Document:

Exhibit
10.1

 

EXECUTION
VERSION

 

COMMON
STOCK PURCHASE AGREEMENT

 

Dated
as of JANUARY 12, 2021

 

by
and between

 

VERB
TECHNOLOGY COMPANY, INC.

 

and

 

TUMIM
STONE CAPITAL, LLC

 

    	 

     

    

 

table
of contents

 

	ARTICLE
    I PURCHASE AND SALE OF COMMON STOCK	1
	 	Section
    1.1	Purchase
    and Sale of Stock	1
	 	Section
    1.2	Commencement
    Date; Settlement Dates	1
	 	Section
    1.3	Reservation
    of Common Stock	2
	 	Section
    1.4	Current
    Report; Prospectus Supplement	2
	 	 	 	 
	ARTICLE
    II VWAP PURCHASE TERMS	3
	 	Section
    2.1	VWAP
    Purchases	3
	 	Section
    2.2	Settlement	4
	 	Section
    2.3	Compliance
    with Rules of Trading Market.	5
	 	Section
    2.4	Beneficial
    Ownership Limitation	6
	 	Section
    2.5	Commitment
    Shares	6
	 	 	 	 
	ARTICLE
    III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR	7
	 	Section
    3.1	Organization
    and Standing of the Investor	7
	 	Section
    3.2	Authorization
    and Power	7
	 	Section
    3.3	No
    Conflicts	7
	 	Section
    3.4	Information	8
	 	Section
    3.5	No
    Governmental Review	8
	 	Section
    3.6	Not
    an Affiliate	8
	 	Section
    3.7	Certain
    Trading Activities	9
	 	Section
    3.8	Statutory
    Underwriter Status	9
	 	Section
    3.9	Resales
    of Securities	9
	 	 	 	 
	ARTICLE
    IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY	9
	 	Section
    4.1	Organization,
    Good Standing and Power	9
	 	Section
    4.2	Authorization,
    Enforcement	9
	 	Section
    4.3	Capitalization	10
	 	Section
    4.4	Issuance
    of Securities	10
	 	Section
    4.5	No
    Conflicts	10
	 	Section
    4.6	Commission
    Documents, Financial Statements; Disclosure Controls and Procedures; Internal Controls Over Financial Reporting; Accountants	11
	 	Section
    4.7	Subsidiaries	14
	 	Section
    4.8	No
    Material Adverse Effect	15
	 	Section
    4.9	No
    Undisclosed Liabilities	15
	 	Section
    4.10	No
    Undisclosed Events or Circumstances	15
	 	Section
    4.11	Indebtedness	15
	 	Section
    4.12	Title
    To Assets	16
	 	Section
    4.13	Actions
    Pending	16
	 	Section
    4.14	Compliance
    With Law	16
	 	Section
    4.15	Certain
    Fees	17
	 	Section
    4.16	Operation
    of Business	17

 

    	i

     

    

 

	 	Section
    4.17	Environmental
    Compliance	18
	 	Section
    4.18	Material
    Agreements	18
	 	Section
    4.19	Transactions
    With Affiliates	19
	 	Section
    4.20	Securities
    Act	19
	 	Section
    4.21	Employees;
    Labor Laws	21
	 	Section
    4.22	Use
    of Proceeds	21
	 	Section
    4.23	Investment
    Company Act Status	21
	 	Section
    4.24	ERISA	21
	 	Section
    4.25	Taxes	22
	 	Section
    4.26	Insurance	22
	 	Section
    4.27	U.S.
    Real Property Holding Corporation	22
	 	Section
    4.28	Listing
    and Maintenance Requirements; DTC Eligibility	22
	 	Section
    4.29	No
    Unlawful Payments	23
	 	Section
    4.30	Money
    Laundering Laws	23
	 	Section
    4.31	OFAC	23
	 	Section
    4.32	Disclosure	24
	 	Section
    4.33	U.S.
    Real Property Holding Corporation	24
	 	Section
    4.34	Bank
    Holding Company Act.	24
	 	Section
    4.35	IT
    Systems	24
	 	Section
    4.36	Compliance
    With Data Privacy Laws	25
	 	Section
    4.37	Stock
    Option Plans	25
	 	Section
    4.38	No
    Aggregation.	25
	 	Section
    4.39	Dilutive
    Effect.	25
	 	Section
    4.40	Manipulation
    of Price	26
	 	Section
    4.41	Application
    of Takeover Protections	26
	 	Section
    4.42	Acknowledgement
    Regarding Investor’s Acquisition of Securities	26
	 	 	 	 
	ARTICLE
    V COVENANTS	27
	 	Section
    5.1	Securities
    Compliance	27
	 	Section
    5.2	Registration
    and Listing	27
	 	Section
    5.3	Compliance
    with Laws.	28
	 	Section
    5.5	No
    Frustration; No Variable Rate Transactions.	29
	 	Section
    5.6	Stop
    Orders	29
	 	Section
    5.7	Amendments
    to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.	30
	 	Section
    5.8	Prospectus
    Delivery	31
	 	Section
    5.9	Selling
    Restrictions	32
	 	Section
    5.10	Effective
    Registration Statement	32
	 	Section
    5.11	Non-Public
    Information	32
	 	Section
    5.12	Broker/Dealer	33
	 	Section
    5.13	Earnings
    Statement	33
	 	Section
    5.14	Corporate
    Existence	33
	 	Section
    5.15	Fundamental
    Transaction	33
	 	Section
    5.16	Disclosure
    Schedule.	33

 

    	ii

     

    

 

	ARTICLE
    VI CONDITIONS  TO COMMENCEMENT;  CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES	34
	 	Section
    6.1	Conditions
    to Commencement	34
	 	Section
    6.2	Conditions
    Precedent to the Obligations of the Company	34
	 	Section
    6.3	Conditions
    Precedent to the Obligations of the Investor	36
	 	 	 	 
	ARTICLE
    VII TERMINATION	39
	 	Section
    7.1	Automatic
    Termination; Termination by Mutual Consent; Termination by the Company	39
	 	Section
    7.2	Other
    Termination	40
	 	Section
    7.3	Effect
    of Termination	40
	 	 	 	 
	ARTICLE
    VIII INDEMNIFICATION	41
	 	Section
    8.1	General
    Indemnity.	41
	 	Section
    8.2	Indemnification
    Procedures	43
	 	 	 	 
	ARTICLE
    IX MISCELLANEOUS	44
	 	Section
    9.1	Fees
    and Expenses.	44
	 	Section
    9.2	Specific
    Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.	44
	 	Section
    9.3	Entire
    Agreement; Amendment	45
	 	Section
    9.4	Notices	45
	 	Section
    9.5	Waivers	46
	 	Section
    9.6	Headings;
    Construction	46
	 	Section
    9.7	Successors
    and Assigns	47
	 	Section
    9.8	Governing
    Law	47
	 	Section
    9.9	Survival	47
	 	Section
    9.10	Counterparts	47
	 	Section
    9.11	Publicity	48
	 	Section
    9.12	Severability	48
	 	Section
    9.13	No
    Third Party Beneficiaries	48
	 	Section
    9.14	Further
    Assurances	48

 

Annex
I. Definitions

 

    	iii

     

    

 

COMMON
STOCK PURCHASE AGREEMENT

 

This
COMMON STOCK PURCHASE AGREEMENT is made and entered into as of January 12, 2022 (this “Agreement”), by and
between Tumim Stone Capital LLC, a Delaware limited liability company (the “Investor”), and Verb Technology Company,
Inc., a Nevada corporation (the “Company”). Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in Annex I hereto.

 

RECITALS

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions and limitations set forth herein, the Company may issue and sell
to the Investor, from time to time as provided herein, and the Investor shall purchase from the Company, up to the lesser of (i) $50,000,000
worth of newly issued shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), inclusive
of the Commitment Shares to be issued to the Investor hereunder, and (ii) the Exchange Cap (to the extent applicable under Section 2.3
hereof);

 

WHEREAS,
in consideration for the Investor’s execution and delivery of this Agreement, the Company is causing its transfer agent to
issue to the Investor the Commitment Shares in accordance with the terms and subject to the conditions of this Agreement; and

 

WHEREAS,
the issuance of the Commitment Shares and the offer and sale of the Shares hereunder have been registered by the Company in the Registration
Statement, which has been declared effective by order of the Commission under the Securities Act.

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Article
I

PURCHASE AND SALE OF COMMON STOCK

 

Section
1.1 Purchase and Sale of Stock. Upon the terms and subject to the conditions of this Agreement, during the Investment Period,
the Company, in its sole discretion, shall have the right, but not the obligation, to issue and sell to the Investor, and the Investor
shall purchase from the Company, up to the lesser of (i) $50,000,000 in aggregate gross purchase price of duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock, inclusive of the Commitment Shares to be issued to the Investor hereunder (the
“Total Commitment”) and (ii) the Exchange Cap, to the extent applicable under Section 2.3 (such lesser amount of shares
of Common Stock, the “Aggregate Limit”), by the delivery to the Investor of VWAP Purchase Notices as provided in Article
III.

 

Section
1.2 Commencement Date; Settlement Dates. This Agreement shall become effective and binding upon the payment of the fees required
to be paid on or prior to the Commencement Date pursuant to Section 9.1, the delivery of irrevocable instructions to issue the Commitment
Shares to the Investor or its designee(s) as provided in Sections 2.5 and 6.1, the delivery of counterpart signature pages of this Agreement
executed by each of the parties hereto, and the delivery of all other documents, instruments and writings required to be delivered on
the Commencement Date, in each case as provided in Section 6.1, to the offices of Dorsey & Whitney LLP, 51 West 52nd Street,
New York, New York 10019, at 3:00 p.m., New York time, or at such other time as the parties may agree, on the Commencement Date. In consideration
of and in express reliance upon the representations, warranties and covenants, and otherwise upon the terms and subject to the conditions,
of this Agreement, from and after the Commencement Date and during the Investment Period the Company shall issue and sell to the Investor,
and the Investor agrees to purchase from the Company, the Shares in respect of each VWAP Purchase. The settlement of Shares to be purchased
by the Investor pursuant to each VWAP Purchase shall occur on the applicable VWAP Purchase Settlement Date in accordance with Section
2.3.

 

    	1

     

    

 

Section
1.3 Reservation of Common Stock. The Company has or will have duly authorized and reserved for issuance, and covenants to
continue to so reserve once reserved for issuance, free of all preemptive and other similar rights, at all times during the Investment
Period, the requisite aggregate number of authorized but unissued shares of its Common Stock to timely effect the issuance, sale and
delivery in full to the Investor of all Shares to be issued in respect of all VWAP Purchases under this Agreement, in any case prior
to the issuance to the Investor of such Shares.

 

Section
1.4 Current Report; Prospectus Supplement. As soon as practicable, but in any event not later than 5:30 p.m. (New York time)
on the Trading Day immediately following the Commencement Date, the Company shall file with the Commission a current report on Form 8-K
relating to the transactions contemplated by, and describing the material terms and conditions of, this Agreement (the “Current
Report”). As soon as practicable, but in any event not later than 5:30 p.m. (New York time) on the second (2nd)
Trading Day immediately following the Commencement Date, the Company shall file with the Commission a Prospectus Supplement pursuant
to Rule 424(b) under the Securities Act specifically relating to the transactions contemplated by, and describing the material terms
and conditions of, this Agreement, containing information previously omitted at the time of effectiveness of the Registration Statement
in reliance on Rule 430B under the Securities Act, and disclosing all information relating to the transactions contemplated hereby required
to be disclosed in the Registration Statement and the Prospectus as of the Commencement Date, including, without limitation, information
required to be disclosed in the section captioned “Plan of Distribution” in the Prospectus (the “Initial Prospectus
Supplement”). The Current Report shall include a copy of this Agreement as an exhibit and shall be incorporated by reference
in the Registration Statement and the Prospectus. The Company has prior to the date hereof provided the Investor a reasonable opportunity
to comment on a draft of the Current Report and the Initial Prospectus Supplement and has given due consideration to all such comments
(provided, however, that the failure of the Investor to make any objection to the form and content thereof shall
not relieve the Company of any obligation or liability under this Agreement or affect the Investor’s right to rely on the representations
and warranties made by the Company in this Agreement). If the transactions contemplated by any VWAP Purchase are material to the Company
(individually or collectively with other prior VWAP Purchases, the terms of which have not previously been reported in any Prospectus
Supplement filed with the Commission under Rule 424(b) under the Securities Act or in any report, statement or other document filed by
the Company with the Commission under the Exchange Act), or if otherwise required under the Securities Act (or the interpretations of
the Commission thereof), in each case as reasonably determined by the Company, then, at or prior to 9:00 a.m. (New York time) on the
first Trading Day of the VWAP Purchase Valuation Period with respect to such VWAP Purchase, the Company shall file with the Commission
a Prospectus Supplement pursuant to Rule 424(b) under the Securities Act or a current report on Form 8-K with respect to the applicable
VWAP Purchase disclosing the total number of Shares that are to be issued and sold to the Investor pursuant to such VWAP Purchase and
the material terms of such VWAP Purchase (to the extent such terms have not previously been reported in any Prospectus Supplement filed
with the Commission under Rule 424(b) under the Securities Act or in any report, statement or other document filed by the Company with
the Commission under the Exchange Act) and, at or prior to 9:00 a.m. (New York time) on the VWAP Purchase Settlement Date with respect
to such VWAP Purchase, the Company shall file with the Commission an additional Prospectus Supplement pursuant to Rule 424(b) under the
Securities Act or a current report on Form 8-K with respect to the applicable VWAP Purchase disclosing the applicable VWAP Purchase Price
for the Shares subject to such VWAP Purchase, the total aggregate VWAP Purchase Price for such Shares and the net proceeds that are to
be received by the Company from the sale of such Shares. To the extent not previously disclosed in a Prospectus Supplement or a current
report on Form 8-K filed with the Commission, and to the extent deemed material to the Company, the Company shall disclose, in each Quarterly
Report on Form 10-Q and each Annual Report on Form 10-K filed with the Commission, the information described in the immediately preceding
sentence relating to all VWAP Purchase(s) consummated during the relevant fiscal quarter.

