Document:

EX-10.1

  FIRST AMENDMENT TO

  PURCHASE AND SALE AGREEMENT

   

  	THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (hereinafter referred to as the "Amendment") is made effective as of the latest date appearing below the undersigned signatures, by and between CSRE PROPERTIES WASHINGTON, LLC, a Georgia limited liability company (“Purchaser”) and SPRE COMMERCIAL GROUP, INC. F/K/A WAHA, INC., a Georgia corporation (“Seller”).

   

  W I T N E S S E T H:

   

  	WHEREAS, Purchaser and Seller entered into that certain Purchase and Sale Agreement, with an Effective Date of August 5, 2022, wherein the Seller agreed to sell and the Purchaser agreed to purchase approximately 27.37 acres of land located at 197 Dixie Wood Road, Wilkes County, Georgia 30672 (hereinafter referred to as the "Agreement"); and

   

  	WHEREAS, the parties desire to amend certain terms and provisions of the Agreement; 

   

  	NOW THEREFORE, in consideration of the premises, Ten Dollars ($10.00) in hand paid by Purchaser to Seller and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, and the mutual covenants contained herein, the parties do hereby covenant and agree as follows:

   

  1.Section 2 shall be deleted in its entirety and replaced with the following:

   

  The purchase price of the Property shall be Fifteen Million and No/100’s Dollars ($15,000,000.00).

   

  2.	Section 3 and 17 shall be amended so that the amount of the Seller Financing in the Agreement shall be in the principal amount of One Million Nine Hundred Sixty-One Thousand Seven Hundred Forty-Seven and 05/100’s Dollars ($1,961,747.05).  The interest rate shall be twelve percent (12%) and shall be for a term of twelve (12) months to be repaid in twelve (12) monthly installments of One  Hundred Seventy-three Thousand six Hundred fifty-one and 11/100’s Dollars ($173,651.11) evidenced by a promissory note executed by Purchaser.  

   

  3.	Miscellaneous.  All capitalized terms used herein will have the meanings ascribed to those terms in the Agreement, unless otherwise specified.  Except as herein modified, the Agreement shall remain in full force and effect. This Amendment may be executed in several counterparts, each of which shall be deemed an original instrument, and such counterparts together constitute one and the same instrument. A counterpart executed by any party hereto and transmitted to the other party hereto by facsimile or e-mail will have the same effect as the delivery of the original counterpart.

   

   

  [SIGNATURES ON FOLLOWING PAGE]

   

  - 1 -

  

  IN WITNESS WHEREOF, the undersigned have executed this Amendment under seal as of the day and year set forth below.

  	 

  		
	 
 
 
 
 
 
Dated as to Purchaser:
August 17, 2022
 
 
 
	 
PURCHASER:
 
CSRE PROPERTIES WASHINGTON, LLC, a Georgia limited liability company 
 
By: CSRE Property Management Company, LLC, a Georgia limited liability company, its Manager
 
By: CleanSpark, Inc., a Nevada corporation, its Manager
  
  
  By: /s/ Zachary K. Bradford      	Zachary K. Bradford, President  
 

	 
	 

	 
	 

	 
	 

	 
 
 
 
 
 
 
Dated as to Seller:
August 17, 2022
 
	 
SELLER:
 
 
SPRE COMMERCIAL GROUP, INC. f/k/a WAHA, INC, a Georgia corporation 
 
By: /s/ Robert C. Bissell
       Robert C. Bissell, Director and Chief
       Executive Officer
 

	 
	 

   

   

    

   

  - 2 -Exhibit 10.1

    

    

  

  
    

      SECURITIES PURCHASE AGREEMENT

       

      

      This Securities Purchase Agreement (this “Agreement”)

        is dated as of August 18, 2022, between Healthier Choices Management Corp., a Delaware 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 Section 4(a)(2) of the Securities Act (as
        defined below), and Rule 506 promulgated thereunder, 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:
          (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Series E Certificate of Designation (as defined herein), and (b) 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 4.7.

      “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.

      “Cannabis Activity”
        shall have the meaning ascribed to such term in Section 3.1(l).

      “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.

      “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.

      “Company Counsel”
        means Cozen O’Connor.

      “Conversion Price”
        shall have the meaning ascribed to such term in the Series E Certificate of Designation.

      “Conversion Shares”
        means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.

      “DACA Account”
        means the account opened by the Company pursuant to the DACA Agreement.

      “DACA Agreement”
        means the deposit account control agreement entered into prior to the date hereof, by and among the Company, Professional Bank and the Purchaser pursuant to which the Purchasers shall deposit Subscription Amounts to be applied to the transactions
        contemplated hereunder.

      “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 specified as to an earlier time by the parties, 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 specified as to an earlier time by the parties.

      “EGS” means
        Ellenoff Grossman & Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105-0302.

      “Effective Date”
        means the earliest of the date that (a) all of the Underlying Shares have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required
        under Rule 144 and without volume or manner-of-sale restrictions, (b) following the one year anniversary of the Closing Date provided that a holder of Underlying Shares is not an Affiliate of the Company, (c) a registration statement registering
        the Underlying Shares has been declared effective by the Commission, or (d) all of the Underlying Shares may be sold pursuant to an exemption from registration under Section 4(a)(1) of the Securities Act without volume or manner-of-sale
        restrictions and Company Counsel has delivered to such holders a standing written unqualified opinion that resales may then be made by such holders of the Underlying Shares pursuant to such exemption which opinion shall be in form and substance
        reasonably acceptable to such holders.

      “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.

      “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) securities upon the exercise or exchange of or conversion of any Securities issued hereunder 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 4.11(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.

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

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

      “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(bb).

      “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.

      “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).

      “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.

      “Pharmaceutical Product”
        shall have the meaning ascribed to such term in Section 3.1(hh).

      “Preferred Stock”
        means the Series E Preferred Stock.

      “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.

      “Public Information Failure”
        shall have the meaning ascribed to such term in Section 4.3(b).

      “Public Information Failure
            Payments” shall have the meaning ascribed to such term in Section 4.3(b).

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

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

      “Required Minimum”
        means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon conversion in full of all shares of
        Preferred Stock, ignoring any conversion limits set forth therein.

      “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.

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

      “Securities” means
        the Preferred Stock and the Underlying Shares.

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

      “Series E Certificate of
            Designation” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary of State of Delaware, in the form of Exhibit A attached hereto.

      “Series E Preferred Stock”
        means the up to 14,722.075 shares of the Company’s Series E Redeemable Convertible Preferred Stock issued hereunder having the rights, preferences and privileges set forth in the Series E Certificate of Designation, in the form of Exhibit A hereto.

      “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).

      “Spin-Off” means
        the contemplated spin-off of the Company’s grocery and wellness business (a) into a separate entity that is publicly traded on a Trading Market and (b) in a tax-free distribution to its stockholders.

      “Spin-Off Purchase Agreement”
        means in that certain Securities Purchase Agreement in substantially the form attached as Exhibit B hereto.

      “Spin-Off Raise”
        means the additional securities of the Spin-Off entity that will be sold pursuant to the Spin-Off Purchase Agreement.

      “Stated Value”
        means $1,000 per share of Preferred Stock.

      “Subscription Amount”
        means, as to each Purchaser, the aggregate amount to be paid for the Preferred Stock 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 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 Pink Open Market, OTCQB or the OTCQX (or any successors to any of the foregoing).

      “Transaction Documents”
        means this Agreement, the Series E Certificate of Designation, the DACA Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

      “Transfer Agent”
        means Equity Stock Transfer, the current transfer agent of the Company, and any successor transfer agent of the Company.

      “Underlying Shares”
        means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock in accordance with the terms of the Series E Certificate of Designation.

       

      

    

  

  

    1

    
      

  

  

    

      ARTICLE II

        PURCHASE AND SALE

       

      

      2.1 Closing.  On the Closing Date, upon the terms and subject
          to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase up to an aggregate
          of $13,250,000 in Stated Value of Preferred Stock.  The aggregate number of shares of Preferred Stock sold hereunder shall be up to 14,722.075.  Each Purchaser shall deliver to the DACA Account, via wire transfer, immediately available funds
          equal to its Subscription Amount, and the Company shall deliver to each Purchaser its respective shares of Preferred Stock, 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 take place remotely by electronic transfer of the Closing documentation.

      2.2 Deliveries.

      (a) On or prior to the Closing Date (except as indicated below), 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, addressed to each Purchaser, in form and substance reasonably satisfactory to the Lead Purchaser;

      (iii) a certificate (or entry in the Company’s book entry stock ledger) evidencing a number of shares of Series E Preferred Stock equal to 111.1111% of such Purchaser’s Subscription Amount divided
          by the Stated Value, registered in the name of such Purchaser and evidence of the filing and acceptance of the Series E Certificate of Designation from the Secretary of State of Delaware; and

      (iv) the DACA Agreement.

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

      (i) to the Company, this Agreement duly executed by such Purchaser; and

      (ii) such Purchaser’s Subscription Amount by wire transfer to the DACA Account.

      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) 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 in all material respects (or, to the extent representations or warranties are qualified by materiality,
          in all respects) as of such date);

      (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 in all material respects or, to the extent representations or warranties are qualified by
          materiality or Material Adverse Effect, in all respects) 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; 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.

       

      

      

        2

        
          

      

      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 on 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.

      (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, would 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 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.

      (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 4.6 of this Agreement and (ii) the filing of Form D with the Commission and such filings as are required to
          be made under applicable state securities laws (collectively, the “Required Approvals”).

      (f) Issuance of the Securities.  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 Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be 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 Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares at least equal to the
          Required Minimum on the date hereof.

      (g) Capitalization.  The capitalization of the Company as of
          the date hereof is as set forth on Schedule 3.1(g).  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 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, 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.

      (i) Material Changes; Undisclosed Events, Liabilities or Developments. 
          Since the date of the latest audited financial statements included within the SEC Reports, except as set forth in 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, 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 1 Trading Day prior to the date that this representation is made.

      (j) Litigation.  Except as set forth on Schedule 3.1(j), 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”).  None of the Actions set forth on Schedule 3.1(j), (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable
          decision, have or reasonably be expected to result in a Material Adverse Effect.  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.

      (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.  Neither the Company nor any of its Subsidiaries engage in the possession, exportation, importation, cultivation, production, processing, purchase,
          distribution or sale of cannabis or cannabis-based products (“Cannabis Activity”).  Should the Company or any of its Subsidiaries engage
          in any Cannabis Activity in the future, it will fully comply with all federal, state and local laws regarding Cannabis Activity in each jurisdiction where it engages in such activities.

      (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.

      (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 the Company is strategically enforcing any infringements.  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.  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.

      (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.  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) Private Placement.  Assuming the accuracy of the Purchasers’ representations and
          warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.  The issuance and sale of the Securities hereunder does
          not contravene the rules and regulations of the Trading Market.

      (v) 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.

      (w) Registration Rights.  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.

      (x) 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.

      (y) 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.

      (z) 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.  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
          SEC Reports of 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.

      (aa) 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 (i) the Securities Act which would require the registration of any such
          securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

      (bb) 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.  The SEC Reports 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.

      (cc) Tax Status.  Except for matters that would not,
          individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, 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.

      (dd) No General Solicitation.  Neither the Company nor any
          Person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.  The Company has offered the Securities for sale only to the Purchasers and certain other “accredited
          investors” within the meaning of Rule 501 under the Securities Act.

      (ee) 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.

      (ff) Accountants.  The Company’s accounting firm is set forth on
          Schedule 3.1(ff) of the Disclosure Schedules.  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 next Form 10-K.

      (gg) No Disagreements with Accountants and Lawyers.  There are
          no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any
          fees owed to its accountants and lawyers which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

      (hh) 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.

      (ii) Acknowledgment Regarding Purchaser’s Trading Activity.  Anything
            in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(g) and 4.15 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, may presently 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 Underlying 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.

      (jj) Cybersecurity.  There has been no security breach or other
          compromise of or relating to any of the Company’s or any Subsidiary’s information technology and computer systems, networks, hardware, software, data (including the data of its respective customers, employees, suppliers, vendors and any third
          party data maintained by or on behalf of it), equipment or technology (collectively, “IT Systems and Data”) and (y) the Company and the Subsidiaries have not been notified of, and has no knowledge of any event or condition that would reasonably
          be expected to result in, any security breach or other compromise to its IT Systems and Data; (ii) the Company and the Subsidiaries are presently in compliance in all material respects, with all applicable laws or statutes and all judgments,
          orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems
          and Data from unauthorized use, access, misappropriation or modification, except as would not, individually or in the aggregate, have a Material Adverse Effect; (iii) the Company and the Subsidiaries have implemented and maintained commercially
          reasonable safeguards to maintain and protect its material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and Data; and (iv) the Company and the Subsidiaries have implemented backup and
          disaster recovery technology consistent with industry standards and practices.

      (kk) 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.

      (ll) FDA.  As to each product subject to the jurisdiction of the
          U.S. Food and Drug Administration (“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each
          such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold
          and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good
          manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse
          Effect.  There is no pending, completed or, to the Company's knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any
          of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure,
          registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall,
          suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its
          Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges
          any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect.  The properties, business and operations of the Company have been
          and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA.  The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United
          States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company.

      (mm) 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.

      (nn) 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”).

      (oo) 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.

      (pp) 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 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.

      (qq) 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.

      (rr) Brokers and Finders.  No Person will have, as a result of
          the transitions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding
          entered into by or on behalf of such Purchaser.

      (ss) No Disqualification Events.  With respect to the Securities
          to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering
          hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the
          Company in any capacity at the time of sale (each, an "Issuer Covered Person" and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
          Issuer Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided
          thereunder.

      (tt) Other Covered Persons.  The Company is not aware of any person (other than any
          Issuer Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities.

      (uu) Notice of Disqualification Events.  The Company will notify
          the Purchasers in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered
          Person.

      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) Own Account.  Such Purchaser understands that the
          Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or
          reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state
          securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this
          representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to a 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.

      (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 converts any shares of Preferred Stock, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), (a)(8), (a)(9),
          (a)(12), or (a)(13) 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) General Solicitation.  Such Purchaser is not, to such
          Purchaser’s knowledge, purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or
          presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

      (f) 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.

      (g) 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.

