Document:

Exhibit 4.13

 

Form of Underwriter’s Warrant Agreement

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE LATER OF THE EFFECTIVE DATE (DEFINED BELOW)
OR THE COMMENCEMENT OF SALES OF THE OFFERING TO WHICH THIS PURCHASE WARRANT RELATES TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP.
OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL
CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER
5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS THREE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Shares of Common
Stock

of

XG TECHNOLOGY, INC.

 

1.             Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (“Holder”),
as registered owner of this Purchase Warrant, to xG Technology, Inc., a Delaware corporation (the “Company”),
Holder is entitled, at any time or from time to time from [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE
OF THE OFFERING] (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, [____________] [DATE
THAT IS THREE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING] (the ”Expiration Date”), but not
thereafter, to subscribe for, purchase and receive, in whole or in part, up to [____] shares of common stock of the Company, par
value $0.00001 per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration
Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the
next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date,
the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable
at $[___] per Share [125% of the price of the Shares sold in the Offering]; provided, however, that upon the
occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise
price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise
Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context. As used herein,
“Effective Date” means the date on which the Company’s Registration Statement on Form S-1 (File No.: 333-214874)
is initially declared effective by the Securities and Exchange Commission (the “Commission”).

 

    	 	1	 

     

    

 

2.             Exercise.

 

2.1           Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2           Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by payment
of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares
equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to
the Company, together with the exercise form attached hereto, in which event the Company will issue to Holder Shares in accordance
with the following formula:

 

			Y(A-B)	 
	X	=	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

For purposes of this Section 2.2, the
fair market value of a Share is defined as follows:

 

		(i)	if the Company’s common stock is traded on a securities
exchange, the value shall be deemed to be the closing price on such exchange on the trading day prior to the exercise form being
submitted in connection with the exercise of the Purchase Warrant; or

 

		(ii)	if the Company’s common stock is actively traded
over-the-counter, the value shall be deemed to be the closing bid on the trading day prior to the exercise form being submitted
in connection with the exercise of the Purchase Warrant; if there is no active public market, the value shall be the fair market
value thereof, as determined in good faith by the Company’s Board of Directors.

 

    	 	2	 

     

    

 

3.             Transfer.

 

The registered Holder of this Purchase
Warrant agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or hypothecate
this Purchase Warrant for a period of one hundred eighty (180) days following the later of the Effective Date or the commencement
of sales of the offering to which this Purchase Warrant relates (the later of such dates, the “Transferability Date”)
to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a selected dealer participating
in the Offering, or (ii) a bona fide officer or partner of Aegis or of any such underwriter or selected dealer, in each case in
accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the
subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition
of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after the Transferability
Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make
any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed,
together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall
within five (5) Business Days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase
Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate
number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

4.             Registration
Rights.

 

4.1           Demand
Registration.

 

4.1.1      Grant
of Right. Unless a registration statement covering the exercise of this Warrant and the sale of the Shares by the Holder is
in effect and available, the Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51%
of the Purchase Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all
or any portion of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”).
On such occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within
sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared
effective promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company
shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the
Holder is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate
in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary
offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty
(30) days after such offering is consummated. The demand for registration may be made at any time during a period of four (4) years
beginning on the Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice
by any Holder(s) to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days
after the date of the receipt of any such Demand Notice.

 

    	 	3	 

     

    

 

4.1.2      Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell
the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding
the provisions of this Section 4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one
(1) occasion and such demand registration right shall terminate on the fifth anniversary of the effectiveness of the registration
statement in accordance with FINRA Rule 5110(f)(2)(G)(iv).

 

4.2           “Piggy-Back”
Registration.

 

4.2.1      Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, unless a registration statement
covering the exercise of this Warrant and the sale of the Shares by the Holder is in effect and available, the Holder shall have
the right, for a period of no more than seven (7) years from the date of effectiveness of the registration statement in accordance
with FINRA Rule 5110(f)(2)(G)(v), to include the Registrable Securities as part of any other registration of securities filed by
the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act of 1933,
as amended (the “Securities Act”), or pursuant to Form S-8 or any equivalent form); provided, however,
that if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s)
thereof shall, in its reasonable discretion, impose a limitation on the number of shares of Common Stock which may be included
in the Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation
is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only
such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter
shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable
Securities in proportion to the number of Registrable Securities sought to be included by such Holders; provided, however,
that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities,
the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro
rata inclusion with the Registrable Securities.

 

4.2.2      Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company
shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to
the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration
statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of
the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within
ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise
provided in this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration under this
Section 4.2.2; provided, however, that such registration rights shall terminate on the sixth anniversary of the Commencement
Date.

 

    	 	4	 

     

    

 

4.3           General
Terms.

 

4.3.1      Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 5(a) of the Underwriting Agreement between the Underwriters
and the Company, dated as of December [___], 2016. The Holder(s) of the Registrable Securities to be sold pursuant to such registration
statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act
or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section
5(b) of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

 

4.3.2      Exercise
of Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise
their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3      Documents
Delivered to Holders. Unless a registration statement covering the exercise of this Warrant and the sale of the Shares by the
Holder is in effect and available, the Company shall furnish to each Holder participating in any of the foregoing offerings and
to each underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion
of counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold
comfort” letter dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered
public accounting firm which has issued a report on the Company’s financial statements included in such registration statement,
in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein)
and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements,
as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in
underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering
requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence
between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or
its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable
advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary
to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times as any such Holder shall reasonably request.

 

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4.3.4      Underwriting
Agreement. Unless a registration statement covering the exercise of this Warrant and the sale of the Shares by the Holder is
in effect and available, the Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected
by any Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be
reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each
Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such
other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties
to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require
that any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also
be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to
or agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5      Documents
to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company
a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6      Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to
the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.             New
Purchase Warrants to be Issued.

 

5.1           Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

5.2           Lost Certificate.
Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant
and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant
of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction
shall constitute a substitute contractual obligation on the part of the Company.

 

6.             Adjustments.

 

6.1           Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

    	 	6	 

     

    

 

6.1.1      Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

6.1.2      Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased
by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the
number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise
Price shall be proportionately increased.

 

6.1.3      Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than
a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share
reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or
share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the
property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder
of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant)
to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the
kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder
of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if
any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant
to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications,
reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

6.1.4      Changes in
Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1,
and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in
the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase
Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the
Commencement Date or the computation thereof.

 

6.2           Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in
any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction
or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase
Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant)
to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable
upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such
Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale
or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided
for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions
or amalgamations.

 

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6.3           Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the
exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being
the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may
be, to the nearest whole number of Shares or other securities, properties or rights.

 

7.             Reservation and Listing.
The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon
exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the
exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price
therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly
issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. The Company further covenants and
agrees that upon exercise of the Purchase Warrants and payment of the exercise price therefor, all Shares and other securities
issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights
of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts
to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official notice of issuance) on all
national securities exchanges (or, if applicable, on the OTC Markets or any successor trading market) on which the Shares issued
to the public in the Offering may then be listed and/or quoted.

 

8.             Certain
Notice Requirements.

 

8.1           Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event
at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder
a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is
given to the shareholders.

 

8.2           Events Requiring
Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

    	 	8	 

     

    

 

8.3           Notice of
Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section
6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s
Chief Financial Officer.

 

8.4           Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 11th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Managing Director of Investment Banking

Fax No.: (212) 813-1047

 

with a copy (which shall not constitute notice) to:

Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, NY 10020

Attn: John D. Hogoboom, Esq.

Fax No.:  (973) 597-2383

 

If to the Company:

 

xG Technology, Inc.

240 S. Pineapple Avenue, Suite 701

Sarasota, FL 34236

Attn: George Schmitt

Fax No: 941-954-8595

 

with a copy (which shall not constitute notice) to:

 

Robinson Brog Leinwand Greene

Genovese & Gluck P.C.

875 Third Avenue — 9th Floor

New York, New York 10022

Attn: David E. Danovitch, Esq.

Fax No: 212-956-2164

 

    	 	9	 

     

    

 

9.  
          Miscellaneous.

 

9.1           Amendments.
The Company and Aegis may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and Aegis may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest of the Holders.
All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

9.2           Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

9.3.           Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4           Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and
their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed
to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions
herein contained.

 

9.5           Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

9.6           Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not
be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or
any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase
Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be
effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver
is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any
other or subsequent breach, non-compliance or non-fulfillment.

 

    	 	10	 

     

    

 

9.7           Execution
in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and
the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and
delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic
transmission.

 

9.8           Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any
time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Aegis enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page
Follows]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of December, 2016.

 

	 	XG TECHNOLOGY, INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title: 	 

 

    	 	12	 

     

    

 

[Form to be used to exercise Purchase
Warrant]

 

Date: __________, 20___

 

The undersigned
hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.00001 per share (the
“Shares”), of xG Technology, Inc., a Delaware corporation (the “Company”), and hereby makes
payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as
to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase
Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

 

	 			Y(A-B)	 
	 	X	=	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

	Signature	 	 

 

	Signature Guaranteed	 	 

 

    	 	13	 

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
		(Print in Block Letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	 	14	 

     

    

 

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.00001 per share, of xG Technology,
Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the
Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

	Signature	 	 

 

	Signature Guaranteed	 	 

 

NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.

 

    	 	15Throwdown
Industries Holdings, LLC

Throwdown Industries, LLC

Throwdown Industries, INC.

XFIT
BRANDS, INC.

 

 

 

AMENDED
AND RESTATED NOTE PURCHASE AGREEMENT

 

 

 

Dated
as of December 16, 2016

 

 

    	 

    	 

    

 

Throwdown
Industries Holdings, LLC

Throwdown Industries, LLC

Throwdown Industries, INC.

