Document:

Exhibit 10.1

 

 

 

Stock
Purchase Agreement

 

By
and Among

 

Simplicity
Esports and Gaming Company

 

And

 

Tiger
Trout Capital Puerto Rico, LLC

 

Dated
as of March [31], 2021

 

 

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	Article
    I. DEFINITIONS	1
	Section
    1.01 Definitions.	1
	Section
    1.02 Interpretive Provisions.	3
	Article
    II. PURCHASE AND SALE	3
	Section
    2.01 Purchase and Sale.	3
	Section
    2.02 Closings.	4
	Section
    2.03 Deliverables and Actions on the Effective Date.	4
	Section
    2.04 Deliverables and Actions at the Second Closing.	5
	Section
    2.05 Use of Proceeds.	5
	Article
    III. REGISTRATION	5
	Section
    3.01 Registration.	5
	Section
    3.02 Related Obligations.	6
	Section
    3.03 Obligations of the Buyer.	10
	Section
    3.04 Indemnification.	10
	Article
    IV. CONDITIONS TO THE SECOND CLOSING	12
	Section
    4.01 Conditions to Buyer’s Obligations to the Second Closing.	12
	Section
    4.02 Conditions to the Company’s Obligations to the Second Closing.	13
	Article
    V. REPRESENTATIONS AND WARRANTIES OF THE COMPANY	14
	Section
    5.01 Authorization of Transactions.	13
	Section
    5.02 Governmental Approvals; Non-contravention.	14
	Section
    5.03 Brokers.	14
	Article
    VI. REPRESENTATIONS AND WARRANTIES OF BUYER	14
	Section
    6.01 Authorization of Transactions.	14
	Section
    6.02 Governmental Approvals; Non-contravention.	15
	Section
    6.03 Investment Representations.	15
	Section
    6.04 Brokers.	16
	Article
    VII. DEFAULT AND TERMINATION	16
	Section
    7.01 Default by the Company.	16
	Section
    7.02 Default by Buyer.	16
	Section
    7.03 Termination.	16
	Section
    7.04 Effect of Termination.	17
	Article
    VIII. INDEMNIFICATION	17
	Section
    8.01 General Indemnification.	17
	Section
    8.02 Definitions and Procedures for Indemnification.	18
	Section
    8.03 Payment.	20
	Section
    8.04 Effect of Knowledge on Indemnification.	20
	Article
    IX. MISCELLANEOUS	21
	Section
    9.01 Notices.	21
	Section
    9.02 Attorneys’ Fees	21
	Section
    9.03 Amendments; No Waivers; No Third-Party Beneficiaries.	22
	Section
    9.04 Further Assurances.	22
	Section
    9.05 Expenses.	22
	Section
    9.06 Successors and Assigns; Benefit.	22
	Section
    9.07 Governing Law; Etc.	23
	Section
    9.08 Survival.	23
	Section
    9.09 Resolution of Disputes.	24
	Section
    9.10 Severability.	24
	Section
    9.11 Entire Agreement.	24
	Section
    9.12 Specific Performance.	24
	Section
    9.13 Construction.	24
	Section
    9.14 Counterparts.	24

 

    	i

     

    

 

STOCK
PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (this “Agreement”) is entered into as of March [31], 2021 (the “Effective Date”),
by and among Simplicity Esports and Gaming Company, a Delaware corporation (the “Company”) and Tiger Trout Capital Puerto
Rico, LLC, a Puerto Rico limited liability company (“Buyer”). The Company and the Buyer may be collectively referred to herein
as the “Parties” and individually as a “Party”.

 

WHEREAS,
upon the terms and subject to the conditions set forth herein, the Company desires to issue and sell to Buyer 125,000 shares (the
“Shares”) of the Company’s common stock, par value $0.0001 per share, (the “Common Stock”), and
Buyer desires to acquire from the Company the Shares;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

Article
I. DEFINITIONS

 

Section
1.01 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms, as used herein, have
the following meanings:

 

	 	(a)	“Affiliate”
    means, with respect to a specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under
    common Control with, the specified Person.

 

	 	(b)	“Business
    Day” means any day except Saturday, Sunday and any legal holiday or a day on which banking institutions in Delaware
    generally are authorized or required by Law or other governmental actions to close.

 

	 	(c)	“Contract”
    means any contract, commitment, understanding or agreement (whether oral or written).

 

	 	(d)	“Control”
    means (a) the possession, directly or indirectly, of the power to vote 10% or more of the securities or other equity interests
    of a Person having ordinary voting power, (b) the possession, directly or indirectly, of the power to direct or cause the
    direction of the management and policies of a Person, by contractor otherwise, or (c) being a director, officer, executor,
    trustee or fiduciary (or their equivalents) of a Person or a Person that controls such Person.

 

	 	(e)	“Exchange
    Act” means the Securities Exchange Act of 1934, as amended.

 

	 	(f)	“Governmental
    Entity” means any federal, state, municipal, local or foreign government and any court, tribunal, arbitral body, administrative
    agency, department, subdivision, entity, commission or other governmental, government appointed, quasi-governmental or regulatory
    authority, reporting entity or agency, domestic, foreign or supranational.

 

	 	(g)	“Law”
    means any applicable foreign, federal, state or local law (including common law), statute, treaty, rule, directive, regulation,
    ordinances and similar provisions having the force or effect of law or an Order of any Governmental Entity.

 

    	1

     

    

 

	 	(h)	“Liabilities”
    means liabilities, obligations or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured,
    fixed or unfixed, known or unknown, asserted or un asserted, choate or inchoate, liquidated or unliquidated, secured or unsecured,
    absolute, contingent or otherwise, including any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage,
    deficiency, cost or expense.

 

	 	(i)	“Lien”
    means, with respect to any property or asset, any lien, security interest, mortgage, pledge, charge, claim, lease, agreement,
    right of first refusal, option, limitation on transfer or use or assignment or licensing, restrictive easement, charge or
    any other restriction of any kind, and any conditional sale or voting agreement or proxy, and including any restriction on
    the ownership, use, voting, transfer, possession, receipt of income or other exercise of any attributes of ownership, in respect
    of such property or asset, and any agreement to give any of the foregoing.

 

	 	(j)	“Losses”
    means any losses, damages, deficiencies, Liabilities, assessments, fines, penalties, judgments, actions, claims, costs, disbursements,
    fees, expenses or settlements of any kind or nature, including legal, accounting and other professional fees and expenses.

 

	 	(k)	“Order”
    means any judgment, writ, decree, determination, award, compliance agreement, settlement agreement, injunction, ruling, charge,
    judicial or administrative order, determination or other restriction of any Governmental Entity or arbitrator.

 

	 	(l)	“Person”
    means a natural person, a corporation, a limited liability company, a partnership, an association, a trust or any other entity
    or organization, including a government or political subdivision or any agency or instrumentality thereof.

 

	 	(m)	“Register,”
    “Registered,” and “Registration” refer to the Registration effected by preparing and filing one (1)
    or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or
    any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration or
    ordering of effectiveness of such Registration Statement(s) by the SEC.

 

	 	(n)	“Registrable
    Securities” means (i) the Shares and (ii) any shares of capital stock issued or issuable with respect to such Shares,
    if any, as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, which have
    not been (x) included in the Registration Statement that has been declared effective by the SEC, or (y) sold under circumstances
    meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the Securities Act.

 

	 	(o)	“Registration
    Statement” means a resale registration statement which registers the sale by Buyer of the Shares, including all information,
    documents and exhibits filed with or incorporated by reference into such registration statement.

 

	 	(p)	“SEC”
    means the United States Securities and Exchange Commission

 

	 	(q)	“Securities
    Act” means the United States Securities Act of 1933, as amended, and the rules and regulation promulgated thereunder.

 

    	2

     

    

 

	 	(r)	“Trading
    Market” means any of the following markets or exchanges on which the shares of Common Stock are listed or quoted for
    trading on the date in question: the OTC Markets, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market,
    the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing).

 

	 	(s)	“Transactions”
    means the purchase and sale of the Shares and the other transactions contemplated under the Transaction Documents.

 

	 	(t)	“Transaction
    Documents” means this Agreement and any other agreement, document, certificate or writing delivered or to be delivered
    in connection with this Agreement and any other document related to the Transactions related to the forgoing, including, without
    limitations, those delivered at either or both of the Closings.

 

Section
1.02 Interpretive Provisions. Unless the express context otherwise requires, the words “hereof,” “herein,”
and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; terms defined in the singular shall have a comparable meaning when used
in the plural, and vice versa; the terms “Dollars” and “$” mean United States Dollars, unless otherwise
specified herein; references herein to a specific Section, Subsection, Recital or Exhibit shall refer, respectively, to Sections,
Subsections, Recitals or Exhibits of this Agreement; wherever the word “include,” “includes,” or “including”
is used in this Agreement, it shall be deemed to be followed by the words “without limitation”; references herein
to any gender shall include each other gender; references herein to any Person shall include such Person’s heirs, executors,
personal representatives, administrators, successors and assigns; provided, however, that nothing contained in this Section 1.02
is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; references herein to a Person in
a particular capacity or capacities shall exclude such Person in any other capacity; references herein to any contract or agreement
(including this Agreement) mean such contract or agreement as amended, supplemented or modified from time to time in accordance
with the terms thereof; with respect to the determination of any period of time, the word “from” means “from
and including” and the words “to” and “until” each means “to but excluding”; references
herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented or superseded
in whole or in part, and in effect from time to time; and references herein to any Law shall be deemed also to refer to all rules
and regulations promulgated thereunder.

 

Article
II. PURCHASE AND SALE

 

Section
2.01 Purchase and Sale.

 

	 	(a)	Subject
    to the terms and conditions of this Agreement, the Company shall issue and sell to the Buyer the Shares in two tranches, as
    follows: 

 

	 	(i)	On
    the Effective Date, the Company shall issue and sell to Buyer 41,667 shares of Common Stock of the Company (the “First
    Tranche Shares”) at a purchase price of $12.00 per Share, for a total purchase price of $500,004.00 (the “First
    Tranche Purchase Price”). The closing of the purchase and sale of the First Tranche Shares shall be referred to as the
    “First Closing”.