       

      

      

        3

        
          

      

      ARTICLE IV

        OTHER AGREEMENTS OF THE PARTIES

       

      

      4.1 Transfer Restrictions.

      
        	
                (a)

              	
                The Securities may only be disposed of in compliance with state and federal securities laws. 
                  In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the
                  Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to
                  the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

              

      

      
        	
                (b)

              	
                The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend
                  on any of the Securities in the following form:

              

      

       [NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN
        REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
        OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
        WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A
        FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

      The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide
        margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and, if required under the
        terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the
        pledgee, secured party or pledgor shall be required in connection therewith.  Further, no notice shall be required of such pledge.  At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a
        pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

      
        	
                (c)

              	
                Certificates evidencing the Underlying Shares shall not contain any legend (including the
                  legend set forth in Section 4.1(b) hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (iii) if
                  such Underlying Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Underlying Shares and without volume or
                  manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause
                  its counsel to issue a legal opinion to the Transfer Agent or the Purchaser promptly after the Effective Date if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser, respectively.
                  If all or any shares of Preferred Stock are converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 and the Company is
                  then in compliance with the current public information required under Rule 144, or if the Underlying Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information
                  required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and
                  pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends.  The Company agrees that following the Effective Date or at such time as such legend is no longer required under this
                  Section 4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by a Purchaser to the Company or the
                  Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such date, the “Legend
                      Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.  The Company may not make any notation on its records or give
                  instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.  Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser
                  by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.  As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery
                  of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend.

              

      

      
        	
                (d)

              	
                In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser,
                  in cash, (i) as partial liquidated damages and not as a penalty, for each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the
                  restrictive legend and subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after the Legend Removal Date) for each Trading Day after the Legend Removal Date until such certificate is
                  delivered without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to a Purchaser by the Legend Removal Date a certificate representing the Securities so delivered to the Company by such Purchaser
                  that is free from all restrictive and other legends and (b) if after the Legend Removal Date such Purchaser purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such
                  Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that such Purchaser anticipated receiving from
                  the Company without any restrictive legend, then, an amount equal to the excess of such Purchaser’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so
                  purchased (including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of (x)
                  such number of Underlying Shares that the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied by (y) the lowest closing sale price of the Common Stock on any Trading Day during the period commencing on
                  the date of the delivery by such Purchaser to the Company of the applicable Underlying Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).

              

      

      
        	
                (e)

              	
                Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company
                  that such Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold
                  pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in
                  this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

              

      

      4.2 Furnishing of Information; Public Information.

      (a) Until the earlier of the time that no Purchaser owns Securities, 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.

      (b) At any time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all of the Securities may be sold without
          the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company (i) shall fail for any reason to satisfy the current public information requirement under
          Rule 144(c) or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Public Information Failure”) then, in addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not
          as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate Subscription Amount of such Purchaser’s Securities on the day of a Public Information
          Failure and on every thirtieth (30th) day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public
          information is no longer required  for the Purchasers to transfer the Underlying Shares pursuant to Rule 144.  The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments
          in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial
          months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity
          including, without limitation, a decree of specific performance and/or injunctive relief.

      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 Conversion Procedures.  Each of the form of Notice of
          Conversion included in the Series E Certificate of Designation sets forth the totality of the procedures required of the Purchasers in order to convert the Preferred Stock.  Without limiting the preceding sentence, no ink-original Notice of
          Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required in order to convert the Preferred Stock.  No additional legal opinion, other information or
          instructions shall be required of the Purchasers to convert their Preferred Stock.  The Company shall honor conversions of the Preferred Stock and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth
          in the Transaction Documents.

      4.5 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, Affiliates 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, Affiliates or agents on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate and be of no further force or effect.  The Company understands and confirms that each
          Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.  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) and reasonably
          cooperate with such Purchaser regarding such disclosure.

      4.6 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.

      4.7 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 in writing to the
          receipt of such information and agreed in writing 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 or 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, employees, Affiliates or agents, or a duty to
          the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees, Affiliates or agents 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 with the delivery
          of such notice 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.

      4.8 Use of Proceeds.  The Company shall use the net proceeds from the sale of the
          Securities hereunder for working capital purposes.

      4.9 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 reasonable 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.

      4.10 Reservation of Common Stock and Listing of Securities.

      
        	
                (a)

              	
                The Company shall maintain a reserve from its duly authorized shares of Common Stock for
                  issuance pursuant to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, including without limitation the conversion of the Preferred Stock into shares of
                  Common Stock.

              

      

      
        	
                (b)

              	
                If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of
                  Common Stock is less than the Required Minimum on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles of incorporation to increase the number of authorized but
                  unissued shares of Common Stock to at least the Required Minimum at such time, as soon as possible and in any event not later than the 75th day after such date.

              

      

      
        	
                (c)

              	
                The Company shall, if applicable: (i) in the time and manner required by the principal Trading
                  Market, prepare and file with such Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application, (ii) take all steps necessary
                  to cause such shares of Common Stock to be approved for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv) maintain the listing or
                  quotation of such Common Stock on any date at least equal to the Required Minimum on such date on such Trading Market or another 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 Restrictions on Transfer of Preferred Stock.  From the date
          hereof until the earlier of the record date of the next stockholder meeting and  August 18, 2023, each Purchaser, severally and not jointly with the other Purchasers, covenants that such Purchaser will not transfer, offer, sell, contract to sell,
          hypothecate, pledge or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement
          or otherwise)) any shares of Preferred Stock.

      4.12 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 such 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.

      4.13 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 (other than as disclosed to its legal and other representatives).  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, any of  its Subsidiaries, or any of their respective officers, directors, employees,
          Affiliates or agent, 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.

      4.14 Participation in Future Spin-Off Financing.  From the
          two-month anniversary of the Closing Date (or such earlier date if agreed to by at least 50.1% in interest of the Purchasers which must include the Lead Purchaser) until September 1, 2023, in the event that the Spin-Off is consummated, such
          Purchaser hereby agrees to participate in the Spin-off Raise for at least such Purchaser’s Subscription Amount in accordance with this Section 4.14.  The Company shall give the Purchasers at least ten (10) Business Days prior written notice of
          the occurrence of a Spin-Off Raise.  Each Purchaser’s obligation to purchase securities in the Spin-Off Raise shall be subject to the following conditions: (1) the common stock to be received upon conversion of the securities issued in the
          Spin-Off Raise are registered to the Purchasers and have no restrictions on resale at the time of issuance; (2) the securities are convertible into common stock of the Spin-Off entity and such shares of common stock are listed or quoted on the
          NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange; (3) the Spin-Off entity has reserved sufficient equity for the issuance of all such securities to the Purchaser; (4)
          all material non-public information provided to the Purchaser on the Spin-Off entity shall have been publicly disclosed on the date of the Spin-Off, (5) the securities issued and issuable in the Spin-Off will not cause the Purchaser’s beneficial
          ownership of the Spin-Off entity to exceed 9.9% of such entities voting equity; (6) the Company is not in violation of any of the provisions of the Transaction Documents that have not been cured at such time and (7) the agreement required to be
          executed by each Purchaser will be in the form substantially similar to the Spin Off Purchase Agreement.

      4.15 Additional Funding of the DACA Account; Release of Proceeds from DACA. 
          The Company agrees to place an amount equal to 10% of each Purchaser’ Subscription Amount in the DACA Account until August 18, 2023 for purpose of funding any amounts due under the Series E Certificate of Designation upon the redemption of the
          Series E Preferred Stock.  Additionally, upon a Purchaser’s election to have their Preferred Stock redeemed pursuant to the terms of the Certificate of Designation, the Company shall take all steps necessary to cause the prompt release of any and
          all funds to such Purchaser in satisfaction of such redemption notice.

      4.16 Form D; Blue Sky Filings.  The Company agrees to timely
          file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser.  The Company shall take such action as the Company shall reasonably determine is necessary in order
          to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon
          request of any Purchaser.

      4.17 Spin-Off.  The Company shall not consummate the Spin-off prior to the two-month
          anniversary of the Closing Date.

       

        

      

        4

        
          

      

      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.  At the Closing, the Company has agreed
          to reimburse the Sabby Volatility Warrant Master Fund, Ltd. (the “Lead Purchaser”) the non-accountable sum of $100,000 for its legal fees and expenses, $50,000 of which has been paid prior to the Closing.  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 conversion notice
          delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

      5.3 Entire Agreement.  The Transaction Documents, together with
          the exhibits and schedules thereto, 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 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 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.

      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 Preferred Stock based on the initial Subscription
          Amounts hereunder (or, prior to the Closing, 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.

      5.8 No Third-Party Beneficiaries.  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.

      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 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 “.pdf” signature page were an original thereof.

      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 a conversion of the Preferred Stock, the applicable Purchaser shall be required to return any shares of Common Stock subject to
          any such rescinded conversion.

      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.

      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.  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 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.

      5.19 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.

      5.20 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)

    

    

      5

      
        

    

    

      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.

       

      

      	
              Healthier Choices Management Corp.

               

               

            	
              Address for Notice:

              3800 North 28th Way

              Hollywood, FL 33020

            
	
              By:        /s/ Jeffrey Holman 

              Name: Jeffrey Holman

              Title: Chief Executive Officer

               

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

            	
              E-mail: jholman@hcmc1.com

               

            
	
               

              Cozen O’Connor

              200 S. Biscayne Boulevard, 30th Floor

              Miami, FL 33131

              e-mail: mschrier@cozen.com

               

            	 

      

      

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

        SIGNATURE PAGE FOR PURCHASER FOLLOWS]

      

        6

        
          

      

      [PURCHASER SIGNATURE PAGE TO 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 of Series E Preferred Stock (x1.1111): ____________

      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 on 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.

            

      

        7

        
          

      

      

      

      EXHIBIT A

      Certificate of Designation

      

      

      HEALTHIER CHOICES MANAGEMENT CORP.

      CERTIFICATE OF DESIGNATION OF PREFERENCES,

      RIGHTS AND LIMITATIONS

      OF

      SERIES E REDEEMABLE CONVERTIBLE PREFERRED STOCK

       

      

      PURSUANT TO SECTION 151 OF THE

      DELAWARE GENERAL CORPORATION LAW

       

      

      The undersigned, Jeffrey E. Holman does hereby certify that:

      1. The undersigned is the Chief Executive Officer of Healthier Choices Management Corp., a Delaware corporation (the “Corporation”).

      2. The Corporation is authorized to issue 1,000,000 shares of preferred stock, $0.001 par value per share.

      3. The following resolutions were duly adopted by the board of directors of the Corporation (the “Board

              of Directors”):

      WHEREAS, the Amended and Restated Certificate of Incorporation of the Corporation, as amended (the “Certificate of Incorporation”) provides for a class of its authorized stock known as preferred stock, consisting of 1,000,000 shares, $0.001 par value per share,
        issuable from time to time in one or more series;

      WHEREAS, the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights,
        rights and terms of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting any series and the designation thereof, of any of them; and

      WHEREAS, it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences,
        restrictions and other matters relating to a series of the preferred stock, which shall consist of, except as otherwise set forth in the Purchase Agreement, up to 14,722.075 shares of the preferred stock which the Corporation has the authority to
        issue, as follows:

      NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred
        stock for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series of preferred stock as follows:

      

      

      

        8

        
          

      

      TERMS OF PREFERRED STOCK

       

      

      Section 1. Definitions.  For the purposes hereof, the following terms shall have the
          following meanings:

      “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 of the Securities Act.

      “Alternate Consideration”
        shall have the meaning set forth in Section 7(d).

      “Bankruptcy Event”
        means any of the following events: (a) the Corporation or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
        adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Corporation or any Significant Subsidiary thereof, (b) there is commenced against the Corporation or any Significant
        Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Corporation or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving
        any such case or proceeding is entered, (d) the Corporation or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60
        calendar days after such appointment, (e) the Corporation or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Corporation or any Significant Subsidiary thereof calls a meeting of its creditors with
        a view to arranging a composition, adjustment or restructuring of its debts, or (g) the Corporation or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the
        foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

      “Beneficial Ownership
            Limitation” shall have the meaning set forth in Section 6(d).

      “Business Day”
        means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

      “Buy-In” shall
        have the meaning set forth in Section 6(c)(iv).

      “Change of Control
            Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d‐5(b)(1) promulgated under the Exchange Act) of effective
        control (whether through legal or beneficial ownership of capital stock of the Corporation, by contract or otherwise) of in excess of 33% of the voting securities of the Corporation (other than by means of conversion or exercise of Preferred Stock
        and the Securities issued together with the Preferred Stock), (b) the Corporation merges into or consolidates with any other Person, or any Person merges into or consolidates with the Corporation and, after giving effect to such transaction, the
        stockholders of the Corporation immediately prior to such transaction own less than 66% of the aggregate voting power of the Corporation or the successor entity of such transaction, (c) the Corporation sells or transfers all or substantially all of
        its (and all of its Subsidiaries, taken as a whole) assets to another Person and the stockholders of the Corporation immediately prior to such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after the
        transaction, (d) a replacement at one time or within a one year period of more than one‐half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original
        Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the Original
        Issue Date), or (e) the execution by the Corporation of an agreement to which the Corporation  is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

      

      

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

      “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) each Holder’s obligations to pay the Subscription Amount and (ii) the
        Corporation’s obligations to deliver the Securities have been satisfied or waived.

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

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

      “Common Stock Equivalents”
        means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants 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.

      “Conversion Amount”
        means the sum of the Stated Value at issue.

      “Conversion Date”
        shall have the meaning set forth in Section 6(a).

      “Conversion Price”
        shall have the meaning set forth in Section 6(b).

      “Conversion Shares”
        means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.

      “DACA Account”
        means that deposit account created pursuant to the DACA Agreement.

      “DACA Agreement”
        means the that certain Deposit Account Control Agreement which may be entered into prior to the Closing Date, by and among the Corporation, Professional Bank and the Holders pursuant to which the Holder shall deposit Subscription Amounts with
        Professional Bank to be applied to the transactions contemplated by the Purchase Agreement.

      “Equity Conditions”
        means, during the period in question, (a) the Corporation shall have paid all liquidated damages and other amounts owing to the applicable Holder in respect of the Preferred Stock, (b)(i) there is an effective registration statement pursuant to
        which either (A) the Corporation may issue Conversion Shares or (B) the Holders are permitted to utilize the prospectus thereunder to resell all of the shares of Common Stock issuable pursuant to the Transaction Documents (and the Corporation
        believes, in good faith, that such effectiveness will continue uninterrupted for the foreseeable future) or (ii) all of the Conversion Shares issuable pursuant to the Transaction Documents may be resold pursuant to Rule 144 without volume or
        manner-of-sale restrictions or current public information requirements as determined by the counsel to the Corporation and set forth in a written opinion letter to such effect, addressed and reasonably accepted to the Transfer Agent and the
        affected Holder, (c) the Common Stock is trading on a Trading Market and all of the shares of Common Stock issuable upon conversion of the Preferred Stock are listed or quoted for trading on such Trading Market (and the Corporation believes, in
        good faith, that trading of the Common Stock on a Trading Market will continue uninterrupted for the foreseeable future), (d) there is a sufficient number of authorized, but unissued and otherwise unreserved, shares of Common Stock for the issuance
        of all of the shares then issuable pursuant to the Transaction Documents, (e) the issuance of the shares in question to the applicable Holder would not violate the limitations set forth in Section 6(d) herein, (f) there has been no public
        announcement of a pending or proposed Fundamental Transaction that has not been consummated, (g) the applicable Holder is not in possession of any information provided by the Corporation, any of its Subsidiaries, or any of their officers,
        directors, employees, agents or Affiliates, that constitutes, or may constitute, material non-public information and (h) the Corporation shall have duly honored all conversions scheduled to occur or occurring by virtue of one or more Notices of
        Conversion of the applicable Holder on or prior to the dates so requested or required, if any.