 

XFIT
BRANDS, INC.

 

9.00%
Senior Secured Fixed Rate Notes due 2020

 

AMENDED
AND RESTATED NOTE PURCHASE AGREEMENT

 

December
16, 2016

 

PIMCO
Funds: Private Account Portfolio Series: PIMCO High Yield Portfolio

c/o Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, California 92660

 

Ladies
and Gentlemen:

 

Throwdown
Industries Holdings, LLC, a Delaware limited
liability company (“Holdings”), Throwdown Industries, LLC, a
Delaware limited liability company (“TD LLC”), Throwdown Industries,
INC., a California corporation (“TDI”) and XFIT BRANDS, INC., a Nevada corporation (“XFIT”
and, together with Holdings, TD LLC and TDI, each, an “Obligor” and, collectively, the “Obligors”),
hereby jointly and severally agrees with PIMCO Funds: Private Account Portfolio Series: PIMCO High Yield Portfolio, a separate
investment portfolio of PIMCO Funds, a Massachusetts business trust (the “Purchaser”), as follows:

 

Section
1.Authorization of Notes. The Obligors have authorized the issue of $3,500,000.00 aggregate principal amount of its
9.00% Senior Secured Fixed Rate Notes due July 12, 2020 (collectively, the “New Notes” and, together with the
Existing Notes and any notes issued in replacement therefor, the “Notes”). Certain capitalized terms used in
this Agreement are defined in Exhibit A; references to a “Schedule” or an “Exhibit” are, unless
otherwise specified, to a Schedule or an Exhibit attached to this Agreement. As used herein, the term “this Agreement”
and references thereto shall mean this Agreement as it may from time to time be amended, supplemented or otherwise modified.

 

Section
2.Issue of New Notes.

 

(a)       Interest.
The New Notes will be dated the date of delivery thereof, and will bear interest at the rate of 9.00% per annum, payable in arrears
on the 12th day of each calendar month, commencing on January 12, 2016, and on the maturity date and each other date on which
principal is due and payable, or, if any such day is not a Business Day, the immediately succeeding Business Day (each, a “Payment
Date”). Accrued interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

    	 

    	 

    

 

(b)       Principal.
The Applicable Percentage of the entire outstanding principal balance of the New Notes shall be due and payable on June 12, 2020,
or such earlier date on which the New Notes are accelerated pursuant to Section 17 following an Event of Default or subject
to optional redemption by XFIT, on behalf of the Obligors, in accordance with Section 2(c) below. The “Applicable
Percentage” means (i) in the case of a redemption or principal payment, repayment or prepayment, whether optional or
mandatory, following an Event of Default, by application of proceeds in connection with the exercise of remedies or otherwise,
or upon any acceleration or deemed acceleration of the principal of the Notes, in each case, on or prior to June 12, 2019, 107%
or (ii) in the case of a redemption or principal payment, repayment or prepayment, whether optional or mandatory, following an
Event of Default, by application of proceeds in connection with the exercise of remedies or otherwise, or upon any acceleration
or deemed acceleration of the principal of the Notes, in each case, after June 12, 2019, 100%.

 

(c)       Redemption.
XFIT, on behalf of the Obligors, may redeem the New Notes, in whole or in part, at any time, at its option, at a redemption price
equal to the Applicable Percentage of the principal amount of the New Notes to be redeemed, plus accrued and unpaid interest on
the principal amount of New Notes to be redeemed to, but excluding, the redemption date. If less than all of the New Notes are
to be redeemed, the Notes shall be redeemed on a pro rata basis.

 

Notice
of any such redemption must be mailed by first-class mail or electronically delivered to the registered holder of the New Notes
to be redeemed no less than 30 days prior to the redemption date and shall specify the designated redemption date and the aggregate
principal amount to be redeemed thereon. Notice of redemption having been given, the New Notes to be so redeemed shall, on the
redemption date, become due and payable at the redemption price provided for herein, and from and after such date (unless the
Obligors shall default in the payment of the redemption price and accrued interest) such New Notes shall cease to bear interest.
In the event of redemption of the New Notes in part only, new Notes for the unredeemed portion thereof will be issued in the name
of the Purchaser.

 

Section
3.Exchange of Existing Notes; Sale and Purchase of New Notes; Issuance of Exchange Shares. Subject to the terms and
conditions hereof and in reliance on the representations and warranties of the Obligors contained herein, the Purchaser agrees
as follows:

 

(a)       Exchange
of Existing Notes. Purchaser agrees to exchange the entire aggregate principal amount of its Existing Notes (at 100% of par)
on the Restatement Date for an aggregate principal amount of New Notes equal to the entire aggregate principal amount of its Existing
Notes.

 

(b)       Conversion
of Accrued and Unpaid Interest. Purchaser agrees to accept 1,990,639 shares of XFIT’s common stock, $0.0001 par value
per share (the “Common Stock”) on the Restatement Date, representing payment in full of all accrued and unpaid
interest on the Existing Notes (assuming a conversion price of $0.14 per share) as of the Restatement Date. Prior to delivery
of the Common Stock, Purchaser agrees to deliver a certificate containing certain investment representations and warranties substantially
in the form set out in Exhibit B to this Agreement (the “Purchaser Certificate”).

 

    	2

    	 

    

 

(c)
       Purchase of New Notes. The Purchaser agrees to purchase, and each of the Obligors,
jointly and severally, agrees to sell, additional New Notes in an aggregate principal amount equal to $1,000,000, such that the
initial principal balance of all New Notes issued on the Restatement Date (including New Notes exchanged for Existing Notes pursuant
to Section 3(a)) is equal to $3,500,000. The New Notes shall be issued in the name of the Purchaser for the initial principal
balance of the New Notes substantially in the form set out in Exhibit C, with such changes therefrom, if any, as may be
approved by the Purchaser and the Obligors.

 

(d)       Use
of Proceeds. The Obligors shall use the proceeds of the additional issuance of the New Notes on the Effective Date as follows:
(i) on the Effective Date, the Obligors shall pay in full all obligations of the Obligors under that certain settlement and release
agreement, dated as of August 15, 2016, between Absolute Metals, LLC and TDI; and (ii) on the Effective Date or, if later, within
one (1) Business Day following presentation of an invoice therefor, the Obligors shall pay the fees and expenses of Purchaser
(including the legal fees and expenses of Latham & Watkins LLP). The balance of the proceeds of the additional issuance of
the New Notes shall be used as general working capital of the Obligors, including, but not limited to. The balance of the proceeds of the additional issuance of the New Notes shall be used as general working capital of the Obligors,
including, but not limited to, new turf installations to be undertaken by XFit's sports surface division..

 

Section
4.Closing. The Restatement Date Transactions, including delivery of the New Notes, Common Stock and Warrant to the
Purchaser, shall be made at the offices of Latham & Watkins LLP, 885 Third Avenue, New York, New York 10022 at 10:00 A.M.,
New York time on the Restatement Date, against payment therefor by delivery by the Purchaser to the Obligors of immediately available
funds in the aggregate amount of $1,000,000 by wire transfer to the following account:

 

The
New Notes so delivered shall be registered in the Purchaser’s name or otherwise as the Purchaser shall have advised XFIT
in writing not less than one Business Day prior to the Restatement Date.

 

Section
5.Conditions to Effectiveness. The effectiveness of this Agreement, including the Purchaser’s obligation to purchase
and pay for the additional New Notes to be sold by the Obligors to the Purchaser on the Restatement Date, is subject to the fulfillment
to the Purchaser’s satisfaction, on or prior to the Restatement Date, of the following conditions:

 

    	3

    	 

    

 

(a)       Representations
and Warranties. The representations and warranties of the Obligors in this Agreement and the other Transaction Documents shall
be true and correct on the Restatement Date.

 

(b)       Performance;
No Default. Each of the Obligors shall have performed and complied with all agreements and conditions contained in this Agreement
and each other Transaction Document required to be performed or complied with by it on or prior to the Restatement Date and, after
giving effect to the Restatement Date Transactions, no Default or Event of Default shall have occurred and be continuing. As of
the Restatement Date, no event or circumstance has occurred that may have a Material Adverse Effect.

 

(c)       Documents.
The Purchaser shall have received duly executed copies of this Agreement, the New Notes, the Warrant, a certificate evidencing
the Common Stock and each of the other Transaction Documents and original or copies of such other documents as the Purchaser may
reasonably request.

 

(d)       Legal
Opinion. The Purchaser shall have received an opinion of counsel to the Obligors in form and substance satisfactory to the
Purchaser.

 

(e)       Officer’s
Certificate. The Obligors shall have delivered to the Purchaser an officer’s certificate, dated as of the Closing Date,
certifying that the conditions specified in Sections 5(a), 5(b), 5(g), 5(h) and 5(i) have been
fulfilled.

 

(f)       Secretary’s
Certificate. The Purchaser shall have received a certificate of the Secretary or an Assistant Secretary (or equivalent officer)
of the Obligors certifying:

 

(i)       that
attached thereto are true and complete copies of all resolutions and other consents adopted by such Obligor authorizing and approving
the execution, delivery, filing and performance of this Agreement and the other Transaction Documents and the consummation of
the Restatement Date Transactions, and that all such resolutions and consents are in full force and effect as of the Restatement
Date and are all the resolutions and consents adopted in connection with the transactions contemplated hereby and thereby;

 

(ii)       that
attached thereto are true and complete copies of the certificate of incorporation or formation and by-laws or limited liability
company agreement of such Obligor and that such organizational documents are in full force and effect as of the Restatement Date;

 

(iii)       the
names and signatures of the officers of the Obligors authorized to sign this Agreement, the other Transaction Documents and the
other documents to be delivered hereunder and thereunder; and

 

    	4

    	 

    

 

(iv)       that
attached thereto are true and complete copies of good standing certificates (or their equivalent) for each Obligor from the secretary
of state or similar Governmental Authority of the jurisdiction under the Laws in which such Obligor is organized and a foreign
qualification certificate (or its equivalent) for such Obligor from the secretary of state or similar Governmental Authority of
each jurisdiction in which such Obligor has qualified, or is required to qualify, to do business as a foreign corporation.