 

    	2

     

    

 

Article
II

VWAP PURCHASE TERMS

 

Subject
to the satisfaction or (to the extent permitted by applicable law) waiver of the conditions set forth in this Agreement, the parties
agree (unless otherwise mutually agreed upon by the parties in writing) as follows:

 

Section
2.1 VWAP Purchases. Upon the initial satisfaction of all of the conditions set forth in Section 6.1 (such event, the “Commencement”
and the date of initial satisfaction of all of such conditions, the “Commencement Date”) and from time to time thereafter,
subject to the satisfaction of all of the conditions set forth in Section 6.2 and 6.3, the Company shall have the right, but not the
obligation, to direct the Investor, by its delivery to the Investor of a VWAP Purchase Notice on a VWAP Purchase Exercise Date to purchase
the applicable VWAP Purchase Share Amount, not to exceed the applicable VWAP Purchase Maximum Amount, at the applicable VWAP Purchase
Price therefor (as confirmed in the applicable VWAP Purchase Confirmation) in accordance with this Agreement (each such purchase, a “VWAP
Purchase”). The Company may deliver to the Investor a VWAP Purchase Notice for a VWAP Purchase on any Trading Day selected
by the Company as the VWAP Purchase Exercise Date with respect to such VWAP Purchase, so long as (i) at least three (3) Trading Days
have elapsed since the most recent prior VWAP Purchase Exercise Date on which the Company delivered to the Investor a VWAP Purchase Notice
for a prior VWAP Purchase pursuant to this Agreement, and (ii) all Shares subject to all prior VWAP Purchase Notices delivered by the
Company to the Investor pursuant to this Agreement (if any) have theretofore been received by the Investor or its Broker-Dealer as DWAC
Shares, prior to the Company’s delivery to the Investor of such VWAP Purchase Notice for such VWAP Purchase on such VWAP Purchase
Exercise Date. The Investor is obligated to accept each VWAP Purchase Notice prepared and timely delivered by the Company in accordance
with the terms of and subject to the satisfaction of the conditions contained in this Agreement. If the Company delivers any VWAP Purchase
Notice directing the Investor to purchase a VWAP Purchase Share Amount in excess of the applicable VWAP Purchase Maximum Amount that
the Company is then permitted to include in such VWAP Purchase Notice, such VWAP Purchase Notice shall be void ab initio to the
extent of the amount by which the VWAP Purchase Share Amount set forth in such VWAP Purchase Notice exceeds such applicable VWAP Purchase
Maximum Amount, and the Investor shall have no obligation to purchase, and shall not purchase, such excess Shares pursuant to such VWAP
Purchase Notice; provided, however, that the Investor shall remain obligated to purchase the applicable VWAP Purchase Maximum
Amount pursuant to such VWAP Purchase Notice. At or prior to 8:30 a.m., New York City time, on the Trading Day immediately following
the VWAP Purchase Valuation Period for a VWAP Purchase (each, a “VWAP Purchase Settlement Date”), the Investor shall
provide to the Company a written confirmation for such VWAP Purchase setting forth the applicable VWAP Purchase Share Amount and the
applicable VWAP Purchase Price (both on a per Share basis and the total aggregate VWAP Purchase Price to be paid by the Investor for
such applicable VWAP Purchase Share Amount) with respect to such VWAP Purchase (each, a “VWAP Purchase Confirmation”).

 

    	3

     

    

 

Section
2.2 Settlement. The payment for, against delivery of, Shares in respect of each VWAP Purchase shall be settled on the applicable
VWAP Purchase Settlement Date for such VWAP Purchase. For each VWAP Purchase, the Investor shall pay to the Company an amount in cash
equal to the product of (i) the total number of Shares purchased by the Investor in such VWAP Purchase (as confirmed in the applicable
VWAP Purchase Confirmation) and (ii) the applicable VWAP Purchase Price for such Shares (as confirmed in the applicable VWAP Purchase
Confirmation), as full payment for such Shares, via wire transfer of immediately available funds on the same Trading Day that the Investor
receives such Shares as DWAC Shares in accordance with this Agreement, if all of such Shares are so received by the Investor before 1:00
p.m., New York City time, or, if such Shares are received by the Investor after 1:00 p.m., New York City time, then payment therefor
shall be made on the Trading Day immediately following the Trading Day on which the Investor has received all of such Shares as DWAC
Shares. If the Company or the Transfer Agent shall fail for any reason, other than a failure of the Investor or its Broker-Dealer to
set up a DWAC and required instructions, to electronically transfer any Shares as DWAC Shares in respect of a VWAP Purchase within two
(2) Trading Days following the receipt by the Company of the applicable purchase price therefor in compliance with this Section 2.2,
and if on or after such Trading Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Investor of such Shares that the Investor anticipated receiving from the Company in respect of such
VWAP Purchase, then the Company shall, within two (2) Trading Days after the Investor’s request, either (1) pay cash to the Investor
in an amount equal to the Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock
so purchased (the “Cover Price”), at which point the Company’s obligation to deliver such Shares as DWAC Shares
shall terminate, or (ii) promptly honor its obligation to deliver to the Investor such Shares as DWAC Shares and pay cash to the Investor
in an amount equal to the excess (if any) of the Cover Price over the total purchase price paid by the Investor pursuant to this Agreement
for all of the Shares to be purchased by the Investor in connection with such VWAP Purchase. The Company shall not issue any fraction
of a share of Common Stock upon any VWAP Purchase. If the issuance would result in the issuance of a fraction of a share of Common Stock,
the Company shall round such fraction of a share of Common Stock up or down to the nearest whole share. All payments made under this
Agreement shall be made in lawful money of the United States of America by wire transfer of immediately available funds to such account
as the Company may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount
expressed to be due by the terms of this Agreement is due on any day that is not a Trading Day, the same shall instead be due on the
next succeeding day that is a Trading Day.

 

    	4

     

    

 

Section
2.3 Compliance with Rules of Trading Market.

 

(a)
Exchange Cap. Subject to Section 2.3(b), the Company shall not issue or sell any shares of Common Stock pursuant to this
Agreement, and the Investor shall not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent that after
giving effect thereto, the aggregate number of shares of Common Stock that would be issued pursuant to this Agreement and the transactions
contemplated hereby would exceed 14,747,065 (such number of shares equal to 19.99% of the number of shares of Common Stock issued and
outstanding immediately prior to the execution of this Agreement), which number of shares shall be reduced, on a share-for-share basis,
by the number of shares of Common Stock issued or issuable pursuant to any transaction or series of transactions that may be aggregated
with the transactions contemplated by this Agreement under applicable rules of the Trading Market (such maximum number of shares, the
“Exchange Cap”), unless the Company’s stockholders have approved the issuance of Common Stock pursuant to this
Agreement in excess of the Exchange Cap in accordance with the applicable rules of the Trading Market. For the avoidance of doubt, the
Company may, but shall be under no obligation to, request its stockholders to approve the issuance of Common Stock pursuant to this Agreement;
provided, that if such stockholder approval is not obtained, the Exchange Cap shall be applicable for all purposes of this Agreement
and the transactions contemplated hereby at all times during the term of this Agreement (except as set forth in Section 2.3(b)).

 

(b)
At-Market Transaction. Notwithstanding Section 2.3(a) above, the Exchange Cap shall not be applicable for any purposes
of this Agreement and the transactions contemplated hereby, solely to the extent that (and only for so long as) the Average Price shall
equal or exceed the Base Price (it being hereby acknowledged and agreed that the Exchange Cap shall be applicable for all purposes of
this Agreement and the transactions contemplated hereby at all other times during the term of this Agreement, unless the stockholder
approval referred to in Section 2.3(a) is obtained). The parties acknowledge and agree that the Minimum Price used to determine the Base
Price hereunder represents the lower of (i) the Nasdaq official closing price of the Common Stock on the Trading Market (as reflected
on Nasdaq.com) on the Trading Day immediately prior to the date of this Agreement and (ii) the average Nasdaq official closing price
of the Common Stock on the Trading Market (as reflected on Nasdaq.com) for the five (5) consecutive Trading Days ending on the Trading
Day immediately prior to the date of this Agreement.

 

(c)
General. The Company shall not issue or sell any shares of Common Stock pursuant to this Agreement if such issuance or
sale would reasonably be expected to result in (i) a violation of the Securities Act or (ii) a breach of the rules of the Trading Market.
The provisions of this Section 2.3 shall be implemented in a manner otherwise than in strict conformity with the terms of this Section
2.3 only if necessary to ensure compliance with the Securities Act and the applicable rules of the Trading Market. The limitations contained
in this Section 2.3 may not be waived by the Company or the Investor.

 

    	5

     

    

 

Section
2.4 Beneficial Ownership Limitation. Notwithstanding any other provision of this Agreement, the Investor shall not purchase
or acquire, or be obligated or have the right to purchase or acquire, any shares of Common Stock pursuant to this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange Act
and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates, would result in the beneficial ownership by the Investor of
more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”).
If the Company issues a VWAP Purchase Notice with respect to any VWAP Purchase that would cause the aggregate number of shares of Common
Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by
the Investor and its Affiliates to exceed the Beneficial Ownership Limitation, such VWAP Purchase Notice shall be void ab initio
to the extent of the amount by which the number of shares of Common Stock otherwise issuable pursuant to such VWAP Purchase Notice, together
with all shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated
thereunder) by the Investor and its Affiliates, would exceed the Beneficial Ownership Limitation. Upon the written or oral request of
the Investor, the Company shall promptly (but not later than the next Trading Day) confirm orally or in writing to the Investor the number
of shares of Common Stock then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations required
hereby and the application hereof. The Investor’s written certification to the Company of the applicability of the Beneficial Ownership
Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive with respect to the applicability thereof and
such result absent manifest error. Upon delivery of a written notice to the Company, the Investor may from time to time increase or decrease
the Beneficial Ownership Limitation to any other amount of Common Stock not in excess of 9.99% of the then issued and outstanding shares
of Common Stock as specified in such notice; provided that any such increase in the Beneficial Ownership Limitation will not be effective
until the sixty-first (61st) day after such written notice is delivered to the Company. The provisions of this Section 2.4
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2.4 to the extent necessary
to correct this Section 2.4 (or any portion of this Section 2.4) which may be defective or inconsistent with the intended Beneficial
Ownership Limitation contained in this Section 2.4 or to make changes or supplements necessary or desirable to properly give effect to
such limitation. The limitations contained in this Section 2.4 may not be waived by the Company or the Investor, except as expressly
provided for in this Section 2.4.

 

Section
2.5 Commitment Shares. In consideration for the Investor’s execution and delivery of this Agreement, concurrently with
the execution and delivery of this Agreement on the Commencement Date, the Company shall deliver irrevocable instructions to its transfer
agent to electronically issue to the Investor or its designee(s) the Commitment Shares as DWAC Shares, such that they are credited to
the Investor’s or its designee’s specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated
Securities Transfer (FAST) Program not later than 4:00 p.m. (New York City time) on the Trading Day immediately following the Commencement
Date, all of which Commitment Shares shall be issued pursuant to the Registration Statement and the Prospectus and shall be freely tradable
and transferable and without restriction on resale and without any stop transfer instructions maintained against the transfer thereof.
For the avoidance of doubt, all of the Commitment Shares shall be fully earned as of the Commencement Date, regardless of whether any
VWAP Purchases are effected hereunder and regardless of any subsequent termination of this Agreement.

 

    	6

     

    

 

Article
III

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

The
Investor hereby makes the following representations and warranties to the Company:

 

Section
3.1 Organization and Standing of the Investor. The Investor is a limited liability company duly organized and validly existing
under the laws of the State of Delaware.