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

      “Fundamental Transaction”
        shall have the meaning set forth in Section 7(d).

      “GAAP” means
        United States generally accepted accounting principles.

      “Holder” shall
        have the meaning given such term in Section 2.

      “Liquidation”
        shall have the meaning set forth in Section 5.

      “Notice of Conversion”
        shall have the meaning set forth in Section 6(a).

      “Original Issue Date”
        means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such Preferred
        Stock.

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

      “Preferred Stock”
        shall have the meaning set forth in Section 2.

      “Purchase Agreement”
        means the Securities Purchase Agreement, dated on or about the Original Issue Date, among the Corporation and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms.

      “Redemption Price”
        shall have the meaning set forth in Section 8(a).

      “Securities” means
        the Preferred Stock and the Underlying Shares.

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

      “Share Delivery Date”
        shall have the meaning set forth in Section 6(c).

      “Stated Value”
        shall have the meaning set forth in Section 2.

      “Subscription Amount”
        shall mean, as to each Holder, the aggregate amount to be paid for the Preferred Stock purchased pursuant to the Purchase Agreement as specified below such Holder’s name on the signature page of the Purchase Agreement and next to the heading
        “Subscription Amount,” in United States dollars and in immediately available funds.

      “Successor Entity”
        shall have the meaning set forth in Section 7(d).

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

      “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 Pink Open Market, OTCQB or OTCQX (or any successors to any of the foregoing).

      “Transaction Documents”
        means this Certificate of Designation, the Purchase Agreement, the DACA Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated pursuant to the
        Purchase Agreement.

      “Transfer Agent”
        means Equity Stock Transfer, the current transfer agent of the Corporation and any successor transfer agent of the Corporation.

      “Triggering Redemption Event”
        means, wherever used herein any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any
        order, rule or regulation of any administrative or governmental body):

      
        	
                i.

              	
                the Corporation shall fail to have available a sufficient number of authorized and unreserved shares of Common Stock
                  to issue to such Holder upon a conversion hereunder;

              

      

      

      

      
        	
                ii.

              	
                the Corporation shall fail to observe or perform any other covenant or agreement contained in, or otherwise commit
                  any breach of the Transaction Documents, and such failure or breach shall not, if subject to the possibility of a cure by the Corporation, have been cured within 20 calendar days after the date on which written notice of such failure or
                  breach shall have been delivered;

              

      

      

      

      
        	
                iii.

              	
                the Corporation shall be party to a Change of Control Transaction or a Fundamental Transaction;

              

      

      

      

      
        	
                iv.

              	
                there shall have occurred a Bankruptcy Event; or

              

      

      

      

      
        	
                v.

              	
                Any date on or after February 18, 2023 but prior to August 18, 2023.

              

      

      

      

      “Underlying Shares”
        means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock.

      Section 2. Designation, Amount and Par Value.  The series of preferred stock shall be
          designated as its Series E Redeemable Convertible Preferred Stock (the “Preferred Stock”) and the number of shares so designated shall be
          up to 14,722.075 (which shall not be subject to increase without the written consent of the holders of a majority of the then outstanding shares of the Preferred Stock (each, a “Holder” and collectively, the “Holders”).  Each share of Preferred Stock shall have a
          par value of $0.001 per share and a stated value equal to $1,000 (the “Stated Value”).

      Section 3. Dividends.  Except for stock dividends or distributions for which adjustments
          are to be made pursuant to Section 7, Holders shall be entitled to receive, and the Corporation shall pay, dividends on shares of Preferred Stock equal (on an as-if-converted-to-Common-Stock basis, disregarding for such purpose any conversion
          limitations hereunder) to and in the same form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on shares of the Common Stock.  No other dividends shall be paid on shares of Preferred Stock.  The
          Corporation shall not pay any dividends on the Common Stock unless the Corporation simultaneously complies with this provision.

      Section 4. Voting Rights.

      
        	
                a)

              	
                At the next meeting of stockholders, for purposes of determining the presence of a quorum at
                  any meeting of the stockholders of the Corporation at which the shares of Preferred Stock are entitled to vote, the number of shares of Preferred Stock and votes represented by such shares of Preferred Stock shall be counted on an as
                  converted to Common Stock subject to the limitation on conversion set forth in Section 6(d).

              

      

      
        	
                b)

              	
                At the next meeting of stockholders, each share of Preferred Stock shall entitle the holder thereof to a number of votes equal to the number of Conversion Shares issuable upon conversion thereof assuming the Preferred Stock were then
                  convertible into Common Stock (subject to the limitations on conversion set forth in Section 6(d)) and shall, except as required by law, vote together with the Common Stock and any other issued and outstanding shares of preferred stock of
                  the Corporation, as a single class. Notwithstanding the foregoing, in addition, as long as any shares of Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the Holders of a majority of the then
                  outstanding shares of the Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Preferred Stock or alter or amend this Certificate of Designation, (b) increase the number of authorized shares of
                  Preferred Stock, or (c) enter into any agreement with respect to any of the foregoing.

              

      

      Section 5. Liquidation.  Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”), prior and in preference to the Common Stock, the Holders shall be entitled to
            receive out of the assets available for distribution to stockholders an amount equal to 100% of the Stated Value and no more.  The preference set forth in this Section 5 with respect to distributions to the Preferred Stock upon a Liquidation
            shall apply mutatis mutandis to any
            distributions to be made upon the consummation of a Fundamental Transaction.  The Corporation shall mail written notice of any such Liquidation, Fundamental Transaction not less than 45 days prior to the payment date stated therein, to each
            Holder.

      Section 6. Conversion.

      
        	
                a)

              	
                Conversions at Option of Holder.  Each share of Preferred Stock shall be convertible, at any time and from time to time at the option of the Holder thereof, into that number of shares of Common Stock (subject to
                  the limitations set forth in Section 6(d)) determined by dividing the Stated Value of such share of Preferred Stock by the Conversion Price.  Holders shall effect conversions by providing the Corporation with the form of conversion notice
                  attached hereto as Annex A (a “Notice
                      of Conversion”).  Each Notice of Conversion shall specify the number of shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned prior to the conversion at issue, the number of shares of
                  Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by email such Notice of Conversion to the
                  Corporation (such date, the “Conversion Date”).  If no Conversion Date is specified in a Notice of Conversion, the Conversion Date
                  shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder.  No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of
                  any Notice of Conversion form be required.  The calculations and entries set forth in the Notice of Conversion shall control
                  in the absence of manifest or mathematical error.  From and after the Conversion Date, until presented for transfer or exchange, certificates that previously represented shares of Preferred Stock shall represent, in lieu of the number of
                  shares of Preferred Stock previously represented by such certificate, the number of shares of Preferred Stock, if any, previously represented by such certificate that were not converted pursuant to the Notice of Conversion, plus the
                  number of shares of Conversion Shares into which the shares of Preferred Stock previously represented by such certificate were converted.  To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the
                  certificate(s) representing the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such
                  shares of Preferred Stock promptly following the Conversion Date at issue.  Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

              

      

      
        	
                b)

              	
                Conversion Price.  The conversion price for the Preferred Stock shall equal $0.0001, subject to adjustment herein (the “Conversion Price”).

              

      

      
        	
                c)

              	
                Mechanics of Conversion

              

      

      
        	
                i.

              	
                Delivery of Conversion Shares Upon Conversion.  Not later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) after each
                  Conversion Date (the “Share Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder the
                  number of Conversion Shares being acquired upon the conversion of the Preferred Stock, which Conversion Shares shall be free of restrictive legends and trading restrictions.  The Corporation shall use its best efforts to deliver the
                  Conversion Shares required to be delivered by the Corporation under this Section 6 electronically through the Depository Trust Company or another established clearing corporation performing similar functions.  As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Corporation’s primary
                  Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Conversion.

              

      

      
        	
                ii.

              	
                Failure to Deliver Conversion Shares.  If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall
                  be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original
                  Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Notice of Conversion.

              

      

      
        	
                iii.

              	
                Obligation Absolute; Partial Liquidated Damages.  The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Preferred Stock in accordance with the terms hereof are absolute and
                  unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any
                  setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or any other
                  person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a
                  waiver by the Corporation of any such action that the Corporation may have against such Holder.  In the event a Holder shall elect to convert any or all of the Stated Value of its Preferred Stock, the Corporation may not refuse conversion
                  based on any claim that such Holder or anyone associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining
                  and/or enjoining conversion of all or part of the Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of
                  Preferred Stock which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it
                  obtains judgment.  In the absence of such injunction, the Corporation shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion.  If the Corporation fails to deliver to a Holder such Conversion Shares
                  pursuant to Section 6(c)(i) by the Share Delivery Date applicable to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value of Preferred Stock being
                  converted, $10 per Trading Day (increasing to $20 per Trading Day on the third Trading Day after the Share Delivery Date and increasing to $50 per Trading Day on the sixth Trading Day after the Share Delivery Date) for each Trading Day
                  after the Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion.  Nothing herein shall limit a Holder’s right to pursue actual damages for the Corporation’s failure to deliver Conversion Shares
                  within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.  The
                  exercise of any such rights shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

              

      

      
        	
                iv.

              	
                Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion.  In addition to any other rights available to the Holder, if the Corporation fails for any reason to deliver to a Holder the
                  applicable Conversion Shares by the Share Delivery Date pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the
                  Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion relating to such Share Delivery
                  Date (a “Buy-In”), then the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies available to or
                  elected by such Holder) the amount, if any, by which (x) such Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common
                  Stock that such Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
                  at the option of such Holder, either reissue (if surrendered) the shares of Preferred Stock equal to the number of shares of Preferred Stock submitted for conversion (in which case, such conversion shall be deemed rescinded) or deliver to
                  such Holder the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(c)(i). For example, if a Holder purchases shares of Common Stock having a
                  total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Preferred Stock with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise
                  to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000.  The Holder shall provide the Corporation written notice indicating
                  the amounts payable to such Holder in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at
                  law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Corporation’s failure to timely deliver the Conversion Shares upon conversion of the shares of Preferred Stock
                  as required pursuant to the terms hereof.

              

      

      
        	
                v.

              	
                Reservation of Shares Issuable Upon Conversion.  Until no shares of the Preferred Stock remain outstanding, the Corporation covenants that it will at all times reserve and keep available out of its authorized and
                  unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and
                  the other holders of the Preferred Stock), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the
                  adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Preferred Stock.  The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized,
                  validly issued, fully paid and nonassessable.

              

      

      
        	
                vi.

              	
                Fractional Shares.  No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock.  As to any fraction of a share which the Holder would otherwise be
                  entitled to purchase upon such conversion, the Corporation shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the
                  next whole share.  Notwithstanding anything to the contrary contained herein, but consistent with the provisions of this subsection with respect to fractional Conversion Shares, nothing shall prevent any Holder from converting fractional
                  shares of Preferred Stock.

              

      

      
        	
                vii.

              	
                Transfer Taxes and Expenses.  The issuance of Conversion Shares on conversion of the Preferred Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in
                  respect of the issue or delivery of such Conversion Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such Conversion
                  Shares upon conversion in a name other than that of the Holders of such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting the
                  issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.  The Corporation shall pay all Transfer Agent fees required for
                  same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares.

              

      

      
        	
                d)

              	
                Beneficial Ownership Limitation.  Notwithstanding anything to the contrary set forth herein, the
                  Corporation shall not effect any conversion of the Preferred Stock, and a Holder shall not have the right to convert any portion of the Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable
                  Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any Persons acting as a group together with such Holder or any of such Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of
                  shares of Common Stock beneficially owned by such Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon conversion of the Preferred Stock with respect to which such
                  determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted Stated Value of Preferred Stock beneficially owned by such Holder or any of its
                  Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation  subject to a limitation on conversion or exercise analogous to the limitation
                  contained herein (including, without limitation, the Preferred Stock) beneficially owned by such Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 6(d),
                  beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  To the extent that the limitation contained in this Section 6(d) applies, the
                  determination of whether the Preferred Stock is convertible (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and of how many shares of Preferred Stock are convertible shall be in
                  the sole discretion of such Holder, and the submission of a Notice of Conversion shall be deemed to be such Holder’s determination of whether the shares of Preferred Stock may be converted (in relation to other securities owned by such
                  Holder together with any Affiliates and Attribution Parties) and how many shares of the Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, each Holder
                  will be deemed to represent to the Corporation each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no obligation to
                  verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in
                    accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this
                    Section 6(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Corporation’s most recent
                    periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Corporation or (iii) a more recent written notice by the Corporation or the Transfer Agent setting forth the
                  number of shares of Common Stock outstanding.  Upon the written or oral request (which may be via email) of a Holder, the Corporation shall within one Trading Day confirm orally and in writing to such Holder the number of shares of Common
                  Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including the Preferred Stock, by such Holder
                  or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial
                      Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the issuance of any shares of Preferred Stock, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to
                  the issuance of shares of Common Stock issuable upon conversion of Preferred Stock held by the applicable Holder.  A Holder, upon notice to the Corporation, may increase or decrease the Beneficial Ownership Limitation provisions of this
                  Section 6(d) applicable to its Preferred Stock provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
                  of Common Stock upon conversion of the Preferred Stock held by the Holder and the provisions of this Section 6(d) shall continue to apply.  Any such increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Corporation and shall only apply to such Holder and no other Holder.  The Beneficial Ownership Limitation shall not be waived by the Corporation or the Holder.  The provisions
                  of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
                    the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of Preferred Stock.

              

      

      

        9

        
          

      

      Section 7. Certain Adjustments.

      
        	
                a)

              	
                Stock Dividends and Stock Splits.  If the Corporation, at any time while the Preferred Stock is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common
                  Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, the Preferred
                  Stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in
                  the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common
                  Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Any adjustment made
                  pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
                  in the case of a subdivision, combination or re‐classification.