 

(g)       Changes
in Structure. No Obligor shall have changed its jurisdiction of formation or been a party to any merger or consolidation and
no Obligor shall have succeeded to all or any substantial part of the liabilities of any other entity.

 

(h)       No
Governmental Order. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental
Order which is in effect and has the effect of making the transactions contemplated by this Agreement or any other Transaction
Document illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of the transactions contemplated
hereunder or thereunder to be rescinded following completion thereof.

 

(i)       Authorization
and Consents. The Purchaser shall have received duly executed copies of all approvals, consents, filings and waivers necessary
to complete the transactions contemplated herein and in the other Transaction Documents.

 

(j)       Fees
and Expenses. The Obligors, jointly and severally, shall have paid all of the fees, expenses and disbursements incurred by
any Obligor or the Purchaser (including Purchaser’s reasonable attorneys’ fees) in connection with the Restatement
Date Transactions.

 

Section
6.[Reserved].

 

Section
7.Representations and Warranties by the Obligors. The Obligors jointly and severally represent and warrant to the Purchaser
as of the date hereof that:

 

(a)       Organization;
Power and Authority. Each Obligor is a corporation or limited liability company duly incorporated or organized, validly existing
and in good standing under the Laws of the state of California, Delaware or Nevada, as the case may be, and has full company power
and authority to (i) enter into this Agreement and the other Transaction Documents to which such Obligor is a party, to carry
out its obligations hereunder and thereunder and to consummate the Original Closing Date Transactions and the Restatement Date
Transactions and (ii) own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its
business as it has been and is currently conducted. Each Obligor is duly licensed or qualified to do business and is in good standing
in each jurisdiction, as set forth in Schedule II, in which the properties owned or leased by it or the operation of its
business as currently conducted makes such licensing or qualification necessary, except where such failure could not reasonably
be expected to have a Material Adverse Effect.

 

    	5

    	 

    

 

(b)       Authorization,
etc. This Agreement and any other Transaction Document to which any of the Obligors is a party, the performance by the Obligors
of their respective obligations hereunder and thereunder and the consummation by the Obligors of the Original Closing Date Transactions
and the Restatement Date Transactions have been duly authorized by all necessary action on the part of each Obligor, and this
Agreement and each other Transaction Document has been duly executed and delivered by the Obligors and constitutes a legal, valid
and binding obligation of the Obligors enforceable against the Obligors in accordance with its terms.

 

(c)       Compliance
with Laws, Other Instruments, etc. The Obligors have complied, and are now complying, in all material respects with all Laws
applicable to them or their respective businesses, properties or assets. The execution, delivery and performance by the Obligors
of this Agreement and each other Transaction Document will not:

 

(i)       contravene,
result in any breach of, or constitute a default under, or result in the creation of any Encumbrance in respect of any property
of any Obligor under any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, or its organizational
documents or any other agreement or instrument to which any Obligor is bound or by which any Obligor or any of its properties
may be bound or affected;

 

(ii)       conflict
with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to any Obligor or its property; or

 

(iii)       violate
any provision of any statute or other rule or regulation of any Governmental Authority applicable to any Obligor.

 

All
Permits required for the Obligors to conduct their respective businesses have been obtained by them and are valid and in full
force and effect. All fees and charges with respect to such Permits have been paid in full. No event has occurred that, with or
without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation
of any Permit applicable to any Obligor.

 

(d)       Common
Stock. The Common Stock has been duly authorized and validly issued and is fully paid and non-assessable, has been issued
(subject to the accuracy of Purchaser’s representations and warranties contained in the Purchaser Certificate) in compliance
with all securities laws and is not subject to any pre-emptive or similar rights.

 

(e)       Governmental
Authorizations, etc. No consent, approval or authorization of, or registration, filing or declaration with, any Governmental
Authority or any other Person is required in connection with the execution, delivery or performance by any of the Obligors of
this Agreement or any other Transaction Document.

 

(f)       Private
Offering by the Obligors. None of the Obligors nor anyone acting on their behalf has offered the Notes or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with,
any Person other than the Purchaser. None of the Obligors nor anyone acting on their behalf has taken, or will take, any action
that would subject the issuance or sale of the Notes to the registration requirements of the Securities Act.

 

    	6

    	 

    

 

(g)       Litigation;
Observance of Agreements, Statutes and Orders. There are no actions, suits or proceedings pending or, to the Knowledge of
any of the Obligors, threatened against any of the Obligors or any outstanding Governmental Orders affecting any of the Obligors
or any of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority
that, individually or in the aggregate, could if adversely determined, have a Material Adverse Effect. No injunction, writ, temporary
restraining order or any order of any nature has been issued by, or sought from, any court or other Governmental Authority purporting
or seeking to enjoin or restrain the execution, delivery or performance of this Agreement or any other Transaction Document or
directing that the transactions provided for herein or therein not be consummated as herein or therein provided.

 

(h)       No
Default. No Obligor is (i) in default under any term of any agreement or instrument to which it is a party or by which it
is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or (ii) in violation of
any applicable law, ordinance, rule or regulation of any Governmental Authority, except in the case of clause (ii), where such
failure could not reasonably be expected to have a Material Adverse Effect.

 

(i)       Financial
Statements. XFIT has filed with the Securities and Exchange Commission (the “SEC”) (which is available
to the Purchaser on the SEC’s website) a complete copy of its annual report on Form 10-K for the year ended June 30, 2016
(the “Annual Report”). The financial statements contained in the Annual Report (i) have been prepared in accordance
with GAAP applied on a consistent basis throughout the period involved and (ii) are based on the books and records of XFIT and
fairly present the financial condition of XFIT and its consolidated subsidiaries as of the respective dates they were prepared
and the results of operations of XFIT and its consolidated subsidiaries for the periods indicated.

 

(j)       Undisclosed
Liabilities. Except as set forth in the Annual Report or on Schedule XII-A, no Obligor has any Liabilities.

 

(k)       Absence
of Certain Changes, Events and Conditions. Except as set forth in the Annual Report or Schedule XII-B, since December
31, 2013, there has not been, with respect to any Obligor, any of the following occurrences which continue to exist as of the
date hereof:

 

(i)       event,
occurrence or development that has had, or could have, individually or in the aggregate, a Material Adverse Effect;

 

(ii)       amendment
of the charter, by-laws or other organizational documents of such Obligor;

 

    	7

    	 

    

 

(iii)       split,
combination or reclassification of any shares of its Equity Interests;

 

(iv)       issuance,
sale or other disposition of any of its Equity Interests, or grant of any options, warrants or other rights to purchase or obtain
(including upon conversion, exchange or exercise) any of its Equity Interests;

 

(v)       declaration
or payment of any dividends or distributions on or in respect of any of its Equity Interests or redemption, purchase or acquisition
of its Equity Interests;

 

(vi)       material
change in any method of accounting or accounting practice of such Obligors;

 

(vii)       incurrence,
assumption or guarantee of any Indebtedness except unsecured current obligations and Liabilities incurred in the ordinary course
of business consistent with past practice;

 

(viii)       transfer,
assignment, sale or other disposition of any of the assets shown or reflected in the Financial Statements or cancellation, discharge
or payment of any material debts, liens or entitlements;

 

(ix)       transfer,
assignment or grant of any license or sublicense of any rights under or with respect to any Intellectual Property, other than
licenses granted in the ordinary course of business and consistent with past practice to manufacturers to produce products bearing
Obligor logos;

 

(x)       any
capital investment in, or any loan to, any other Person;

 

(xi)       acceleration,
termination, material modification or amendment to or cancellation of any material Contract (including, but not limited to, any
Material Contract) to which such Obligor is a party or by which it is bound;

 

(xii)       any
material Capital Expenditures;

 

(xiii)       imposition
of any Encumbrance upon any of such Obligor’s properties, capital stock or assets, tangible or intangible;

 

(xiv)       adoption,
modification or termination of any: (A) material employment, severance, retention or other agreement with any current or former
employee, officer, director, independent contractor or consultant, (B) Benefit Plan or (C) collective bargaining or other agreement
with a Union, in each case whether written or oral;

 

(xv)       any
loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders, members, directors,
officers and employees;

 

(xvi)       entry
into a new line of business or abandonment or discontinuance of existing lines of business;

 

    	8

    	 

    

 

(xvii)       adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar
Law;

 

(xviii)       acquisition
by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any
business or any Person or any division thereof; or

 

(xix)       any
Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

(l)       Taxes.
Each Obligor:

 

(i)       has
timely filed all Tax Returns that it was required to file. All such Tax Returns were complete and correct in all respects. All
Taxes due and owing by any Obligor (whether or not shown on any Tax Return) have been timely paid;

 

(ii)       has
withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee, independent
contractor, creditor, customer, shareholder or other party, and complied with all information reporting and backup withholding
provisions of applicable Law;

 

(iii)       has
not been given or requested any extensions or waivers of statutes of limitations with respect to any Taxes of any Obligor;

 

(iv)       fully
paid all deficiencies asserted, or assessments made, against any Obligor as a result of any examinations by any taxing authority;

 

(v)       is
not a party to any Action by any taxing authority, and there are no pending or threatened Actions by any taxing authority against
any Obligor;

 

(vi)       has
delivered to the Purchaser copies of all federal, state, local and foreign income, franchise and similar Tax Returns, examination
reports, and statements of deficiencies assessed against, or agreed to by, any Obligor for all Tax periods ending after December
31, 2009;

 

(vii)       has
not been a member of an affiliated, combined, consolidated or unitary Tax group for Tax purposes; and

 

(viii)       has
no Liability for Taxes of any Person (other than an Obligor) under Treasury Regulations Section 1.1502-6 (or any corresponding
provision of state, local or foreign Law), as transferee or successor, by contract or otherwise.