 

Section
3.2 Authorization and Power. The Investor has the requisite limited liability company power and authority to enter into and
perform its obligations under this Agreement and to purchase the Shares in accordance with the terms hereof. The execution, delivery
and performance of this Agreement by the Investor and the consummation by it of the transactions contemplated hereby have been duly authorized
by all necessary corporate action, and no further consent or authorization of the Investor, its Board of Directors or members is required.
This Agreement has been duly executed and delivered by the Investor. This Agreement constitutes a valid and binding obligation of the
Investor enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship, receivership, or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

Section
3.3 No Conflicts. The execution, delivery and performance by the Investor of this Agreement and the consummation by the Investor
of the transactions contemplated herein do not and shall not (i) result in a violation of such Investor’s charter documents, bylaws
or other applicable organizational instruments, (ii) conflict with, constitute a default (or an event which, with notice or lapse of
time or both, would become a default) under, or give rise to any rights of termination, amendment, acceleration or cancellation of, any
material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Investor
is a party or is bound, (iii) create or impose any lien, charge or encumbrance on any property of the Investor under any agreement or
any commitment to which the Investor is party or under which the Investor is bound or under which any of its properties or assets are
bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, or regulation, or any order, judgment or
decree of any court or Governmental Entity applicable to the Investor or by which any of its properties or assets are bound or affected,
except, in the case of clauses (ii), (iii) and (iv), for such conflicts, defaults, terminations, amendments, acceleration, cancellations
and violations as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of the Investor to enter
into and perform its obligations under this Agreement in any material respect. The Investor is not required under federal, state, local
or foreign law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court
or Governmental Entity in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the
Shares in accordance with the terms hereof.

 

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Section
3.4 Information. All materials relating to the business, financial condition, management and operations of the Company and
materials relating to the offer and sale of the Securities which have been requested by the Investor have been furnished or otherwise
made available to the Investor or its advisors (subject to Section 5.12 of this Agreement). The Investor and its advisors have been afforded
the opportunity to ask questions of representatives of the Company. The Investor has sought such accounting, legal and tax advice as
it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. The Investor understands
that it (and not the Company) shall be responsible for its own tax liabilities that may arise as a result of this investment or the transactions
contemplated by this Agreement. The Investor is aware of all of its obligations under U.S. federal and applicable state securities laws
and all rules and regulations promulgated thereunder in connection with this Agreement and the transactions contemplated hereby and the
purchase and sale of the Securities.

 

Section
3.5 No Governmental Review. The Investor understands that no United States federal or state
agency or any other Governmental Entity has passed on or made any recommendation or endorsement of the Securities or the fairness or
suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

Section
3.6 Not an Affiliate. The Investor is not an officer, director or Affiliate of the Company. As of the date of this Agreement,
the Investor does not beneficially own any shares of Common Stock or securities exercisable or exchangeable for or convertible into shares
of Common Stock, and during the Restricted Period, Investor will not acquire beneficial ownership of any shares of the Company’s
capital stock (including shares of Common Stock or securities exercisable or exchangeable for or convertible into shares of Common Stock)
other than (i) pursuant to this Agreement and (ii) pursuant to the Note Financing; provided, however, that nothing in this
Agreement shall prohibit or be deemed to prohibit the Investor from purchasing, in an open market transaction or otherwise, shares of
Common Stock necessary to make delivery by the Investor in satisfaction of a sale by the Investor of Shares that the Investor anticipated
receiving from the Company in connection with the settlement of a VWAP Purchase, if the Company or its transfer agent shall have failed
for any reason (other than a failure of Investor or its Broker-Dealer to set up a DWAC and required instructions) to electronically transfer
all of the Shares subject to such VWAP Purchase to the Investor on the applicable VWAP Purchase Settlement Date by crediting the Investor’s
or its designated Broker-Dealer’s account at DTC through its DWAC delivery system in compliance with Section 2.2 of this Agreement.

 

    	8

     

    

 

Section
3.7 Certain Trading Activities. Other than with respect to the Commencement of the transactions
contemplated hereunder and the closing of the transactions contemplated by the Note Financing, during the period commencing at the time
that the Investor was first contacted by the Company, or any other Person representing the Company, regarding the transactions contemplated
hereby and ending immediately prior to the execution of this Agreement, none of the Investor, any of its Affiliates or any entity managed
or controlled by the Investor has, directly or indirectly, executed any purchases or sales, including Short Sales, of any securities
of the Company (including, without limitation, the Common Stock or securities exercisable or exchangeable for or convertible into shares
of Common Stock), or any stock pledge, forward sales contract, option, put, call, swap or similar hedging arrangement (including on a
total return basis) with respect to any securities of the Company (including, without limitation, the Common Stock or securities exercisable
or exchangeable for or convertible into shares of Common Stock).

 

Section
3.8 Statutory Underwriter Status. The Investor acknowledges that it will be disclosed as an “underwriter” in the
Initial Prospectus Supplement and any additional Prospectus Supplements filed pursuant to Section 1.4. to the extent required by applicable
law and to the extent such Prospectus Supplement is related to the offer and sale of Securities issued and issuable pursuant to this
Agreement.

 

Section
3.9 Resales of Securities. The Investor represents, warrants and covenants that it will resell Securities purchased or acquired
by the Investor from the Company pursuant to this Agreement only in a manner described under the caption “Plan of Distribution”
in the Initial Prospectus Supplement, and in a manner in compliance with all applicable U.S. federal and state securities laws, rules
and regulations.

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the disclosure schedule delivered by the Company to the Investor (which is hereby incorporated by reference in, and constitutes
an integral part of, this Agreement) (the “Disclosure Schedule”), the Company hereby makes the following representations,
warranties and covenants to the Investor:

 

Section
4.1 Organization, Good Standing and Power. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws
or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in
good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be,
could not have or reasonably be expected to result in 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.

 

Section
4.2 Authorization, Enforcement. The Company has the requisite corporate power and authority to enter into and perform its
obligations under this Agreement and to issue the Securities in accordance with the terms hereof. Except for approvals of the Company’s
Board of Directors or a committee thereof as may be required in connection with any issuance and sale of Shares to the Investor hereunder
(which approvals shall be obtained prior to the delivery of any VWAP Purchase Notice), the execution, delivery and performance by the
Company of this Agreement and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by
all necessary corporate action, and no further consent or authorization of the Company, its Board of Directors or its stockholders is
required. This Agreement has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by other equitable principles of general application (including any limitation
of equitable remedies).

 

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Section
4.3 Capitalization. The authorized capital stock of the Company and the shares thereof issued and outstanding were as set
forth in the Commission Documents as of the dates reflected therein. All of the outstanding shares of Common Stock have been duly authorized
and validly issued, and are fully paid and nonassessable. Except as set forth in the Commission Documents, no shares of Common Stock
are entitled to preemptive rights and there are no outstanding debt securities and no contracts, commitments, understandings, or arrangements
by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable
for, any shares of capital stock of the Company other than those issued or granted in the ordinary course of business pursuant to the
Company’s equity incentive and/or compensatory plans or arrangements. Except for customary transfer restrictions contained in agreements
entered into by the Company to sell restricted securities, the Company is not a party to, and it has no Knowledge of, any agreement restricting
the voting or transfer of any outstanding shares of the capital stock of the Company. The Company has made available via the Commission’s
Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”) true and correct copies of the Company’s
Articles of Incorporation as in effect on the Commencement Date (the “Charter”), and the Company’s Bylaws as
in effect on the Commencement Date (the “Bylaws”).

 

Section
4.4 Issuance of Securities. The Commitment Shares have been, and the Shares to be issued under this Agreement have been, or
with respect to Shares to be purchased by the Investor pursuant to a particular VWAP Purchase Notice, will be, prior to the delivery
to the Investor hereunder of such VWAP Purchase Notice, duly authorized by all necessary corporate action on the part of the Company.
The Commitment Shares, when issued to the Investor in accordance with this Agreement, and the Shares, when issued and sold against payment
therefor in accordance with this Agreement, shall be validly issued and outstanding, fully paid and non-assessable and free from all
liens, charges, taxes, security interests, encumbrances, rights of first refusal, preemptive or similar rights and other encumbrances
with respect to the issue thereof, and the Investor shall be entitled to all rights accorded to a holder of Common Stock. An aggregate
of 14,747,065 of shares of Common Stock have initially been duly authorized and reserved by the Company for issuance and sale to the
Investor as Shares pursuant to VWAP Purchases under this Agreement.

 

Section
4.5 No Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company
of the transactions contemplated hereby do not and shall not (i) result in a violation of any provision of the Charter or Bylaws, (ii)
other than any conflicts, defaults or rights that have been waived, conflict with, constitute a default (or an event which, with notice
or lapse of time or both, would become a default) under, or give rise to any rights of termination, amendment, acceleration or cancellation
of, any Material Agreement, (iii) create or impose a lien, charge or encumbrance on any property or assets of the Company or any of its
Subsidiaries under any agreement or any commitment to which the Company or any of its Subsidiaries is a party or by which the Company
or any of its Subsidiaries is bound or to which any of their respective properties or assets is subject, or (iv) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries are bound or affected (including federal and
state securities laws and regulations and the rules and regulations of the Trading Market), except, in the case of clauses (ii), (iii)
and (iv), for such conflicts, defaults, terminations, amendments, acceleration, cancellations, liens, charges, encumbrances and violations
as would not, individually or in the aggregate, have a Material Adverse Effect. Except as specifically contemplated by this Agreement
and as required under the Securities Act and any applicable state securities laws, the Company is not required under any federal, state,
local or foreign law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any
court or Governmental Entity in order for it to execute, deliver or perform any of its obligations under this Agreement, or to issue
the Securities to the Investor in accordance with the terms hereof (other than (i) such consents, authorizations, orders, filings or
registrations as have been obtained or made prior to the Commencement Date, (ii) any filings which may be required to be made by the
Company with the Commission subsequent to the Commencement Date, including, but not limited to, a Prospectus Supplement under Section
1.4 of this Agreement, and (iii) any notices or listing applications required to be filed with or submitted to the Trading Market).

 

    	10

     

    

 

Section
4.6 Commission Documents, Financial Statements; Disclosure Controls and Procedures; Internal Controls Over Financial Reporting; Accountants.

 

(a)
Since December 31, 2020, the Company has timely filed (giving effect to permissible extensions in accordance with Rule 12b-25 under the
Exchange Act) all Commission Documents required to be filed with or furnished to the Commission by the Company under the Securities Act
or the Exchange Act, including those required to be filed with or furnished to the Commission under Section 13(a) or Section 15(d) of
the Exchange Act. As of the date of this Agreement, no Subsidiary of the Company is required to file or furnish any report, schedule,
registration, form, statement, information or other document with the Commission. As of its filing date, each Commission Document filed
with or furnished to the Commission and incorporated by reference in the Registration Statement and the Prospectus complied in all material
respects with the requirements of the Securities Act or the Exchange Act, as applicable, and, as of its filing date (or, if amended or
superseded by a filing prior to the Commencement Date, on the date of such amended or superseded filing), such Commission Document did
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 light of the circumstances under which they were made, not misleading. Each Commission Document to
be filed with or furnished to the Commission after the Commencement Date and incorporated by reference in the Registration Statement,
the Prospectus and any Prospectus Supplement required to be filed pursuant to Section 1.4 during the Investment Period (including, without
limitation, the Current Report), when such document is filed with or furnished to the Commission and, if applicable, when such document
becomes effective, as the case may be, shall comply in all material respects with the requirements of the Securities Act or the Exchange
Act, as applicable, and shall 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 light of the circumstances under which they were made, not misleading.
There are no outstanding or unresolved comments received by the Company from the Commission. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange
Act.

 

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(b)
The consolidated financial statements of the Company included or incorporated by reference in the Commission Documents filed with or
furnished to the Commission and incorporated by reference in the Registration Statement and the Prospectus, together with the related
notes and schedules, present fairly, in all material respects, the consolidated financial position of the Company and the consolidated
Subsidiaries as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders’ equity
of the Company and the consolidated Subsidiaries for the periods specified (subject, in the case of unaudited statements, to normal year-end
audit adjustments which will not be material, either individually or in the aggregate) and have been prepared in compliance with the
published requirements of the Securities Act and Exchange Act, as applicable, and in conformity with generally accepted accounting principles
in the United States (“GAAP”) applied on a consistent basis (except (i) for such adjustments to accounting standards
and practices as are noted therein and (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or
may be condensed or summary statements) during the periods involved. The pro forma financial statements or data included or incorporated
by reference in the Commission Documents filed with or furnished to the Commission and incorporated by reference in the Registration
Statement and the Prospectus, if any, comply with the requirements of Regulation S-X of the Securities Act, including, without limitation,
Article 11 thereof, and the assumptions used in the preparation of such pro forma financial statements and data are reasonable, the pro
forma adjustments used therein are appropriate to give effect to the circumstances referred to therein and the pro forma adjustments
have been properly applied to the historical amounts in the compilation of those statements and data. The other financial and statistical
data with respect to the Company and the Subsidiaries contained or incorporated by reference in the Commission Documents filed with or
furnished to the Commission and incorporated by reference in the Registration Statement and the Prospectus, if any, are accurately and
fairly presented and prepared on a basis consistent with the financial statements and books and records of the Company. There are no
financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Commission Documents
filed with or furnished to the Commission and incorporated by reference in the Registration Statement and the Prospectus that are not
included or incorporated by reference as required. The Company and the Subsidiaries do not have any material liabilities or obligations,
direct or contingent (including any off-balance sheet obligations or any “variable interest entities” as that term is used
in Accounting Standards Codification Paragraph 810-10-25-20), not described in the Registration Statement and the Prospectus or in the
Commission Documents incorporated by reference in the Registration Statement and the Prospectus that are required to be described or
incorporated by reference in the Registration Statement and the Prospectus. All disclosures contained or incorporated by reference in
the Registration Statement and the Prospectus, if any, regarding “non-GAAP financial measures” (as such term is defined by
the rules and regulations of the Commission) comply in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation
S-K under the Securities Act, to the extent applicable. The reserves, if any, established by the Company or the lack of reserves, if
applicable, are reasonable based upon facts and circumstances known by the Company on the date hereof and there are no loss contingencies
that are required to be accrued by the Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which
are not provided for by the Company in its financial statements or otherwise. The Company is not currently contemplating to amend or
restate any of the financial statements (including, without limitation, any notes or any letter of the independent accountants of the
Company with respect thereto) included or incorporated by reference in the Registration Statement and the Prospectus, nor is the Company
currently aware of facts or circumstances which would require the Company to amend or restate any such financial statements, in each
case, in order for any of such financials statements to be in compliance with GAAP and the rules and regulations of the Commission. The
Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the financial
statements included or incorporated by reference in the Registration Statement and the Prospectus or that there is any need for the Company
to amend or restate any of such financial statements.