              

      

      
        	
                b)

              	
                Subsequent Rights Offerings.  In addition to any adjustments pursuant to Section 7(a) above, if at any time the Corporation
                    grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then
                    the Holder of will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon
                    complete conversion of such Holder’s Preferred Stock (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for
                    the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided,
                    however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
                    Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as
                    its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

              

      

      
        	
                c)

              	
                Pro Rata Distributions.  During such time as the Preferred Stock is outstanding, if the Corporation declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to holders of
                  shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, reclassification, corporate rearrangement,
                  scheme of arrangement or other similar transaction but excluding the Spin Off) (a “Distribution”), at any time after the issuance
                  of the Preferred Stock, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common
                  Stock acquirable upon complete conversion of the Preferred Stock (without regard to any limitations on conversion hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is
                  taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to
                  participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
                  shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the
                  Holder exceeding the Beneficial Ownership Limitation).  If, at any time while any shares of the Preferred Stock remains outstanding, the Corporation spins off or otherwise divests itself of a part of its business or operations or disposes
                  of all or of a part of its assets in a transaction (including in a Spin-Off as such term is defined in the Purchase Agreement) in which the Corporation, in addition to or in lieu of any other compensation received and retained by the
                  Corporation for such business, operations or assets, causes securities of another entity (the “Spin Off Securities”) to be issued
                  to security holders of the Corporation, the Corporation shall cause (i) to be reserved Spin Off Securities for each Holder an amount of shares equal to the number thereof which would have been issued to the Holders had all of the Holders’
                  Preferred Stock outstanding on the record date (the “Record Date”) for determining the amount and number of Spin Off Securities to
                  be issued to security holders of the Corporation(the “Outstanding Shares”) been converted as of the close of business on the
                  business day immediately before the Record Date (the “Reserved Spin Off Shares”), and (ii) to be issued to the Holders on the
                  conversion of all or any of the Outstanding Shares, such amount of the Reserved Spin Off Shares equal to (x) the Reserved Spin Off Shares multiplied by (y) a fraction, of which (I) the numerator is the Stated Value of the Outstanding
                  Shares of the Investor then being converted, and (II) the denominator is the Stated Value of the Outstanding Shares of such Investor.

              

      

      
        	
                d)

              	
                Fundamental Transaction.  If, at any time while the Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one or more related transactions effects any merger or consolidation of the
                  Corporation with or into another Person, (ii) the Corporation (and all of its Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
                  substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which
                  holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation, directly or
                  indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or
                  exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
                  limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock
                  held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of the Preferred Stock, the Holder shall have the right to receive, for each Conversion
                  Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of the Preferred Stock), the number of shares
                  of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Preferred Stock is convertible
                  immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of the Preferred Stock).  For purposes of any such conversion, the determination of the Conversion Price shall be
                  appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the
                  Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities,
                  cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of the Preferred Stock following such Fundamental Transaction. 
                  To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions and issue
                  to the Holders new preferred stock consistent with the foregoing provisions and evidencing the Holders’ right to convert such preferred stock into Alternate Consideration.  The Corporation shall cause any successor entity in a Fundamental
                  Transaction in which the Corporation is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of
                  the Corporation under this Certificate of Designation and the other Transaction Documents in accordance with the provisions of this Section 7(d) pursuant to written agreements in customary form and substance reasonably satisfactory to the
                  Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for the Preferred Stock a security of the Successor Entity
                  evidenced by a written instrument substantially similar in form and substance to the Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to
                  the shares of Common Stock acquirable and receivable upon conversion of the Preferred Stock (without regard to any limitations on the conversion of the Preferred Stock) prior to such Fundamental Transaction, and with a conversion price
                  which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock,
                  such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of the Preferred Stock immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
                  satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the
                  provisions of this Certificate of Designation and the other Transaction Documents referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all
                  of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation herein.

              

      

      
        	
                e)

              	
                Calculations.  All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 7, the number of shares of Common Stock
                  deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

              

      

      
        	
                f)

              	
                Notice to the Holders.

              

      

      
        	
                i.

              	
                Adjustment to Conversion Price.  Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation shall promptly deliver to each Holder by email a notice setting forth the
                  Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

              

      

      
        	
                ii.

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

              

      

      Section 8. Redemption

      
        	
                a)

              	
                At any time after a Redemption Triggering Event (the “Redemption Period”), each Holder shall have the right to cause the Corporation to redeem all or part of such Holder’s shares of Preferred Stock at a price per
                  share equal to 100% of the Stated Value (the “Redemption Price”); provided, however, commencing on March 18, 2023 the Redemption Price will be
                  reduced to 99% of the original Redemption Price and on each monthly anniversary thereof for the six months the Redemption Price shall be reduced by another 1% (i.e. on the 2nd month, the Redemption Price shall be 98%
                  of the original Redemption Price and so on).  On and after August 18, 2023, the Redemption Price shall be 95% of the original Redemption Price with no further adjustment thereafter.  The determination of which Redemption Price shall apply
                  shall be determined by the date that the Redemption Notice (as defined below) is delivered to the Corporation.

              

      

      
        	
                b)

              	
                Subject to the terms of Section 8(a) above, to cause the Corporation to redeem all or part of
                  its shares of Preferred Stock, each Holder shall deliver written notice to the Corporation (each, a “Redemption Notice”) setting
                  forth the number of shares of Preferred Stock that each such Holder wishes to redeem.  The Corporation shall redeem the shares of Preferred Stock in accordance with the Redemption Notice, no later than 5 days after the date on which the
                  Redemption Notice is delivered to the Corporation.  Upon receipt of full payment in cash for a complete redemption, each Holder will promptly submit to the Corporation such Holder’s Preferred Stock certificates (or reflect such reduction
                  in the books and records of the Corporation), if any, and such redeemed shares shall no longer be deemed to be outstanding.

              

      

      Section 9. Miscellaneous.

      
        	
                a)

              	
                Notices.  Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by
                  e-mail, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at the address set forth above Attention: John Ollet, e-mail address: jollet@hcmc1.com, or such other e-mail address or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section 9.  Any and all
                  notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at
                  the e-mail address or address of such Holder appearing on the books of the Corporation, or if no such e-mail address or address appears on the books of the Corporation, at the principal place of business of such Holder, as set forth in
                  the Purchase Agreement.  Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via e-mail at the e-mail
                  address set forth in this Section 9 prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth in
                  this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service,
                  or (iv) upon actual receipt by the party to whom such notice is required to be given.

              

      

      
        	
                b)

              	
                Lost or Mutilated Preferred Stock Certificate.  If a Holder’s Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for
                  and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Preferred Stock so mutilated, lost, stolen or destroyed, but only upon
                  receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation (which shall not include the posting of any bond).

              

      

      
        	
                c)

              	
                Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal
                  laws of the State of Delaware of incorporation, without regard to the principles of conflict of laws thereof.

              

      

      
        	
                d)

              	
                Severability.  If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable
                  to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.  If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
                  usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.

              

      

      
        	
                e)

              	
                Next Business Day.  Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

              

      

      
        	
                f)

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

              

      

      

        10

        
          

      

      

      

      
        	
                g)

              	
                Status of Converted or Redeemed Preferred Stock.  Shares of Preferred Stock may only be issued pursuant to the Purchase Agreement.  If any shares of Preferred Stock shall be converted, redeemed or reacquired by the
                  Corporation, such shares may not be reissued and shall automatically be required and cancelled and shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series E Redeemable
                  Convertible Preferred Stock.

              

      

      *********************

      RESOLVED, FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Corporation be
        and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

       

      

      [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

      

        11

        
          

      

      IN WITNESS WHEREOF, the undersigned have executed this Certificate this 18th day of August, 2022.

       

      

       

      

      Name:  Jeffrey E. Holman

      Title:  Chief Executive Officer

      

      

      

      

      

        12

        
          

      

      ANNEX A

       

      

      NOTICE OF CONVERSION

      (TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF PREFERRED STOCK)

       

      

      The undersigned hereby elects to convert the number of shares of Series E Redeemable Convertible Preferred Stock indicated below into shares of
        common stock, par value $0.0001 per share (the “Common Stock”), of Healthier Choices Management Corp., a Delaware corporation (the “Corporation”), according to the conditions hereof, as of the date written below.  If shares of Common Stock are to be issued in the name of a
        Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required by the Corporation in accordance with the Purchase Agreement. 
        No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

       

      

      Conversion calculations:

      	
              Date to Effect Conversion: _____________________________________________

               

            
	
              Number of shares of Preferred Stock owned prior to Conversion: _______________

               

            
	
              Number of shares of Preferred Stock to be Converted: ________________________

               

            
	
              Stated Value of shares of Preferred Stock to be Converted: ____________________

               

            
	
              Number of shares of Common Stock to be Issued: ___________________________

               

            
	
              Applicable Conversion Price:____________________________________________

               

            
	
              Number of shares of Preferred Stock subsequent to Conversion: ________________

               

            
	
              Address for Delivery: ______________________

              or

              DWAC Instructions:

              Broker no: _________

              Account no: ___________

            
	 	
               

              [HOLDER]

               

              By:___________________________________

              Name:

              Title:

            

      

      

      

        13

        
          

      

      

      

      EXHIBIT B

       

        

      Spin-Off Securities Purchase Agreement

       

      

      SECURITIES PURCHASE AGREEMENT

       

      

      This Securities Purchase Agreement (this “Agreement”) is dated as of ___________, 2022, between [____________________]1, a Delaware 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 Section 4(a)(2) of the Securities Act
        (as defined below), and Rule 506 promulgated thereunder, 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. Definitions.  In addition to the terms defined elsewhere in this Agreement:
          (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Series A Certificate of Designation (as defined herein), and (b) 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 4.7.

      “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 generally open for use by customers on such day.

      “Cannabis Activity”
        shall have the meaning ascribed to such term in Section 3.1(l).

      “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.

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

      “Common Stock”
        means the common stock of the Company, par value $_______ 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.

      “Company Counsel”
        means Cozen O’Connor.

      “Conversion Price”
        shall have the meaning ascribed to such term in the Series A Certificate of Designation.

      “Conversion Shares”
        means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.

      “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 specified as to an earlier time by the parties, 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 specified as to an earlier time by the parties.

      “EGS” means
        Ellenoff Grossman & Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105-0302.

      “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.

      “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) securities upon the exercise or exchange of or conversion of any Securities issued hereunder 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 4.11(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.

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

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

      “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(bb).

      “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.

      “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).

      “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.

      “Pharmaceutical Product”
        shall have the meaning ascribed to such term in Section 3.1(ll).

      “Preferred Stock”
        means the Series A Preferred Stock.

      “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.

      “Purchaser Party”
        shall have the meaning ascribed to such term in Section 4.9.

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

      “Required Minimum”
        means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon conversion in full of all shares of
        Preferred Stock, ignoring any conversion limits set forth therein.

      “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.

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

      “Securities” means
        the Preferred Stock and the Underlying Shares.

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

      “Series A Certificate of
            Designation” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary of State of Delaware, in the form of Exhibit A attached hereto.

      “Series A Preferred Stock”
        means the up to [________]2 shares of the Company’s Series A Redeemable Convertible Preferred Stock issued hereunder having the rights, preferences and privileges set forth in the Series A Certificate of Designation, in the form
        of Exhibit A hereto.

      “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).

      “Stated Value”
        means $1,000 per share of Preferred Stock.

      “Subscription Amount”
        means, as to each Purchaser, the aggregate amount to be paid for the Preferred Stock 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 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 Pink Open Market, OTCQB or the OTCQX (or any successors to any of the foregoing).

      “Transaction Documents”
        means this Agreement, the Series A Certificate of Designation, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

      “Transfer Agent”
        means Equity Stock Transfer, the current transfer agent of the Company, and any successor transfer agent of the Company.

      “Underlying Shares”
        means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock in accordance with the terms of the Series A Certificate of Designation.

       

      

      
        14

        
          

      

      ARTICLE II

        PURCHASE AND SALE

       

      

      2.1 Closing.  On the Closing Date, upon the terms and subject
          to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase up to an aggregate
          of [$_________] in Stated Value of Preferred Stock.  The aggregate number of shares of Preferred Stock sold
          hereunder shall be up to [_______].  Each Purchaser shall deliver to the Company, via wire transfer, immediately
          available funds equal to its Subscription Amount, and the Company shall deliver to each Purchaser its respective shares of Preferred Stock, 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 take place remotely by electronic transfer of the Closing documentation.

      2.2 Deliveries.

      (a) On or prior to the Closing Date (except as indicated below), 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, addressed to each Purchaser, in form and substance reasonably satisfactory to the Lead Purchaser; and

      (iii) a certificate (or entry in the Company’s book entry stock ledger) evidencing a number of shares of Series A Preferred Stock equal to Purchaser’s Subscription Amount
          divided by the Stated Value, registered in the name of such Purchaser and evidence of the filing and acceptance of the Series A Certificate of Designation from the Secretary of State of Delaware.

      (b) On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company this Agreement duly executed by such Purchaser.

      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) 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 in all material respects (or, to the extent representations or warranties are
          qualified by materiality, in all respects) as of such date);

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

      (iii) the Common Stock is listed or quoted on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock
          Exchange; and

      (iv) 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 in all material respects or, to the extent representations or warranties
          are qualified by materiality or Material Adverse Effect, in all respects) 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; 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.

       

        

      
        15

        
          

      

      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.

      (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, would 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 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.

      (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 this Agreement and (ii) the filing of Form D with the Commission and such filings as are required to be made under
          applicable state securities laws (collectively, the “Required Approvals”).

      (f) Issuance of the Securities.  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 Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be 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 Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares at least equal to the
          Required Minimum on the date hereof.

      (g) Capitalization.  The capitalization of the Company as of
          the date hereof is as set forth on Schedule 3.1(g).  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 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, 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.

      (i) Material Changes; Undisclosed Events, Liabilities or Developments. 
          Since the date of the latest audited financial statements included within the SEC Reports, except as set forth on Schedule 3.1(i) or 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 1 Trading Day prior to the date that this representation is made.

      (j) Litigation.  Except as set forth on Schedule 3.1(j), 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”).  None of the Actions set forth on Schedule 3.1(j), (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable
          decision, have or reasonably be expected to result in a Material Adverse Effect.  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.

      (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.  Neither the Company nor any of its Subsidiaries engage in the possession, exportation, importation, cultivation, production, processing, purchase,
          distribution or sale of cannabis or cannabis-based products (“Cannabis Activity”).  Should the Company or any of its Subsidiaries engage
          in any Cannabis Activity in the future, it will fully comply with all federal, state and local laws regarding Cannabis Activity in each jurisdiction where it engages in such activities.

      (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.

      (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 the Company is strategically enforcing any infringements.  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.  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.  Except as set
          forth on Schedule 3.1(r), 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.

      (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.

       

          

      
        16

        
          

      

      (t) Certain Fees.  Except as set forth on Schedule 3.1(t) of the Disclosure Schedules, 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) Private Placement.  Assuming the accuracy of the
          Purchasers’ representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.  The issuance and sale of
          the Securities hereunder does not contravene the rules and regulations of the Trading Market.

      (v) 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.

      (w) Registration Rights.  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.

      (x) 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 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.

      (y) 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.

      (z) 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.  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
          SEC Reports of 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.

      (aa) 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 (i) the Securities Act which would require the registration of any such
          securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

      (bb) 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.  The SEC Reports 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.

      (cc) Tax Status.  Except for matters that would not,
          individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, 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.

      (dd) No General Solicitation.  Neither the Company nor any
          Person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.  The Company has offered the Securities for sale only to the Purchasers and certain other “accredited
          investors” within the meaning of Rule 501 under the Securities Act.