 

(m)       Use
of Proceeds. No Obligor is and, after giving effect to the sale of the additional New Notes and the receipt of the proceeds
therefrom and the other Restatement Date Transactions, no Obligor will be, an “investment company” or an entity “controlled”
by an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

    	9

    	 

    

 

(n)       Anti-Money
Laundering Laws. The operations of the Obligors are and have been conducted at all times in compliance in all material respects
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions where the Obligors conduct business, and the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving any of the Obligors with respect to the Money Laundering Laws is pending
or, to the knowledge of any Obligor, threatened.

 

(o)       Foreign
Assets Control Regulations, etc. None of the Obligors nor, to the Knowledge of the Obligors, any officer, agent, employee
or Affiliate of any Obligor is (i) currently subject to any U.S. sanctions administered or enforced by the Office of Foreign Assets
Control of the U.S. Treasury Department, the U.S. Department of State, the United Nations Security Council, the European Union,
Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”) or (ii) located,
organized or resident in a country that is the subject of Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan,
Russia, the Crimea region of Ukraine and Syria). The Obligors and their respective affiliates are not now knowingly engaged in
any dealings or transactions with any individual or entity, or in any country or territory, that is the subject or target of Sanctions
and will not use the proceeds of the additional New Notes or otherwise make available such proceeds to any Person, for the purpose
of financing the activities of any Person that is the subject or target of Sanctions.

 

(p)       Material
Contracts. Schedule VI lists each Material Contract for each Obligor. Each Material Contract is valid and binding on
the applicable Obligor in accordance with its terms and is in full force and effect. None of the Obligors nor, to the Knowledge
of any Obligor, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under),
or has provided or received any notice of any intention to terminate, any Material Contract for any Obligor. No event or circumstance
has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result
in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of
any benefit thereunder. Complete and correct copies of each Material Contract (including all modifications, amendments and supplements
thereto and waivers thereunder) have been made available to the Purchaser.

 

(q)       Title
to Assets, Real Property. Each applicable Obligor has good and valid (and, in the case of owned Real Property, good and marketable
fee simple) title to, or a valid leasehold interest in, all Real Property and personal property and other assets reflected in
the Financial Statements or acquired after the date thereof. All such properties and assets (including leasehold interests) are
free and clear of Encumbrances except for the following (collectively referred to as “Permitted
Encumbrances”):

 

    	10

    	 

    

 

liens
for Taxes not yet due and payable or being contested in good faith by appropriate procedures and for which there are adequate
accruals or reserves on the Financial Statements;

 

mechanics,
carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the ordinary course of business
consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material
to the business of the Obligors; or

 

easements,
rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the
aggregate, material to the business of the Obligors.

 

Schedule
III lists (A) the street address of each parcel of Real Property; (B) if such property is leased or subleased by an Obligor,
the landlord under the lease, the rental amount currently being paid, and the expiration of the term of such lease or sublease
for each leased or subleased property; and (C) the current use of such property. With respect to owned Real Property, each Obligor
has delivered or made available to the Purchaser true, complete and correct copies of the deeds and other instruments (as recorded)
by which such Obligor acquired such Real Property, and copies of all title insurance policies, opinions, abstracts and surveys
in the possession of any Obligor and relating to the Real Property.

 

With
respect to leased Real Property, each Obligor has delivered or made available to the Purchaser true, complete and correct copies
of any leases affecting the Real Property. No Obligor is a sublessor or grantor under any sublease or other instrument granting
to any other Person any right to the possession, lease, occupancy or enjoyment of any leased Real Property. The use and operation
of the Real Property in the conduct of the applicable Obligor’s business do not violate in any material respect any Law,
covenant, condition, restriction, easement, license, permit or agreement. No material improvements constituting a part of the
Real Property encroach on real property owned or leased by a Person other than the applicable Obligor. There are no Actions pending
nor, to the Knowledge of any Obligor, threatened against or affecting the Real Property or any portion thereof or interest therein
in the nature or in lieu of condemnation or eminent domain proceedings.

 

Intellectual
Property. Schedule IV lists all Obligor Intellectual Property that is subject to the Obligor Intellectual Property
Registrations including registered trademarks, domain names and copyrights, issued and reissued patents and pending applications
for any of the foregoing or used in or necessary for any Obligor’s current or planned business or operations. All (A) required
filings and fees related to the Intellectual Property Registrations have been timely filed with and paid to the relevant Governmental
Authorities and authorized registrars, and all Intellectual Property Registrations are otherwise in good standing; (B) right,
title and interest in and to the Obligor Intellectual Property, is owned by the applicable Obligor, exclusively and is free and
clear of Encumbrances; and (C) Obligor Intellectual Property is free of any infringements, violations or misappropriations.

 

    	11

    	 

    

 

Each
Obligor is in full compliance with all legal requirements applicable to the Obligor Intellectual Property and such Obligor’s
ownership and use thereof.

 

Schedule
IV lists all licenses, sublicenses and other agreements whereby any Obligor is granted rights, interests and authority, whether
on an exclusive or non-exclusive basis, with respect to any Licensed Intellectual Property that is used in or necessary for any
Obligor’s current or planned business or operations. All such agreements are valid, binding and enforceable between the
applicable Obligor and the other parties thereto, and such Obligor and such other parties are in full compliance with the terms
and conditions of such agreements.

 

The
Obligor Intellectual Property and Licensed Intellectual Property as currently or formerly owned, licensed or used by the Obligors
or proposed to be used, and the Obligors’ conduct of their respective business as currently and formerly conducted and proposed
to be conducted have not, do not and will not infringe, violate or misappropriate the Intellectual Property of any Person. No
Obligor has received any communication, and no Action has been instituted, settled or, to any Obligor’s Knowledge, threatened
that alleges any such infringement, violation or misappropriation, and none of the Obligor Intellectual Property is subject to
any outstanding Governmental Order.

 

Schedule
IV lists all licenses, sublicenses and other agreements pursuant to which any Obligor grants rights or authority to any Person
with respect to any Obligor Intellectual Property or Licensed Intellectual Property. All such agreements are valid, binding and
enforceable between the applicable Obligor and the other parties thereto, and such Obligor and such other parties are in full
compliance with the terms and conditions of such agreements. No Person has infringed, violated or misappropriated, or is infringing,
violating or misappropriating, any Obligor Intellectual Property.

 

(r)       Inventory.
All inventory of each Obligor, whether or not reflected on the Financial Statements, consists of a quality and quantity usable
and salable in the ordinary course of business consistent with past practice, except for obsolete, damaged, defective or slow-moving
items that have been written off or written down to fair market value or for which adequate reserves have been established. All
such inventory is owned by the applicable Obligor free and clear of all Encumbrances, and no inventory is held on a consignment
basis. The quantities of each item of inventory (whether raw materials, work-in-process or finished goods) are not excessive,
but are reasonable in the present circumstances of the applicable Obligor.

 

The
accounts receivable reflected on the Financial Statements and the accounts receivable arising after the date thereof (i) have
arisen from bona fide transactions entered into by the applicable Obligor involving the sale of goods or the rendering of services
in the ordinary course of business consistent with past practice; (ii) constitute only valid, undisputed claims of the applicable
Obligor not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the ordinary
course of business consistent with past practice; and (iii) subject to a reserve for bad debts shown on the Financial Statements
or, with respect to accounts receivable arising after the date thereof, on the accounting records of the applicable Obligor, are
collectible in full within 30 days after billing. The reserve for bad debts shown on the Financial Statements or, with respect
to accounts receivable arising after the date thereof, on the accounting records of the Obligors have been determined in accordance
with GAAP, consistently applied, subject to normal year-end adjustments and the absence of disclosures normally made in footnotes.

 

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(s)       Customers
and Suppliers. No Obligor has received any notice, and no Obligor has any reason to believe, that any Material Customer or
Material Supplier has ceased, or intends to cease on or after the date hereof, to use any Obligor’s goods or services, or
supply goods or services to any Obligor, or to otherwise terminate or materially reduce its relationship with any Obligor.

 

(t)       Insurance.
Schedule VIII sets forth a true and complete list of all Insurance Policies and true and complete copies of such Insurance
Policies have been made available to the Purchaser. Such Insurance Policies are in full force and effect and shall remain in full
force and effect following the consummation of the transactions contemplated by this Agreement. Neither the Obligors nor any of
their respective Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration
of coverage under, any of such Insurance Policies. The Insurance Policies are of the type and in the amounts customarily carried
by Persons conducting a business similar to the Obligors and are sufficient for compliance with all applicable Laws and Contracts
to which any Obligor is a party or by which it is bound. There are no claims related to the business of the any Obligor pending
under any such Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which there is
an outstanding reservation of rights.

