“Accrual
Rate” means an initial rate equal to 7.5% per annum, retroactively increasing by 10% per annum upon each occurrence
of any Trigger Event (e.g., to 17.5% upon the first Trigger Event), subject to adjustment as provided in the Certificate of Designations.

 

“Act”
means the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Action”
has the meaning set forth in Section III.A.4.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Act.

 

“Agreement”
means this Securities Purchase Agreement.

 

“Certificate
of Designations” means the Certificate of Designations of Preferences, Powers, Rights and Limitations of Series B Preferred
Stock, as filed with and accepted by the Secretary of State of Company’s state of incorporation, in the form attached hereto
as Exhibit 2.

 

“Closing”
has the meaning set forth in Section II.D.

 

“Collateral”
means all assets of Company, including without limitation all personal property wherever located, both now owned and hereafter
acquired, including, but not limited to, all equipment, fixtures, inventory, goods, documents, general intangibles, accounts,
deposit accounts (unless a security interest would render a nontaxable account taxable), receivables, contract rights (including,
but not limited to, all of Company’s rights in franchise agreements, license agreements and market development agreements),
chattel paper, patents, trademarks and copyrights (and the good will associated with and registrations and licensing of them),
instruments, letter of credit rights and investment property, capital stock, partnership, membership and equity interests, of
any kind or nature, and all additions and accessions to, all spare and repair parts, special tools, equipment and replacements
for, software used in, all returned or repossessed goods the sale of which gave rise to, and all accessions, additions, amendments,
modifications, replacements, and substitutions to, of or for the foregoing, and all proceeds, supporting obligations and products
of the foregoing, except as set forth in the Disclosure Schedules. All terms which are used in this definition which are defined
in the UCC shall have the same meanings herein as such terms are defined in the UCC, unless this Agreement shall otherwise specifically
provide.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common
Stock” means the Common Stock of Company and any replacement or substitute thereof, or any share capital into which
such Common Stock will have been changed or any share capital resulting from a reclassification of such Common Stock.

 

“Company”
has the meaning set forth in the first paragraph of the Agreement.

 

“Conversion
Price” means, if there has never been a Trigger Event, a price per share of Common Stock equal to 100% of the Market
Price less $0.03 per share, subject to adjustment as otherwise provided in the Transaction Documents. Upon the occurrence of each
Trigger Event the percentage in the preceding sentence will decrease by 10% (e.g. to 90% upon the first Trigger Event).

 

    	 	Exhibit 1-1	 

    	 

    

 

“Conversion
Shares” includes all shares of Common Stock potentially issuable in relation to the Preferred Shares, including Common
Stock that must be issued upon conversion of the Preferred Shares, and Common Stock that must or may be issued in payment of any
Accruals.

 

“Deemed
Liquidation Event” will mean: (a) a merger or consolidation in which Company is a constituent party or a subsidiary
of Company is a constituent party and Company issues shares of its capital stock pursuant to such merger or consolidation, except
any such merger or consolidation involving Company or a subsidiary in which the shares of capital stock of Company outstanding
immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital
stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital
stock of the surviving or resulting corporation or if the surviving or resulting corporation is a wholly owned subsidiary of another
corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation;
(b) Company issues securities that are senior to the Preferred Shares in any respect, (c) Holder does not receive the number of
Conversion Shares stated in a Conversion Notice with 5 Trading Days of the Notice Time; (d) trading of the Common Stock is halted
or suspended by the Trading Market or any U.S. governmental agency for 5 or more consecutive trading days; or (e) the sale, lease,
transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by Company or any
subsidiary of Company of all or substantially all the assets of Company and its subsidiaries taken as a whole, or the sale or
disposition (whether by merger or otherwise) of one or more subsidiaries of Company if substantially all of the assets of Company
and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries.

 

“Disclosure
Schedules” means the disclosure schedules of Company attached hereto as Exhibit 9. The Disclosure Schedules contain
no material non-public information.

 

“DTC”
means The Depository Trust Company, or any successor performing substantially the same function for Company.

 

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

 

“Effective
Date” has the meaning set forth in the first paragraph of the Agreement.

 

“Equity
Conditions” means on each day during the Measuring Period, (i) the Common Stock is not under chill or freeze from DTC,
(ii) the Common Stock is designated for trading on a OTCQB or higher stock market and shall not have been suspended from trading
on such market, and delisting or suspension by the Trading Market has not been threatened or pending, either in writing by such
market or because Company has fallen below the then effective minimum listing maintenance requirements of such market; (iii) Company
has delivered Conversion Shares upon all conversions or redemptions of this Certificate of Designations in accordance with their
terms to the Holder on a timely basis; (iv) Company will have no knowledge of any fact that would cause both of the following
(A) a registration statement not to be effective and available for the resale of all Conversion Shares, and (B) Section 3(a)(9)
under the Securities Act of 1933, as amended, not to be available for the issuance of all Conversion Shares, or Securities Act
Rule 144 not to be available for the resale of all the Conversion Shares without restriction; (v) there has been a minimum of
5 times the amount of Face Value of the shares of Series B Preferred Stock then being converted by Company in aggregate trading
volume in the prior 20 Trading Days; (vi) all shares of Common Stock to which Holder is entitled have been timely received into
Holder’s designated account in electronic form fully cleared for trading; (vii) Company otherwise shall have been in compliance
with and shall not have breached any provision, covenant, representation or warranty of any Transaction Document; and (viii) not
more than 3 Trigger Events shall have occurred.