      (ee) 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.

      (ff) Accountants.  The Company’s accounting firm is set forth on
          Schedule 3.1(ff) of the Disclosure Schedules.  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 next Form 10-K.

      (gg) No Disagreements with Accountants and Lawyers.  There are
          no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any
          fees owed to its accountants and lawyers which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

      (hh) 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.

      (ii) Acknowledgment Regarding Purchaser’s Trading Activity.  Anything
            in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(g) 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, may presently 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 Underlying 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.

      (jj) Cybersecurity.  There has been no security breach or other
          compromise of or relating to any of the Company’s or any Subsidiary’s information technology and computer systems, networks, hardware, software, data (including the data of its respective customers, employees, suppliers, vendors and any third
          party data maintained by or on behalf of it), equipment or technology (collectively, “IT Systems and Data”) and (y) the Company and the
          Subsidiaries have not been notified of, and has no knowledge of any event or condition that would reasonably be expected to result in, any security breach or other compromise to its IT Systems and Data; (ii) the Company and the Subsidiaries are
          presently in compliance in all material respects, with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual
          obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as would not, individually or in the aggregate, have
          a Material Adverse Effect; (iii) the Company and the Subsidiaries have implemented and maintained commercially reasonable safeguards to maintain and protect its material confidential information and the integrity, continuous operation, redundancy
          and security of all IT Systems and Data; and (iv) the Company and the Subsidiaries have implemented backup and disaster recovery technology consistent with industry standards and practices.

      (kk) 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.

      (ll) FDA.  As to each product subject to the jurisdiction of the
          U.S. Food and Drug Administration (“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each
          such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold
          and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good
          manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse
          Effect.  There is no pending, completed or, to the Company's knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any
          of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure,
          registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall,
          suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its
          Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges
          any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect.  The properties, business and operations of the Company have been
          and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA.  The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United
          States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company.

      (mm) 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.

      (nn) 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.

      (oo) 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.

      (pp) 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 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.

      (qq) 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.

      (rr) Brokers and Finders.  Except as set forth on Schedule 3.1(rr), no Person will have, as a result of the transitions contemplated by the Transaction Documents, any valid right, interest or
          claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Purchaser.

      (ss) No Disqualification Events.  With respect to the Securities
          to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering
          hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the
          Company in any capacity at the time of sale (each, an "Issuer Covered Person" and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
          Issuer Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided
          thereunder.

      (tt) Other Covered Persons.  The Company is not aware of any
          person (other than any Issuer Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities.

      (uu) Notice of Disqualification Events.  The Company will notify
          the Purchasers in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered
          Person.

      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) Own Account.  Such Purchaser understands that the shares of
          Preferred Stock being issued hereunder are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view
          to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act
          or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state
          securities law (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.

      (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 converts any shares of Preferred Stock, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), (a)(8), (a)(9),
          (a)(12), or (a)(13) 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) General Solicitation.  Such Purchaser is not, to such
          Purchaser’s knowledge, purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or
          presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

      (f) 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.

      (g) 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.

       

      

      
        17

        
          

      

      ARTICLE IV

        OTHER AGREEMENTS OF THE PARTIES

       

      

      4.1 Transfer Restrictions.

      
        	
                (f)

              	
                The Securities may only be disposed of in compliance with state and federal securities laws. 
                  In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the
                  Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to
                  the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

              

      

      
        	
                (g)

              	
                The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend
                  on any of the Securities in the following form:

              

      

       [NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN
        REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
        OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
        WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A
        FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

      The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide
        margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and, if required under the
        terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the
        pledgee, secured party or pledgor shall be required in connection therewith.  Further, no notice shall be required of such pledge.  At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a
        pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

      
        	
                (h)

              	
                Certificates evidencing the Underlying Shares shall not contain any legend (including the
                  legend set forth in Section 4.1(b) hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (iii) if
                  such Underlying Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Underlying Shares and without volume or
                  manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause
                  its counsel to issue a legal opinion to the Transfer Agent or the Purchaser promptly after the Effective Date if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser, respectively.
                  If all or any shares of Preferred Stock are converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 and the Company is
                  then in compliance with the current public information required under Rule 144, or if the Underlying Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information
                  required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and
                  pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends.  The Company agrees that following the Effective Date or at such time as such legend is no longer required under this
                  Section 4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by a Purchaser to the Company or the
                  Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such date, the “Legend
                      Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.  The Company may not make any notation on its records or give
                  instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.  Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser
                  by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.  As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery
                  of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend.

              

      

      
        	
                (i)

              	
                In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser,
                  in cash, (i) as partial liquidated damages and not as a penalty, for each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the
                  restrictive legend and subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after the Legend Removal Date) for each Trading Day after the Legend Removal Date until such certificate is
                  delivered without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to a Purchaser by the Legend Removal Date a certificate representing the Securities so delivered to the Company by such Purchaser
                  that is free from all restrictive and other legends and (b) if after the Legend Removal Date such Purchaser purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such
                  Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that such Purchaser anticipated receiving from
                  the Company without any restrictive legend, then, an amount equal to the excess of such Purchaser’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so
                  purchased (including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of (x)
                  such number of Underlying Shares that the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied by (y) the lowest closing sale price of the Common Stock on any Trading Day during the period commencing on
                  the date of the delivery by such Purchaser to the Company of the applicable Underlying Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).

              

      

      
        	
                (j)

              	
                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
                  stockholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

              

      

      4.2 Furnishing of Information; Public Information.

      (a) Until the earlier of the time that no Purchaser owns Securities, 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.

      (b) At any time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all of the Securities may be sold without
          the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company (i) shall fail for any reason to satisfy the current public information requirement under
          Rule 144(c) or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Public Information Failure”) then, in addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not
          as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate Subscription Amount of such Purchaser’s Securities on the day of a Public Information
          Failure and on every thirtieth (30th) day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public
          information is no longer required  for the Purchasers to transfer the Underlying Shares pursuant to Rule 144.  The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments
          in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial
          months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity
          including, without limitation, a decree of specific performance and/or injunctive relief.

      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 Conversion Procedures.  Each of the form of Notice of
          Conversion included in the Series A Certificate of Designation sets forth the totality of the procedures required of the Purchasers in order to convert the Preferred Stock.  Without limiting the preceding sentence, no ink-original Notice of
          Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required in order to convert the Preferred Stock.  No additional legal opinion, other information or
          instructions shall be required of the Purchasers to convert their Preferred Stock.  The Company shall honor conversions of the Preferred Stock and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth
          in the Transaction Documents.

      4.5 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, Affiliates 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, Affiliates or agents on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate and be of no further force or effect.  The Company understands and confirms that each
          Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.  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) and reasonably
          cooperate with such Purchaser regarding such disclosure.

      4.6 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.

      4.7 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 4.5, 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 in writing to the
          receipt of such information and agreed in writing 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 or 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, employees, Affiliates or agents, or a duty to
          the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees, Affiliates or agents 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 with the delivery
          of such notice 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.

       

        

      
        18

        
          

      

      4.8 Use of Proceeds.  The Company shall use the net proceeds
          from the sale of the Securities hereunder for working capital purposes.

      4.9 Indemnification of Purchasers.  Subject to the provisions
          of this Section 4.9, 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 reasonable 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 4.9 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.

      4.10 Reservation of Common Stock and Listing of Securities.

      (a) The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may then be
          required to fulfill its obligations in full under the Transaction Documents, including without limitation the conversion of the Preferred Stock into shares of Common Stock.

      (b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum on such date, then the Board
          of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon
          as possible and in any event not later than the 75th day after such date.

      (c) The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading Market an additional shares
          listing application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation on
          such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum on such
          date on such Trading Market or another 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 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 such 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.

      4.12 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
          4.5.  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 4.5, such Purchaser will maintain the confidentiality of the existence and terms of this transaction (other than as disclosed to its legal and other representatives).  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 4.5, (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 4.5 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company, any of  its Subsidiaries, or any of their respective officers, directors, employees,
          Affiliates or agent, after the issuance of the initial press release as described in Section 4.5.  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.

      4.13 Registration of Underlying Securities.  The Company hereby
          covenants to and agrees with each Purchaser that it shall use its commercially reasonable efforts to prepare and file with the SEC a Registration Statement (“Registration Statement”) on Form S-1, if available, registering the Underlying Shares
          for resale under the Securities Act as soon as practicable after the Closing Date hereunder; provided, however that the Company may, prior to the Closing Date, at its sole discretion, (a) file the Registration Statement or (b) include the
          Underlying Shares for registration on the registration statement the Company has filed for its initial public offering of its Common Stock.  The Company’s obligation to register each Purchaser’s Underlying Shares is contingent, however, upon the
          Purchaser completing, executing and delivering to the Company the Questionnaire attached hereto as Annex B.  If the Company is unable to register the underlying shares by the Reset Date (as defined in the Series A Certificate of Designation), the
          Purchasers would receive a reset of the Conversion Price (as defined in the Series A Certificate of Designation) as of the date when registration of the Underlying Shares is effective as set forth in the Series A Certificate of Designation.

      4.14 Form D; Blue Sky Filings.  The Company agrees to timely
          file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser.  The Company shall take such action as the Company shall reasonably determine is necessary in order
          to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon
          request of any Purchaser.

       

        

      
        19

        
          

      

      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.  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 conversion notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in
          connection with the delivery of any Securities to the Purchasers.

      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 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 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.

      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 Preferred Stock based on the initial Subscription
          Amounts hereunder (or, prior to the Closing, 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.

      5.8 No Third-Party Beneficiaries.  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.

      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 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 “.pdf” signature page were an original thereof.

      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 a conversion of the Preferred Stock, the applicable Purchaser shall be required to return any shares of Common Stock subject to
          any such rescinded conversion.

      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.

      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.  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 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.

      5.19 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.

      5.20 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)

      

      

      

      1 New Spinoff Entity

      2 Should equate to number of shares being purchased.

      
        20

        
          

      

      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.

       

      

      	
              [Spinoff Entity]

               

               

            	
              Address for Notice:

              ___________________

              ___________________

            
	
              By: 

              Name:

              Title:

               

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

            	
              ___________________

            
	
               

              Cozen O’Connor

              200 S. Biscayne Boulevard, 30th Floor

              Miami, FL 33131

              e-mail: mschrier@cozen.com

               

            	 

      

      

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

        SIGNATURE PAGE FOR PURCHASER FOLLOWS]

      

        21

        
          

      

      [PURCHASER SIGNATURE PAGES TO 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 of Series A Preferred Stock: ____________

      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 on 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]

      

        22

        
          

      

      

      

      EXHIBIT A

      

      

      CERTIFICATE OF DESIGNATION OF PREFERENCES,

      RIGHTS AND LIMITATIONS

      OF

      SERIES A CONVERTIBLE PREFERRED
        STOCK

      

      

      PURSUANT TO SECTION 151 OF THE

      DELAWARE GENERAL CORPORATION LAW

       

      

      The undersigned, [_____________________], do hereby certify that:

       

      

      1. They are the President and Secretary, respectively, of [_____________________] (the “Corporation”).

      2. The Corporation is authorized to issue 1,000,000 shares of preferred stock, none of which have been previously issued.

      3. The following resolutions were duly adopted by the board of directors of the Corporation (the “Board

              of Directors”):

       

        

      WHEREAS, the certificate of incorporation of the Corporation provides for a class of its authorized stock known as preferred
        stock, consisting of 1,000,000 shares, [$0.001] par value per share, issuable from time to time in one or more series;

       

      

      WHEREAS, the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights,
        rights and terms of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting any series and the designation thereof, of any of them; and

       

      

      WHEREAS, it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences,
        restrictions and other matters relating to a series of the preferred stock, which shall consist of, except as otherwise set forth in the Purchase Agreement, up to ____ shares3 of the preferred stock which the Corporation has the
        authority to issue, as follows:

       

      

      NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred
        stock for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series of preferred stock as follows:

      

      

      

      3 Aggregate number of shares being issued pursuant to the Purchase Agreement

      
        23

        
          

      

      TERMS OF PREFERRED STOCK

       

      

      The Corporation hereby creates and designates the following series of Preferred Stock: SERIES A CONVERTIBLE PREFERRED STOCK.  _____ Thousand
        (__,000)4 shares of the Corporation’s authorized Preferred Stock are hereby designated “Series A Convertible Preferred Stock.”

      Section 1. Definitions.  For the purposes hereof,
          the following terms shall have the following meanings:

      “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 of the Securities Act.

      “Alternate
            Consideration” shall have the meaning set forth in Section 7(d).

      “Beneficial
            Ownership Limitation” shall have the meaning set forth in Section 6(d).

      “Business
            Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other
        governmental action to close.

      “Buy-In”
        shall have the meaning set forth in Section 6(c)(iv).

      “Closing”
        means the closing of the purchase and sale of the Preferred Stock pursuant to Section 2 of the Purchase Agreement.

      “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) each Holder’s obligations have been satisfied or waived and
        (ii) the Corporation’s obligations to deliver the Securities have been satisfied or waived.5

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

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

      “Common
            Stock Equivalents” means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options,
        warrants 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.

      “Conversion
            Amount” means the sum of the Stated Value at issue.

      “Conversion
            Date” shall have the meaning set forth in Section 6(a).

      “Conversion
            Price” shall have the meaning set forth in Section 6(b).

      “Conversion
            Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.

      “Effective
            Date” shall have the meaning set forth in the Purchase Agreement.

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

      “Fundamental
            Transaction” shall have the meaning set forth in Section 7(e).

      “GAAP”
        means United States generally accepted accounting principles.

      “Holder”
        shall have the meaning given such term in Section 2.

      “IPO Date”
        means the date the Registration Statement on Form S-1 for the initial registration of the Common Stock is declared effective by the Commission.

      “Liquidation”
        shall have the meaning set forth in Section 5.

      “New York
            Courts” shall have the meaning set forth in Section 8(d).

      “Notice of
            Conversion” shall have the meaning set forth in Section 6(a).

      “Original
            Issue Date” means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued
        to evidence such Preferred Stock.

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

      “Preferred
            Stock” shall have the meaning set forth in Section 2.

      “Purchase
            Agreement” means the Securities Purchase Agreement, dated on or about the Original Issue Date, among the Corporation and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms.

      “Reset
            Date” shall be the fortieth (40th) day following the IPO Date.

      “Reset
            Price” means the lower of (i) 90% of the average of the VWAP during the 5 Trading Days immediately prior to the Reset Date and (ii) if the Registration Statement (as defined in the Purchase Agreement) is declared effective by the SEC
        after the Reset Date, 90% of the average of the VWAP during the 5 Trading Days immediately following the date the Registration Statement is declared effective by the Commission; provided, however, in no instance will the Reset Price be less than
        $3.00.

      “Securities”
        means the Preferred Stock and the Conversion Shares.