 

(u)       Environmental
Matters. Each of the Obligors jointly and severally represents and warrants the following regarding environmental matters:

 

(i)       Each
Obligor is currently and has been in compliance with all Environmental Laws and has not received from any Person any: (A) Environmental
Notice or Environmental Claim; or (B) written request for information pursuant to Environmental Law, which, in each case, either
remains pending or unresolved, or is the source of ongoing obligations or requirements as of the date this representation is made.

 

(ii)       Each
Obligor has obtained and is in material compliance with all Environmental Permits (each of which is disclosed in Schedule V)
necessary for the ownership, lease, operation or use of the business or assets of such Obligor and all such Environmental Permits
will be in full force and effect through the date this representation is made in accordance with Environmental Law, and no Obligor
is aware of any condition, event or circumstance that might prevent or impede, after the date hereof, the ownership, lease, operation
or use of the business or assets of any Obligor as currently carried out.

 

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(iii)       No
real property currently or formerly owned, operated or leased by any Obligor is listed on, or has been proposed for listing on,
the National Priorities List (or CERCLIS) under CERCLA, or any similar state list.

 

(iv)       There
has been no Release of Hazardous Materials in contravention of Environmental Law with respect to the business or assets of any
Obligor or any real property currently or formerly owned, operated or leased by any Obligor, and no Obligor has received an Environmental
Notice that any real property currently or formerly owned, operated or leased in connection with the business of any Obligor (including
soils, groundwater, surface water, buildings and other structure located on any such real property) has been contaminated with
any Hazardous Material which could reasonably be expected to result in an Environmental Claim against, or a violation of Environmental
Law or term of any Environmental Permit by, any Obligor.

 

(v)       No
Obligor has retained or assumed, by contract or operation of Law, any liabilities or obligations of third parties under Environmental
Law.

 

(vi)       No
Obligor is aware of, nor does any Obligor reasonably anticipate, any condition, event or circumstance concerning the Release or
regulation of Hazardous Materials that might prevent, impede or materially increase the costs associated with the ownership, lease,
operation, performance or use of the business or assets of any Obligor as currently carried out.

 

(vii)       Schedule
V contains (A) a complete and accurate list of all active or abandoned aboveground or underground storage tanks owned or operated
by any Obligor and (B) a complete and accurate list of all off-site Hazardous Materials treatment, storage, or disposal facilities
or locations used by any Obligor and any predecessors of any Obligor as to which any Obligor may retain liability, and none of
these facilities or locations has been placed or proposed for placement on the National Priorities List (or CERCLIS) under CERCLA,
or any similar state list, and no Obligor has received any Environmental Notice regarding potential liabilities with respect to
such off-site Hazardous Materials treatment, storage, or disposal facilities or locations used by any Obligor.

 

(viii)       The
Obligors have listed in Schedule V and provided or otherwise made available to the Purchaser (A) any and all environmental
reports, studies, audits, records, sampling data, site assessments, risk assessments, economic models and other similar documents
with respect to the business or assets of the Obligors or any currently or formerly owned, operated or leased real property which
are in the possession or control of any Obligor related to compliance with Environmental Laws, Environmental Claims or an Environmental
Notice or the Release of Hazardous Materials; and (B) any and all material documents concerning planned or anticipated Capital
Expenditures required to reduce, offset, limit or otherwise control pollution and/or emissions, manage waste or otherwise ensure
compliance with current or future Environmental Laws (including, without limitation, costs of remediation, pollution control equipment
and operational changes).

 

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(v)       Employee
Benefit Matters. Schedule X contains a true and complete list of each Benefit Plan. With respect to each Benefit Plan,
the Obligors has made available to the Purchaser accurate, current and complete copies of each of the following: (i) where the
Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where the Benefit Plan has not
been reduced to writing, a written summary of all material plan terms; and (iii) in the case of any Benefit Plan that is intended
to be qualified under Section 401(a) of the Code, a copy of the most recent determination, opinion or advisory letter from the
Internal Revenue Service.

 

Each
Benefit Plan, other than any Multiemployer Plan, has been established, administered and
maintained in accordance with its terms and in compliance with all applicable Laws (including ERISA and the Code), except where
such failure to comply could not reasonably be expected to have a Material Adverse Effect. Each Qualified
Benefit Plan is so qualified and has received a favorable and current determination letter from the Internal Revenue Service,
or with respect to a prototype plan, can rely on an opinion letter from the Internal Revenue Service to the prototype plan sponsor,
to the effect that such Qualified Benefit Plan is so qualified and that the plan and the trust related thereto are exempt from
federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and nothing has occurred that could reasonably
be expected to cause the revocation of such determination letter from the Internal Revenue Service or the unavailability of reliance
on such opinion letter from the Internal Revenue Service, as applicable, nor has such revocation or unavailability been threatened.
Nothing has occurred with respect to any Benefit Plan that has subjected or could reasonably be expected to subject any Obligor
to a penalty under Section 502 of ERISA or to tax or penalty under Section 4975 of the Code. All benefits, contributions and premiums
relating to each Benefit Plan have been timely paid in accordance with the terms of such Benefit Plan and all applicable Laws
and accounting principles, and all benefits accrued under any unfunded Benefit Plan have been paid, accrued or otherwise adequately
reserved to the extent required by, and in accordance with, GAAP. There is no pending or, to any Obligor’s Knowledge, threatened
Action relating to a Benefit Plan (other than routine claims for benefits).

 

None
of the Obligors nor any of their respective ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly
or indirectly, any material Liability under Title I or Title IV of ERISA or related provisions of the Code or foreign Law relating
to employee benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from
any Benefit Plan; or (iv) engaged in any transaction which would give rise to liability under Section 4069 or Section 4212(c)
of ERISA.

 

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With
respect to each Benefit Plan, except as otherwise disclosed on Schedule X, (i) no such plan is a Multiemployer Plan, and
all contributions required to be paid by any Obligor or its ERISA Affiliates have been timely paid to the applicable Multiemployer
Plan; (ii) no such plan is a “multiple employer plan” within the meaning of Section 413(c) of the Code or a “multiple
employer welfare arrangement” (as defined in Section 3(40) of ERISA); (iii) no Action has been initiated by the Pension
Benefit Guaranty Corporation to terminate any such plan or to appoint a trustee for any such plan; (iv) no such plan is subject
to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code, and no such plan has failed to satisfy the
minimum funding standards of Section 302 of ERISA or Section 412 of the Code; and (v) no “reportable event,” as defined
in Section 4043 of ERISA, has occurred with respect to any such plan.

 

Except
as otherwise disclosed on Schedule X, other than as required under Section 601 et. seq. of ERISA or other applicable Law,
no Benefit Plan provides post-termination or retiree welfare benefits to any individual for any reason, and none of the Obligors
nor any of their respective ERISA Affiliates has any Liability to provide post-termination or retiree welfare benefits to any
individual.

 

Neither
the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon the occurrence
of any additional or subsequent events): (i) entitle any current or former director, officer, employee, independent contractor
or consultant of any Obligor to severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or
increase the amount of compensation due to any such individual; (iii) limit or restrict the right of any Obligor to merge, amend
or terminate any Benefit Plan; or (iv) increase the amount payable under or result in any other material obligation pursuant to
any Benefit Plan.

 

(w)       Employment
Matters. Except as otherwise disclosed on Schedule XI, (i) all compensation, including wages, commissions and bonuses,
payable to employees, independent contractors or consultants of any Obligor for services performed on or prior to the date this
representation is made have been paid in full (or accrued in full on the balance sheet contained in the Financial Statements)
and there are no outstanding agreements, understandings or commitments of any Obligor with respect to any employment, compensation,
commissions or bonuses; (ii) no Obligor is, and no Obligor has ever been, a party to, bound by, or negotiating any collective
bargaining agreement or other Contract with a Union, and there is not, and has never been, any Union representing or purporting
to represent any employee of any Obligor, and, to each Obligor’s Knowledge, no Union or group of employees is seeking or
has sought to organize employees for the purpose of collective bargaining; (iii) there has never been, nor has there been any
threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption
or dispute affecting any Obligor or any of its employees; no Obligor has any duty to bargain with any Union; (iv) each Obligor
is and has been in compliance in all material respects with the terms of the collective bargaining agreements and other Contracts
listed on Schedule XI, all applicable Laws pertaining to employment and employment practices, including all Laws relating
to labor relations, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation,
reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring,
promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers’
compensation, leaves of absence and unemployment insurance; (v) all individuals characterized and treated by any Obligor as independent
contractors or consultants are properly treated as independent contractors under all applicable Laws; (vi) all employees classified
as exempt under the Fair Labor Standards Act and state and local wage and hour laws are properly classified; and (vii) there are
no Actions against any Obligor pending, or to the Knowledge of any Obligor, threatened to be brought or filed, by or with any
Governmental Authority or arbitrator in connection with the employment of any current or former applicant, employee, consultant,
volunteer, intern or independent contractor of any Obligor, including, without limitation, any claim relating to unfair labor
practices, employment discrimination, harassment, retaliation, equal pay, wage and hours or any other employment related matter
arising under applicable Laws.

 

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(x)       Books
and Records. The minute books and stock record books of the each Obligor, all of which have been made available to the Purchaser,
are complete and correct and have been maintained in accordance with sound business practices. The minute books of each Obligor
contain, in all material respects, accurate and complete records of all meetings, and actions taken by written consent of, the
stockholders, the board of directors and any committees of the board of directors of the applicable Obligor, and no meeting, or
action taken by written consent, of any such stockholders, board of directors or committee has been held for which minutes have
not been prepared and are not contained in such minute books.

 

(y)       Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection
with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf
of any Obligor.