 

    	3

     

    

 

	 	(ii)	Subject
    to the satisfaction or waiver, by the Party for whose benefit such conditions exist, of the conditions to the Second Closing
    (as defined below), at such time and pursuant to the terms and conditions herein, the Company shall issue and sell to Buyer
    83,333 shares of Common Stock of the Company (the “Second Tranche Shares”) at a purchase price of $12.00 per Share,
    for a resulting total purchase price of $999,996.00 (the “Second Tranche Purchase Price”). The closing of the
    purchase and sale of the Second Tranche Shares shall be referred to as the “Second Closing”.

 

	 	(b)	The
    First Tranche Purchase Price and Second Tranche Purchase Price shall be referred to collectively as the “Purchase Price”.
    The First Tranche Shares and Second Tranche Shares shall be referred to collectively as the “Shares”. The First
    Closing and the Second Closing may be referred to individually as a “Closing” and collectively as the “Closings”.

 

Section
2.02 Closings.

 

	 	(a)	The
    Parties acknowledge and agree that there are no conditions precedent to the occurrence of the First Closing, which First Closing
    shall occur on the Effective Date, immediately following the execution of this Agreement.

 

	 	(b)	Subject
    to the terms and conditions herein, the Second Closing shall be held on the date that all of the conditions to the Second
    Closing as set forth in Article IV have been satisfied (the “Second Closing Date”).

 

	 	(c)	Each
    of the Closings shall be held at the offices of the Company or via the exchange of documents electronically, as agreed to
    by the Parties, as set forth below.

 

Section
2.03 Deliverables and Actions on the Effective Date. On the Effective Date, and with respect to the First Closing:

 

	 	(a)	Buyer
    shall deliver to the Company the First Tranche Purchase Price, via a check payable to the Company or via wire transfer to
    an account as designated by the Company prior to the Effective Date, representing the First Tranche Purchase Price for the
    First Tranche Shares; and

 

	 	(b)	the
    Company shall record the Buyer in the stock ledger of the Company as the beneficial owner of the First Tranche Shares.

 

    	4

     

    

 

Section
2.04 Deliverables and Actions at the Second Closing. On the Second Closing Date, and with respect to the Second Closing:

 

	 	(a)	Buyer
    shall deliver to the Company:

 

	 	(i)	the
    Second Tranche Purchase Price, via a check payable to the Company or via wire transfer to an account as designated by the
    Company prior to the Second Closing Date, representing the Second Tranche Purchase Price for the Second Tranche Shares; and

 

	 	(ii)	a
    certificate from Buyer, in form and substance reasonably acceptable to the Company, certifying that the matters set forth
    in Section 4.01(b)Section 4.02(a) and Section 4.02(b) are true and correct, duly executed by the manager or an authorized
    officer of Buyer; and

 

	 	(b)	the
    Company:

 

	 	(i)	shall
    record the Buyer in the stock ledger of the Company as the beneficial owner of the Second Tranche Shares; and

 

	 	(ii)	shall
    deliver to the Buyer a certificate from the Company, in form and substance reasonably acceptable to the Buyer, certifying
    that the matters set forth in Section 4.01(a), Section 4.01(b) and Section 4.01(c) are true and correct, duly executed by
    an authorized officer of the Company.

 

Section
2.05 Use of Proceeds. The Company covenants and agrees that it shall utilize the Purchase Price to pay for working capital
requirements and general corporate purposes.

 

Article
III. REGISTRATION

 

Section
3.01 Registration.

 

	 	(a)	Following
    the Effective Date, the Company shall use its commercially reasonable efforts to file with the SEC a Registration Statement
    or Registration Statements (as is necessary) on Form S-1 (or, if such form is unavailable for such a registration, on such
    other form as is available for such registration) covering the resale of all of the Registrable Securities, which Registration
    Statement(s) shall state that, in accordance with Rule 416 promulgated under the Securities Act, such Registration Statement
    also covers such indeterminate number of additional shares of Common Stock as may become issuable upon stock splits, stock
    dividends or similar transactions. The Company shall initially register for resale all of the Registrable Securities so as
    to permit the resale of such Registrable Securities by the Buyer, including but not limited to under Rule 415 under the Securities
    Act at then-prevailing market prices (and not fixed prices).

 

	 	(b)	The
    Company shall use all commercially reasonable efforts to have the Registration Statement(s) declared effective by the SEC
    within thirty (30) calendar days, but no more than ninety (90) calendar days after the Effective Date.

 

	 	(c)	Notwithstanding
    the registration obligations set forth in this Article III, if the staff of the SEC (the “Staff”) or the SEC informs
    the Company that all of the unregistered Registrable Securities cannot, as a result of the application of Rule 415, be registered
    for resale as a secondary offering on a single Registration Statement, the Company agrees to promptly (i) inform Buyer thereof
    and use its commercially reasonable efforts to file amendments to the Registration Statement as required by the SEC and/or
    (ii) withdraw the Registration Statement and file a new registration statement (the “New Registration Statement”),
    in either case covering the maximum number of Registrable Securities permitted to be registered by the SEC, on Form S-1 to
    register for resale the Registrable Securities as a secondary offering. If the Company amends the Registration Statement or
    files a New Registration Statement, as the case may be, under clauses (i) or (ii) above, the Company will use its commercially
    reasonable efforts to file with the SEC, as promptly as allowed by the Staff or SEC, one or more registration statements on
    Form S-1 to register for resale those Registrable Securities that were not registered for resale on the Registration Statement,
    as amended, or the New Registration Statement.

 

    	5

     

    

 

Section
3.02 Related Obligations.

 

	 	(a)	At
    such time as the Company is obligated to prepare and file the Registration Statement with the SEC pursuant to Section 3.01,
    the Company will affect the registration of the Registrable Securities in accordance with the intended method of disposition
    thereof and, with respect thereto, the Company shall have the obligations as set forth in this Section 3.02.

 

	 	(b)	The
    Company shall use all commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities
    to become effective and shall use commercially reasonable efforts keep such Registration Statement effective until the earlier
    to occur of the date on which (A) the Buyer shall have sold all the Registrable Securities; or (B) 12 months following the
    Second Closing Date (the “Registration Period”). The Registration Statement (including any amendments or supplements
    thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material
    fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they
    were made, not misleading. The Company shall use all commercially reasonable efforts to respond to all SEC comments within
    ten (10) Business Days from receipt of such comments by the Company. The Company shall use all commercially reasonable efforts
    to cause the Registration Statement relating to the Registrable Securities to become effective no later than three (3) Business
    Days after notice from the SEC that the Registration Statement may be declared effective. The Buyer agrees to provide all
    information which is required by Law to be provided to the Company, including the intended method of disposition of the Registrable
    Securities, and the Company’s obligations set forth above shall be conditioned on the receipt of such information.

 

	 	(c)	The
    Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration
    Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant
    to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective during
    the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition
    of all Registrable Securities covered by such Registration Statement until such time as all of such Registrable Securities
    shall have been disposed of in accordance with the intended methods of disposition by the Buyer thereof as set forth in such
    Registration Statement. In the event the number of shares of Common Stock covered by the Registration Statement filed pursuant
    to this Agreement is at any time insufficient to cover all of the Registrable Securities, the Company shall amend such Registration
    Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover
    all of the Registrable Securities, in each case, as soon as practicable, but in any event, within thirty (30) calendar days
    after the necessity therefor arises and subject to SEC rules, regulations and interpretations, assuming the Company has sufficient
    authorized shares at that time, and if it does not, within thirty (30) calendar days after such shares are authorized. The
    Company shall use commercially reasonable efforts to cause such amendment and/or new Registration Statement to become effective
    as soon as reasonably practicable following the filing thereof.

 

    	6

     

    

 

	 	(d)	The
    Company shall make available to the Buyer and its legal counsel without charge (i) promptly after the same is prepared and
    filed with the SEC at least one (1) copy of such Registration Statement and any amendment(s) thereto, including financial
    statements and schedules, all documents incorporated therein by reference and all exhibits, the prospectus included in such
    Registration Statement (including each preliminary prospectus) and, with regards to such Registration Statement(s), except
    as may be prohibited by Law or with respect to any information which may be material non-public information, any correspondence
    by or on behalf of the Company to the SEC or the staff of the SEC and any correspondence from the SEC or the staff of the
    SEC to the Company or its representatives relating to such Registration Statement; (ii) upon the effectiveness of any Registration
    Statement, the Company shall make available copies of the prospectus, via EDGAR, included in such Registration Statement and
    all amendments and supplements thereto; and (iii) such other documents, including copies of any preliminary or final prospectus,
    as the Buyer may reasonably request from time to time to facilitate the disposition of the Registrable Securities. For the
    avoidance of doubt, any filing available to the Buyer via the SEC’s live EDGAR system shall be deemed “available
    to the Buyer” hereunder.

 

	 	(e)	The
    Company shall use commercially reasonable efforts to (i) register and qualify the Registrable Securities covered by the Registration
    Statement under such other securities or “blue sky” Laws of such states in the United States as the Buyer reasonably
    requests; (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
    to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration
    Period; (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all
    times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable
    Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith
    or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify
    but for this Section 3.02(e); (y) subject itself to general taxation in any such jurisdiction or (z) file a general consent
    to service of process in any such jurisdiction. The Company shall promptly notify the Buyer of the receipt by the Company
    of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities
    for sale under the securities or “blue sky” Laws of any jurisdiction in the United States or its receipt of actual
    notice of the initiation or threatening of any proceeding for such purpose.

 

	 	(f)	As
    promptly as practicable after becoming aware of such event, the Company shall notify Buyer in writing of the happening of
    any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue
    statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
    therein, in light of the circumstances under which they were made, not misleading (“Registration Default”) and
    use all diligent efforts to promptly prepare a supplement or amendment to such Registration Statement and take any other necessary
    steps to cure the Registration Default (which, if such Registration Statement is on Form S-3, may consist of a document to
    be filed by the Company with the SEC pursuant to Section 13(a), Section 13(c), Section 14 or Section 15(d) of the Exchange
    Act and to be incorporated by reference in the prospectus) to correct such untrue statement or omission, and make available
    copies of such supplement or amendment to the Buyer. The Company shall also promptly notify the Buyer (i) when a prospectus
    or any prospectus supplement or post-effective amendment has been filed, and when the Registration Statement or any post-effective
    amendment has become effective (the Company will prepare notification of such effectiveness which shall be delivered to the
    Buyer on the same day of such effectiveness and by overnight mail), additionally, the Company will promptly provide to the
    Buyer a copy of the effectiveness order prepared by the SEC once it is received by the Company; (ii) of any request by the
    SEC for amendments or supplements to the Registration Statement or related prospectus or related information, (iii) of the
    Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate,
    (iv) in the event the Registration Statement is no longer effective, or (v) if the Registration Statement is stale as a result
    of the Company’s failure to timely file its financials or otherwise.