 

“GAAP”
means U.S. generally accepted accounting principles applied on a consistent basis during the periods involved.

 

    	 	Exhibit 1-2	 

    	 

    

 

“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $250,000, other than trade accounts payable incurred
in the ordinary course of business, (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness
of others, whether or not the same are or should be reflected in Company’s balance sheet, or the notes thereto, except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (c) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized in accordance
with GAAP.

 

“Intellectual
Property Rights” has the meaning set forth in Section III.B.11.

 

“Investor”
has the meaning set forth in the first paragraph of the Agreement.

 

“Legal
Opinion” means an opinion from Company’s legal counsel, in the form attached as Exhibit 4.

 

“Liens”
means a lien, charge, security interest or encumbrance in excess of $250,000, or a right of first refusal, preemptive right or
other restriction.

 

“Material
Adverse Effect” includes any material adverse effect on (a) the legality, validity or enforceability of any Transaction
Document, (b) the results of operations, assets, business, or financial condition of Company and the Subsidiaries, taken as a
whole, which is not disclosed in the Public Reports prior to the Effective Date, (c) Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document, or (d) the sale, issuance, registration, listing,
resale and trading on the Trading Market of the Conversion Shares.

 

“Material
Permits” has the meaning set forth in Section III.B.9.

 

“Obligations”
include the full and punctual observance and performance of all present and future duties, covenants, and responsibilities due
to Investor by Company under this Agreement, the Preferred Shares and the other Transaction Documents, including without limitation
all present and future obligations and liabilities of Company for the payment of money (extending to all principal amounts, interest,
late charges, fees, and all other charges and sums, as well as all costs and expenses payable by Company).

 

“Officer’s
Certificate” means a certificate executed by an authorized officer of Company, in the form attached as Exhibit 5.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government, or an agency or subdivision thereof, or other entity of any kind.

 

“Preferred
Shares” means the shares of Series B Redeemable Convertible Preferred Stock of Company to be issued to Investor pursuant
to the Transaction Documents or any other agreement with Investor.

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is timely filed
with the Commission and delivered by Company to Investor.

 

“Public
Reports” means the reports filed with the Commission by Company pursuant to the Exchange Act (see Exhibit 9).

 

“Purchase
Amount” has the meaning set forth in Section II.A.1.

 

“Receivables”
include all accounts receivable and all rights to the payment of a monetary obligation, whether or not earned by performance,
and whether evidenced by an account, chattel paper, instrument, general intangible, or otherwise.

 

    	 	Exhibit 1-3	 

    	 

    

 

“Registration
Statement” means a valid, current and effective shelf Registration Statement on Form S-3, File No. 333-218501, registering
all Securities for sale, including the prospectus therein, amendments and supplements to such Registration Statement or prospectus,
including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement, and any information contained or incorporated by reference in a prospectus
filed with the Commission in connection with the Registration Statement, to the extent such information is deemed under the Act
to be part of any registration statement.

 

“Secretary’s
Certificate” means a certificate, in the form attached as Exhibit 6, signed by the secretary of Company.

 

“Shares”
include the Conversion Shares and the Warrant Shares.

 

“Securities”
include the Preferred Shares, the Warrant, the Conversion Shares and the Warrant Shares.

 

“Short
Sale” means a “short sale” as defined in Rule 200 of Regulation SHO of the Exchange Act.

 

“Subsidiary”
means any Person owned or controlled by Company, or in which Company, directly or indirectly, owns a majority of the capital stock
or similar interests that would be disclosable pursuant to Regulation S-K, Item 601(b) (21). Notwithstanding anything to the contrary
contained in this Agreement or any of the other Transaction Documents, the term “Subsidiary” shall not include Vicon
Industries, Inc., a New York corporation, and Telidyne Inc., a Delaware corporation.

 

“Trading
Day” means any day on which the Common Stock is traded on the Trading Market; provided that it will not include any
day on which the Common Stock is (a) scheduled to trade for less than 5 hours, or (b) suspended from trading.

 

“Trading
Market” has the meaning set forth in the Certificate of Designations.

 

“Transaction
Documents” means this Agreement, the other agreements, certificates and documents referenced herein or the form of which
is attached hereto, and the exhibits, schedules and appendices hereto and thereto.

 

“Transfer
Agent” means the transfer agent for Company.

 

“Transfer
Agent Instructions” means a letter agreement executed by Company, its current transfer agent, and any successor transfer
agent for the Common Stock, in the form attached as Exhibit 3.

 

“UCC”
means the Uniform Commercial Code as adopted and applied in any applicable jurisdiction, including without limitation Company’s
jurisdiction of formation.

 

“Warrant”
means the Common Stock Purchase Warrant issued by Company, in the form attached hereto as Exhibit 7.

 

    	 	Exhibit 1-4

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