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

      “Share
            Delivery Date” shall have the meaning set forth in Section 6(c).

      “Stated
            Value” shall have the meaning set forth in Section 2, as the same may be increased pursuant to Section 3.

      “Successor
            Entity” shall have the meaning set forth in Section 7(e).

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

      “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, OTCQB or OTCQX and The Pink Open Market (or any successors to any of the foregoing).

      “Transaction
            Documents” means this Certificate of Designation, the Purchase Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated pursuant to the
        Purchase Agreement.

      “Transfer
            Agent” means Equity Stock Transfer, the current transfer agent of the Corporation with a mailing address of 237 West 37th Street, Suite 602, New York, NY 10018 and a facsimile
        number of 347.584.3644, and any successor transfer agent of the Corporation.

      “VWAP”
        means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the
        nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is
        not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if
        prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
        cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Corporation,
        the fees and expenses of which shall be paid by the Corporation.

      

      

      

        24

        
          

      

      Section 2. Designation, Amount and Par
              Value.  The series of preferred stock shall be designated as its Series A Convertible Preferred Stock (the “Preferred Stock”) and the number of shares so designated shall be up to ________ (which shall not be subject to increase without the written consent of the holders of the majority of the outstanding shares of Preferred
            Stock (each, a “Holder” and collectively, the “Holders”)).  Each share of Preferred Stock shall have a par value of [$0.001] per share and a stated value equal to $1,000 (the “Stated Value”).

       
      Section 3. Dividends.  Except for stock dividends or distributions for which adjustments are to be made pursuant to Section 7, Holders shall be entitled to receive, and the Corporation shall pay, dividends on shares of Preferred Stock
            equal (on an as-if-converted-to-Common-Stock basis, disregarding for such purpose any conversion limitations hereunder) to and in the same form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on
            shares of the Common Stock.  No other dividends shall be paid on shares of Preferred Stock.  The Corporation shall not pay any dividends on the Common Stock unless the Corporation simultaneously complies with this provision.

       
      Section 4. Voting Rights.

       
      (a) For purposes of determining the presence of a quorum at any meeting of the stockholders of the Corporation at which the shares of Preferred Stock
          are entitled to vote, the number of shares of Preferred Stock and votes represented by such shares of Preferred Stock shall be counted on an as converted to Common Stock subject to the limitation on conversion set forth in Section 6(d).

       
      (b) Each share of Preferred Stock shall entitle the holder thereof to a number of votes equal to the number
          of Conversion Shares issuable upon conversion thereof assuming the Preferred Stock were then convertible into Common Stock (subject to the limitations on conversion set forth in Section 6(d)) and shall, except as required by law, vote together
          with the Common Stock and any other issued and outstanding shares of preferred stock of the Corporation, as a single class. Notwithstanding the foregoing, in addition, as long as any shares of Preferred Stock are outstanding, the Corporation
          shall not, without the affirmative vote of the Holders of a majority of the then outstanding shares of the Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Preferred Stock or alter or amend this
          Certificate of Designation, (b) increase the number of authorized shares of Preferred Stock, or (c) enter into any agreement with respect to any of the foregoing.

       
      Section 5. Liquidation.  Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”),
            the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation an amount equal to the Stated Value, plus any accrued and unpaid dividends and any other amounts due and owing under this Certificate of
            Designation, for each share of Preferred Stock before any distribution or payment shall be made to the holders of the Common Stock and if the assets of the Corporation shall be insufficient to pay in full such amounts, then the entire assets to
            be distributed to the Holders shall be ratably distributed among the Holders in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full.  The Corporation shall mail written
            notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each Holder.

       
       

        

      

        25

        
          

      

      Section 6. Conversion.

      
        	
                a)

              	
                Conversions at Option of Holder.  Each share of Preferred Stock shall be convertible, at any time and from time to time from and after the Original Issue Date at the option of the Holder thereof, into that number
                  of shares of Common Stock (subject to the limitations set forth in Section 6(d)) determined by dividing the Stated Value of such share of Preferred Stock by the Conversion Price.  Holders shall effect conversions by providing the
                  Corporation with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”).  Each Notice of Conversion shall specify the number of shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned
                  prior to the conversion at issue, the number of shares of Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the applicable Holder
                  delivers by facsimile such Notice of Conversion to the Corporation (such date, the “Conversion Date”).  If no Conversion Date is
                  specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder.  No ink-original Notice of Conversion shall be required, nor shall any medallion
                  guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required.  The calculations and
                  entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error.  To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing
                  the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of Preferred Stock
                  promptly following the Conversion Date at issue.  Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

              

      

      
        	
                b)

              	
                Conversion Price.  The per share conversion price for the Preferred Stock shall equal to the lesser of
                  (i) $10.000, subject to adjustment hereunder and (ii) the Reset Price (the lower of clauses (i) and (ii), the “Conversion Price”).

              

      

      
        	
                c)

              	
                Mechanics of Conversion

              

      

      
        	
                viii.

              	
                Delivery of Conversion Shares Upon Conversion.  Not later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) after each
                  Conversion Date (the “Share Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder (A)
                  the number of Conversion Shares being acquired upon the conversion of the Preferred Stock, which Conversion Shares shall be free of restrictive legends and trading restrictions, and (B) a bank check in the amount of accrued and unpaid
                  dividends, if any.  The Corporation shall use its best efforts to deliver the Conversion Shares required to be delivered by the Corporation under this Section 6 electronically through the Depository Trust Company or another established
                  clearing corporation performing similar functions.  As used herein, “Standard Settlement Period” means the standard settlement
                  period, expressed in a number of Trading Days, on the Corporation’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Conversion.

              

      

      
        	
                ix.

              	
                Failure to Deliver Conversion Shares.  If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall
                  be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original
                  Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Notice of Conversion.

              

      

      
        	
                x.

              	
                Obligation Absolute; Partial Liquidated Damages.  The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Preferred Stock in accordance with the terms hereof are absolute and
                  unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any
                  setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or any other
                  person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a
                  waiver by the Corporation of any such action that the Corporation may have against such Holder.  In the event a Holder shall elect to convert any or all of the Stated Value of its Preferred Stock, the Corporation may not refuse conversion
                  based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining
                  and/or enjoining conversion of all or part of the Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of
                  Preferred Stock which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it
                  obtains judgment.  In the absence of such injunction, the Corporation shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion.  If the Corporation fails to deliver to a Holder such Conversion Shares
                  pursuant to Section 6(c)(i) by the Share Delivery Date applicable to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value of Preferred Stock being
                  converted, $10 per Trading Day (increasing to $20 per Trading Day on the third Trading Day after the Share Delivery Date and increasing to $50 per Trading Day on the sixth Trading Day after the Share Delivery Date) for each Trading Day
                  after the Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion.  Nothing herein shall limit a Holder’s right to pursue actual damages for the Corporation’s failure to deliver Conversion Shares
                  within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.  The
                  exercise of any such rights shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

              

      

      
        	
                xi.

              	
                Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion.  In addition to any other rights available to the Holder, if the Corporation fails for any reason to deliver to a Holder the
                  applicable Conversion Shares by the Share Delivery Date pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the
                  Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion relating to such Share Delivery
                  Date (a “Buy-In”), then the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies available to or
                  elected by such Holder) the amount, if any, by which (x) such Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common
                  Stock that such Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
                  at the option of such Holder, either reissue (if surrendered) the shares of Preferred Stock equal to the number of shares of Preferred Stock submitted for conversion (in which case, such conversion shall be deemed rescinded) or deliver to
                  such Holder the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(c)(i). For example, if a Holder purchases shares of Common Stock having a
                  total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Preferred Stock with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise
                  to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000.  The Holder shall provide the Corporation written notice indicating
                  the amounts payable to such Holder in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at
                  law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Corporation’s failure to timely deliver the Conversion Shares upon conversion of the shares of Preferred Stock
                  as required pursuant to the terms hereof.

              

      

      
        	
                xii.

              	
                Reservation of Shares Issuable Upon Conversion.  Until no shares of the Preferred Stock remain outstanding, the Corporation covenants that it will at all times reserve and keep available out of its authorized and
                  unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and
                  the other holders of the Preferred Stock), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the
                  adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Preferred Stock.  The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized,
                  validly issued, fully paid and nonassessable.

              

      

      
        	
                xiii.

              	
                Fractional Shares.  No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock.  As to any fraction of a share which the Holder would otherwise be
                  entitled to purchase upon such conversion, the Corporation shall round up to the next whole share.  Notwithstanding anything to the contrary contained herein, but consistent with the provisions of this subsection with respect to
                  fractional Conversion Shares, nothing shall prevent any Holder from converting fractional shares of Preferred Stock.

              

      

      
        	
                xiv.

              	
                Transfer Taxes and Expenses.  The issuance of Conversion Shares on conversion of this Preferred Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in
                  respect of the issue or delivery of such Conversion Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such Conversion
                  Shares upon conversion in a name other than that of the Holders of such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting the
                  issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.  The Corporation shall pay all Transfer Agent fees required for
                  same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares.

              

      

      
        	
                d)

              	
                Beneficial Ownership Limitation.  The Corporation shall not effect any conversion of the Preferred
                  Stock, and a Holder shall not have the right to convert any portion of the Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable Notice of Conversion, such Holder (together with such
                  Holder’s Affiliates, and any Persons acting as a group together with such Holder or any of such Holder’s Affiliates (such Persons, “Attribution
                      Parties”)) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its
                  Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon conversion of the Preferred Stock with respect to which such determination is being made, but shall exclude the number of shares of Common
                  Stock which are issuable upon (i) conversion of the remaining, unconverted Stated Value of Preferred Stock beneficially owned by such Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the
                  unexercised or unconverted portion of any other securities of the Corporation  subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Preferred Stock)
                  beneficially owned by such Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 6(d), beneficial ownership shall be calculated in accordance with Section
                  13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  To the extent that the limitation contained in this Section 6(d) applies, the determination of whether the Preferred Stock is convertible (in relation to
                  other securities owned by such Holder together with any Affiliates and Attribution Parties) and of how many shares of Preferred Stock are convertible shall be in the sole discretion of such Holder, and the submission of a Notice of
                  Conversion shall be deemed to be such Holder’s determination of whether the shares of Preferred Stock may be converted (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and how
                  many shares of the Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, each Holder will be deemed to represent to the Corporation each time it delivers
                  a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and
                    the rules and regulations promulgated thereunder.  For purposes of this Section 6(d), in determining the number of outstanding shares of Common
                    Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Corporation’s most recent periodic or annual report filed with the Commission, as the case may
                  be, (ii) a more recent public announcement by the Corporation or (iii) a more recent written notice by the Corporation or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request
                  (which may be via email) of a Holder, the Corporation shall within one Trading Day confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of
                  Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including the Preferred Stock, by such Holder or its Affiliates or Attribution Parties since the date as of which such
                  number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% (or, upon
                  election by a Holder prior to the issuance of any shares of Preferred Stock, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
                  of Preferred Stock held by the applicable Holder.  A Holder, upon notice to the Corporation, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 6(d) applicable to its Preferred Stock provided that the
                  Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of the Preferred Stock held by the
                  Holder and the provisions of this Section 6(d) shall continue to apply.  Any such increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the
                  Corporation and shall only apply to such Holder and no other Holder.  The Beneficial Ownership Limitation shall not be waived by the Corporation or the Holder.    The provisions of this paragraph shall be construed and
                      implemented in a manner otherwise than in strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
                        Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of Preferred Stock.

              

      

       

        

      

        26

        
          

      

      Section 7. Certain Adjustments.

      
        	
                g)

              	
                Stock Dividends and Stock Splits.  If the Corporation, at any time while this Preferred Stock is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common
                  Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, this Preferred
                  Stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in
                  the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common
                  Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Any adjustment made
                  pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
                  in the case of a subdivision, combination or re‐classification.

              

      

      
        	
                h)

              	
                Subsequent Equity
                      Sales.  If, at any time while this Preferred Stock is outstanding, the Corporation or any Subsidiary, as applicable sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or
                  issues (or announces any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than
                  the then Conversion Price (such lower price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation
                  of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive
                  shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then simultaneously
                  with the consummation (or, if earlier, the announcement) of each Dilutive Issuance the Conversion Price shall be reduced in accordance with the following formula:

              

      

      

      

      CP2 = CP1*  [(A + B) ÷ (A + C)].

      

      

      For purposes of the foregoing formula, the following definitions shall apply:

      

      

      (a) “CP2” shall mean the Conversion Price in effect immediately after such Dilutive Issuance;

      

      

      (b) “CP1” shall mean the Conversion Price in effect immediately prior to such Dilutive Issuance;

      

      

      (c) “A” shall mean the number of shares of Common Stock outstanding immediately prior to such Dilutive Issuance (treating for
        this purpose as outstanding all shares of Common Stock issuable upon exercise, conversion or exchange of Common Stock Equivalents (including the Preferred Stock) outstanding immediately prior to such Dilutive Issuance);

      

      

      (d) “B” shall mean the number of shares of Common Stock that would have been issued if such Common Stock issued in the
        Dilutive Issuance had been issued at a price per share equal to CP1 (determined by dividing the aggregate consideration received by the Corporation in respect of such issue by CP1); and

      

      

      (e) “C” shall mean the number of such shares of Common Stock issued in such Dilutive Issuance.

      

      

      Notwithstanding the foregoing, no
          adjustment will be made under this Section 7(b) in respect of an Exempt Issuance.  The Corporation shall notify the Holders in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents
        subject to this Section 7(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”).  For purposes of clarification, whether or not the Corporation provides a Dilutive Issuance Notice pursuant to this Section 7(b), upon the occurrence of any Dilutive
        Issuance, the Holders are entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether a Holder accurately refers to the Base Conversion Price in the
        Notice of Conversion.

      

      

      
        	
                i)

              	
                Subsequent Rights Offerings.  In addition to any adjustments pursuant to Section 7(a) above, if at any time the Corporation
                    grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then
                    the Holder of will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon
                    complete conversion of such Holder’s Preferred Stock (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for
                    the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided,
                    however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
                    Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as
                    its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

              

      

      
        	
                j)

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

              

      

      
        	
                k)

              	
                Fundamental Transaction.  If, at any time while this Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one or more related transactions effects any merger or consolidation of the
                  Corporation with or into another Person, (ii) the Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of
                  related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or
                  exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions effects
                  any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the
                  Corporation, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
                  limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock
                  held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Preferred Stock, the Holder shall have the right to receive, for each Conversion
                  Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Preferred Stock), the number of
                  shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Preferred Stock is convertible
                  immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Preferred Stock).  For purposes of any such conversion, the determination of the Conversion Price shall be
                  appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the
                  Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities,
                  cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Preferred Stock following such Fundamental
                  Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and
                  conditions and issue to the Holders new preferred stock consistent with the foregoing provisions and evidencing the Holders’ right to convert such preferred stock into Alternate Consideration.  The Corporation shall cause any successor
                  entity in a Fundamental Transaction in which the Corporation is not the survivor (the “Successor Entity”) to assume in writing all
                  of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents in accordance with the provisions of this Section 7(e) pursuant to written agreements in form and substance reasonably
                  satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Preferred Stock a security of the
                  Successor Entity evidenced by a written instrument substantially similar in form and substance to this Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent
                  entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Preferred Stock (without regard to any limitations on the conversion of this Preferred Stock) prior to such Fundamental Transaction, and
                  with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such
                  shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Preferred Stock immediately prior to the consummation of such Fundamental
                  Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
                  date of such Fundamental Transaction, the provisions of this Certificate of Designation and the other Transaction Documents referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right and
                  power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity had been named as the
                  Corporation herein.