 

    	7

     

    

 

	 	(g)	The
    Company shall use all commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
    of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any
    jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
    possible moment and to notify the Buyer holding Registrable Securities being sold of the issuance of such order and the resolution
    thereof or its receipt of actual notice of the initiation or threat of any proceeding concerning the effectiveness of the
    registration statement.

 

	 	(h)	The
    Company shall permit the Buyer and one (1) legal counsel, designated by the Buyer, to review and comment upon the Registration
    Statement and all amendments and supplements thereto at least one (1) calendar day prior to their filing with the SEC. However,
    any postponement of a filing of a Registration Statement or any postponement of a request for acceleration or any postponement
    of the effective date or effectiveness of a Registration Statement by written request of the Buyer (collectively, the “Buyer’s
    Delay”) shall not act to trigger any penalty of any kind, or any cash amount due or any in-kind amount due to the Buyer
    from the Company under any and all agreements of any nature or kind between the Company and the Buyer. The event(s) of an
    Buyer’s Delay shall act to suspend all obligations of any kind or nature of the Company under any and all agreements
    of any nature or kind between the Company and the Buyer.

 

	 	(i)	The
    Company shall hold in confidence and not make any disclosure of information concerning the Buyer unless (i) disclosure of
    such information is necessary to comply with federal or state Laws, (ii) the disclosure of such information is necessary to
    avoid or correct a misstatement or omission in any Registration Statement, or (iii) the release of such information is ordered
    pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction. The
    Company agrees that it shall, upon learning that disclosure of such information concerning the Buyer is sought in or by a
    court or governmental body of competent jurisdiction or through other means, to the extent legally permissible, give prompt
    written notice to the Buyer and allow the Buyer, at the Buyer’s expense, to undertake appropriate action to prevent
    disclosure of, or to obtain a protective order covering such information.

 

	 	(j)	The
    Company shall use all commercially reasonable efforts to maintain designation and quotation of all the Registrable Securities
    covered by any Registration Statement on the Principal Market. If, despite the Company’s commercially reasonable efforts,
    the Company is unsuccessful in satisfying the preceding sentence, it shall use commercially reasonable efforts to cause all
    the Registrable Securities covered by any Registration Statement to be listed on each other national securities exchange and
    automated quotation system, if any, on which securities of the same class or series issued by the Company are then listed,
    if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or system. The Company
    shall pay all fees and expenses in connection with satisfying its obligation under this Section 3.02(j).

 

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	 	(k)	The
    Company shall cooperate with the Buyer to facilitate the prompt preparation and delivery the Registrable Securities to be
    offered pursuant to the Registration Statement and enable such Registrable Securities to be in such denominations or amounts,
    as the case may be, as the Buyer may reasonably request.

 

	 	(l)	The
    Company shall provide a transfer agent for all the Registrable Securities not later than the effective date of the first Registration
    Statement filed pursuant hereto.

 

	 	(m)	If
    reasonably requested by the Buyer, the Company shall (i) as soon as reasonably practical incorporate in a prospectus supplement
    or post-effective amendment such information as the Buyer reasonably determines should be included therein relating to the
    sale and distribution of Registrable Securities, including, without limitation, information with respect to the offering of
    the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective
    amendment as soon as reasonably possible after being notified of the matters to be incorporated in such prospectus supplement
    or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement.

 

	 	(n)	The
    Company shall use all commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration
    Statement to be registered with or approved by such other Governmental Authorities as may be necessary to facilitate the disposition
    of such Registrable Securities.

 

	 	(o)	The
    Company shall otherwise use all commercially reasonable efforts to comply with all applicable rules and regulations of the
    SEC in connection with any registration hereunder.

 

	 	(p)	Within
    three (3) Business Days after the Registration Statement which includes Registrable Securities is declared effective by the
    SEC, the Company shall deliver to the transfer agent for such Registrable Securities, with copies to the Buyer, confirmation
    that such Registration Statement has been declared effective by the SEC.

 

	 	(q)	All
    legal expenses, other than underwriting discounts and sales or brokerage commissions and other than as set forth in this Agreement,
    incurred in connection with registrations including, without limitation, all registration, listing and qualifications fees,
    and printing fees shall be paid by the Company.

 

	 	(r)	With
    a view to making available to the Buyer the benefits of Rule 144 promulgated under the Securities Act or any other similar
    rule or regulation of the SEC that may at any time permit the Buyer to sell Registrable Securities to the public without registration
    (“Rule 144”), provided that the Buyer holds any Registrable Securities are eligible for resale under Rule 144,
    the Company agrees to:

 

	 	(i)	make
    and keep adequate current public information available, as those terms are understood and defined in Rule 144;

 

	 	(ii)	file
    with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
    Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required
    for the applicable provisions of Rule 144; and

 

	 	(iii)	furnish
    to the Buyer, promptly upon request, (i) a written statement by the Company that it has complied with the reporting requirements
    of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company
    and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested
    to permit the Buyer to sell such securities pursuant to Rule 144 without registration.

 

    	9

     

    

 

Section
3.03 Obligations of the Buyer.

 

	 	(a)	At
    least five (5) calendar days prior to the first anticipated filing date of the Registration Statement, the Company shall notify
    the Buyer in writing of the information the Company requires from the Buyer for the Registration Statement. It shall be a
    condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect
    to the Registrable Securities that the Buyer agrees to furnish to the Company that information regarding itself, the Registrable
    Securities and the intended method of disposition of the Registrable Securities as shall reasonably be required to effect
    the registration of such Registrable Securities and the Buyer shall execute such documents in connection with such registration
    as the Company may reasonably request. The Buyer covenants and agrees that, in connection with any sale of Registrable Securities
    by it pursuant to the Registration Statement, it shall comply with the “Plan of Distribution” section of the then-current
    prospectus relating to such Registration Statement.

 

	 	(b)	The
    Buyer agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
    of any Registration Statement hereunder.

 

	 	(c)	The
    Buyer agrees that, upon receipt of written notice from the Company of the happening of any event of the kind described in
    Section 3.02(g) or the first sentence of Section 3.02(f), the Buyer will immediately discontinue disposition of Registrable
    Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Buyer’s receipt
    of the copies of the supplemented or amended prospectus contemplated by Section 3.02(g) or the first sentence of Section 3.02(f).

 

Section
3.04 Indemnification.

 

	 	(a)	In
    the event any Registrable Securities are included in the Registration Statement under this Agreement this Section 3.04 shall
    apply thereto. The provisions of this Section 3.04 shall apply to any indemnification obligations with respect to the actions
    as set forth in this Article III, and shall be in addition to the indemnification obligations of the Parties as set forth
    in Article VIII. In the event that either this Article III or Article VIII could apply to a particular indemnification claim
    or process, the provisions of this Article III shall control, provided that the provisions of Section 8.02, Section 8.03 and
    Section 8.04 shall apply with respect to the indemnification rights and obligations as set forth in this Section 3.04.

 

    	10

     

    

 

	 	(b)	To
    the fullest extent permitted by Law and subject to the terms and conditions herein, the Company will, and hereby does, agree
    to indemnify, hold harmless and defend the Buyer, the directors, officers, partners, employees, counsel, agents, representatives
    of, and each Person, if any, who controls, Buyer within the meaning of the Securities Act or the Exchange Act (each, an “Buyer
    Indemnified Party”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs,
    attorneys’ fees, amounts paid in settlement or expenses, joint or several (collectively, “Claims”), incurred
    in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from
    the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether
    pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
    to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened,
    in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact
    in the Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification
    of the offering under the securities or other “blue sky” Laws of any jurisdiction in which the Buyer has requested
    in writing that the Company register or qualify the Shares (“Blue Sky Filing”), or the omission or alleged omission
    to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
    under which the statements therein were made, not misleading, (ii) any untrue statement or alleged untrue statement of a material
    fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement
    thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements
    made therein, in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation
    or alleged violation by the Company of the Securities Act, the Exchange Act, any other Law, including, without limitation,
    any state securities Law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
    pursuant to the Registration Statement, and the Company shall notify Buyer promptly of the institution, threat or assertion
    of any proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company
    is aware (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to
    the restrictions set forth herein, the Company shall reimburse the Buyer and each such controlling person, promptly as such
    expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them
    in connection with investigating or defending any such Claim related to a Violation. Notwithstanding anything to the contrary
    contained herein, the indemnification agreement contained in this Section 3.04(b) (i) shall not apply to a Claim arising out
    of or based upon a Violation which is due to the inclusion in the Registration Statement of the information furnished to the
    Company by any Buyer Indemnified Party expressly for use in connection with the preparation of the Registration Statement
    or any such amendment thereof or supplement thereto; (ii) shall not be available to the extent such Claim is based on (a)
    a failure of the Buyer to deliver or to cause to be delivered the prospectus made available by the Company or (b) the Buyer
    Indemnified Party’s use of an incorrect prospectus despite being promptly advised in advance by the Company in writing
    not to use such incorrect prospectus; (iii) any claims based on the manner of sale of the Registrable Securities by the Buyer
    or of the Buyer’s failure to register as a dealer under applicable securities Laws; (iv) any omission of the Buyer to
    notify the Company of any material fact that should be stated in the Registration Statement or prospectus relating to the
    Buyer or the manner of sale; and (v) any amounts paid in settlement of any Claim if such settlement is effected without the
    prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full
    force and effect regardless of any investigation made by or on behalf of the Buyer Indemnified Party and shall survive the
    resale of the Registrable Securities by the Buyer pursuant to the Registration Statement.