 

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(c)
Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, the Company maintains 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 is not aware of any material weaknesses in its internal
control over financial reporting (other than as set forth or incorporated by reference in the Registration Statement and the Prospectus).
Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, since the date of the latest audited
financial statements of the Company included in the 2020 Form 10-K, there has been no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. Except as set forth or incorporated by reference in the Registration Statement and the Prospectus, the Company
has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) that comply with the requirements
of the Exchange Act. The Company’s certifying officers evaluated the effectiveness of the Company’s controls and procedures
as of a date within 90 days prior to the filing date of the 2020 Form 10-K (such date, the “Evaluation Date”). The
Company presented in the 2020 Form 10-K for the fiscal year most recently ended the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the most recent Evaluation Date and, except
as set forth in the 2020 Form 10-K, or any Commission Document filed with the Commission for a period subsequent to the period covered
by the 2020 Form 10-K and incorporated by reference in the Registration Statement and the Prospectus, the “disclosure controls
and procedures” are effective.

 

(d)
The Company has timely filed with the Commission and made available via EDGAR all certifications and statements required by (x) Rule
13a-14 or Rule 15d-14 under the Exchange Act or (y) 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002 (“SOXA”))
with respect to all relevant Commission Documents. The Company is in compliance in all material respects with the provisions of SOXA
applicable to it as of the date hereof. The Company maintains disclosure controls and procedures required by Rule 13a-15 or Rule 15d-15
under the Exchange Act; such controls and procedures are effective to ensure that all material information concerning the Company and
its Subsidiaries is made known on a timely basis to the individuals responsible for the timely and accurate preparation of the Commission
Documents and other public disclosure documents.

 

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(e)
Weinberg & Company, P.A., whose report on the consolidated balance sheet of the Company as of December 31, 2020, the related statement
of operations, stockholders’ equity (deficit), and cash flows for the year then ended, and the related notes, is filed with the
Commission as part of the 2020 Form 10-K, are and, during the periods covered by their report, were independent public accountants within
the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States). To the Company’s Knowledge,
Weinberg & Company, P.A. is not in violation of the auditor independence requirements of SOXA with respect to the Company.

 

(f)
There is and, during the past 12 months there has been, no failure on the part of the Company or, to the Knowledge of the Company, any
of the Company’s directors or officers, in their capacities as such, to comply in all material respects with any applicable provisions
of SOXA and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal financial officer
of the Company (or each former principal executive officer of the Company and each former principal financial officer of the Company
as applicable) has made all certifications required by Sections 302 and 906 of SOXA with respect to all periodic reports required to
be filed by it with the Commission during the past 12 months. For purposes of the preceding sentence, “principal executive officer”
and “principal financial officer” shall have the meanings given to such terms in the Exchange Act Rules 13a-15 and 15d-15.

 

Section
4.7 Subsidiaries. The 2020 Form 10-K sets forth each Subsidiary of the Company as of the Commencement Date, other than those
that may be omitted pursuant to Item 601 of Regulation S-K. No Subsidiary of the Company is currently prohibited, directly or indirectly,
from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying
to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property
or assets to the Company or any other Subsidiary of the Company, except as described or incorporate by reference in, or contemplated
by, the Registration Statement and the Prospectus, or as would not reasonably be expected to have a Material Adverse Effect.

 

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Section
4.8 No Material Adverse Effect. Except as otherwise disclosed or incorporated by reference in the Registration Statement and
the Prospectus, since the end of the Company’s most recent audited fiscal year: (i) the Company has not experienced or suffered
any Material Adverse Effect, and there exists no current state of facts, condition or event which would have a Material Adverse Effect;
(ii) there has not occurred any material adverse change, or any development that would reasonably be expected to result in a prospective
material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company from that
disclosed or incorporated by reference in the Registration Statement and the Prospectus, including, without limitation, as a result of
the recent outbreak of COVID-19, or as a result of any measures intended to contain the outbreak of COVID-19 imposed by any federal,
state, local or foreign government or government agency in any country or region in which the Company, or any of its agents, consultants,
advisors or vendors, has assets or properties or conducts business, including, without limitation, any limitations, curtailments, suspensions
or closures of businesses, business offices or establishments, schools, properties and other public areas due to quarantines, curfews,
travel restrictions, workplace controls, “stay-at-home” orders, social distancing requirements or guidelines or other public
gathering restrictions or limitations; (iii) neither the Company nor any of its Subsidiaries has incurred any material liability or obligation,
direct or contingent, nor entered into any material transaction; (iv) the Company has not purchased any of its outstanding capital stock,
nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock other than ordinary and customary
dividends; and (v) there has not been any material change in the capital stock, short-term debt or long-term debt of the Company.

 

Section
4.9 No Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any liabilities, obligations, claims or
losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be required
to be disclosed on a balance sheet of the Company or any Subsidiary (including the notes thereto) in conformity with GAAP and are not
disclosed or incorporated by reference in the Registration Statement and the Prospectus, other than those incurred in the ordinary course
of the Company’s or its Subsidiaries respective businesses since December 31, 2020 and which, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.

 

Section
4.10 No Undisclosed Events or Circumstances. No event, liability, development or circumstance has occurred or exists, or is
reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective businesses, properties,
liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i) would be required to be
disclosed by the Company under applicable securities laws in the Registration Statement or the Prospectus, which has not been disclosed
or incorporated by reference in the Registration Statement and the Prospectus, or (ii) would reasonably be expected to have a Material
Adverse Effect.

 

Section
4.11 Indebtedness. The Company’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2021 sets
forth, as of September 30, 2021, all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the
Company or any Subsidiary has commitments through such date. For the purposes of this Agreement, “Indebtedness” shall
mean (a) any liabilities for borrowed money or amounts owed in excess of $500,000 (other than trade accounts payable incurred in the
ordinary course of business), (b) all guaranties, endorsements, indemnities and other contingent obligations in respect of Indebtedness
of others in excess of $500,000, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of business; and (c) the present value of any lease payments in excess of $500,000 due under leases required to be capitalized
in accordance with GAAP. There is no existing or continuing default or event of default in respect of any Indebtedness of the Company
or any of its Subsidiaries. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to Title 11 of the United States Code or any similar federal or state bankruptcy law or law for the relief of debtors, nor does
the Company have any Knowledge that its creditors intend to initiate involuntary bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings for relief under Title 11 of the United States Code or any other federal or state bankruptcy law or
any law for the relief of debtors. The Company is financially solvent and is generally able to pay its debts as they become due.

 

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Section
4.12 Title To Assets. The Company and each of its Subsidiaries have good and marketable title in fee simple to all real property
and good and marketable title to all personal property owned by them which is material to the business of the Company, in each case free
and clear of all liens, encumbrances and defects except such as are described or incorporated by reference in the Registration Statement
and the Prospectus or such as do not materially affect the value of such property and do not interfere with the use made and proposed
to be made of such property by the Company and its Subsidiaries; and any real property and buildings held under lease by the Company
and its Subsidiaries are held by it under valid, subsisting and enforceable leases with such exceptions as are not material and do not
interfere in any material respect with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries,
in each case except as described or incorporated by reference in the Registration Statement and the Prospectus.

 

Section
4.13 Actions Pending. There are no legal or governmental proceedings pending or, to the Knowledge of the Company, threatened
to which the Company or any Subsidiary is a party or to which any of the properties of the Company or any Subsidiary is subject (i) other
than proceedings accurately described or incorporated by reference in the Registration Statement and the Prospectus and proceedings that
would not have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole, or on the power or ability of the Company
to perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement or (ii) that are required
to be described in the Registration Statement or the Prospectus and are not so described or incorporated by reference therein; and
there are no statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the
Prospectus, or to be filed as exhibits to the Registration Statement or any of the Commission Documents that are incorporated by reference
in the Registration Statement or the Prospectus that are not described or incorporated by reference in the Registration Statement and
the Prospectus, or filed or incorporated by reference as an Exhibit to the Registration Statement or any of the Commission Documents
that are incorporated by reference in the Registration Statement or the Prospectus as required.

 

Section
4.14 Compliance With Law. The business of the Company and the Subsidiaries has been and is presently being conducted in compliance
with all applicable federal, state, local and foreign governmental laws, rules, regulations and ordinances, except as set forth or incorporated
by reference in the Registration Statement and the Prospectus and except for such non-compliance which, individually or in the aggregate,
would not have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or
order or any statute, ordinance, rule or regulation of any Governmental Entity applicable to the Company or any of its Subsidiaries,
except in all cases for any such violations which could not, individually or in the aggregate, have a Material Adverse Effect.

 

    	16

     

    

 

Section
4.15 Certain Fees. Except as described or incorporated by reference in the Registration Statement and the Prospectus, no brokers,
finders or financial advisory fees or commissions is or shall be payable by the Company or any Subsidiary (or any of their respective
affiliates) with respect to the transactions contemplated by this Agreement. Except as described or incorporated by reference in the
Registration Statement and the Prospectus, there are no contracts, agreements or understandings between the Company and any person that
would give rise to a valid claim against the Company, the Investor or the Broker-Dealer for a brokerage commission, finder’s fee
or other like payment in connection with the transactions contemplated by this Agreement or, to the Company’s Knowledge, any arrangements,
agreements, understandings, payments or issuance with respect to the Company or any of its officers, directors, stockholders, partners,
employees, Subsidiaries or Affiliates that may affect the FINRA’s determination of the amount of compensation to be received by
any FINRA member (including, without limitation, those FINRA members set forth on Schedule 4.15 of the Disclosure Schedule) or person
associated with any FINRA member in connection with the transactions contemplated by this Agreement. Except as described in the Registration
Statement or the Prospectus, no “items of value” (within the meaning of FINRA Rule 5110) have been received, and no arrangements
have been entered into for the future receipt of any items of value, from the Company or any of its officers, directors, stockholders,
partners, employees, Subsidiaries or Affiliates by any FINRA member or person associated with any FINRA member, during the period commencing
180 days immediately preceding the Commencement Date and ending on the date this Agreement is terminated in accordance with Article VII,
that may affect the FINRA’s determination of the amount of compensation to be received by any FINRA member or person associated
with any FINRA member in connection with the transactions contemplated by this Agreement.

 

Section
4.16 Operation of Business.

 

(a)
The Company and the Subsidiaries possess or have obtained, all licenses, certificates, consents, orders, approvals, permits and other
authorizations issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign Governmental
Entity that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as
currently conducted, as described or incorporated by reference in the Registration Statement and the Prospectus (the “Permits”),
except where the failure to possess, obtain or make the same would not, individually or in the aggregate, have a Material Adverse Effect.
Neither the Company nor any Subsidiary has received written notice of any proceeding relating to revocation or modification of any such
Permit or has any reason to believe that such Permit will not be renewed in the ordinary course, except where the failure to obtain any
such renewal would not, individually or in the aggregate, have a Material Adverse Effect. This Section 4.16(a) does not relate to environmental
matters, such items being the subject of Section 4.17.

 

(b)
Except as described or incorporated by reference in the Registration Statement and the Prospectus, the Company and its Subsidiaries own
or possess adequate enforceable rights to use all patents, patent applications, trademarks (both registered and unregistered), trade
names, trademark registrations, service marks, service mark registrations, Internet domain name registrations, copyrights, copyright
registrations, licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures) (collectively, the “Intellectual Property”), necessary for the conduct of their respective
businesses as conducted as of the date hereof, except to the extent that the failure to own or possess adequate rights to use such Intellectual
Property would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company and its Subsidiaries
have not received any written notice of any claim of infringement or conflict which asserted Intellectual Property rights of others,
which infringement or conflict, if the subject of an unfavorable decision, would result in a Material Adverse Effect. There are no pending,
or to the Company’s Knowledge, threatened judicial proceedings or interference proceedings challenging the Company’s or any
of its Subsidiaries’ rights in or to or the validity of the scope of any of the Company’s or its Subsidiaries’ Intellectual
Property. No other Person has any right or claim in any of the Company’s or any of its Subsidiaries’ Intellectual Property
by virtue of any contract, license or other agreement entered into between such Person and the Company or any of its Subsidiaries or
by any non-contractual obligation, other than by written licenses granted by the Company or any of its Subsidiaries. Neither the Company
nor any of its Subsidiaries has received any written notice of any claim challenging the rights of the Company or any of its Subsidiaries
in or to any Intellectual Property owned, licensed or optioned by the Company or any of its Subsidiaries, which claim, if the subject
of an unfavorable decision, would result in a Material Adverse Effect.