 

(z)       Foreign
Corrupt Practices Act. None of the Obligors nor, to the Knowledge of any Obligor, any other person associated with or acting
on behalf of any Obligor, including, without limitation, any director, officer, agent, employee or Affiliate of any Obligor has
(i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity or to influence official action; (ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment; or (iv) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, and
the rules and regulations thereunder; and each Obligor has instituted and maintains policies and procedures designed to ensure
compliance therewith.

 

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(aa)Transactions
with Affiliates. There are no Contracts or other transactions between or among any of the Obligors, on the one hand, and any
officer, director, employee, present or former stockholder (including any spouse, parent, sibling, descendants (including adoptive
relationships and stepchildren) of any such natural persons, or trust or other entity in which any such natural persons or such
other individuals owns or otherwise holds any beneficial interest in) or Affiliate of any of the Obligors, on the other hand.

 

(bb)Full
Disclosure. No representation or warranty by any Obligor in this Agreement, any other Transaction Document or any certificate
or other document furnished or to be furnished to the Purchaser pursuant to this Agreement or any other Transaction Document contains
any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein,
in light of the circumstances in which they are made, not misleading.

 

(cc)Pledge
Agreement. The Pledge Agreement is effective to create in favor of the Purchaser legal, valid and enforceable Encumbrances
on, and security interests in, the Collateral and, assuming all appropriate filings or recordings are made in the appropriate
offices as may be required under applicable laws, the Pledge Agreement constitutes a fully perfected first priority Encumbrance
on, and a security interest in, all right, title and interest of each Obligor in such Collateral subject to no other Encumbrances
other than Permitted Encumbrances.

 

Section
8.Representations and Warranties by the Purchaser. The Purchaser represents and warrants to each Obligor that it is
acquiring the New Notes for its own account for investment. The Purchaser agrees that if it should in the future determine to
transfer, sell, assign, pledge, hypothecate or otherwise dispose of the New Notes, or any interests therein, such transfer, sale
or other disposition shall not be made in violation of Section 5 of the Securities Act.

 

Section
9.Affirmative Covenants. Unless the Obligors have received the prior written consent or waiver of the Purchaser, each
Obligors jointly and severally shall comply with and be subject to each of the following covenants:

 

(a)       Annual
Financial Statements. Within 90 days after the end of each fiscal year of XFIT, XFIT shall deliver to the Purchaser copies
of its consolidated financial statements consisting of a balance sheet of XFIT and its consolidated subsidiaries as at the end
of such fiscal year and statements of income, stockholders’ equity and cash flows of XFIT and its consolidated subsidiaries
for such fiscal year, setting forth in comparative form the corresponding figures for the preceding fiscal year (if applicable),
certified by and containing an opinion, unqualified as to scope, of a firm of independent certified public accountants selected
by XFIT and acceptable to the Purchaser; provided that the foregoing delivery requirement shall be satisfied if XFIT shall have
filed with the SEC its Annual Report on Form 10-K for such fiscal year, which is available to the public via EDGAR or any successor
system.

 

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(b)       Quarterly
Financial Statements. Within 45 days after the end of each of the first three quarters of each fiscal year of XFIT, XFIT shall
deliver to the Purchaser copies of financial statements consisting of consolidated balance sheets of XFIT and its consolidated
subsidiaries as at the end of such quarter and statements of income, stockholders’ equity and cash flows of XFIT and its
consolidated subsidiaries for each such quarter, setting forth in comparative form the corresponding figures for the corresponding
periods of the preceding fiscal year (if applicable), all in reasonable detail and certified (subject to normal year-end audit
adjustments) by a senior financial officer of XFIT as having been prepared in accordance with GAAP; provided that the foregoing
delivery requirement shall be satisfied if XFIT shall have filed with the SEC its Quarterly Report on Form 10-Q for such fiscal
quarter, which is available to the public via EDGAR or any successor system.

 

(c)       Board
Minutes. Each Obligor shall deliver to the Purchaser upon request copies of the minutes of each meeting of the board of directors
or other governing body of such Obligor, each action taken by written consent of the members or stockholders, the board of directors
or other governing body and any committees of the board of directors or other governing body of such Obligor, all of which shall
be complete and correct and maintained in accordance with sound business practices, and no meeting, or action taken by written
consent, of any such stockholders, board of directors, other governing body or committee shall be held for which minutes are not
prepared.

 

(d)       Corporate
Existence, etc. Each Obligor shall at all times maintain (i) under the Laws of the state of California, Delaware or Nevada,
as the case may be, its valid company existence and good standing, (ii) its due license and qualification to do business and good
standing in each jurisdiction set forth on Schedule II and, following the date of this Agreement, each other jurisdiction
in which the properties owned or leased by it or the operation of its business makes such licensing or qualification necessary
and (iii) all Permits necessary to the conduct of its businesses.

 

(e)       Compliance
with Law. Each Obligor shall comply with all Laws applicable to it or its business, properties or assets.

 

(f)       Contractual
Obligations. Each Obligor shall (i) comply with all contractual obligations, unless and to the extent such obligations are
being contested in good faith by appropriate proceedings and adequate reserves (as determined in accordance with GAAP) have been
established on its books and financial statements of such Obligor for such obligations; and (ii) perform and observe all of its
obligations and covenants set forth in each of the Transaction Documents.

 

(g)       Payment
of Taxes, Fees and Claims. Each Obligor shall (i) pay and discharge all Taxes due and owing by such Obligor before the same
becomes delinquent and before penalties accrue thereon, unless and to the extent such Taxes are being contested in good faith
by appropriate procedures and adequate accruals or reserves (as determined in accordance with GAAP) have been established on the
books and financial statements of such Obligor for such Taxes; (ii) pay when due all transfer, documentary, sales, use, stamp,
registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this
Agreement (including any real property transfer Tax and any other similar Tax). Each Obligor shall, at its own expense, timely
file any Tax Return or other document with respect to such Taxes or fees (and the Purchaser shall cooperate with respect thereto
as necessary); (iii) pay and discharge all claims for labor, material and supplies which, if unpaid and delinquent, would become
under applicable Law a Lien upon property of any Obligor, unless and to the extent such claims are being contested in good faith
by appropriate procedures and adequate accruals or reserves (as determined in accordance with GAAP) have been established on the
books and financial statements of the Obligors for such claims.

 

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(h)       Maintenance
of Assets, Insurance, and Records; Inspection. Each Obligor shall (i) maintain and keep its properties and assets in good
repair, working order and condition, ordinary wear and tear excepted; (ii) maintain with financially sound and reputable insurance
companies (x) property and casualty and other insurance covering risks and hazards of such types and in such amounts as are customary
for adequately-insured companies of similar size engaged in similar industries and lines of business, and (y) directors and officers
liability insurance with coverage of no less than $1,000,000 per occurrence/in an amount per occurrence and on terms and conditions
satisfactory to the Purchaser; and (iii) keep adequate books, accounts and records in accordance with past custom and practice
as used in the preparation of the Financial Statements, which books, accounts and records shall fairly present the financial condition
and results of operations of the Obligors. Such books, accounts and records shall be available for inspection by one or more representatives
of the Purchaser during normal business hours and upon not less than three (3) Business Days’ prior notice.

 

(i)       Other
Covenants. Each Obligor shall (i) own, exclusively or jointly with other Persons, all right, title and interest in and to,
or have a valid license for, and shall maintain all Intellectual Property necessary to the conduct of its business, free and clear
of Encumbrances, (ii) enter into and maintain in full force and effect binding, written agreements with every current and former
employee of such Obligor, and with every current and former independent contractor, whereby such employees and independent contractors
(x) assign to the applicable Obligor any ownership interest and right they may have in the Obligor Intellectual Property and (y)
acknowledge the applicable Obligor’s exclusive ownership of all Obligor Intellectual Property, and (iii) remain in full
compliance with all legal requirements applicable to the Obligor Intellectual Property and the applicable Obligor’s ownership
and use thereof.

 

Section
10.Negative Covenants. Each Obligor jointly and severally covenants that so long as any of the Notes are outstanding:

 

(a)       Merger,
Consolidation, etc. No Obligor will consolidate with or merge with any other Person or convey, transfer or lease all or substantially
all of its assets in a single transaction or series of transactions to any Person unless:

 

    	20

    	 

    

 

the
successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease
substantially all of the assets of such Obligor as an entirety, as the case may be, shall be a solvent corporation or limited
liability company organized and existing under the laws of the United States or any State thereof (including the District of Columbia)
with a net worth equal to or in excess of such Obligor immediately following the consummation of such transaction, and such Person
shall have (x) executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance
of each covenant and condition of this Agreement and the Notes and (y) caused to be delivered to each holder of any Notes an opinion
of nationally recognized independent counsel, or other independent counsel satisfactory to the Purchaser, to the effect that all
agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof;
and

 

immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.

 

No
such conveyance, transfer or lease of all or substantially all of the assets of any Obligor shall have the effect of releasing
any Obligor or any successor thereof that shall theretofore have become such in the manner prescribed in this Section 10(a)
from its liability under this Agreement or the other Transaction Documents.

 

(b)       No
Other Indebtedness. No Obligor will incur, assume, become liable in respect of or suffer to exist any Indebtedness other than
(i) the Notes, (ii) Indebtedness incurred in connection with the Kodiak Securities Purchase Agreement and the related Unsecured
Note; (iii) Indebtedness under that certain Wells Fargo Business Line of Credit as in effect as February 12, 2016 in an amount
at any one time not to exceed $35,000 in the aggregate; (iv) obligations arising under the Crown Receivables Sale Agreement; and
(v) as otherwise approved in writing by the Purchaser (collectively, clauses (i) through (v), “Permitted Indebtedness”).