 

    	11

     

    

 

	 	(c)	In
    connection with the Registration Statement, the Buyer agrees to severally and jointly indemnify, hold harmless and defend,
    to the same extent and in the same manner as is set forth in Section 3.04(b), the Company, the officers, directors, members,
    partners, agents and employees (and any other individuals or entities with a functionally equivalent role of a person holding
    such titles, notwithstanding a lack of such title or any other title) of the Company, each individual or entity who controls
    the company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors,
    members, partners, agents and employees (and any other individuals or entities with a functionally equivalent role of a person
    holding such titles, notwithstanding a lack of such title or any other title) of each such controlling individual (each a
    “Company Indemnified Party”) against any Claim or Indemnified Damages to which any of them may become subject
    insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and
    only to the extent, that such Violation is incurred, arises out of or related to (1) any untrue or alleged untrue statement
    of a material fact contained in a Registration Statement, any related prospectus or any form of prospectus or in any amendment
    or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
    of a material fact required to be stated therein or necessary to make the statements therein (in the case of any such prospectus
    or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged
    violation by the Company of the Securities Act, the Exchange Act or any state securities Law, or any rule or regulation thereunder,
    in connection with the performance of its obligations under this Agreement, but only to the extent that such untrue statements
    or omissions are based upon information regarding Buyer furnished to the Company by Buyer for use therein.

 

	 	(d)	Notwithstanding
    anything to the contrary contained herein, the indemnification agreement contained in this Section 3.04 with respect to any
    preliminary prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material
    fact contained in the preliminary prospectus were corrected on a timely basis in the prospectus, as then amended or supplemented.

 

	 	(e)	The
    indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
    Party against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant
    to the Law.

 

Article
IV. CONDITIONS TO THE SECOND CLOSING

 

Section
4.01 Conditions to Buyer’s Obligations to the Second Closing. The obligations of the Buyer to consummate the Second
Closing shall be subject to the fulfillment or written waiver by the Buyer (in its sole discretion), on or prior to the Second
Closing Date, of each of the following conditions:

 

	 	(a)	The
    Registration Statement shall have become effective.

 

	 	(b)	The
    Company shall have performed and observed in all material respects all covenants and agreements required to be performed and
    observed by the Company under this Agreement at or prior to the Second Closing Date.

 

    	12

     

    

 

	 	(c)	From
    the Effective Date to the Second Closing Date, trading in the shares of Common Stock shall not have been suspended by the
    Commission or the Company’s principal Trading Market, and, at any time prior to the Second Closing Date, trading in
    securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have
    been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium
    have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak
    or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material
    adverse change in, any financial market which, in each case, in the reasonable judgment of Buyer, makes it impracticable or
    inadvisable to purchase the Second Tranche Shares at the Second Closing.

 

	 	(d)	The
    Company shall have delivered to Buyer the applicable items, executed certificates and instruments as set forth in Section
    2.04(b).

 

Section
4.02 Conditions to the Company’s Obligations to the Second Closing. The obligations of the Company to consummate
the Second Closing shall be subject to the fulfillment or written waiver by the Company, in its sole and absolute discretion,
on or prior to the Second Closing Date, of each of the following conditions:

 

	 	(a)	All
    of the representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects
    when made and on and as of the Second Closing Date with the same effect as though such representations and warranties had
    been made on and as of the Second Closing Date, except for such representations and warranties which are qualified as to materiality,
    which shall be true and correct in all respects, and except for such representations and warranties which are made as of a
    specified date, which shall be true and correct in all material respects or, if qualified by materiality then true and correct
    in all respects, as of such date.

 

	 	(b)	Buyer
    shall have performed and observed in all material respects all covenants and agreements required to be performed and observed
    by Buyer under this Agreement at or prior to the Second Closing Date.

 

	 	(c)	No
    action, proceeding, claim or litigation shall have been commenced (or, threatened, if in the Company’s commercially
    reasonable judgment such threat constitutes a colorable claim) by or before any Governmental Authority against either Party
    hereto seeking to restrain or materially and adversely alter the Transactions.

 

	 	(d)	Buyer
    shall have delivered to the Company the applicable items, executed certificates and instruments required by Section 2.04(a).

 

    	13

     

    

 

Article
V. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to Buyer that the following representations and warranties contained in this Article V are true
and correct as of the Effective Date and as of the Second Closing Date:

 

Section
5.01 Authorization of Transactions. The Company is a corporation duly authorized and in good standing in the State of Delaware
and has the requisite power and capacity to execute and deliver the Transaction Documents to which it is a party and to perform
its obligations hereunder and thereunder. The execution, delivery and performance by the Company of the applicable Transaction
Documents and the consummation of the Transactions have been duly and validly authorized by all requisite action on the part of
the Company. The Transaction Documents to which the Company is a party have been duly and validly executed and delivered by The
Company. Each Transaction Document to which the Company is a party constitutes the valid and legally binding obligation of the
Company, enforceable against the Company in accordance with its terms and conditions, except to the extent enforcement thereof
may be limited by applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’ rights or by the
principles governing the availability of equitable remedies.

 

Section
5.02 Governmental Approvals; Non-contravention.

 

	 	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    or Person is necessary for the execution, delivery or performance by the Company of this Agreement or any other Transaction
    Document to which the Company is a party.

 

	 	(b)	The
    execution, delivery and performance by the Company of the Transaction Documents to which the Company is a party, and the consummation
    by the Company of the Transactions, do not (i) violate or conflict with any Law or Order to which the Company may be subject,
    (ii) constitute a violation or breach of, be in conflict with, constitute or create (with or without due notice or lapse of
    time or both) a default (or give rise to any right of termination, modification, cancellation or acceleration) of any obligation
    under any Contract to which the Company is a party or to which the Company is subject or by which the Company’s properties,
    assets or rights are bound or (iii) result in the creation or imposition of any Lien upon any of the rights, properties or
    assets of the Company.

 

Section
5.03 Brokers. The Company has not engaged, or caused to be incurred any Liability or obligation to, any investment banker,
finder, broker or sales agent or any other Person in connection with the origin, negotiation, execution, delivery or performance
of the Transaction Documents to which it is a party, or the Transactions.

 

Article
VI. REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to the Company that the following statements contained in this Article VI are true and correct as of the
Effective Date and as of the Second Closing Date :

 

Section
6.01 Authorization of Transactions. Buyer is a limited liability company, duly qualified under the laws of the Puerto Rico,
and has the requisite power and capacity to execute and deliver the Transaction Documents to which it is a party and to perform
its obligations hereunder and thereunder. The execution, delivery and performance by Buyer of the applicable Transaction Documents
and the consummation of the Transactions have been duly and validly authorized by all requisite action on the part of Buyer. The
Transaction Documents to which Buyer is a party have been duly and validly executed and delivered by Buyer. Each Transaction Document
to which Buyer is a party constitutes the valid and legally binding obligation of Buyer, enforceable against Buyer in accordance
with its terms and conditions, except to the extent enforcement thereof may be limited by applicable bankruptcy, insolvency or
other Laws affecting the enforcement of creditors’ rights or by the principles governing the availability of equitable remedies.

 

    	14

     

    

 

Section
6.02 Governmental Approvals; Non-contravention.

 

	 	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    is necessary for the execution, delivery or performance by Buyer of this Agreement or any other Transaction Document to which
    Buyer is a party.

 

	 	(b)	The
    execution, delivery and performance by Buyer of the Transaction Documents to which Buyer is a party, and the consummation
    by Buyer of the Transactions, do not violate any Laws or Orders to which Buyer is subject or violate, breach or conflict with
    any provision of Buyer’s organizational documents.

 

Section
6.03 Investment Representations.

 

	 	(a)	Buyer
    understands and agrees that the consummation of this Agreement including the delivery of the Shares as contemplated hereby
    constitute the offer and sale of securities under the Securities Act and applicable state statutes and that the Shares are
    being acquired for Buyer’s own account and not with a present view towards the public sale or distribution thereof,
    except pursuant to sales registered or exempted from registration under the Securities Act.

 

	 	(b)	Buyer
    is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities Act.

 

	 	(c)	Buyer
    understands that the Shares are being offered and sold to Buyer in reliance upon specific exemptions from the registration
    requirements of United States federal and state securities Laws and that the Company is relying upon the truth and accuracy
    of, and Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of
    Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of Buyer to acquire the
    Shares. 

 

	 	(d)	At
    no time was Buyer presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement,
    or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection
    and concurrently with such communicated offer. Buyer is not purchasing the Shares acquired by Buyer hereunder as a result
    of any “general solicitation” or “general advertising,” as such terms are defined in Regulation D
    under the Securities Act, which includes, but is not limited to, any advertisement, article, notice or other communication
    regarding the Shares acquired by Buyer hereunder published in any newspaper, magazine or similar media or on the internet
    or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general
    advertisement.

 

	 	(e)	Buyer
    is acquiring the Shares for its own account as principal, not as a nominee or agent, for investment purposes only, and, unless
    the Registration Statement becomes effective and the Second Closing occurs, not with a view to, or for, resale, distribution
    or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in the Shares.
    Further, Buyer does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
    participations to such person or to any third person, with respect to the Shares.

 

    	15

     

    

 

	 	(f)	Buyer,
    either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial
    matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated
    the merits and risks of such investment. 

 

	 	(g)	Buyer
    understands that no United States federal or state agency or any other governmental or state agency has passed on or made
    recommendations or endorsement of the Shares or the suitability of the investment in the Shares nor have such authorities
    passed upon or endorsed the merits of the transactions set forth herein.

 

Section
6.04 Brokers. Buyer has not engaged any investment banker, finder, broker or sales agent or any other Person in connection
with the origin, negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

 

Article
VII. DEFAULT AND TERMINATION

 

Section
7.01 Default by the Company. If the Company fails to perform any of its material obligations under this Agreement, or is
in breach in any material respect of any representation, warranty, covenant or agreement on the part of the Company set forth
in this Agreement, and, if such breach or failure is capable of being cured, such failure or breach has not been cured within
5 Business Days after receipt of notice of such breach by the Company, then the Company shall be in default hereunder (such event,
a “Company Default”). In the event of a Company Default, Buyer shall be entitled to elect either (1) to bring an action
for specific performance of this Agreement pursuant to Section 9.12 and proceed against the Company for any Losses incurred by
the Buyer as a result of such Company Default or (2) to terminate this Agreement pursuant to Section 7.03(c) and proceed against
the Company for any Losses incurred by the Buyer as a result of such Company Default.