 

    	17

     

    

 

Section
4.17 Environmental Compliance. The Company and the Subsidiaries (i) are in compliance with any and all applicable federal,
state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment
or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii)
have received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws
to conduct their respective businesses as described or incorporated by reference in the Registration Statement and the Prospectus; and
(iii) have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release of
hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above,
for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as would not, individually
or in the aggregate, have a Material Adverse Effect.

 

Section
4.18 Material Agreements. Except as set forth or incorporated by reference in the Registration Statement and the Prospectus,
neither the Company nor any Subsidiary of the Company is a party to any written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement, a copy of which would be required pursuant to the Securities Act or the Exchange Act to be filed with
the Commission as an exhibit to an annual report on Form 10-K (collectively, “Material Agreements”). Each of the Material
Agreements described in the Registration Statement, the Prospectus, and the Commission Documents filed with or furnished to the Commission
and incorporated by reference in the Registration Statement and the Prospectus conform in all material respects to the descriptions thereof
contained or incorporated by reference therein. Except as set forth or incorporated by reference in the Registration Statement and the
Prospectus, the Company and each of its Subsidiaries have performed in all material respects all the obligations then required to be
performed by them under the Material Agreements, have received no notice of default or an event of default by the Company or any of its
Subsidiaries thereunder and are not aware of any basis for the assertion thereof, and neither the Company or any of its Subsidiaries
nor, to the Knowledge of the Company, any other contracting party thereto are in default under any Material Agreement now in effect,
the result of which would have a Material Adverse Effect. Except as set forth or incorporated by reference in the Registration Statement
and the Prospectus, each of the Material Agreements is in full force and effect, and constitutes a legal, valid and binding obligation
enforceable in accordance with its terms against the Company and/or any of its Subsidiaries and, to the Knowledge of the Company, each
other contracting party thereto, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights
and remedies or by other equitable principles of general application.

 

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Section
4.19 Transactions With Affiliates. Except as set forth or incorporated by reference in the Registration Statement and the
Prospectus, none of the officers or directors of the Company and, to the Knowledge of the Company, none of the Company’s stockholders,
the officers or directors of any stockholder of the Company, or any family member or Affiliate of any of the foregoing, has either directly
or indirectly any interest in, or is a party to, any transaction that is required to be disclosed as a related party transaction pursuant
to Item 404 of Regulation S-K promulgated under the Securities Act.

 

Section
4.20 Securities Act. The Company has complied with all applicable federal and state securities laws in connection with the
offer, issuance and sale of the Securities contemplated by this Agreement.

 

(a)
The Company has prepared and filed with the Commission, in accordance with the provisions of the Securities Act, the Registration Statement,
including a base prospectus relating to the Securities. The Registration Statement was declared effective by order of the Commission
on January 22, 2021. As of the date hereof, no stop order suspending the effectiveness of the Registration Statement has been issued
by the Commission or is continuing in effect under the Securities Act and, to the Company’s Knowledge, no proceedings therefor
are pending before or threatened by the Commission. No order preventing or suspending the use of the Prospectus or any Permitted Free
Writing Prospectus has been issued by the Commission.

 

(b)
As of the Commencement Date, the Company satisfies all of the requirements for the use of Form S-3 under the Securities Act for the offering
and sale of the Securities contemplated by this Agreement (without reliance on General Instruction I.B.6. of Form S-3). The Company is
not, and has not previously been at any time, a “shell company” (as such term is defined in Rule 405 under the Securities
Act). The Commission has not notified the Company of any objection to the use of the form of the Registration Statement pursuant to Rule
401(g)(1) under the Securities Act. The Registration Statement complied in all material respects on the date on which it was declared
effective by the Commission, and will comply in all material respects at each deemed effective date with respect to the Investor pursuant
to Rule 430B(f)(2) of the Securities Act, with the requirements of the Securities Act, and the Registration Statement (including the
documents incorporated by reference therein) did not on the date it was declared effective by the Commission, and shall not at each deemed
effective date with respect to the Investor pursuant to Rule 430B(f)(2) of the Securities Act, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided
that this representation and warranty does not apply to statements in or omissions from the Registration Statement made in reliance
upon and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor
expressly for use therein. The Registration Statement, as of the Commencement Date, meets the requirements set forth in Rule 415(a)(1)(x)
under the Securities Act. The Base Prospectus complied in all material respects on its date and on the Commencement Date, and will comply
in all material respects on each applicable VWAP Purchase Exercise Date and, when taken together with the applicable Prospectus Supplement
and any applicable Permitted Free Writing Prospectus, on each applicable VWAP Purchase Settlement Date, with the requirements of the
Securities Act and did not on its date and on the Commencement Date and shall not on each applicable VWAP Purchase Exercise Date and,
when taken together with the applicable Prospectus Supplement and any applicable Permitted Free Writing Prospectus, on each applicable
VWAP Purchase Settlement Date contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation and warranty does not apply to statements in or omissions from the Base Prospectus, any applicable Prospectus
Supplement or any applicable Free Writing Prospectus made in reliance upon and in conformity with information relating to the Investor
furnished to the Company in writing by or on behalf of the Investor expressly for use therein.

 

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(c)
Each Prospectus Supplement required to be filed pursuant to Section 1.4 hereof, when taken together with the Base Prospectus and any
applicable Permitted Free Writing Prospectus, on its date and on the applicable VWAP Purchase Settlement Date, shall comply in all material
respects with the provisions of the Securities Act and shall not on its date and on the applicable VWAP Purchase Settlement Date contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they are made, not misleading, except that this representation and warranty does
not apply to statements in or omissions from any Prospectus Supplement made in reliance upon and in conformity with information relating
to the Investor furnished to the Company in writing by or on behalf of the Investor expressly for use therein.

 

(d)
At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2) under the Securities Act) relating to the Securities, the Company was not and is not an “ineligible
issuer” (as defined in Rule 405 under the Securities Act). Each Permitted Free Writing Prospectus (a) shall conform in all material
respects to the requirements of the Securities Act on the date of its first use, (b) when considered together with the Prospectus on
each applicable VWAP Purchase Exercise Date and on each applicable VWAP Purchase Settlement Date, shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they are made, not misleading, and (c) shall not include any information that conflicts with the
information contained in the Registration Statement, including any document incorporated by reference therein and any Prospectus Supplement
deemed to be a part thereof that has not been superseded or modified. The immediately preceding sentence does not apply to statements
in or omissions from any Permitted Free Writing Prospectus made in reliance upon and in conformity with information relating to the Investor
furnished to the Company in writing by or on behalf of the Investor expressly for use therein.

 

(e)
Prior to the Commencement Date, the Company has not distributed any offering material in connection with the offering and sale of the
Securities. From and after the Commencement Date and prior to the completion of the distribution of the Securities, the Company shall
not distribute any offering material in connection with the offering and sale of the Securities, other than the Registration Statement,
the Base Prospectus as supplemented by any Prospectus Supplement or a Permitted Free Writing Prospectus.

 

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Section
4.21 Employees; Labor Laws. No material labor dispute with the employees of the Company exists, except as set forth or incorporated
by reference in the Registration Statement and the Prospectus, or, to the Knowledge of the Company, is imminent; and the Company is not
aware of any existing, threatened or imminent labor disturbance by the employees of any of its principal suppliers, manufacturers or
contractors that would reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary is in violation
of or has received notice of any violation with respect to any federal or state law relating to discrimination in the hiring, promotion
or pay of employees, nor any applicable federal or state wage and hour laws, nor any state law precluding the denial of credit due to
the neighborhood in which a property is situated, the violation of any of which could reasonably be expected to have a Material Adverse
Effect.

 

Section
4.22 Use of Proceeds. The proceeds from the sale of the Shares shall be used by the Company and its Subsidiaries as set forth
in the Initial Prospectus Supplement and any other Prospectus Supplement filed pursuant to Section 1.4 or other Commission Document incorporated
by reference in the Initial Prospectus Supplement and any other Prospectus Supplement.

 

Section
4.23 Investment Company Act Status. The Company is not, and as a result of the consummation of the transactions contemplated
by this Agreement and the application of the proceeds from the sale of the Shares as set forth in the Initial Prospectus Supplement and
any other Prospectus Supplement filed pursuant to Section 1.4 or other Commission Document incorporated by reference in the Initial Prospectus
Supplement and any other Prospectus Supplement, shall not be, an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

Section
4.24 ERISA. To the Knowledge of the Company: (i) each material employee benefit plan, within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered, or contributed
to by the Company or any of its Subsidiaries (other than a Multiemployer Plan, within the meaning of Section 3(37) of ERISA) for employees
or former employees of the Company and any of its Subsidiaries has been maintained in material compliance with its terms and the requirements
of any applicable statutes, orders, rules, and regulations, including ERISA and the Internal Revenue Code of 1986, as amended (the “Code”);
(ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred respecting any such
plan (excluding transactions effected pursuant to a statutory or administrative exemption); and (iii) for each such plan that is subject
to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding
for these purposes accrued but unpaid contributions) equals or exceeds the present value of all benefits accrued under such plan determined
using reasonable actuarial assumptions, other than, in the case of (i), (ii), and (iii) above, as would not reasonably be expected to
have a Material Adverse Effect.

 

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Section
4.25 Taxes. The Company and each of its Subsidiaries has filed all federal, state, local and foreign tax returns required
to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect) and have paid all taxes required to be paid thereon (except
for cases in which the failure to file or pay would not reasonably be expected to have a Material Adverse Effect, or, except as currently
being contested in good faith and for which reserves required by GAAP have been created in the financial statements of the Company),
and no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which have had a Material Adverse Effect,
nor does the Company have any notice or Knowledge of any tax deficiency which could reasonably be expected to be determined adversely
to the Company or any of its Subsidiaries and which would reasonably be expected to have a Material Adverse Effect.

 

Section
4.26 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. The Company has no 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.

 

Section
4.27 U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, and so long as any of the
Securities are held by the Investor shall not become, a U.S. real property holding corporation within the meaning of Section 897 of the
Code.

 

Section
4.28 Listing and Maintenance Requirements; DTC Eligibility. The Common Stock is registered pursuant to Section 12(b) 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 received notice from the Trading Market to the effect that the Company is not in compliance
with the listing or maintenance requirements of the Trading Market. The Common Stock is eligible for participation in the DTC book entry
system and has shares on deposit at DTC for transfer electronically to third parties via DTC through its Deposit/Withdrawal at Custodian
(“DWAC”) delivery system. The Company has not received notice from DTC to the effect that a suspension of, or restriction
on, accepting additional deposits of the Common Stock, electronic trading or book-entry services by DTC with respect to the Common Stock
is being imposed or is contemplated.

 

    	22

     

    

 

Section
4.29 No Unlawful Payments. Neither the Company nor any of its Subsidiaries nor any director or officer, nor, to the Knowledge
of the Company, any employee, agent, representative or Affiliate of the Company, has taken within the past five years any action in furtherance
of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else
of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned
or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any
of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure
an improper advantage (to the extent acting on behalf of or providing services to the Company); and the Company and its Subsidiaries
have conducted their businesses within the past five years in compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended
(the “FCPA”), any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, signed December 17, 1997, the U.K. Bribery Act 2010 and other applicable anti-corruption,
anti-money laundering and anti-bribery laws, and have instituted and maintain policies and procedures designed to promote and achieve
compliance with such laws and with the representation and warranty contained herein.

 

Section
4.30 Money Laundering Laws. The operations of the Company are and have been conducted at all times within the past five years
in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, and the applicable anti-money laundering statutes, including but not limited to, applicable
federal, state, international, foreign or other laws, regulations or government guidance regarding anti-money laundering, including,
without limitation, Title 18 US. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and international anti-money laundering
principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering,
of which the United States is a member and with which designation the United States representative to the group or organization continues
to concur, all as amended, and any Executive order, directive, or regulation pursuant to the authority of any of the foregoing, or any
orders or licenses issued thereunder, of jurisdictions where the Company conducts business, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any court or Governmental Entity, authority
or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the Knowledge of the Company,
threatened.

 

Section
4.31 OFAC. Neither the Company nor any of its Subsidiaries, nor any director, officer, or employee thereof, nor, to the Company’s
Knowledge, any agent, affiliate or representative of the Company, is a Person that is, or is owned or controlled by a Person that is
(i) the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control,
the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including,
without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria). Neither the Company nor any of its Subsidiaries will, directly
or indirectly, use the proceeds from the sale of Shares under this Agreement, or lend, contribute or otherwise make available such proceeds
to any Subsidiary, joint venture partner or other Person (a) to fund or facilitate any activities or business of or with any Person or
in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions, or (b) in any other manner
that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter,
advisor, investor or otherwise). Since December 31, 2016, neither the Company nor any of its Subsidiaries have knowingly engaged in,
or are now knowingly engaged in, any dealings or transactions with any Person, or in any country or territory, that at the time of the
dealing or transaction is or was the subject of Sanctions.