 

(c)       Liens.
No Obligor will cause or permit (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to an Encumbrance; provided, that an Obligor may create or incur or suffer to be created or incurred or
to exist:

 

(i)       Encumbrances
to secure taxes, assessments and other government charges in respect of obligations not overdue or liens on properties to secure
claims for labor, material or supplies in respect of obligations not overdue;

 

(ii)       Encumbrances
on properties in respect of judgments or awards that have been in force for less than the applicable period for taking an appeal
so long as execution is not levied thereunder or in respect of which the applicable Obligor shall at the time in good faith be
prosecuting an appeal or proceedings for review and in respect of which a stay of execution shall have been obtained pending such
appeal or review;

 

    	21

    	 

    

 

(iii)       Encumbrances
of carriers, warehousemen, mechanics and materialmen, and other like liens on properties in existence less than 90 days from the
date of creation thereof in respect of obligations not overdue;

 

(iv)       Encumbrances
on real estate consisting of easements, rights of way, zoning restrictions, restrictions on the use of real property and defects
and irregularities in the title thereto, landlord’s or lessor’s liens and other minor liens; provided, that none of
such liens interferes materially with the use of the property affected in the ordinary conduct of the business of such Obligor;

 

(v)       purchase
money security interests in or purchase money mortgages on real or personal property acquired after the date hereof to secure
purchase money Indebtedness, incurred in connection with the acquisition of such property, which security interests or mortgages
cover only the real or personal property so acquired; and

 

(vi)       Encumbrances
in favor of Crown Financial, LLC on accounts receivable as provided under the Crown Receivables Sale Agreement; and

 

(vii)       liens
in favor of and for the benefit of the Purchaser.

 

(d)       Restricted
Payments. No Obligor will, directly or indirectly, declare, pay, or make any Restricted Payments.

 

(e)       Dispositions.
No Obligor will Dispose of any of its property, whether now owned or hereinafter acquired, nor shall Holdings, TD LLC or TDI issue
or sell, nor shall XFIT permit Holdings, TD LLC or TDI to issue or sell, any Equity Interests of Holdings, TD LLC or TDI to any
Person, except:

 

(i)       the
sale or Disposition of machinery and equipment no longer used or useful in the business of the applicable Obligor;

 

(ii)       the
Disposition of obsolete or worn-out Property in the ordinary course of business;

 

(iii)       the
sale of inventory in the ordinary course of business;

 

(iv)       the
Disposition of accounts receivable to Crown Financial, LLC for cash consideration payable on the date of sale in an amount no
less than 70% of the outstanding face amount thereof, in each case, in accordance with the terms of the Crown Receivables Sale
Agreement; and

 

(v)       Dispositions
of other property in any fiscal year of XFIT so long as (A) the purchase price paid to the Obligors for such property shall have
a fair market value not exceeding $50,000 in the aggregate for all Obligors and (B) the purchase price paid to the Obligors for
such property shall be paid solely in cash.

 

(f)       Capital
Expenditures. No Obligor will make or commit to make any Capital Expenditure, except Capital Expenditures of an Obligor in
the ordinary course of business not exceeding $100,000 in the aggregate for all Obligors in any fiscal year of XFIT.

 

    	22

    	 

    

 

Section
11.Further Assurances. Following the date hereof, each of the parties hereto shall, and shall cause their respective
Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions
as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

Section
12.Indemnification.

 

(a)       Survival.
The representations and warranties contained herein and in the other Transaction Documents shall survive the execution and delivery
of this Agreement, the Restatement Date and the termination of this Agreement. All covenants and agreements of the parties contained
herein shall survive the execution and delivery of this Agreement, the Restatement Date and the termination of this Agreement
indefinitely or for the period explicitly specified therein.

 

(b)       Indemnification
by Obligors. Each Obligor shall jointly and severally indemnify and defend the Purchaser and its Affiliates and their respective
Representatives (collectively, the “Purchaser Indemnitees”) against, and
shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or
sustained by, or imposed upon, the Purchaser Indemnitees based upon, arising out of, with respect to or by reason of:

 

(i)       any
inaccuracy in or breach of any of the representations or warranties of any Obligor contained in this Agreement or any other Transaction
Document or in any certificate or instrument delivered by or on behalf of any Obligor pursuant to this Agreement or any other
Transaction Document;

 

(ii)       any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by any Obligor pursuant to this Agreement or
any other Transaction Document; or

 

(iii)       otherwise
relating to or arising out of this Agreement, any other Transaction Document or any transaction contemplated hereby or thereby,
or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, any other Transaction
Document or any transaction contemplated hereby or thereby.

 

(c)       Effect
of Investigation. Neither the representations, warranties and covenants of the Obligors, nor the right to indemnification
of any Purchaser Indemnitee making a claim under this Section 12 with respect thereto, shall be affected or deemed waived
by reason of any investigation made by or on behalf of a Purchaser Indemnitee (including by any of its Representatives) or by
reason of the fact that a Purchaser Indemnitee or any of its Representatives knew or should have known that any such representation
or warranty is, was or might be inaccurate or by reason of a Purchaser Indemnitee’s waiver of any condition set forth in
Section 7.

 

    	23

    	 

    

 

Section
13.Waiver, Change or Modification; Counterparts. No course of dealing between any Obligor and the Purchaser (or any
Person acting on its behalf) or delay on the part of the Purchaser in exercising any rights hereunder or under the Notes shall
operate as a waiver of any rights of the Purchaser, except to the extent expressly waived in writing by the Purchaser. This Agreement
may not be changed orally, but only by an agreement in writing signed by, or on behalf of, each of the Obligors and the Purchaser.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but such
counterparts shall together constitute but one and the same instrument

 

Section
14.Replacement of Notes. Upon receipt of evidence reasonably satisfactory to XFIT, on behalf of the Obligors, of the
loss, theft, destruction, defacing or mutilation of any Note, then in each such case the Obligors will execute and deliver a new
Note of like tenor and unpaid principal amount, in lieu of such lost, stolen, destroyed, defaced or mutilated Note, and dated
the date to which interest has been paid on such Note (or, if no interest has been so paid, dated the date of such Note).

 

Section
15.Payment. The Obligors will pay for the benefit of the holders of the Notes (by wire transfer of immediately available
funds) to an account specified to XFIT in writing and maintained by the Purchaser all amounts (other than the final payment of
principal) payable in respect of any Note or Notes without presentment or surrender of any such Note. Such account is initially
designated by the Purchaser as set forth on Schedule I hereto.

 

Section
16.Events of Default. Each of the following events shall constitute an “Event of Default” hereunder and
under the Notes:

 

(a)       Payment
Default. Any Obligor shall default in the payment of any amount owing hereunder, under the Notes or under any other Transaction
Document when due, and the Obligors do not cure such default within five (5) Business Days after the earlier of Knowledge or notice
from Purchaser of such default;

 

(b)       Representation
and Warranty Breach. Any representation, warranty or certification made herein or in any other Transaction Document by any
Obligor or any certificate furnished to the Purchaser pursuant to the provisions hereof or thereof or any information with respect
to any Obligor furnished in writing by on behalf of any Obligor shall prove to have been untrue or misleading in any material
respect as of the time made or furnished;

 

(c)       Covenant
Default. The failure of any Obligor to perform, comply with or observe any term, covenant or agreement applicable to such
Obligor contained in this Agreement or any other Transaction Document, and if such failure is capable of being cured, the Obligors
do not cure such default within ten (10) Business Days after the earlier of Knowledge or notice from Purchaser of such failure;

 

    	24

    	 

    

 

(d)       Judgments.
A judgment or judgments for the payment of money in excess of $100,000 in the aggregate for all Obligors shall be rendered against
one or more Obligors by one or more courts, administrative tribunals or other bodies having jurisdiction and the same shall not
be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall not
be procured, within fifteen (15) days from the date of entry thereof;

 

(e)       Cross
Default. Any Obligor shall be in default (beyond any and all applicable periods of notice and cure) under any note, indenture,
loan agreement, guaranty, hedge agreement or other payment obligation in excess of $100,000 in the aggregate for all Obligors;

 

(f)       Insolvency
Event. Any of the following events shall occur: (i) any Obligor shall discontinue or abandon operation of its business; (ii)
any Obligor shall fail generally to, or admit in writing its inability to, pay its debts as they become due; (iii) a proceeding
shall have been instituted in a court having jurisdiction seeking a decree or order for relief in respect of such Obligor in an
involuntary case under any applicable bankruptcy, insolvency, liquidation, reorganization or other similar law now or hereafter
in effect, or for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other
similar official of such Obligor, or for any substantial part of its property, or for the winding up or liquidation of its affairs,
which proceeding shall not have been timely contested and shall result in an order for relief which shall remain unstayed for
a period of thirty (30) days, (iv) the commencement by any Obligor of a voluntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, or such Obligor’s consent to the entry of an order for relief in an involuntary
case under any such law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator, conservator or other similar official of such Obligor, or for any substantial part of its property, or any general
assignment for the benefit of creditors or (v) any Obligor shall take any company action in furtherance of, or the action of which
would result in any of the actions set forth in the preceding clauses (i), (ii), (iii) or (iv);

 

(g)       Enforceability.
For any reason, this Agreement or any other Transaction Document at any time shall not be in full force and effect or shall not
be enforceable in accordance with its terms, or any Encumbrance granted pursuant hereto or pursuant to any other Transaction Document
shall fail to be perfected and of first priority, or any Obligor shall contest the validity, enforceability, perfection or priority
of any Encumbrance granted pursuant to this Agreement or pursuant to any other Transaction Document or any Obligor shall seek
to disaffirm, terminate, limit or reduce its obligations hereunder or under any other Transaction Document;

 

(h)       Material
Adverse Effect. A Material Adverse Effect shall occur;

 

(i)       Change
in Control. A Change in Control shall have occurred;

 

(j)       Going
Concern. Any Obligor’s audited financial statements or notes thereto or other opinions or conclusions stated therein
shall be qualified or limited by reference to the status of such Obligor as a “going concern” or reference of similar
import;

 

    	25

    	 

    

 

(k)       Inability
to Perform. Any Obligor shall admit in writing its inability to, or its intention not to, perform any of its obligations under
this Agreement or any other Transaction Document; or

 

(l)       Governmental
Action. Any Obligor shall become the subject of a cease and desist order of any Governmental Authority or enter into a memorandum
of understanding or consent agreement with the Governmental Authority, any of which, may have, or is purportedly the result of
any condition which could have, a Material Adverse Effect.