              

      

      
        	
                l)

              	
                Calculations.  All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 7, the number of shares of Common Stock
                  deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

              

      

      
        	
                m)

              	
                Notice to the Holders.

              

      

      
        	
                iii.

              	
                Adjustment to Conversion Price.  Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation shall promptly deliver to each Holder by facsimile or email a notice setting
                  forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

              

      

      
        	
                iv.

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

              

      

    

    

      27

      
        

    

    
      Section 8. Miscellaneous.

      
        	
                a)

              	
                Notices.  Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by
                  facsimile or e-mail, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at the address set forth above Attention: John Ollet, Chief Financial Officer facsimile number 954.272.7773, e-mail address jollet@hcmc1.com, or such other facsimile number, e-mail address or address as the Corporation may specify for such purposes
                  by notice to the Holders delivered in accordance with this Section 8.  Any and all notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered personally, by facsimile or
                  e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the Corporation, or if no such facsimile number,
                  e-mail address or address appears on the books of the Corporation, at the principal place of business of such Holder, as set forth in the Purchase Agreement.  Any notice or other communication or deliveries hereunder shall be deemed given
                  and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or e-mail at the e-mail address set forth in this Section 8 prior to 5:30 p.m. (New York
                  City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or e-mail at the e-mail address set forth in this Section on a day that
                  is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt
                  by the party to whom such notice is required to be given.

              

      

      
        	
                b)

              	
                Absolute Obligation.  Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay
                  liquidated damages, and accrued dividends, as applicable, on the shares of Preferred Stock at the time, place, and rate, and in the coin or currency, herein prescribed.

              

      

      
        	
                c)

              	
                Lost or Mutilated Preferred Stock Certificate.  If a Holder’s Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for
                  and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Preferred Stock so mutilated, lost, stolen or destroyed, but only upon
                  receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

              

      

      
        	
                d)

              	
                Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal
                  laws of the State of Delaware, without regard to the principles of conflict of laws thereof.  All legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction
                  Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of
                  Manhattan (the “New York Courts”).  The Corporation and each Holder hereby irrevocably submits to the exclusive jurisdiction of
                  the New York Courts 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 suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue
                  for such proceeding.  The Corporation and each Holder hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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 Certificate of Designation 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 applicable law.  The Corporation and each Holder hereto hereby irrevocably waives, to the fullest
                  extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Certificate of Designation or the transactions contemplated hereby.  If the Corporation or any Holder shall
                  commence an action or proceeding to enforce any provisions of this Certificate of Designation, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and
                  expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

              

      

      
        	
                e)

              	
                Waiver.  Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed to be a waiver of any other breach of such provision or of any
                  breach of any other provision of this Certificate of Designation or a waiver by any other Holders.  The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more
                  occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation on any other occasion.  Any
                  waiver by the Corporation or a Holder must be in writing.

              

      

      
        	
                f)

              	
                Severability.  If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable
                  to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.  If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
                  usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.

              

      

      
        	
                g)

              	
                Next Business Day.  Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

              

      

      
        	
                h)

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

              

      

      
        	
                i)

              	
                Status of Converted Preferred Stock.  Shares of Preferred Stock may only be issued pursuant to the Purchase Agreement.  If any shares of Preferred Stock shall be converted, such shares shall resume the status of
                  authorized but unissued shares of preferred stock and shall no longer be designated as Series A Convertible Preferred Stock.  The Corporation shall not redeem or reacquire any shares of Preferred Stock.

              

      

      *********************

      

      

      

      

      

      4 Aggregate number of shares being issued pursuant to the Purchase Agreement.

      5 Contemporaneously with the IPO.

      
        28

        
          

      

      RESOLVED, FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Corporation be
        and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

      

      

      IN WITNESS WHEREOF, the undersigned have executed this Certificate this _____ day of _______________, 2022.

      

      

      	
              [Spinoff Entity]

               

              __________________________________________

                   Name:

                   Title:

               

            	
               

               

              __________________________________________

                   Name:

                   Title:

               

            

      

        29

        
          

      

      ANNEX A

      

      

      NOTICE OF CONVERSION

      

      

      (TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF PREFERRED STOCK)

      

      

      The undersigned hereby elects to convert the number of shares of Series A Convertible Preferred Stock indicated below into shares of common
        stock, par value [$_______] per share (the “Common Stock”), of [___________________________], a Delaware corporation (the “Corporation”), according to the conditions hereof, as of the date written below.  If shares of Common Stock are to be issued in the name of a
        Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required by the Corporation in accordance with the Purchase Agreement. 
        No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

      

      

      Conversion calculations:

      

      

      	
              Date to Effect Conversion: _____________________________________________

               

            
	
              Number of shares of Preferred Stock owned prior to Conversion: _______________

               

            
	
              Number of shares of Preferred Stock to be Converted: ________________________

               

            
	
              Stated Value of shares of Preferred Stock to be Converted: ____________________

               

            
	
              Number of shares of Common Stock to be Issued: ___________________________

               

            
	
              Applicable Conversion Price:____________________________________________

               

            
	
              Number of shares of Preferred Stock subsequent to Conversion: ________________

               

            
	
              Address for Delivery: ______________________

              or

              DWAC Instructions:

              Broker no: _________

              Account no: ___________

            
	 	
               

              [HOLDER]

               

              By:___________________________________

                   Name:

                   Title:

            

      

      

      

      

      

      

      

        30

        
          

      

      
      

      

      EXHIBIT C

       

        

      DEPOSIT
            ACCOUNT CONTROL AGREEMENT

        (No Notification)

       

          

      This DEPOSIT ACCOUNT CONTROL AGREEMENT ("Agreement") is made and entered into as of this ____ day of August, 2022 by and among PROFESSIONAL BANK, as depositary
        bank ("Bank"), Bank's depositor customer, Healthier Choices Management Corp., a Delaware corporation (the "Company"), and
        ______________________________, a ______________________ ("Secured Party").

      Statement
            of Facts

      Bank acknowledges that, as of the date hereof, it maintains in the name of the Company the
        deposit account(s) identified on Exhibit A attached hereto and made a part hereof (each an "Account" and, collectively, the "Accounts"). 
        One or more of the Accounts may be served by one or more lockboxes operated by Bank, which lockboxes (if any) also are listed on Exhibit A (each a "Lockbox" and,
        collectively, the "Lockboxes").  The Account(s) and any
        Lockbox(es) are governed by the terms and conditions of the Company's commercial deposit account agreement published by Bank from time to time and, with respect to any Lockbox, also may
        be governed by a lockbox service description between Bank and the Company (collectively, with all applicable services descriptions and/or agreements, the "Deposit Agreement").

      The Company hereby confirms to Bank that the Company has granted to Secured Party a security
        interest in the following (collectively, the "Account Collateral"): (a) the Account(s), (b) the Lockbox(es) and (c) the Items Collateral.  The term "Items Collateral" means, collectively, all checks, drafts, instruments, cash and other items at any time received in any
        Lockbox or for deposit in any Account (subject to specific Lockbox instructions in effect for processing items), wire transfers of funds, automated clearing house ("ACH") entries, credits from merchant card transactions and other electronic funds transfers or other funds deposited in, credited to, or held for deposit in or credit to, any Account.

      The parties desire to enter into this Agreement in order to
        set forth their relative rights and duties with respect to the Account Collateral.  In consideration of the mutual covenants herein as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
        parties agree as follows:

      
        	
                1.

              	
                Control of the Accounts

              

      

      (a) The Statement of Facts is incorporated herein by reference.  Bank represents that it is a "bank".  The Company and Bank acknowledge
          that each Account is a "deposit account".  Each party to this Agreement acknowledges that this Agreement is an "authenticated" record and that the arrangements established under this Agreement constitute "control" of each Account.  Each of these
          terms is used in this Agreement as defined in Article 9 of the Uniform Commercial Code as adopted by the State of Florida (the "Florida UCC").

      (b) The Company represents and warrants to Secured Party that Exhibit A contains a complete and accurate list of all Accounts and Lockboxes maintained by the Company with Bank and subject to this
          Agreement.  The Company covenants for the benefit of Secured Party that the Company shall not open or maintain any deposit account with Bank other than the Account(s).  Nothing in this Agreement shall impose upon
          Bank any duty to monitor or assure the Company's compliance with this Section 1(b)

      (c) Bank confirms that, as of the date of this Agreement, the Company and Bank have not entered into any agreement (other than the Deposit Agreement) with any person
          pursuant to which Bank is obligated to comply with instructions from such person as to the disposition of funds in any Account or of Items Collateral.  During the term of this Agreement Bank will not enter into any agreement with any person other
          than Secured Party pursuant to which Bank will be obligated to comply with instructions from such person as to the disposition of funds in any Account or of Items Collateral.

      (d) The Company authorizes and directs Bank to comply with all instructions given by Secured Party in accordance with this Agreement and
          permissible under the Deposit Agreement, including directing the disposition of funds in any Account or as to any other matter relating to any Account or other Account Collateral, without further consent by the Company.

      (e) Secured Party hereby authorizes and instructs Bank to act solely upon the instructions of Secured Party concerning the Lockbox(es) and
          the Account(s) including, but not limited to, instructions to: (i) direct disposition of funds in the Account(s) (including, but not limited to, dispositions to or for the benefit of Secured Party and/or Bank), (ii) withdraw any amount from the
          Account(s), and (iii) otherwise exercise any authority or power with respect to the Lockbox(es), the Account(s) and other Account Collateral, which instructions shall be delivered to Bank in accordance with the provisions of Section 7 of this Agreement.  Secured Party's right to give instructions to Bank regarding any Account Collateral also shall include the right to give "stop payment orders" to Bank for any item presented to it against
          any Account even if it results in dishonor of the item presented against the Account.

      (f) Effective as of the date of this Agreement, all Items Collateral received by Bank in a Lockbox (subject to specific Lockbox instructions for processing the contents of
          mail received in the Lockbox) shall be deposited to the Account listed opposite such Lockbox in Exhibit A; all other Items Collateral
          received directly by Bank for credit to an Account shall be credited to such Account, and; all available funds in an Account shall be remitted solely in accordance with the instructions of the Secured Party, as provided by Secured Party to Bank
          from time to time.  Bank shall not permit any of the officers, agents or other representatives of the Company or any of its affiliates to direct the disposition of funds in any Account or to otherwise exercise any authority or power with respect
          to any Lockbox, Account or other Account Collateral.

      (g) Federal Reserve Regulations and Operating Circulars, ACH or other clearing house rules and other applicable law (including, without limitation, the Uniform Commercial Code as adopted by the State in which the respective Account identified on Exhibit A is located (hereinafter, the "Applicable UCC") and the Deposit Agreement shall also apply to Secured Party's exercise of control over the Account(s) and the Account Collateral and to the performance of services hereunder by Bank.  Each of the
          Company and Secured Party authorizes and instructs Bank to supply the Company's or Secured Party's endorsement, as appropriate, to any Items Collateral that Bank shall receive for deposit to any Account.

       

        

      

        31

        
          

      

      
        	
                2.

              	
                Statements and Other Information

              

      

      If so requested of Bank by Secured Party in writing, Bank will send to Secured Party (in a manner consistent
        with Bank's standard practices) at Secured Party's address specified in Section 7, copies of all Account statements and communications that Bank is required to send to the
        Company under the Deposit Agreement.  Bank also shall provide to each of the Company and Secured Party when requested (as a service under this Agreement and/or the Deposit Agreement) copies of Account statements and other deposit account information, including Account balances, by telephone and by computer communication, to the extent practicable when requested by the Company or by Secured
        Party.  The Company consents to Bank's release of such Account information to Secured Party.  Bank's liability for its failure to comply with this Section 2 shall not exceed its cost of providing such
        information.

      
        	
                3.

              	
                Setoff; Returned Items and Charges

              

      

      (a) Bank will not exercise any security interest (except for the security
          interest provided in Section 4-210, "Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds", of the Applicable UCC), lien, right of setoff, deduction, recoupment or banker's lien or any
          other interest in or against any Account or any other Account Collateral, and Bank hereby subordinates to Secured Party any such security interest (except for such security interest provided in such Section 4-210
          of the Applicable UCC), lien or right which Bank may have against any Account or other Account Collateral.  Notwithstanding the preceding sentence, Secured Party and the Company agree that Bank at all times (including following commencement of
          any bankruptcy or insolvency proceeding by or against the Company) may set off and charge against any Account (regardless of any agreement by the Company to compensate Bank by means of balances in the Account) all
          of the following as permitted by the Deposit Agreement (collectively, the "Permitted Debits"): (i) the face amount of each Returned Item (hereinafter defined), (ii) usual and customary service charges and fees, (iii) account maintenance fees, (iv) transfer fees, (v) out-of-pocket fees and expenses (including attorneys'
          reasonable fees) incurred by Bank (including those in connection with the negotiation, administration or enforcement of this Agreement), and (vi) adjustments or corrections of
          posting or encoding errors; whether any Permitted Debit shall have accrued or been incurred before or after the date of this Agreement.  "Returned Item" means any (i) Items Collateral deposited into or credited to an Account before or after the date of this
          Agreement and returned unpaid or otherwise uncollected or subject to an adjustment entry, whether for insufficient funds or any other reason, and without
          regard to the timeliness of such return or adjustment or the occurrence or timeliness of any other party's notice of nonpayment or adjustment; (ii) Items Collateral subject to a claim against Bank for breach of
          transfer, presentment, encoding, retention or other warranty under Federal Reserve Regulations or Operating Circulars, ACH or other clearing house rules, or applicable law (including, without limitation, Articles 3, 4 and 4A of the Applicable UCC); and (iii) demand for chargeback in connection with a merchant card transaction.

      (b) If (i) Bank were unable to set off or charge any Permitted Debit against any Account because of
          insufficient funds in the Account, or (ii) Bank in good faith were to believe that any legal process or applicable law prohibited such setoff or charge against any Account, or (iii) the Account were closed, then:
          (A) Bank may charge such Permitted Debits to and set off same against any other Account; and (B) if there were insufficient funds in the Account(s) against which to charge or set off such Permitted Debits, then Bank shall demand (unless Bank
          shall believe in good faith that any legal process or applicable law prohibits such demand) that the Company pay, and the Company shall pay, to Bank promptly upon the Company's receipt of Bank's written demand therefor, the full amount of all
          unpaid Permitted Debits.