 

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Section
4.32 Disclosure. The Company confirms that neither it nor any other Person acting on its
behalf has provided the Investor or any of its agents, advisors or counsel with any information that constitutes or could reasonably
be expected to constitute material, nonpublic information concerning the Company or any of its Subsidiaries, other than with respect
to the transactions contemplated by (i) this Agreement and (ii) the Note Financing. The Company understands and confirms that the Investor
will rely on the foregoing representations in effecting resales of the Securities under the Registration Statement and the Prospectus.
All disclosure provided to Investor regarding the Company and its Subsidiaries, their businesses and the transactions contemplated by
this Agreement (including, without limitation, the representations and warranties of the Company contained in this Article IV (as modified
by the Disclosure Schedule)) furnished in writing by or on behalf of the Company or any of its Subsidiaries for purposes of or in connection
with the transactions contemplated by this Agreement (other than forward-looking information and projections and information of a general
economic nature and general information about the Company’s industry), taken together, is true and correct in all material respects
on the date on which such information is dated or certified, 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 at such time.

 

Section
4.33 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.

 

Section
4.34 IT Systems. (i)(x) To the Knowledge of Company, there has been no security breach or
other compromise of any of the Company’s or its Subsidiaries’ information technology and computer systems, networks, hardware,
software, data (including the data of their respective customers, employees, suppliers, vendors and any third party data maintained by
or on behalf of them), equipment or technology (collectively, “IT Systems and Data”) and (y) the Company has 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 the IT Systems and Data, except as would not, in the case of this clause (i), individually or in the aggregate, have a
Material Adverse Effect; (ii) the Company is presently in material compliance with all applicable laws or statutes and all judgments,
orders, rules and regulations of any court or arbitrator or Governmental Entity, 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, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect;
and (iii) the Company has implemented backup and disaster recovery technology consistent with industry standards and practices.

 

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Section
4.36 Compliance With Data Privacy Laws. The Company and the Subsidiaries are, and at all prior times were, in material compliance
with all applicable state and federal data privacy and security laws and regulations, including without limitation the Health Insurance
Portability and Accountability Act of 1996, and the European Union General Data Protection Regulation (EU 2016/679) (collectively, the
“Privacy Laws”). To ensure compliance with the Privacy Laws, the Company has in place, complies with, and takes appropriate
steps to ensure compliance in all material respects with its policies and procedures relating to data privacy and security and the collection,
storage, use, processing, disclosure, handling, and analysis of personal data and confidential data (the “Policies”).
The Company has at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements,
and none of such disclosures made or contained in any of its Policies have been inaccurate or in violation of any applicable laws and
regulatory rules or requirements in any material respect. The Company further certifies that neither it nor any Subsidiary: (i) has received
notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and the
Company has no Knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently
conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law;
or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

 

Section
4.37 Stock Option Plans. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable
stock option plan of the Company 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 policy or practice of the Company
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.

 

Section
4.38 No Aggregation. None of the Company or any of its Affiliates, nor any Person acting
on 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 require approval of stockholders of the Company under any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of the Trading Market (subject to the
requirement to obtain stockholder approval pursuant to Section 2.3, as applicable).

 

Section
4.39 Dilutive Effect. The Company is aware and acknowledges that issuance of the Securities
could cause dilution to existing stockholders and could significantly increase the number of outstanding shares of Common Stock. The
Company further acknowledges that its obligation to issue the Commitment Shares and to issue the Shares pursuant to each VWAP Purchase
Notice delivered by the Company to the Investor pursuant to this Agreement is, in each case, absolute and unconditional regardless of
the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

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Section
4.40 Manipulation of Price. Neither the Company nor any of its officers, directors or Affiliates
has, and, to the Knowledge of the Company, no Person acting on their behalf has, (i) taken, directly or indirectly, any action designed
or intended to cause or to result in the stabilization or manipulation of the price of any security of the Company, or which caused or
resulted in, or which would in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price
of any security of the Company, in each case 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) other than to the Person engaged by the Company
to act as its broker or placement agent in connection with the Note Financing, paid or agreed to pay to any Person any compensation for
soliciting another to purchase any other securities of the Company. Neither the Company nor any of its officers, directors or Affiliates
will during the term of this Agreement, and, to the Knowledge of the Company, no Person acting on their behalf will during the term of
this Agreement, take any of the actions referred to in the immediately preceding sentence.

 

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

 

Section
4.42 Acknowledgement Regarding Investor’s Acquisition of Securities. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement or the transactions contemplated hereby, and any advice given by the Investor or any
of its representatives or agents in connection with this Agreement or the transactions contemplated hereby is merely incidental to the
Investor’s acquisition of the Securities. The Company further represents to the Investor that the Company’s decision to enter
into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its
representatives. The Company acknowledges and agrees that the Investor has not made and does not make any representations or warranties
with respect to the transactions contemplated by this Agreement other than those specifically set forth in Article III of this Agreement.

 

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Article
V

COVENANTS

 

The
Company covenants with the Investor, and the Investor covenants with the Company, as follows, which covenants of one party are for the
benefit of the other party, during the Investment Period:

 

Section
5.1 Securities Compliance. The Company shall notify the Trading Market, as required, in accordance with its rules and regulations,
of the transactions contemplated by this Agreement, and shall take all necessary action, undertake all proceedings and obtain all registrations,
permits, consents and approvals for the legal and valid issuance of the Securities to the Investor in accordance with the terms of this
Agreement. Without limiting the generality of the foregoing, the Company shall take all reasonably necessary action, undertake all proceedings
and obtain all registrations, permits, consents and approvals in order to (i) qualify the Securities for offering and sale to the Investor,
or to obtain an exemption for the Securities to be offered and sold to the Investor and (ii) qualify the Securities for offer and resale
by the Investor, or to obtain an exemption for the Securities to be offered and resold by the Investor, in each case under the applicable
securities laws of such states and other jurisdictions (domestic or foreign) as the Investor may reasonably designate, and to maintain
such qualifications and exemptions in effect for so long as required for the distribution of the Securities (but in no event for less
than one year from the date of this Agreement); provided, however, that the Company shall not be obligated to file any
general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which
it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise
so subject. In each jurisdiction in which the Securities have been so qualified or exempt, the Company will file such statements and
reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect
for so long as required for the distribution of the Securities (but in no event for less than one year from the date of this Agreement).

 

Section
5.2 Registration and Listing. The Company shall take all action necessary to cause the Common Stock to continue to be registered
as a class of securities under Section 12(b) or 12(g) of the Exchange Act, shall comply in all material respects with its reporting and
filing obligations under the Exchange Act, and shall not take any action or file any document (whether or not permitted by the Securities
Act or the Exchange Act) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under
the Exchange Act or Securities Act, except as permitted herein. Without limiting the generality of the foregoing, the Company shall file
all reports, schedules, registrations, forms, statements, information and other documents required to be filed by the Company with the
Commission pursuant to the Exchange Act, including all material required to be filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of
the Exchange Act, in each case within the time periods required by the Exchange Act (giving effect to permissible extensions in accordance
with Rule 12b-25 under the Exchange Act). The Company shall use its reasonable best efforts to continue the listing and trading of its
Common Stock and the listing of the Commitment Shares acquired and the Shares purchased by the Investor hereunder on the Trading Market,
and shall comply with the Company’s reporting, filing and other obligations under the bylaws, listed securities maintenance standards
and other rules and regulations of FINRA and the Trading Market. The Company shall not take any action which could reasonably be expected
to result in the delisting or suspension of the Common Stock on the Trading Market.

 

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Section
5.3 Compliance with Laws.

 

(a)
The Company shall comply, and cause each Subsidiary to comply, (a) with all laws, rules, regulations, permits and orders applicable to
the business and operations of the Company and its Subsidiaries, except as would not have a Material Adverse Effect and (b) with all
applicable provisions of the Securities Act and the Exchange Act. Without limiting the foregoing: (A) neither the Company nor any of
its officers or directors (1) will take, directly or indirectly, any action designed or intended to cause or to result in, or which would
in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price of any security of the Company,
in each case to facilitate the sale or resale of any of the Securities, or (2) sell, bid for, purchase, or pay any compensation for soliciting
purchases of, any of the Securities; and (B) neither the Company, nor any of its Subsidiaries, nor to the Knowledge of the Company, any
of their respective directors, officers, agents, employees or any other Persons acting on their behalf shall, in connection with the
operation of the Company’s and its Subsidiaries’ respective businesses, (a) use any corporate funds for unlawful contributions,
payments, gifts or entertainment or to make any unlawful expenditures relating to political activity to government officials, candidates
or members of political parties or organizations, (b) pay, accept or receive any unlawful contributions, payments, expenditures or gifts,
or (c) violate or operate in noncompliance with any applicable export restrictions, anti-boycott regulations, embargo regulations or
other applicable domestic or foreign laws and regulations, including, without limitation, the FCPA and the Money Laundering Laws. The
Company shall conduct its business in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign
investment company within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(b)
The Investor shall comply with all laws, rules, regulations and orders applicable to the performance by it of its obligations under this
Agreement and its investment in the Securities, except as would not, individually or in the aggregate, prohibit or otherwise interfere
with the ability of the Investor to enter into and perform its obligations under this Agreement in any material respect. Without limiting
the foregoing, the Investor shall comply with all applicable provisions of the Securities Act and the Exchange Act, including Regulation
M thereunder, and any applicable securities laws of any non-U.S. jurisdictions. Neither the Investor nor any of its officers or directors
will take, directly or indirectly, any action designed or intended to cause or to result in, or which would in the future reasonably
be expected to cause or result in, the stabilization or manipulation of the price of any security of the Company, in each case to facilitate
the sale or resale of any of the Securities.

 

Section
5.4 Due Diligence. Subject to the requirements of Section 5.11 of this Agreement, from time to
time during the Investment Period, the Company shall make available for inspection and review by the Investor, customary documentation
allowing the Investor and/or its appointed counsel or advisors to conduct due diligence. The Company shall not be required to reimburse
the Investor or its counsel or advisors in connection with any such due diligence from and after the date of this Agreement.

 

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Section
5.5 No Frustration; No Variable Rate Transactions.

 

(a)
No Frustration. The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement
or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right of the
Company to perform its obligations under this Agreement, including, without limitation, the obligation of the Company to deliver (i)
the Commitment Shares to the Investor as DWAC Shares not later than 4:00 p.m. (New York time) on the Trading Day immediately following
the Commencement Date, and (ii) the Shares to the Investor in respect of a VWAP Purchase not later than the applicable VWAP Purchase
Settlement Date for such VWAP Purchase. For the avoidance of doubt, nothing in this Section 5.5(a) shall in any way limit the Company’s
right to terminate this Agreement in accordance with Section 7.1 (subject in all cases to Section 7.3).

 

(b)
No Variable Rate Transactions. The Company shall not effect or enter into an agreement to effect any issuance by the Company
or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate
Transaction, other than in connection with an Exempt Issuance. The Investor shall be entitled to seek injunctive relief against the Company
and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages, without the necessity
of showing economic loss and without any bond or other security being required.

 

Section
5.6 Stop Orders. The Company shall advise the Investor promptly (but in no event later than 24 hours) and shall confirm such
advice in writing: (i) of the Company’s receipt of notice of any request by the Commission for amendment of or a supplement to
the Registration Statement, the Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the Company’s
receipt of notice of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or prohibiting
or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension of qualification of the Securities for offering
or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; and (iii) of the Company
becoming aware of the happening of any event, which makes any statement of a material fact made in the Registration Statement, the Prospectus
or any Permitted Free Writing Prospectus untrue or which requires the making of any additions to or changes to the statements then made
in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in order to state a material fact required by
the Securities Act to be stated therein or necessary in order to make the statements then made therein (in the case of the Prospectus,
in light of the circumstances under which they were made) not misleading, or of the necessity to amend the Registration Statement or
supplement the Prospectus or any Permitted Free Writing Prospectus to comply with the Securities Act or any other law. The Company shall
not be required to disclose to the Investor the substance or specific reasons of any of the events set forth in clauses (i) through (iii)
of the immediately preceding sentence, but rather, shall only be required to disclose that the event has occurred. The Company shall
not issue any VWAP Purchase Notice during the continuation of any of the foregoing events. If at any time the Commission shall issue
any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of the Prospectus or any
Prospectus Supplement, the Company shall use reasonable best efforts to obtain the withdrawal of such order at the earliest possible
time. 

 

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Section
5.7 Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.

 

(a)
Except as provided in this Agreement and other than periodic and current reports required to be filed pursuant to the Exchange Act, the
Company shall not file with the Commission any amendment to the Registration Statement that relates to the Investor, this Agreement or
the transactions contemplated hereby or file with the Commission any Prospectus Supplement that relates to the Investor, this Agreement
or the transactions contemplated hereby with respect to which (i) the Investor shall not previously have been advised, (ii) the Company
shall not have given the Investor and its counsel a reasonable opportunity to comment on a draft thereof prior to filing with the Commission,
(iii) the Company shall not have given due consideration to any comments thereon received from the Investor or its counsel prior to filing
with the Commission, or (iv) the Investor shall reasonably object after being so advised or after having completed its review (provided,
however, that the failure of the Investor to make such objection shall not relieve the Company of any obligation or liability
under this Agreement or affect the Investor’s right to rely on the representations and warranties made by the Company in this Agreement),
unless the Company reasonably has determined that it is necessary to amend the Registration Statement or make any supplement to the Prospectus
to comply with the Securities Act or any other applicable law or regulation, in which case the Company shall promptly (but in no event
later than 24 hours) so inform the Investor, the Investor shall be provided with a reasonable opportunity to review and comment upon
any disclosure relating to the Investor and the Company shall expeditiously furnish to the Investor an electronic copy thereof (it being
acknowledged and agreed that the provisions of Section 1.4, and not this Section 5.7, shall apply with respect to the Initial Prospectus
Supplement). In addition, for so long as, in the reasonable opinion of counsel for the Investor, the Prospectus (or in lieu thereof,
the notice referred to in Rule 173(a) under the Securities Act) is required to be delivered in connection with any acquisition or sale
of Securities by the Investor, the Company shall not file any (1) Prospectus Supplement with respect to the Securities, without delivering
or making available a copy of such Prospectus Supplement (in the form filed with the Commission), together with the Base Prospectus,
to the Investor promptly after the filing thereof with the Commission, or (2) any amendment to the Registration Statement, without promptly
delivering or making available a copy of such amendment to the Registration Statement (in the form filed with the Commission) to the
Investor promptly after the filing thereof with the Commission, in each case via e-mail in “.pdf” format to an e-mail account
designated by the Investor.