 

Section
17.Remedies.

 

Upon
the occurrence of an Event of Default, at the option of the Purchaser, exercised by written notice to the Obligors (which option
shall be deemed to have been exercised, even if no notice is given, immediately upon the occurrence of an Event of Default described
in Section 16(f), the Applicable Percentage of the entire outstanding principal amount of the Notes and all other amounts
payable hereunder and under the other Transaction Documents shall become immediately due and payable.

 

To
the extent permitted by any applicable law, the Obligors shall jointly and severally be liable to the Purchaser for interest on
any amounts owing by any Obligor hereunder or under any other Transaction Document from the date any Obligor becomes liable for
such amounts until such amounts are paid in full. Interest on any sum that accrued after the related Event of Default shall be
at a rate equal to eighteen percent (18%) per annum.

 

The
Obligor shall jointly and severally be liable to the Purchaser for (i) the amount of all legal or other expenses including, without
limitation, all out-of-pocket costs and expenses of the Purchaser in connection with the enforcement of this Agreement or any
other Transaction Document, including without limitation, the fees and expenses of counsel in connection with or as a result of
an Event of Default and (ii) any other loss, damage, cost or expense arising or resulting from the occurrence of an Event of Default.

 

The
Purchaser shall have, in addition to any other rights specified hereunder, any rights and remedies otherwise available to it under
any other Transaction Document or other agreement or applicable law, including without limitation, the rights and remedies of
a secured creditor under the applicable uniform commercial code. All rights and remedies hereunder are cumulative and not exclusive
of any other rights or remedies which the Purchaser may have.

 

    	26

    	 

    

 

Section
18.Amendment and Restatement of Existing Note Purchase Agreement.

 

(a)       Effect
of Amendment and Restatement of Existing Note Purchase Agreement. As of the Restatement Date, this Agreement shall amend and
restate the Existing Note Purchase Agreement, but shall not constitute a novation thereof or in any way impair or otherwise affect
the rights or obligations of the parties thereunder (including with respect to Existing Notes and representations and warranties
made thereunder) except as such rights or obligations are amended or modified hereby. The Existing Note Purchase Agreement as
amended and restated hereby shall be deemed to be a continuing agreement among the parties, and all documents, instruments and
agreements delivered pursuant to or in connection with the Existing Note Purchase Agreement not amended and restated in connection
with the entry of the parties into this Agreement shall remain in full force and effect, each in accordance with its terms, as
of the date of delivery or such other date as contemplated by such document, instrument or agreement to the same extent as if
the modifications to the Existing Note Purchase Agreement contained herein were set forth in an amendment to the Existing Note
Purchase Agreement in a customary form, unless such document, instrument or agreement has otherwise been terminated or has expired
in accordance with or pursuant to the terms of this Agreement, the Existing Note Purchase Agreement or such document, instrument
or agreement or as otherwise agreed by the required parties hereto or thereto.

 

(b)       Ratification
of Other Transaction Documents. Each party hereto hereby agrees that (a) notwithstanding the effectiveness of the amendment
and restatement of the Existing Note Purchase Agreement, the Transaction Documents are, and shall continue to be, in full force
and effect and are hereby ratified and confirmed in all respects and (b) the Transaction Documents and all of the Collateral described
therein do, and shall continue to, secure the payment of all of the obligations set forth therein and herein.

 

Section
19.Miscellaneous.

 

(a)       Successors
and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto shall
bind and inure to the benefit of their respective successors and permitted assigns (including, without limitation, any subsequent
holder of a Note) whether so expressed or not, provided that no Obligor may assign its rights or obligations hereunder or any
interest herein without the prior written consent of the Purchaser. Any assignment by any Obligor without such consent required
above shall be null and void.

 

(b)       Public
Announcements. No Obligor shall issue any press release or make any other public announcement or disclosure with respect to
this Agreement and the transactions contemplated herein without the prior written consent of the Purchaser, except for any press
release, public announcement or other public disclosure that is required by applicable law or governmental regulations or by order
of a court of competent jurisdiction. Prior to making any such required disclosure, the applicable Obligor shall have given written
notice to the Purchaser describing in reasonable detail the proposed content of such disclosure and shall permit the Purchaser
to review and comment upon the form and substance of such disclosure.

 

    	27

    	 

    

 

(c)       Expenses.
Whether or not the transaction hereby contemplated shall be consummated, the Obligors shall jointly and severally pay all of the
fees, expenses and disbursements incurred by any Obligor and, to the extent provided in the Expense Letter, the Purchaser in connection
with the negotiation, execution and delivery of the Transaction Documents.

 

(d)       Severability.
Each provision of this Agreement shall be considered severable and if for any reason any provision that is not essential to the
effectuation of the basic purposes of the Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable
and contrary to existing or future applicable law, such invalidity shall not impair the operation of or affect those provisions
of this Agreement that are valid. In that case, this Agreement shall be construed so as to limit any term or provision so as to
make it enforceable or valid within the requirements of any applicable law, and in the event such term or provision cannot be
so limited, this Agreement shall be construed to omit such invalid or unenforceable provisions.

 

(e)       Construction.
Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other
covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed
to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which
such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly
by such Person.

 

(f)       Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

(g)       Entire
Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, the Original Closing Date Transaction, the Restatement
Date Transaction and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect
to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the
other Transaction Documents, the Exhibits and Schedules, the statements in the body of this Agreement will control.

 

(h)       Notices.
All notices, requests, consents and other communications and transmissions hereunder, or under or in respect of any Note, shall
be in writing and shall be deemed to have been duly given to any party when delivered personally (by courier service or otherwise),
upon receipt or three (3) days after being mailed by registered first-class mail, postage prepaid and return receipt requested
in each case to the applicable address set forth below:

 

(i)       if
to the Purchaser, at PIMCO Funds: Private Account Portfolio Series: PIMCO High Yield Portfolio, c/o Pacific Investment Management
Company LLC, 650 Newport Center Drive, Newport Beach, California 92660, Attn: General Counsel with a copy to Latham & Watkins
LLP, 885 Third Avenue, New York, New York 10022-4834, Attn: Loren N. Finegold;

 

    	28

    	 

    

 

(ii)       if
to XFIT, at Attn: David E. Vautrin, 25731 Commercentre Drive, Lake Forest CA 92630, with a copy to Joseph Galda, Esq., 1055 Westlakes
Drive, Suite 300, Berwyn, Pennsylvania 19312;

 

(iii)       if
to the Obligors, at Attn: David E. Vautrin, 25731 Commercentre Drive, Lake Forest CA 92630, with a copy to Joseph Galda, Esq.,
1055 Westlakes Drive, Suite 300, Berwyn, Pennsylvania 19312; and

 

(iv)       or,
in each case, at such other address in the United States of America as shall have been furnished in writing pursuant to this Section
14.

 

(i)       No
Third-party Beneficiaries. Except as provided in Section 12 herein, this Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of
this Agreement.

 

(j)       Governing
Law. THIS AGREEMENT AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT, TORT OR OTHERWISE) THAT MAY BE BASED UPON, ARISE
OUT OF OR RELATE IN ANY WAY HERETO OR THERETO OR THE NEGOTIATION, EXECUTION OR PERFORMANCE THEREOF OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY, UNLESS OTHERWISE EXPRESSLY SET FORTH THEREIN, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER
THAN THE LAW OF THE STATE OF NEW YORK.

 

(k)       Waiver
of Jury Trial. EACH OF THE OBLIGORS AND THE PURCHASER HEREBY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	29

    	 

    

 

If
the foregoing correctly sets forth our understanding, please sign the form of acceptance on the enclosed counterpart of this letter
and return the same to the undersigned, whereupon this letter shall become a binding contract between the Purchaser and the Obligors.

 

	 	Very
    truly yours,
	 	 
	 	THROWDOWN
    INDUSTRIES

    HOLDINGS, LLC
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	THROWDOWN
    INDUSTRIES, LLC
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	THROWDOWN
    INDUSTRIES, INC.
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	XFIT
    BRANDS, INC.
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO

 

    	30

    	 

    

 

The
foregoing Note Purchase Agreement

is hereby accepted as of the date first

set forth above.

 

PIMCO
FUNDS: PRIVATE ACCOUNT PORTFOLIO SERIES: 

PIMCO HIGH YIELD PORTFOLIO

By: Pacific Investment Management Company LLC,

as
its Investment Advisor, acting through Investors

Fiduciary
Trust Company, in the Nominee Name of IFTCO

 

	By:	/s/
    T. Christian Stracke	 
	Name:	T.
    Christian Stracke	 
	Title:
    	Managing
    Director	 

 

    	31

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