 

Section
7.02 Default by Buyer. If Buyer fails to perform any of its material obligations under this Agreement, or is in breach
in any material respect of any representation, warranty, covenant or agreement on the part of Buyer set forth in this Agreement,
and, if such breach or failure is capable of being cured, such failure or breach has not been cured within 5 Business Days after
receipt of notice of such breach by Buyer, then Buyer shall be in default hereunder (such event, a “Buyer Default”).
In the event of a Buyer Default, the Company shall be entitled to elect either (1) to bring an action for specific performance
of this Agreement pursuant to Section 9.12 and proceed against Buyer for any Losses incurred by the Company as a result of such
Buyer Default or (2) to terminate this Agreement pursuant to Section 7.03(d) and proceed against Buyer for any Losses incurred
by the Company as a result of such Buyer Default.

 

Section
7.03 Termination. This Agreement may be terminated at any time before the occurrence of the Second Closing as follows:

 

	 	(a)	by
    mutual written consent of the Parties;

 

	 	(b)	by
    either Party, upon written notice to the other Party, if there shall be in effect a final nonappealable order, judgment, injunction
    or decree entered by or with any Governmental Authority restraining, enjoining or otherwise prohibiting the consummation of
    the Transactions;

 

	 	(c)	by
    the Buyer, upon written notice to the Company, if there shall have been a Company Default;

 

    	16

     

    

 

	 	(d)	by
    the Company, upon written notice to the Buyer, if there shall have been a Buyer Default; or

 

	 	(e)	by
    either the Company or Buyer if the Second Closing has not occurred by the date that is ninety (90) calendar days after the
    Effective Date of this Agreement, it will be considered an event of Default by the Company pursuant to Section 7.01, provided,
    however, that the right to terminate this Agreement under this Section 7.03(e) shall not be available to (i) the Buyer if,
    as of such time, the Company has the right to terminate this Agreement pursuant to Section 7.03(d) or in the event that the
    failure of the Second Closing to so occur was caused by a Buyer Default; or (ii) the Company if, as of such time, the Buyer
    has the right to terminate this Agreement pursuant to Section 7.03(c) or in the event that the failure of the Second Closing
    to so occur was caused by a Company Default.

 

Section
7.04 Effect of Termination. In the event of termination of this Agreement pursuant to this Article VII, the obligations
of the Company to complete the actions as set forth in Article III shall cease, but the remainder of this Agreement shall remain
in full force and effect and any such termination shall not relieve any Party from liability for actual damages to the other Party
resulting from a material breach of this Agreement by such first Party prior to such termination.

 

Article
VIII. INDEMNIFICATION

 

Section
8.01 General Indemnification. In addition to the indemnification obligations of the Parties as set forth in Article III,
each Party further agrees to indemnify, defend and hold harmless the other Party and such other Party’s Affiliates and each
of their respective directors, officers, managers, partners, employees, agents, equity holders, successors and assigns (each,
an “Indemnified Party”), from and against any and all Losses incurred or suffered by any Indemnified Party arising
out of, based upon or resulting from any breach of any representations or warranties of the Indemnifying Party herein or breach
by the Indemnifying Party of, or any failure the Indemnifying Party to perform, any of the covenants, agreements or obligations
contained in or made pursuant to this Agreement by the Indemnifying Party.

 

    	17

     

    

 

Section
8.02 Definitions and Procedures for Indemnification. For purposes of this Article VIII in addition to the definitions as
set forth in Section 8.01, any reference to an “Indemnified Party” shall also be deemed a reference to the Buyer Indemnified
Parties as set forth in Section 3.04 or the Company Indemnified Parties as set forth in Section 3.04, as applicable.

 

	 	(a)	All
    claims for indemnification by any Indemnified Party under Article III or this Article VIII shall be asserted and resolved
    as follows:

 

	 	(i)	In
    the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Article III or this Article
    VIII is asserted against or sought to be collected from such Indemnified Party by a Person other than a Party or an Affiliate
    thereof (a “Third Party Claim”), the Indemnified Party shall deliver a written notification, enclosing a copy
    of all papers served, if any, and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party’s
    claim for indemnification that is being asserted under any provision of Article III or this Article VIII against an Indemnifying
    Party, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith,
    of such Third Party Claim (a “Claim Notice”) with reasonable promptness to the Indemnifying Party. If the Indemnified
    Party fails to provide the Claim Notice with reasonable promptness after the Indemnified Party receives notice of such Third
    Party Claim, the Indemnifying Party shall not be obligated to indemnify the Indemnified Party with respect to such Third Party
    Claim to the extent that the Indemnifying Party’s ability to defend has been prejudiced by such failure of the Indemnified
    Party. The Indemnifying Party shall notify the Indemnified Party as soon as practicable within the period ending thirty (30)
    Business Days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity Notice (as defined below)
    (the “Dispute Period”) whether the Indemnifying Party disputes its liability or the amount of its liability to
    the Indemnified Party under Article III or this Article VIII and whether the Indemnifying Party desires, at its sole cost
    and expense, to defend the Indemnified Party against such Third Party Claim.

 

	 	(ii)	If
    the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
    the Indemnified Party with respect to the Third Party Claim pursuant to Article III or this Article VIII, then the Indemnifying
    Party shall have the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and
    expense of the Indemnifying Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously
    and diligently prosecuted by the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying
    Party (but only with the consent of the Indemnified Party in the case of any settlement that provides for any relief other
    than the payment of monetary damages or that provides for the payment of monetary damages as to which the Indemnified Party
    shall not be indemnified in full pursuant to Article III or this Article VIII). The Indemnifying Party shall have full control
    of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnified Party
    may, at the sole cost and expense of the Indemnified Party, at any time prior to the Indemnifying Party’s delivery of
    the notice referred to in the first sentence of this Section 8.02(a)(ii), file any motion, answer or other pleadings or take
    any other action that the Indemnified Party reasonably believes to be necessary or appropriate to protect its interests; and
    provided, further, that if requested by the Indemnifying Party, the Indemnified Party will, at the sole cost and expense of
    the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting any Third Party Claim that
    the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control, any defense or settlement
    of any Third Party Claim controlled by the Indemnifying Party pursuant to this Section 8.02(a)(ii), and except as provided
    in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.
    Notwithstanding the foregoing, the Indemnified Party may take over the control of the defense or settlement of a Third Party
    Claim at any time if it irrevocably waives its right to indemnity under Article III or this Article VIII with respect to such
    Third Party Claim.

 

    	18

     

    

 

	 	(iii)	If
    the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires
    to defend the Third Party Claim pursuant to Article III or this Article VIII, or if the Indemnifying Party gives such notice
    but fails to prosecute vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give
    any notice whatsoever within the Dispute Period, then the Indemnified Party shall have the right to defend, at the sole cost
    and expense of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted
    by the Indemnified Party in a reasonable manner and in good faith or will be settled at the discretion of the Indemnified
    Party(with the consent of the Indemnifying Party, which consent will not be unreasonably withheld). The Indemnified Party
    will have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however,
    that if requested by the Indemnified Party, the Indemnifying Party will, at the sole cost and expense of the Indemnifying
    Party, provide reasonable cooperation to the Indemnified Party and its counsel in contesting any Third Party Claim which the
    Indemnified Party is contesting. Notwithstanding the foregoing provisions of this Section 8.02(a)(iii), if the Indemnifying
    Party has notified the Indemnified Party within the Dispute Period that the Indemnifying Party disputes its liability or the
    amount of its liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such dispute is resolved
    in favor of the Indemnifying Party in the manner provided in Section 8.02(a)(iv) the Indemnifying Party will not be required
    to bear the costs and expenses of the Indemnified Party’s defense pursuant to this Section 8.02(a)(iii) or of the Indemnifying
    Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party shall reimburse the
    Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such
    litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified
    Party pursuant to this Section 8.02(a)(iii), and the Indemnifying Party shall bear its own costs and expenses with respect
    to such participation.

 

	 	(iv)	If
    the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability
    to the Indemnified Party with respect to the Third Party Claim or fails to notify the Indemnified Party within the Dispute
    Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with
    respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability
    of the Indemnifying Party under Article III or this Article VIII and the Indemnifying Party shall pay the amount of such Damages
    to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability
    with respect to such Third Party Claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate
    a resolution of such dispute; provided, however, that if the dispute is not resolved within thirty (30) Business Days after
    the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.

 

    	19

     

    

 

	 	(v)	In
    the event any Indemnified Party should have a claim under Article III or this Article VIII against the Indemnifying Party
    that does not involve a Third Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity
    under Article III or this Article VIII specifying the nature of and basis for such claim, together with the amount or, if
    not then reasonably ascertainable, the estimated amount, determined in good faith, of such claim (an “Indemnity Notice”)
    with reasonable promptness to the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall
    not impair such Party’s rights hereunder except to the extent that the Indemnifying Party demonstrates that it has been
    irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified Party that it does not dispute the claim
    or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified Party within the Dispute
    Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such Indemnity Notice, the
    amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying Party under
    Article III or this Article VIII and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party
    on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
    claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
    provided, however, that if the dispute is not resolved within thirty (30) Business Days after the Claim Notice, such dispute
    shall be resolved in accordance with the provisions of Section 9.09.

 

	 	(b)	The
    Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for
    any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any
    such claim.

 

	 	(c)	The
    indemnification provisions contained in Article III or this Article VIII shall be in addition to (i) any cause of action or
    similar rights of the Indemnified Party against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying
    Party may be subject to.

 

Section
8.03 Payment. Upon a determination of liability under Article III or this Article VIII the Indemnifying Party shall pay
or cause to be paid to the Indemnified Party the amount so determined within five (5) Business Days after the date of such determination.
If there should be a dispute as to the amount or manner of determination of any indemnity obligation owed under this Agreement,
the Indemnifying Party shall nevertheless pay when due such portion, if any, of the obligation that is not subject to dispute.
Upon the payment in full of any amounts due under Article III or this Article VIII with respect to any claim, the Indemnifying
Party shall be subrogated to the rights of the Indemnified Party against any Person with respect to the subject matter of such
claim.

 

Section
8.04 Effect of Knowledge on Indemnification. The right to indemnification, reimbursement or other remedy based upon any
representations, warranties, covenants and obligations set forth in this Agreement shall not be affected by any investigation
conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty,
covenant or obligation. The waiver of any condition based upon the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, shall not affect the right to indemnification, reimbursement or other remedy
based upon such representations, warranties, covenants or obligations.

 

    	20

     

    

 

Article
IX. MISCELLANEOUS

 

Section
9.01 Notices.