 

(b)
The Company has not made, and agrees that unless it obtains the prior written consent of the Investor it will not make, an offer relating
to the Securities that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a Free Writing Prospectus
required to be filed by the Company or the Investor with the Commission or retained by the Company or the Investor under Rule 433 under
the Securities Act. The Investor has not made, and agrees that unless it obtains the prior written consent of the Company it will not
make, an offer relating to the Securities that would constitute a Free Writing Prospectus required to be filed by the Company with the
Commission or retained by the Company under Rule 433 under the Securities Act. Any such Issuer Free Writing Prospectus or other Free
Writing Prospectus consented to by the Investor or the Company is referred to in this Agreement as a “Permitted Free Writing
Prospectus.” The Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus
as an Issuer Free Writing Prospectus and (y) it has complied and will comply, as the case may be, with the requirements of Rules 164
and 433 under the Securities Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the
Commission, legending and record keeping.

 

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Section
5.8 Prospectus Delivery. For so long as, in the reasonable opinion of counsel for the Investor, the Prospectus (or in lieu
thereof, the notice referred to in Rule 173(a) under the Securities Act) is required to be delivered in connection with any acquisition
or sale of Securities by the Investor, the Company will furnish to the Investor and its counsel (at the expense of the Company) copies
of the Base Prospectus and all Prospectus Supplements that are filed with the Commission, in each case, in the form filed with the Commission,
as soon as reasonably practicable via e-mail in “.pdf” format to an e-mail account designated by the Investor and, at the
Investor’s request, will also furnish copies of the Base Prospectus and all Prospectus Supplements, in each case, in the form filed
with the Commission, to each exchange or market on which sales of the Securities may be made and to each Broker-Dealer or other Person
designated by the Investor. The Company consents to the use of the Prospectus (and of any Prospectus Supplement thereto) in accordance
with the provisions of the Securities Act and with the securities or “Blue Sky” laws of the jurisdictions in which the Securities
may be sold by the Investor, in connection with the offering and sale of the Securities and for such period of time thereafter as the
Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required by the Securities Act to
be delivered in connection with sales of the Securities. If during such period of time any event shall occur that in the judgment of
the Company and its counsel is required to be set forth in the Registration Statement or the Prospectus or any Permitted Free Writing
Prospectus or should be set forth therein in order to make the statements made therein (in the case of the Prospectus, in light of the
circumstances under which they were made) not misleading, or if it is necessary to amend the Registration Statement or supplement or
amend the Prospectus or any Permitted Free Writing Prospectus to comply with the Securities Act or any other applicable law or regulation,
the Company shall forthwith prepare and, subject to Section 5.7(a) above, file with the Commission an appropriate amendment to the Registration
Statement or Prospectus Supplement to the Prospectus (or supplement to the Permitted Free Writing Prospectus) and shall expeditiously
furnish or make available to the Investor a copy thereof in accordance with this Section 5.8. The Investor shall comply with any Prospectus
delivery requirements under the Securities Act applicable to it. The Investor acknowledges and agrees that it is not authorized to give
any information or to make any representation not contained in the Prospectus or the documents incorporated by reference or specifically
referred to therein in connection with the offer and sale of the Securities.

 

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Section
5.9 Selling Restrictions. The Investor covenants and agrees that commencing upon the execution
of this Agreement on the Commencement Date and ending on the date of any termination of this Agreement pursuant to Section 7.1 or Section
7.2 (the “Restricted Period”), neither the Investor nor any of its Affiliates nor any entity managed or controlled
by the Investor (collectively, the “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted
Person”) shall, directly or indirectly, (i) engage in or effect any Short Sales of Common Stock or (ii) execute any stock pledge,
forward sales contract, option, put, call, swap or similar hedging arrangement (including on a total return basis), which establishes
a net short position with respect to the Common Stock. In addition to the foregoing, in connection with any resale of Securities by the
Investor, each of the Restricted Persons shall comply in all respects with all applicable laws, rules, regulations and orders, including,
without limitation, the applicable requirements of the Securities Act and the Exchange Act, including, without limitation, Regulation
SHO, and all orders of any regulatory authority applicable to any Restricted Person.

 

Section
5.10 Effective Registration Statement. The Company shall use its reasonable best efforts to keep the Registration Statement
effective pursuant to Rule 415 promulgated under the Securities Act, and to keep the Registration Statement and the Prospectus current
and available for issuances and sales of Securities by the Company to the Investor, and for the resale of Securities by the Investor,
at all times during the term of this Agreement and, to the extent the Investor owns any Securities upon the termination of this Agreement,
until the 180th day next following the termination of this Agreement (the “Registration Period”). Without limiting
the generality of the foregoing, during the Registration Period, the Company shall prepare and, subject to Section 5.7(a) above, file
with the Commission, at the Company’s expense, such amendments (including, without limitation, post-effective amendments) to the
Registration Statement and such Prospectus Supplements pursuant to Rule 424(b) under the Securities Act, in each case, as may be necessary
to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act, and to keep the Registration
Statement and the Prospectus current and available for issuances and sales of Securities by the Company to the Investor, and for the
resale of Securities by the Investor, at all times during the Registration Period. 

 

Section
5.11 Non-Public Information. Neither the Company or any of its Subsidiaries, nor any of their respective directors, officers,
employees or agents shall disclose any material non-public information about the Company to the Investor, unless a simultaneous public
announcement thereof is made by the Company in the manner contemplated by Regulation FD. In the event of a breach of the foregoing covenant
by the Company or any of its Subsidiaries, or any of their respective directors, officers, employees and agents, on the Cleansing Date
(defined below) and in compliance with the conditions set forth below, the Investor may publicly disclose such information without the
prior approval by the Company, any of its Subsidiaries, or any of their respective directors, officers, employees or agents, to the extent
the Investor (in its reasonable good faith judgment) deems such information to be material non-public information, in the form of a press
release, public advertisement or otherwise; provided, however, prior to exercising this right, the Investor shall provide
the Company with written notice of the Company’s alleged failure to disclose such information, which notice shall (i) include a
description of the disclosure that the Investor intends to make and (ii) provide the Company with at least one (1) business day to cure
such failure (the first business day following such one-business day cure period, the “Cleansing Date”). The Investor
shall not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders
or agents, for any such disclosure.

 

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Section
5.12 Broker/Dealer. The Investor shall use one or more broker-dealers to effectuate all sales, if any, of the Securities that
it may acquire or purchase from the Company pursuant to this Agreement which (or whom) shall be unaffiliated with the Investor and not
then currently engaged or used by the Company (collectively, the “Broker-Dealer”). The Investor shall provide the
Company with all information regarding the Broker-Dealer reasonably requested by the Company. The Investor shall be solely responsible
for all fees and commissions of the Broker-Dealer, which shall not exceed customary brokerage fees and commissions, and shall be responsible
for designating only a DTC participant eligible to receive DWAC Shares.

 

Section
5.13 Earnings Statement. The Company will make generally available to its security holders as soon as practicable, but in
any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month
period that satisfies the provisions of Section 11(a) of and Rule 158 under the Securities Act. The terms “earnings statement”
and “make generally available to its security holders” shall have the meanings set forth in Rule 158 under the Securities
Act.

 

Section
5.14 Corporate Existence. The Company shall take all steps necessary to preserve and continue the corporate existence of the
Company; provided, however, that, except as provided in Section 5.15, nothing in this Agreement shall be deemed to prohibit
the Company from engaging in any Fundamental Transaction with another Person. For the avoidance of doubt, nothing in this Section 5.14
shall in any way limit the Company’s right to terminate this Agreement in accordance with Section 7.1 (subject in all cases to
Section 7.3).

 

Section
5.15 Fundamental Transaction. If a VWAP Purchase Notice has been delivered to the Investor and the transactions contemplated
therein have not yet been fully settled in accordance with the terms and conditions of this Agreement, the Company shall not effect any
Fundamental Transaction until the expiration of three (3) Trading Days following the date of full settlement thereof and the issuance
to the Investor of all of the Shares issuable pursuant to the VWAP Purchase to which such VWAP Purchase Notice relates.

 

Section
5.16 Disclosure Schedule.

 

(a)
From time to time during the Investment Period, the Company shall be permitted to update the Disclosure Schedule as may be required to
satisfy the condition set forth in Section 6.3(a). For purposes of this Section 5.16, any disclosure made in a schedule to the Compliance
Certificate substantially in the form attached hereto as Exhibit D shall be deemed to be an update of the Disclosure Schedule.
Notwithstanding anything in this Agreement to the contrary, no update to the Disclosure Schedule pursuant to this Section 5.16 shall
cure any prior breach of a representation or warranty of the Company contained in this Agreement and shall not affect any of the Investor’s
rights or remedies with respect thereto.

 

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(b)
Notwithstanding anything to the contrary contained in the Disclosure Schedule or in this Agreement, the information and disclosure contained
in any Schedule of the Disclosure Schedule shall be deemed to be disclosed and incorporated by reference in any other Schedule of the
Disclosure Schedule as though fully set forth in such Schedule for which applicability of such information and disclosure is readily
apparent on its face. The fact that any item of information is disclosed in the Disclosure Schedule shall not be construed to mean that
such information is required to be disclosed by this Agreement. Except as expressly set forth in this Agreement, such information and
the thresholds (whether based on quantity, qualitative characterization, dollar amounts or otherwise) set forth herein shall not be used
as a basis for interpreting the terms “material” or “Material Adverse Effect” or other similar terms in this
Agreement.

 

Article
VI

Conditions to commencement;

CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES

 

Section
6.1 Conditions to Commencement. On the Commencement Date, the Company shall deliver irrevocable instructions to its transfer
agent to electronically transfer the Commitment Shares to the Investor or its designee(s) as DWAC Shares, not later than 4:00 p.m. (New
York time) on the Trading Day immediately following the Commencement Date, which Commitment Shares shall be issued pursuant to the Registration
Statement and without any restriction on resale. For the avoidance of doubt, all of the Commitment Shares shall be fully earned as of
the Commencement Date, regardless of whether any VWAP Purchases are effected hereunder. Simultaneously with the execution and delivery
of this Agreement, on the Commencement Date, the Company shall deliver to the Investor (a) the opinions and negative assurances of outside
counsel to the Company, dated the Commencement Date, in the forms mutually agreed to by the parties hereto, (b) a certificate from the
Company, dated the Commencement Date, in the form of Exhibit C hereto, and (c) a copy of the irrevocable instructions to the transfer
agent regarding the Commitment Shares. On or prior to the Commencement Date, the Company shall have paid by wire transfer of immediately
available funds to an account designated by the Investor’s counsel, the fees and expenses of the Investor’s counsel in accordance
with the proviso to the first sentence of Section 9.1 of this Agreement.

 

Section
6.2 Conditions Precedent to the Obligations of the Company. The obligation hereunder of the Company to issue and sell the
Shares to the Investor under any VWAP Purchase Notice delivered to the Investor by the Company under this Agreement on or after the Commencement
Date is subject to the satisfaction at the applicable VWAP Purchase Condition Satisfaction Time, or (to the extent permitted by applicable
law) the waiver, of each of the conditions set forth in this Section 6.2. These conditions are for the Company’s sole benefit and
(to the extent permitted by applicable law) may be waived by the Company at any time in its sole discretion, except as expressly provided
below.

 

(a)
Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor contained
in this Agreement (i) that are not qualified by “materiality” shall have been true and correct in all material respects when
made and shall be true and correct in all material respects at the applicable VWAP Purchase Condition Satisfaction Time with the same
force and effect as if made at such time, except to the extent such representations and warranties are as of another date or time, in
which case, such representations and warranties shall be true and correct in all material respects as of such other date or time and
(ii) that are qualified by “materiality” shall have been true and correct when made and shall be true and correct at the
applicable VWAP Purchase Condition Satisfaction Time with the same force and effect as if made at such time, except to the extent such
representations and warranties are as of another date or time, in which case, such representations and warranties shall be true and correct
as of such other date or time.

 

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(b)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have received
notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company shall
have a maximum dollar amount certain of Common Stock registered under the Registration Statement which (i) as of the Commencement Date,
is sufficient to issue to the Investor not less than the Total Commitment worth of Common Stock, inclusive of the Commitment Shares and
(ii) as of the applicable VWAP Purchase Exercise Date, is sufficient to issue to the Investor not less than the maximum dollar amount
worth of Shares issuable pursuant to the applicable VWAP Purchase Notice.