      (c) If there were insufficient funds in the Account(s) against which Bank could charge or set off Permitted Debits and the Company shall have failed to pay Bank the full
          amount of unpaid Permitted Debits as described in paragraph (b) of this Section 3, then Bank may demand that Secured Party pay, and Secured Party shall pay, to Bank within five (5) business days of Secured
          Party's receipt of Bank's written demand therefor, the full amount of unpaid Permitted Debits; provided, however, as to unpaid
          Permitted Debits that are service charges, fees or expenses, Secured Party shall be required to pay to Bank only those service charges, fees or expenses attributable to any Account that shall have been incurred in connection with any Account on
          or after the date of this Agreement and on or before the date of termination of this Agreement.

      
        	
                4.

              	
                Exculpation of Bank

              

      

      (a) At all times Bank shall be entitled to rely upon any communication it receives from Secured Party or the Company in connection with
          this Agreement or that Bank shall believe in good faith to be a communication received from Secured Party or the Company in connection with this Agreement, and Bank shall have no
          obligation to investigate or verify the authenticity or correctness of any such communication.  Bank shall have no liability to the Company or Secured Party for (i) honoring or following any instruction Bank shall receive from (or shall believe
          in good faith to be from) Secured Party in accordance with this Agreement and (ii) not honoring or following any instruction Bank shall receive from (or shall believe in good faith
          to be from) the Company in accordance with this Agreement or the Deposit Agreement.  Bank shall not be responsible for the validity, priority or enforceability of Secured Party's security interest in any Account
          Collateral, nor shall Bank be responsible for enforcement of any agreement between the Company and Secured Party.

      (b) Bank shall be responsible only for the actual loss that a court having jurisdiction over the
          Account(s) shall have determined had been incurred by the Company or Secured Party and had been caused by Bank's gross negligence or willful misconduct in its performance of its
          obligations under this Agreement.  Bank shall have no liability to any party for failure of, or delay in, its performance under this Agreement resulting from any "act of God", war or terrorism, fire, other catastrophe or force majeure, electrical or computer or telecommunications failure, any event beyond the
          control of Bank, or fraud committed by any third party.  Nothing in this Agreement shall create any agency, fiduciary, joint venture or partnership relationship between Bank and the Company or between Bank and Secured Party.  Except as shall be
          specifically required under this Agreement or the Deposit Agreement or applicable law, Bank shall have no duty
          whatsoever to the Company in connection with the subject matter of this Agreement.  Except as shall be specifically required under this Agreement or applicable law, Bank shall have no duty whatsoever to Secured
          Party in connection with the subject matter of this Agreement.

      
        	
                5.

              	
                Indemnification

              

      

      (a) The Company hereby indemnifies Bank and holds it harmless against, and shall reimburse Bank for, any loss, damage or expense (including attorneys' reasonable fees and expenses, court costs and other expenses) including, but not limited to, (i) unpaid charges, fees, and
          Returned Items for which the Company and/or Secured Party originally received credit or remittance by Bank, and (ii) any loss, damage or expense Bank shall incur as a result of
          (A) entering into or acting pursuant to this Agreement, (B) honoring and following any instruction Bank may receive from (or shall believe in good faith to be from) Secured Party, and (C) not honoring or following any instruction it shall receive from (or shall believe in good faith to be from) the Company in accordance with this Agreement.  The Company shall not be responsible for any loss, damage, or expense that a court having jurisdiction shall
          have determined had been caused by Bank's gross negligence or willful misconduct in its performance of its obligations under this Agreement.

      (b) Without limiting in any way Secured Party's obligation to pay or reimburse Bank as otherwise specified in this Agreement, Secured
          Party hereby indemnifies Bank and holds it harmless against any loss, damage or expense (including attorneys' reasonable fees and expenses, court costs and other expenses) which Bank shall incur as a result of honoring
          or following any instruction it shall receive from (or shall believe in good faith to be from) Secured Party under this Agreement and not honoring or following any instruction Bank shall receive from (or shall
          believe in good faith to be from) the Company in accordance with this Agreement.  Secured Party shall not be responsible for any loss, damage, or expense that a court having jurisdiction shall have determined had been caused by Bank's gross negligence or willful misconduct in its performance of its obligations under this Agreement.

      (c) No party hereto shall be liable to any other party under this Agreement for lost profits or special, indirect, exemplary, consequential or punitive damages,
          even if such party shall have been advised of the possibility of such damages.

       

        

      

        32

        
          

      

      
        	
                6.

              	
                Third Party Claims; Insolvency of Company

              

      

      (a) In the event that Bank shall receive notice that any third party shall have asserted an adverse claim by
          legal process against any Account or any sums on deposit therein, any Lockbox or other Account Collateral, whether such claim shall have arisen by tax lien, execution of judgment, statutory attachment,
          garnishment, levy, claim of a trustee in bankruptcy, debtor-in-possession, post-bankruptcy petition lender, court appointed receiver, or other judicial or regulatory order or process (each, a "Claim"), Bank may, in addition to other remedies it possesses under the Deposit Agreement,
          this Agreement or at law or in equity: (i) suspend disbursements from such Account without any liability until Bank shall have received an appropriate court order or other assurances reasonably acceptable to Bank in its sole discretion
          establishing that funds may continue to be disbursed according to instructions then applicable to such Account, and/or (ii) interplead such funds in such Account as permitted by applicable law.  Bank's costs, expenses and attorneys' reasonable
          fees incurred in connection with any such Claim are Permitted Debits and shall be reimbursed to Bank in accordance with the provisions of Section 3 above.

      (b) If a bankruptcy or insolvency proceeding were commenced by or against the Company, Bank shall be entitled, without any liability, to
          refuse to permit withdrawals or transfers from the Account(s) until Bank shall have received an appropriate court order or other assurances reasonably acceptable to Bank in its sole discretion establishing that (i) continued withdrawals or
          transfers from the Account(s) or honoring or following any instruction from either the Company or Secured Party are authorized and shall not violate any law, regulation, or order of any court and (ii) Bank shall have received adequate protection
          for its right to set off against or charge the Account(s) or otherwise be reimbursed for all Permitted Debits.

      
        	
                7.

              	
                Notice and
                      Communications

              

      

      (a) All communications given by any party to another as required or permitted under this Agreement must be in writing, directed to the respective designated representative ("Designated Representative") set forth under paragraph (c) of this Section 7, and delivered to each recipient party at its address (or at such other address and to such other Designated
          Officer as such party may designate in writing to the other parties in accordance with this Section 7) either by U.S. Mail, receipted delivery service or via email transmission.  All communications given by
          Secured Party to Bank must be addressed and delivered contemporaneously to both Bank's Designated Officer and Bank's "with
            copy to" addressee at their respective addresses set forth below.

      (b) Any communication made to Bank under this Agreement shall be deemed delivered to Bank if delivered by: (i) U.S. Mail, on the date that such communication shall have been delivered to Bank's
          Designated Representative; (ii) receipted delivery service, on the date and time that such communication shall have been delivered to Bank's Designated Representative and receipted by the delivery service; or (iii) email transmission, on the date
          and at the time that such communication shall have been delivered to Bank's Designated Representative and receipt of such delivery shall have been acknowledged by the recipient.  Notwithstanding the provisions of the preceding sentence, any
          communication hereunder to Bank that is an instruction delivered to Bank and made by (or believed by Bank in good faith to be made by) Secured Party shall be deemed received by Bank when actually delivered to Bank's Designated Representative if delivered before 2:00 PM Eastern time on a banking day or, if such communication were delivered after 2:00 PM
          Eastern time on a banking day or delivered on a day that is not a banking day, then such communication shall be deemed delivered to Bank's Designated Representative at Bank's opening of its business on the next succeeding banking day.  A "banking day" means any day other than any Saturday or Sunday or other day on which Bank is authorized or required by
          law to close.

      (c) Any instruction delivered to Bank shall be implemented by Bank by the close of Bank's business on the banking day that shall be two (2) banking days after the
          banking day on which such instruction was actually received by Bank's Designated Representative.

      Address for Secured Party:                     _______________________

      _______________________

       _______________________

      Attn.: ____________________, Designated Representative

       Email:_______________________

      

      

      with copy to:
                                                _______________________

      _______________________ 

      _______________________

      _______________________

      Attn:  _______________________

      Email:  _______________________

      

      

      Address for Bank:  Professional
          Bank

      _____________________________

      _____________________________

      Attn.:  ____________________,
          Designated Representative

      Email:
          ______________@myprobank.com

      

      

      with copy to:  Professional Bank

      ________________________________

      ________________________________

      Attn.:  ___________________

      Email: ______________@myprobank.com

      

      

      Address for Company:   

       

      

       

      

       

      

      Attn.:  , Designated Representative

      Email:  

      

      

      with copy to:   

       

      

       

      

       

      

      Attn.:  

      Email: 

       

       

          

      

        33

        
          

      

      
        	
                8.

              	
                Termination

              

      

      (a) This Agreement may be terminated by Secured Party at any time upon receipt by Bank of Secured Party's written notice of termination issued substantially in
          the form of Exhibit B attached hereto and made a part hereof.  This Agreement may be terminated by the Company only with the express prior written consent of Secured Party and, in that case, Secured Party and the Company shall jointly so notify Bank in writing.

      (b) This Agreement may be terminated by Bank at any time on not less than thirty (30) calendar days' prior written notice given to each of the Company and Secured
          Party.

      (c) Bank's rights to demand and receive reimbursement from the Company under Section 3 above and the Company's indemnification
            of Bank under Section 5 above shall survive termination of this Agreement.  Bank's right to demand reimbursement from Secured Party under Section 3 above shall survive termination of
            this Agreement for a period of ninety (90) calendar days after the date of termination of this Agreement.  Bank's right to demand indemnification of Bank from Secured Party under Section 5 above shall
          survive termination of this Agreement for a period of one hundred eighty (180) calendar days after the date of termination of this Agreement.

      (d) Upon termination of this Agreement, all funds thereafter on deposit or deposited in the Accounts and all Items Collateral thereafter received by Bank shall be
          subject solely to the provisions of the Deposit Agreement between the Company and Bank.

      
        	
                9.

              	
                Miscellaneous

              

      

      (a) The Company shall not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of Bank and Secured Party. 
          Secured Party shall not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of Bank.  Bank shall not assign or transfer any of its rights or obligations
          under this Agreement without the prior written consent of Secured Party and the Company, except that Bank may transfer its rights and obligations under this Agreement, in the event of a merger or acquisition of Bank, to Bank's successor depositary institution (which subsidiary or successor shall be a "bank" as defined in Section 9-102 of the Florida UCC).

      (b) The law governing the perfection and priority of Secured Party's security interest in the Account Collateral shall be the law of the State of Florida, which State
          shall also be the "jurisdiction" of Bank within the meaning of Section 9-304 of the Florida UCC.  The Accounts, Items Collateral, operation of the Accounts, and Deposit Agreement shall be governed by the Applicable UCC, Federal Regulations and
          Operating Circulars, ACH or other clearing house rules, and other applicable laws.

      (c) This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which taken together shall constitute one and the
          same Agreement.  Delivery of an executed signature page counterpart to this Agreement via email transmission shall be effective as if it were delivery of a manually delivered, original, executed counterpart
          thereof.  This Agreement can be modified or amended only by written agreement of all of the parties hereto evidencing such modification or amendment.

      (d) To the extent that any conflict may exist between the provisions of any other agreement between the Company and Bank and the provisions of this Agreement, then this Agreement shall control. 
          It is understood and agreed that nothing in this Agreement shall give Secured Party any benefit or legal or equitable right, remedy or claim against Bank under the Deposit Agreement.

      (e) Each of Secured Party and Bank respectively agrees that it shall not cite or refer to this Agreement as precedent in any negotiation of any other Deposit
          Account Control Agreement to which Secured Party or any of its affiliates and Bank shall be party.

      
        	
                10.

              	
                Waiver
                      of Jury Trial

              

      

      EXCEPT AS PROHIBITED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING
        ANY COUNTERCLAIM) OF ANY TYPE IN WHICH ANOTHER PARTY SHALL BE A PARTY AS TO ALL MATTERS ARISING DIRECTLY OR INDIRECTLY OUT OF THIS AGREEMENT.

       

      

      [Remainder left blank intentionally;

        Signature pages to follow]

      

      

      

        34

        
          

      

      IN WITNESS WHEREOF,
        each of the parties by its respective duly authorized officer has executed and delivered this Agreement as of the day and year first written above.

      

      

      BANK:                              
        PROFESSIONAL BANK
      

      

      By: 

      Name: 

      Title: 

      

      

      

      

      COMPANY:  HEALTHIER CHOICES MANAGEMENT CORP.

      

      

      

      

      By: 

      Name: 

      Title: 

      

      

      

      

      SECURED PARTY:  _______________________

      

      

      

      

      By: 

      Name: 

      Title: 

      

        35

        
          

      

      EXHIBIT A

      (Accounts of the Company)

      	
              Account Number

            	
              Related Lockbox

                Number, if any:

            	
              Account Name

            
	 	
              N/A

            	 
	 	 	 
	 	 	 
	 	 	 

      

      

      

      

      

        36

        
          

      

      EXHIBIT B

        

      

      (Notice of Termination)

       

      

      [To be Issued on Letterhead of Secured Party]

      ______________ 202__ 

      Professional Bank

      396 Alhambra Circle, Suite 255

      Coral Gables, Florida 33134

      Attention: _______________________ , Designated
        Representative

      _______________________ [Company Name]

      _______________________ [Company Address]

      _______________________ [Company Address]

      _______________________ [Company Address]

      Attention: _______________________, Designated
        Representative

      

      

      NOTICE OF TERMINATION OF DEPOSIT ACCOUNT CONTROL AGREEMENT

      Ladies and Gentlemen:

      We refer you to the Deposit Account Control Agreement among _____________________ (the "Company"), you and us dated as of _____________ __, 2022
        (the "Agreement"), a photocopy of which is attached hereto.  Capitalized terms used but not defined in this letter
        shall have the meanings given them in the Agreement.

      We hereby notify you that by this letter we are exercising our right under Section 8(a) of the Agreement (subject to your rights as set forth in the Agreement) to terminate the Agreement in accordance with its terms.  Accordingly the Agreement shall
        terminate at the close of Bank’s business [this day] [on ___________ __, 202_], subject to those undertakings that shall survive termination of the Agreement.  Upon termination of the Agreement, all funds thereafter on deposit or deposited in the Account(s) and all Items
        Collateral received by Bank shall be subject solely to the provisions of the Deposit Agreement between the Company and Bank.

      Very truly yours,

      

      

      _______________________

      

      

      

      

      By __________________________

      Name: _______________________

      Title: ________________________

      

      

      

      

      

      

    

  

  37

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