 

	 	(a)	Any
    notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally
    delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

if
to the Company, to:

 

Simplicity
Esports and Gaming Company

Attention:
Roman Franklin

7000
W Palmetto Park Rd, Suite 505

Boca
Raton, FL 33433

Email:
roman@simplicityesports.com

 

With
a copy, which shall not constitute notice, to:

 

Anthony
L.G., PLLC

Attn:
Laura Anthony

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

Email:
lanthony@anthonypllc.com

 

If
to the Buyer, to:

 

Tiger
Trout Capital Puerto Rico, LLC

Attn:
Alan Masley

1357
Ashford Ave STE 2-267

San
Juan, PR 00907

Email:
alan@tigertroutcapital.com

 

	 	(b)	Any
    Party may change its address for notices hereunder upon notice to each other Party in the manner for giving notices hereunder.
    

 

	 	(c)	Any
    notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch,
    if sent by overnight courier, (iii) upon dispatch, if transmitted by email with return receipt requested and received and
    (iv) three (3) days after mailing, if sent by registered or certified mail.

 

Section
9.02 Attorneys’ Fees. In the event that any Party institutes any action or suit to enforce this Agreement or to secure
relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs,
including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered
therein.

 

    	21

     

    

 

Section
9.03 Amendments; No Waivers; No Third-Party Beneficiaries.

 

	 	(a)	This
    Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants, representations,
    warranties or conditions hereof may be waived, only by a written instrument executed by both of the Parties.

 

	 	(b)	Every
    right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law,
    or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any obligation by
    another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or
    existing.

 

	 	(c)	Neither
    any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor
    any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy or from requiring
    satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that Party
    or impairs any right of the Party giving such notice or making such demand, including any right to take any action without
    notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of
    this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
    respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

 

	 	(d)	Notwithstanding
    anything else contained herein, no Party shall seek, nor shall any Party be liable for, consequential, punitive or exemplary
    damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement
    or any provision hereof or any matter otherwise relating hereto or arising in connection herewith.

 

Section
9.04 Further Assurances. Following the Effective Date, each Party shall, and shall cause its 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.

 

Section
9.05 Expenses. Unless otherwise contemplated or stipulated by a Transaction Document, all costs and expenses incurred in
connection with this Agreement shall be paid by the Party incurring such cost or expense.

 

Section
9.06 Successors and Assigns; Benefit. The provisions of this Agreement shall be binding upon and inure to the benefit of
the Parties and their respective successors and assigns. No Party may assign, delegate or otherwise transfer any of its rights
or obligations under this Agreement without the written consent of the other Party. Other than as specifically set forth herein,
including in Article VIII, nothing in this Agreement shall confer on any Person other than the Parties, and their respective successors
and assigns, any rights, remedies, obligations, or Liabilities under or by reason of this Agreement.

 

    	22

     

    

 

Section
9.07 Governing Law; Etc.

 

	 	(a)	This
    Agreement, and all matters based upon, arising out of or relating in any way to the Transactions or the Transaction Documents,
    including all disputes, claims or causes of action arising out of or relating to the Transactions or the Transaction Documents
    as well as the interpretation, construction, performance and enforcement of the Transaction Documents, shall be governed by
    the laws of the United States and the State of Delaware, without regard to any jurisdiction’s conflict-of-laws principles.

 

	 	(b)	SUBJECT
    TO Section 9.09, ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS
    OR THE CONTEMPLATED TRANSACTIONS SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS
    OF THE STATE OF FLORIDA, IN EACH CASE LOCATED IN PALM BEACH COUNTY, FLORIDA AND EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL
    JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY
    OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT
    TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
    AN INCONVENIENT FORUM.

 

	 	(c)	EACH
    PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
    ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE
    THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
    CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
    OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
    OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
    IN THIS Section 9.07(c).

 

	 	(d)	Each
    of the Parties acknowledge that each has been represented in connection with the signing of this waiver by independent legal
    counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this waiver
    with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of this waiver
    and grants this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver
    with legal counsel.

 

Section
9.08 Survival. The representations and warranties in this Agreement shall survive the Effective Date for a period of 24
months from the Effective Date, and no claim for indemnification may be made after such time. All covenants and agreements in
this Agreement, and such provisions herein as required to give effect to the same, will survive until fully performed; provided,
however, that, nothing herein shall prevent a Party from making any claim hereunder, or relieve any other Party from any liability
hereunder, after such time for any breach thereof.

 

    	23

     

    

 

Section
9.09 Resolution of Disputes. Except as otherwise provided herein, all controversies, disputes or actions between the Parties
arising out of the Transactions or this Agreement, including their respective Affiliates, owners, officers, directors, agents
and employees, arising from or relating to this Agreement shall on demand of either party be submitted for arbitration to in accordance
with the rules and regulations of the American Arbitration Association. The arbitration shall be conducted by one arbitrator jointly
selected by each Party who is a party to the Dispute, provided, however, that if such Parties are unable to agree on the identity
of the arbitrator within 10 Business Days of commencement of efforts to do so, each Party who is a party to the Dispute shall
select one arbitrator and the arbitrators so selected shall select a final arbitrator, and the final arbitrator shall conduct
the arbitration alone. The Parties agree that, in connection with any such arbitration proceeding, each shall submit or file any
claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedures) within
the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding shall
be barred. The arbitrator shall be instructed to use every reasonable effort to perform its services within seven days of request,
and, in any case, as soon as practicable. The Parties agree to be bound by the provisions of any limitation on the period of time
by which claims must be brought under Delaware law or any applicable federal law. The arbitrator(s) shall have the right to award
the relief which he or she deems proper, consistent with the terms of this Agreement, including compensatory damages (with interest
on unpaid amounts from due date), injunctive relief, specific performance, legal damages and costs. The award and decision of
the arbitrator(s) shall be conclusive and binding on all Parties, and judgment upon the award may be entered in any court of competent
jurisdiction. Any right to contest the validity or enforceability of this award shall be governed exclusively by the United States
Arbitration Act. The arbitration shall be conducted in Boca Raton, Florida. The provisions of this Section 9.09 shall continue
in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.

 

Section
9.10 Severability. If any provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of
law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the Transactions is not affected in any manner adverse to any Party. Upon such determination
that any provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the
Transactions are fulfilled to the extent possible.

 

Section
9.11 Entire Agreement. The Transaction Documents constitute the entire agreement between the Parties with respect to the
subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the Parties
with respect to the subject matter hereof and thereof.

 

Section
9.12 Specific Performance. Each Party agrees that irreparable damage would occur if any provision of this Agreement were
not performed in accordance with the terms hereof and that each Party shall be entitled to seek specific performance of the terms
hereof in addition to any other remedy at law or in equity.

 

Section
9.13 Construction. The table of contents and headings contained in this Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this Agreement. In the event of a conflict between language or amounts
contained in the body of this Agreement and language or amounts contained in the Exhibits attached hereto, the language or amounts
in the body of the Agreement shall control. References to Articles or Sections shall refer to those portions of this Agreement.
The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer
to this Agreement as a whole and not to any particular Article, Section or clause of or Exhibit to this Agreement.

 

Section
9.14 Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other
Parties, it being understood that each Party need not sign the same counterpart. A facsimile copy or electronic transmission of
a signature page shall be deemed to be an original signature page.

 

[Signature
page follows]

 

    	24

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the Effective Date.

 

	 	Simplicity
    Esports and Gaming Company
	 	 	 
	 	By:	/s/
Roman Franklin
	 	Name:	Roman
    Franklin
	 	Title:	President
    and Chief Operating Officer
	 	 	 
	 	Tiger
    Trout Capital Puerto Rico, LLC
	 	 	 
	 	By:	/s/
    Alan Masley
	 	Name:	Alan
    Masley
	 	Title:	Managing
    Member

 

    	25Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase Agreement
(this “Agreement”) is dated as of April 4, 2021, between BioSolar, Inc., a Nevada corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser”
and collectively, the “Purchasers”).

 

WHEREAS, subject to the terms
and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act (as defined below),
the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company,
securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1 Definitions. In
addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set
forth in this Section 1.1:

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required
by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally
open for use by customers on such day.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties
thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than the second (2nd) Trading
Day following the date hereof.

 

    1

     

    

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such
securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is
at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Common
Warrants” means, collectively, the Common Stock purchase Warrants delivered to the Purchasers at the Closing in accordance with
Section 2.2(a) hereof, which Warrants shall be exercisable immediately upon issuance and have a term equal to five (5) years, in the form
of Exhibit B-1 attached hereto.

 

“Company
Counsel” means Sichenzia Ross Ference LLP, with offices located at 1185 Avenue of the Americas, 37th Floor, New York, New York
10036.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disclosure
Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and
before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following the date
hereof, unless otherwise instructed as to an earlier time by the Placement Agent, and (ii) if this Agreement is signed between midnight
(New York City time) and 9:00 a.m. (New York City time) on any Trading Day, no later than 9:01 a.m. (New York City time) on the date hereof,
unless otherwise instructed as to an earlier time by the Placement Agent.

 

“Escrow
Agent” means Continental Stock Transfer & Trust Company, with offices at State Street, 30th Floor, New York, NY 10004.

 

“Escrow
Agreement” means the escrow agreement entered into, by and among the Company, the Escrow Agent and the Placement Agent pursuant
to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent to be applied to the transactions contemplated hereunder.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

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

 

    2

     

    

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant
to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority
of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) shares
of Common Stock upon the exercise or exchange of or conversion of any Securities issued hereunder, warrants to the Placement Agent in
connection with the transactions pursuant to this Agreement and any shares of Common Stock upon exercise of the warrants to the Placement
Agent, if applicable and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection
with stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted
securities” (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement
in connection therewith during the prohibition period in Section 4.12(a) herein, and provided that any such issuance shall only be to
a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment
of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital
or to an entity whose primary business is investing in securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Lock-Up
Agreement” means the Lock-Up Agreement, dated as of the date hereof, by and among the Company and the directors and executive
officers, in the form of Exhibit C attached hereto.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Per Share
Purchase Price” equals ____ (less $0.0001 for each Pre-Funded Warrant), subject to adjustment for reverse and forward stock
splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement
and prior to the Closing Date.

 

    3

     

    

 

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

 

“Placement
Agent” means H.C. Wainwright & Co., LLC.

 

“Pre-Funded
Warrants” means, collectively, the Pre-Funded Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance
with Section 2.2(a) hereof, which Pre-Funded Warrants shall be exercisable immediately and shall expire when exercised in full, in the
form of Exhibit B-2 attached hereto.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

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

 

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

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement with Commission (File No. 333-254336), including all information, documents
and exhibits filed with or incorporated by reference into such registration statement, which registers the sale of the Shares, the Warrants
and the Warrant Shares to the Purchasers.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

    4

     

    

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement, but excluding the Warrant Shares.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be
deemed to include locating and/or borrowing shares of Common Stock). 

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as specified
below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in
United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports and shall, where applicable, also include any direct or indirect subsidiary
of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange, the OTCQB, OTCQX, Pink Open Market (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, the Lock-Up Agreement and all exhibits and schedules thereto and hereto and any
other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Worldwide Stock Transfer, LLC, the current transfer agent of the Company, with a mailing address of One University
Plaza, Suite 505, Hackensack, NJ 07601, and any successor transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.12(b).

 

“Warrants”
means, collectively, the Pre-Funded Warrants and the Common Warrants.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

    5

     

    

 

ARTICLE II.

PURCHASE AND SALE

 

2.1 Closing. On the
Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers, severally
and not jointly, agree to purchase, up to an aggregate of $5.0 million of Shares and Warrants; provided, however, that, to the extent
that a Purchaser determines, in its sole discretion, that such Purchaser (together with such Purchaser’s Affiliates, and any Person
acting as a group together with such purchaser or any of such Purchaser’s Affiliates) would beneficially own in excess of the Beneficial
Ownership Limitation, or as such Purchaser may otherwise choose, in lieu of purchasing Shares such Purchaser may elect to purchase Pre-Funded
Warrants in lieu of Shares in such manner to result in the same aggregate purchase price being paid by such Purchaser to the Company.
The “Beneficial Ownership Limitation” shall be 4.99% (or, at the election of the Purchaser at Closing, 9.99%) of the number
of shares of the Common Stock outstanding immediately after giving effect to the issuance of the Securities on the Closing Date. Each
Purchaser shall deliver to the Escrow Agent, via wire transfer, immediately available funds equal to such Purchaser’s Subscription
Amount as set forth on the signature page hereto executed by such Purchaser, and the Company shall deliver to each Purchaser its respective
Shares and Warrants, as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth
in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing
shall occur at the offices of the Placement Agent or such other location as the parties shall mutually agree. Notwithstanding anything
herein to the contrary, if at any time on or after the time of execution of this Agreement by the Company and an applicable Purchaser,
through, and including the time immediately prior to the Closing (the “Pre-Settlement Period”), if such Purchaser sells
to any Person all, or any portion, of any Common Stock to be issued hereunder to such Purchaser at the Closing (collectively, the “Pre-Settlement
Shares”), such Purchaser shall, automatically hereunder (without any additional required actions by such Purchaser or the Company),
be deemed to be unconditionally bound to purchase, and the Company shall be deemed unconditionally bound to sell, such Pre-Settlement
Shares to such Purchaser at the Closing; provided, that the Company shall not be required to deliver any Pre-Settlement Shares to such
Purchaser prior to the Company’s receipt of the Subscription Amount for such Pre-Settlement Shares hereunder; provided, further,
that the Company hereby acknowledges and agrees that the forgoing shall not constitute a representation or covenant by such Purchaser
as to whether or not such Purchaser will elect to sell any Pre-Settlement Shares during the Pre-Settlement Period. The decision to sell
any shares of Common Stock will be made in the sole discretion of such Purchaser from time to time, including during the Pre-Settlement
Period.

 

2.2 Deliveries.

 

(a) On or prior
to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i) this Agreement
duly executed by the Company;

 

(ii) a legal opinion
of Company Counsel, directed to the Placement Agent and the Purchasers, in a form reasonably acceptable to the Placement Agent and Purchasers;

 

    6

     

    

 

(iii) the Company
shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the Chief Executive
Officer or Chief Financial Officer;

 

(iv) a copy of the
irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust
Company Deposit or Withdrawal at Custodian system (“DWAC”) Shares equal to such Purchaser’s Subscription Amount
divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(v) for each Purchaser
of Pre-Funded Warrants pursuant to Section 2.1, a Pre-Funded Warrant registered in the name of such Purchaser to purchase up to a number
of shares of Common Stock equal to the portion of such Purchaser’s Subscription Amount applicable to Pre-Funded Warrant divided
by the Per Share Purchase Price, with an exercise price equal to $0.0001, subject to adjustment therein;

 

(vi) a Common Warrant
registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s
Shares, with an exercise price equal to ____, subject to adjustment therein;

 

(vii) the Lock-Up
Agreements; and

 

(viii) the Prospectus
and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b) On or prior to
the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company or the Escrow Agent, as applicable, the following:

 

(i) this Agreement
duly executed by such Purchaser; and

 

(ii) the Escrow Agent,
such Purchaser’s Subscription Amount by wire transfer to the account specified in the Escrow Agreement.

 

2.3 Closing Conditions.

 

(a) The obligations
of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in
all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all
respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

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(ii) all obligations,
covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii) the delivery
by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b) The respective
obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in
all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all
respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

(ii) all obligations,
covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(iii) the delivery
by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv) there shall have
been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v) from the date
hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal
Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have
been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service,
or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities
nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude
in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser,
makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and
Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof
and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of
the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights
to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in
the Transaction Documents shall be disregarded.

 

    8

     

    

 

(b) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to
own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in
violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected
to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries,
taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding
has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

 

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

 

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

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to,
or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection
with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant
to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) the notice and/or application(s)
to each applicable Trading Market for the issuance and sale of the Securities and the listing of the Shares and Warrant Shares for trading
thereon in the time and manner required thereby, and (iv) such filings as are required to be made under applicable state securities laws
(collectively, the “Required Approvals”).

 

(f) Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The Warrant Shares, when issued in accordance with the
terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company
has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and
the Warrants. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act,
which became effective on March 25, 2021, including the Prospectus, and such amendments and supplements thereto as may have been
required to the date of this Agreement. The Company was at the time of the filing of the Registration Statement eligible to use Form S-3.
The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction requirements as set forth in General Instruction
I.B.1 of Form S-3. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness
of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings
for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required
by the rules and regulations of the Commission, shall file the Prospectus Supplement with the Commission pursuant to Rule 424(b). At the
time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the
Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities
Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at the
time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material
respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

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(g) Capitalization.
The capitalization of the Company as of the date hereof is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall
also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof.
The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant
to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees
pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.
Except as set forth in Schedule 3.1(g) or as a result of the purchase and sale of the Securities, there are no outstanding options,
warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common
Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The
issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities
to any Person (other than the Purchasers). There are no outstanding securities or instruments of the Company or any Subsidiary with any
provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities
by the Company or any Subsidiary. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any
redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock
of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and
state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for
the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect
to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the
Company’s stockholders.

 

(h) SEC Reports;
Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by
the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement,
being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the
SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none
of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company included
in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except
as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the
case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    11

     

    

 

(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within
the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in
a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and
accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to
its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company
has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The
Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of
the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence
or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their
respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the
Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at
least one (1) Trading Day prior to the date that this representation is made.

 

(j) Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”).
Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to
the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current
or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k) Labor Relations.
No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could
reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member
of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of
its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships
with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary is, or is now expected
to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement
or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued
employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any
of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and
regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the
failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(l) Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or
any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement
or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default
or violation has been waived), (ii) is in violation of any judgment, decree, or order of any court, arbitrator or other governmental authority
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality
and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse
Effect.

 

(m) Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution
or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata),
including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as
all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits,
plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”); (ii) have received
all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and
(iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii),
the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

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

 

(o) Title to
Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good
and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each
case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal,
state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by
them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

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(p) Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights
necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to
so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and neither
the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired,
terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement.
Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC
Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the
rights of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the
Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and
value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

(q) Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited
to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

(r) Transactions
with Affiliates and Employees. None of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company,
none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other
than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending
of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder,
member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii)
reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under
any stock option plan of the Company.

 

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(s) Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder
that are effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general
or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls
and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the
Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange
Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control
over financial reporting of the Company and its Subsidiaries.

 

(t) Certain Fees.
Except for the fees and expenses of the Placement Agent, no brokerage or finder’s fees or commissions are or will be payable by
the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other
Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may
be due in connection with the transactions contemplated by the Transaction Documents.

 

(u) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be
or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company
shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the
Investment Company Act of 1940, as amended.

 

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(v) Registration
Rights. Except as set forth on Schedule 3.1(v), no Person has any right to cause the Company or any Subsidiary to effect the
registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(w) Listing and
Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has
taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.
The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is
or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository
Trust Company or another established clearing corporation and the Company is current in payment of the fees to the Depository Trust Company
(or such other established clearing corporation) in connection with such electronic transfer.

 

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

 

(y) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information
that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Prospectus Supplement.
The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities
of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries,
their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and
correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. The press releases disseminated
by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser
makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3.2 hereof.

 

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(z) No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, neither the Company,
nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security
or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with
prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the
securities of the Company are listed or designated.

 

(aa) Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company
of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount
that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as
now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the
business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into
account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts
are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date. Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured and unsecured
Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement,
“Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade
accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect
of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the
notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in
accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(bb) Tax Status.
The Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and
franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations
and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the
periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

 

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(cc) Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other
person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign
or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii)
failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the
Company is aware) which is in violation of law or (iv) violated in any material respect any provision of FCPA.

 

(dd) Accountants.
The Company’s accounting firm is set forth in the SEC Reports. To the knowledge and belief of the Company, such accounting firm
(i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial
statements to be included in the Company’s Annual Report for the fiscal year ending December 31, 2021.

 

(ee) Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby.
The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their
respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely
incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s
decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

 

(ff) Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except for
Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers has been asked by
the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company,
or “derivative” securities based on securities issued by the Company or to hold the Securities for
any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation,
Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may
negatively impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and counter-parties in “derivative”
transactions to which any such Purchaser is a party, directly or indirectly, presently may have a “short” position in the
Common Stock and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party
in any “derivative” transaction. The Company further understands and acknowledges that (y) one or more Purchasers
may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation,
during the periods that the value of the Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging
activities (if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the
hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents.

 

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(gg) Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any
of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection
with the placement of the Securities.

 

(hh) Reserved.

 

(ii) Reserved.

 

(jj) Stock Option
Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance with the
terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s
stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice
to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public
announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

(kk) Office of
Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee
or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”).

 

(ll) U.S. Real
Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning of
Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

 

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(mm) Bank Holding
Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as
amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent
(5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a
bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries
or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and
to regulation by the Federal Reserve.

 

(nn) Money Laundering.
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes
and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no Action or Proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

3.2 Representations and
Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date
hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate
as of such date):

 

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

 

(b) Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty
not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with
applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

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(c) Purchaser Status.
At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises
any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8)
under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.

 

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

 

(e) Access to Information.
Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules
thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and
risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of operations,
business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain
such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make
an informed investment decision with respect to the investment.  Such Purchaser acknowledges and agrees that neither the Placement
Agent nor any Affiliate of the Placement Agent has provided such Purchaser with any information or advice with respect to the Securities
nor is such information or advice necessary or desired.  Neither the Placement Agent nor any Affiliate has made or makes any representation
as to the Company or the quality of the Securities and the Placement Agent and any Affiliate may have acquired non-public information
with respect to the Company which such Purchaser agrees need not be provided to it.  In connection with the issuance of the Securities
to such Purchaser, neither the Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

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(f) Certain Transactions
and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting
on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short
Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet
(written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated
hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers
have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that
made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement
or to such Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors,
employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares
in order to effect Short Sales or similar transactions in the future.

 

The Company acknowledges and
agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on
the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any
other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation
of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute
a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order to effect Short Sales or
similar transactions in the future.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Warrant Shares.
If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale
of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant to any such exercise shall
be issued free of all legends. If at any time following the date hereof the Registration Statement (or any subsequent registration statement
registering the sale or resale of the Warrant Shares) is not effective or is not otherwise available for the sale or resale of the Warrant
Shares, the Company shall immediately notify the holders of the Warrants in writing that such registration statement is not then effective
and thereafter shall promptly notify such holders when the registration statement is effective again and available for the sale or resale
of the Warrant Shares (it being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any Purchaser
to sell, any of the Warrant Shares in compliance with applicable federal and state securities laws). The Company shall use best efforts
to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares effective
during the term of the Warrants.

 

4.2 Furnishing of Information.
Until the earlier of the time that (i) no Purchaser owns Securities and (ii) the Warrants have expired, the Company covenants to maintain
the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

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

 

4.4 Securities Laws Disclosure;
Publicity. The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within
the time required by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers that
it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its
Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by
the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any
and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries
or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their
Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing any other press
releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release
nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser,
or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably
be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other
party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose
the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading
Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing
of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

4.5 Shareholder Rights
Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is
an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents
or under any other agreement between the Company and the Purchasers.

 

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4.6 Non-Public Information.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall be
disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide
any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material
non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the
Company to keep such information confidential. The Company understands and confirms that each Purchaser shall be relying on the foregoing
covenant in effecting transactions in securities of the Company. To the extent that the Company, any of its Subsidiaries, or any of their
respective officers, directors, agents, employees or Affiliates, delivers any material, non-public information to a Purchaser without
such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality
to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to
the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the
basis of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company
or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The
Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities
of the Company.

 

4.7 Use of Proceeds.
The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and shall not use such proceeds:
(a) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary course of the
Company’s business and prior practices), (b) for the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement
of any outstanding litigation or (d) in violation of FCPA or OFAC regulations.

 

4.8 Indemnification of
Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors, officers,
shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such
titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or
employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title
or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and
reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating
to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates,
by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated
by the Transaction Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations,
warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such
stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which
is finally judicially determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify
the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably
acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a
material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable
to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written
consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage
or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements
made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8
shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received
or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser
Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

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4.9 Reservation of Common
Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times,
free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant
to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10 Listing of Common
Stock. The Company hereby agrees to use its best efforts to maintain the listing or quotation of the Common Stock on the Trading Market
on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares and Warrant
Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant Shares on such Trading Market. The Company
further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application
all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to
be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably necessary to
continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common
Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including, without limitation,
by timely payment of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic
transfer.

 

4.11 [RESERVED]

 

4.12 Subsequent Equity
Sales.

 

(a) From the date
hereof until 30 days after the Closing Date, neither the Company nor any Subsidiary shall (i) issue, enter into any agreement to issue
or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents or (ii) file any registration
statement or amendment or supplement thereto, other than the Prospectus Supplement or filing a registration statement on Form S-8 in connection
with any employee benefit plan.

 

(b) From the date
hereof until the one-year anniversary after the Closing Date, the Company shall be prohibited from effecting or entering into an agreement
to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units
thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company
(i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to
receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based
upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of
such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date
after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly
related to the business of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement,
including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future determined price. Notwithstanding
the foregoing, the Company may enter into and effect sales pursuant to an at–the-market offering facility with the Placement Agent
following the period set forth in Section 4.12(a). Any Purchaser shall be entitled to obtain injunctive relief against the Company to
preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

(c) Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an
Exempt Issuance.

 

4.13 Equal Treatment of
Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend
or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration is also offered to
all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each
Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class
and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting
of Securities or otherwise.

 

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4.14 Certain Transactions
and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it, nor any Affiliate
acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the
Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.  Each
Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will
maintain the confidentiality of the existence and terms of this transaction and the information included in the Disclosure Schedules. 
Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges
and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant
to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions
in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser
shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after
the issuance of the initial press release as described in Section 4.4.  Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets
and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions
of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio
manager that made the investment decision to purchase the Securities covered by this Agreement.

 

4.15 Capital Changes.
Until the 180 days of the Closing Date, the Company shall not undertake a reverse or forward stock split or reclassification of the Common
Stock without the prior written consent of the Purchasers holding a majority in interest of the Shares, other than in connection with
the uplisting of the Common Stock to a national exchange.

 

ARTICLE V.

MISCELLANEOUS

 

5.1 Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated
on or before the fifth (5th) Trading Day following the date hereof; provided, however, that no such termination
will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2 Fees and Expenses.
Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any
fees required for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser),
stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

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5.3 Entire Agreement.
The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain the
entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4 Notices. Any and
all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed
given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via facsimile at the
facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m.
(New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on
a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd)Trading
Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party
to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages
attached hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant
to a Current Report on Form 8-K.

 

5.5 Amendments; Waivers.
No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of
an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Shares based on the initial Subscription
Amounts hereunder (or, prior to the Closing Date, the Company and each Purchaser) or, in the case of a waiver, by the party against whom
enforcement of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall
also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser
relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected
Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and
the Company.

 

5.6 Headings. The headings
herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

 

5.7 Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may
not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger).
Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities,
provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction
Documents that apply to the “Purchasers.”

 

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5.8 No Third-Party Beneficiaries.
The Placement Agent shall be the third party beneficiary of the representations and warranties of the Company in Section 3.1 and the representations
and warranties of the Purchasers in Section 3.2. This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except
as otherwise set forth in Section 4.8 and this Section 5.8.

 

5.9 Governing Law.
All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action
or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section
4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

 

5.10 Survival. The representations and warranties
contained herein shall survive the Closing and the delivery of the Securities.

 

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

 

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5.12 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13 Rescission and Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction
Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not
timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion
from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights; provided, however, that, in the case of a rescission of an exercise of a Warrant, the applicable Purchaser
shall be required to return any shares of Common Stock subject to any such rescinded exercise notice concurrently with the return to such
Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire
such shares pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored
right).

 

5.14 Replacement of Securities.
If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to
be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.
The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement Securities.

 

5.15 Remedies. In addition
to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and
the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby
agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would
be adequate.

 

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

 

    29

     

    

 

5.17 Independent Nature
of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance
of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently
protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction
Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose.
Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. For
reasons of administrative convenience only, each Purchaser and its respective counsel have chosen to communicate with the Company through
the legal counsel to the Placement Agent. The legal counsel of the Placement Agent does not represent any of the Purchasers and only represents
the Placement Agent. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience
of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that
each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and
not between the Company and the Purchasers collectively and not between and among the Purchasers.

 

5.18 Liquidated Damages.
The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing
obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding
the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall
have been canceled.

 

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

 

5.20 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to
share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

5.21 WAIVER OF JURY
TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY
AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES
FOREVER TRIAL BY JURY. 

 

(Signature Pages Follow)

 

    30

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.

 

	BioSolar, Inc.	 	Address for Notice:
	 	 	 	 
	By:	 	 	Email:
	 	Name:	 	Fax:
	 	Title:	 	 
	 	 	 	 
	With a copy to (which shall not constitute notice):	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    31

     

    

 

[PURCHASER SIGNATURE PAGES TO bsrc
SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned
have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

Name of Purchaser: ________________________________________________________

 

Signature of Authorized Signatory of Purchaser:
__________________________________

 

Name of Authorized Signatory: ____________________________________________________

 

Title of Authorized Signatory: _____________________________________________________

 

Email Address of Authorized Signatory: ______________________________________________

 

Address for Notice to Purchaser:

 

Address for Delivery of Securities to Purchaser (if not same as address
for notice):

 

Subscription Amount: $_________________

 

Shares: _________________

 

Pre-Funded Warrants: __________________ Beneficial Ownership Blocker
☐ 4.99% or  ☐ 9.99%

 

Common Warrants: __________________ Beneficial Ownership Blocker
☐ 4.99% or ☐ 9.99%

 

EIN Number: __________________

 

☐ Notwithstanding anything contained
in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed to purchase the securities set forth
in this Agreement to be purchased from the Company by the above-signed, and the obligations of the Company to sell such securities
to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded, (ii) the Closing shall occur by the
second (2nd) Trading Day following the date of this Agreement and (iii) any condition to Closing contemplated by this Agreement (but
prior to being disregarded by clause (i) above) that required delivery by the Company or the above-signed of any agreement,
instrument, certificate or the like or purchase price (as applicable) shall no longer be a condition and shall instead be an
unconditional obligation of the Company or the above-signed (as applicable) to deliver such agreement, instrument, certificate or
the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

 

32

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