 

(c)
Other Commission Filings. The Current Report shall have been filed with the Commission as required pursuant to Section
1.4, and all Prospectus Supplements required to have been filed with the Commission pursuant to Section 1.4 shall have been filed with
the Commission in accordance with Section 1.4. All reports, schedules, registrations, forms, statements, information and other documents
required to have been filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including
all material required to have been filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, shall have been filed with
the Commission and such filings shall have been made within the applicable time period prescribed for such filing under the Exchange
Act. All other material required to be filed by the Company or any other offering participant pursuant to Rule 433(d) under the Securities
Act shall have been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433 under the Securities
Act.

 

(d)
Performance by the Investor. The Investor shall have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or prior
to the applicable VWAP Purchase Condition Satisfaction Time.

 

(e)
No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened or endorsed by any court or Governmental Entity of competent jurisdiction which prohibits the consummation of
or which would materially modify or delay any of the transactions contemplated by this Agreement.

 

(f)
No Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been suspended
by the Commission, the Trading Market or FINRA (except for any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to the applicable VWAP Purchase Condition Satisfaction Time), the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a
date certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Eligible Market). At any time since
the most recent VWAP Purchase Settlement Date (or since the Commencement Date in the case of the first VWAP Purchase Settlement Date),
none of the events described in clauses (i), (ii) and (iii) of Section 5.6 shall have occurred (but an event described in clause (iii)
of Section 5.6 shall only apply if it has not been cured through the filing of a report with the Commission on EDGAR).

 

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(g)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or Governmental Entity shall
have been commenced, and no inquiry or investigation by any Governmental Entity shall have been commenced, against the Company or any
Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary, seeking to restrain, prevent or change
the transactions contemplated by this Agreement, or seeking material damages in connection with such transactions.

 

(h)
Certain Limitations. The issuance and sale of the Shares issuable pursuant to the applicable VWAP Purchase Notice shall
not (a) exceed the applicable VWAP Purchase Maximum Amount, (b) cause the Aggregate Limit or the Beneficial Ownership Limitation to be
exceeded, or (c) cause the Exchange Cap (to the extent applicable under Section 2.3) to be exceeded, unless in the case of this clause
(c), the Company’s stockholders have theretofore approved the issuance of Common Stock under this Agreement in excess of the Exchange
Cap in accordance with the applicable rules of the Trading Market.

 

Section
6.3 Conditions Precedent to the Obligations of the Investor. The obligation hereunder of the Investor to accept a VWAP Purchase
Notice timely delivered to the Investor by the Company under this Agreement on or after the Commencement Date and to acquire and pay
for the Shares subject to such VWAP Purchase Notice is subject to the satisfaction at the applicable VWAP Purchase Condition Satisfaction
Time, or (to the extent permitted by applicable law) the waiver, of each of the conditions set forth in this Section 6.3. These conditions
are for the Investor’s sole benefit and (to the extent permitted by applicable law) may be waived by the Investor at any time in
its sole discretion, except as expressly provided below.

 

(a)
Accuracy of the Company’s Representations and Warranties. The representations and warranties of the Company contained
in this Agreement, as modified by the Disclosure Schedule (i) that are not qualified by “materiality” or “Material
Adverse Effect” shall have been true and correct in all material respects when made and shall be true and correct in all material
respects at the applicable VWAP Purchase Condition Satisfaction Time with the same force and effect as if made at such time, except to
the extent such representations and warranties are as of another date or time, in which case, such representations and warranties shall
be true and correct in all material respects as of such other date or time and (ii) that are qualified by “materiality” or
“Material Adverse Effect” shall have been true and correct when made and shall be true and correct at the applicable VWAP
Purchase Condition Satisfaction Time with the same force and effect as if made at such time, except to the extent such representations
and warranties are as of another date or time, in which case, such representations and warranties shall be true and correct as of such
other date or time.

 

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(b)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have received
notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company shall
have a maximum dollar amount certain of Common Stock registered under the Registration Statement which (i) as of the Commencement Date,
is sufficient to issue to the Investor not less than the Total Commitment worth of Common Stock, inclusive of the Commitment Shares and
(ii) as of the applicable VWAP Purchase Exercise Date, is sufficient to issue to the Investor not less than the maximum dollar amount
worth of Shares issuable pursuant to the applicable VWAP Purchase Notice. As of the Commencement Date and the applicable VWAP Purchase
Exercise Date, the Investor shall be permitted to utilize the Prospectus to resell all of the Securities it then owns or has the right
to acquire pursuant to all VWAP Purchase Notices delivered by the Company to the Investor pursuant to this Agreement.

 

(c)
Other Commission Filings. The Current Report shall have been filed with the Commission as required pursuant to Section
1.4, and all Prospectus Supplements required to have been filed with the Commission pursuant to Section 1.4 shall have been filed with
the Commission in accordance with Section 1.4. All reports, schedules, registrations, forms, statements, information and other documents
required to have been filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including
all material required to have been filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, shall have been filed with
the Commission and such filings shall have been made within the applicable time period prescribed for such filing under the Exchange
Act. All other material required to be filed by the Company or any other offering participant pursuant to Rule 433(d) under the Securities
Act shall have been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433 under the Securities
Act.

 

(d)
No Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been suspended
by the Commission, the Trading Market or FINRA (except for any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to the applicable VWAP Purchase Condition Satisfaction Time), the Company shall not have received
any final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a
date certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Eligible Market), nor shall there
have been imposed any suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry
services by DTC with respect to the Common Stock that is continuing, the Company shall not have received any notice from DTC to the effect
that a suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry services
by DTC with respect to the Common Stock is being imposed or is contemplated (unless, prior to such suspension or restriction, DTC shall
have notified the Company in writing that DTC has determined not to impose any such suspension or restriction). At any time since the
most recent VWAP Purchase Settlement Date (or since the Commencement Date in the case of the first VWAP Purchase Settlement Date), none
of the events described in clauses (i), (ii) and (iii) of Section 5.6 shall have occurred (but an event described in clause (iii) of
Section 5.6 shall only apply if it has not been cured through the filing of a report with the Commission on EDGAR).

 

(e)
Performance of the Company. The Company shall have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior
to the applicable VWAP Purchase Condition Satisfaction Time. The Company shall have delivered to the Investor at or prior to the applicable
VWAP Purchase Condition Satisfaction Time the Compliance Certificate substantially in the form attached hereto as Exhibit D.

 

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(f)
No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened or endorsed by any court or Governmental Entity of competent jurisdiction which prohibits the consummation of
or which would materially modify or delay any of the transactions contemplated by this Agreement.

 

(g)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or Governmental Entity shall
have been commenced, and no inquiry or investigation by any Governmental Entity shall have been commenced, against the Company or any
Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary, seeking to restrain, prevent or change
the transactions contemplated by this Agreement, or seeking material damages in connection with such transactions.

 

(h)
Certain Limitations. The issuance and sale of the Shares issuable pursuant to the applicable VWAP Purchase Notice shall
not (a) exceed the applicable VWAP Purchase Maximum Amount, (b) cause the Aggregate Limit or the Beneficial Ownership Limitation to be
exceeded, or (c) cause the Exchange Cap (to the extent applicable under Section 2.3) to be exceeded, unless in the case of this clause
(c), the Company’s stockholders have theretofore approved the issuance of Common Stock under this Agreement in excess of the Exchange
Cap in accordance with the applicable rules of the Trading Market.

 

(i)
Shares and Commitment Shares Authorized and Delivered. The Shares issuable pursuant to such VWAP Purchase Notice shall
have been duly authorized by all necessary corporate action of the Company. The Company shall have delivered all Shares relating to all
prior VWAP Purchase Notices to the Investor or its designee(s) as DWAC Shares. The Company shall have timely delivered all Commitment
Shares to the Investor or its designee(s) as DWAC Shares in accordance with Section 2.5.

 

(j)
Listing of Securities. All of the Securities that may be issued pursuant to this Agreement shall have been approved for
listing or quotation on the Trading Market (or on an Eligible Market) as of the Commencement Date, subject only to notice of issuance.

 

(k)
No Termination Event. There shall not have occurred any event that would permit the Investor to terminate this Agreement
pursuant to Section 7.2.

 

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(l)
Bring Down Opinions of Counsel. Each time the Company (i) files a Prospectus Supplement relating to the Securities pursuant
to Section 1.4 (other than the Initial Prospectus Supplement), (ii) amends or supplements the Registration Statement or the Prospectus
relating to the Securities by means of a post-effective amendment, sticker, or supplement, but not by means of incorporation of document(s)
by reference to the Registration Statement or the Prospectus relating to the Securities (other than as set forth in clauses (iii) and
(iv) hereof); (iii) files an Annual Report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial
information or a material amendment to the previously filed Form 10-K); or (iv) a current report on Form 8-K that contains amended material
financial information (or a restatement of material financial information) or an amendment to other material information contained or
incorporated by reference in the Registration Statement or any Prospectus Supplement (each date of filing of one or more of the documents
referred to in clauses (i) through (iv) shall be a “Representation Date”),
the Company shall furnish the Investor, within three (3) Trading Days after each filing date thereof, the opinions and negative assurance
“bring down” from outside counsel to the Company, in the forms mutually agreed to by the parties hereto prior to the date
hereof. The requirement to provide the opinion “bring down” under this Section 6.3(l) shall be waived for any Representation
Date referred to in clause (iv) above with respect to a fiscal quarter during which no Shares were sold hereunder, which waiver shall
continue until the earlier to occur of the date the Company delivers a VWAP Purchase Notice (which for such calendar quarter shall be
considered a Representation Date) and the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently
decides to deliver a VWAP Purchase Notice to the Investor following a Representation Date when the Company relied on such waiver and
did not provide the Investor with the opinion “bring down” under this Section 6.3(l), then before the Company delivers the
VWAP Purchase Notice to the Investor, the Company shall provide the Investor with opinion “bring down” from outside counsel
to the Company, in the forms mutually agreed to by the parties hereto prior to the date hereof, dated the date of the VWAP Purchase Notice.

 

Article
VII

TERMINATION

 

Section
7.1 Automatic Termination; Termination by Mutual Consent; Termination by the Company. Unless earlier terminated as provided
hereunder, this Agreement shall terminate automatically on the earliest to occur of (i) the first day of the month next following the
36-month anniversary of the Commencement Date, (ii) the date on which the Investor shall have purchased or received the Total Commitment
worth of Shares (inclusive of the Commitment Shares) pursuant to this Agreement, (iii) the date on which the Common Stock shall have
failed to be listed or quoted on the Trading Market or any Eligible Market, (iv) the thirtieth (30th) Trading Day next following
the date on which, pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences
a proceeding against the Company, in each case that is not discharged or dismissed prior to such thirtieth (30th) Trading
Day, and (v) the date on which, pursuant to or within the meaning of any Bankruptcy Law, a Custodian is appointed for the Company or
for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors. Subject to
Section 7.3, this Agreement may be terminated at any time by the mutual written consent of the parties, effective as of the date of such
mutual written consent unless otherwise provided in such written consent. Subject to Section 7.3, the Company may terminate this Agreement,
at any time and in its sole discretion, effective upon five (5) Trading Days’ prior written notice to the Investor delivered in
accordance with Section 9.4; provided, however, that (i) the Company shall have issued all Commitment Shares to the Investor
in accordance with Section 2.5 and shall have paid all fees and amounts to the Investor’s counsel required to be paid pursuant
to Section 9.1 of this Agreement prior to such termination, and (ii) prior to issuing any press release, or making any public statement
or announcement, with respect to such termination, the Company shall consult with the Investor and shall obtain the Investor’s
consent to the form and substance of such press release or other disclosure, which consent shall not be unreasonably delayed or withheld.

 

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Section
7.2 Other Termination. Subject to Section 7.3, the Investor shall have the right to terminate this Agreement effective upon
five (5) Trading Days’ prior written notice to the Company in accordance with Section 9.4, if: (a) any condition, occurrence, state
of facts or event constituting a Material Adverse Effect has occurred and is continuing; (b) a Fundamental Transaction shall have occurred;
(c) the effectiveness of the Registration Statement, or any post-effective amendment thereto, lapses for any reason (including, without
limitation, the issuance of a stop order by the Commission) or the Registration Statement or any post-effective amendment thereto, or
any Prospectus Supplement otherwise becomes unavailable to the Investor for the sale of all of the Securities included therein, and such
lapse or unavailability continues for a period of thirty (30) consecutive Trading Days or for more than an aggregate of ninety (90) Trading
Days in any 365-day period, other than due to acts of the Investor; (d) trading in the Common Stock on the Trading Market (or if the
Common Stock is then listed on an Eligible Market, trading in the Common Stock on such Eligible Market) shall have been suspended and
such suspension continues for a period of three (3) consecutive Trading Days; or (e) the Company is in material breach or default of
this Agreement, and, if such breach or default is capable of being cured, such breach or default is not cured within ten (10) Trading
Days after notice of such breach or default is delivered to the Company pursuant to Section 10.4. Unless notification thereof is required
elsewhere in this Agreement (in which case such notification shall be provided in accordance with such other provision), the Company
shall promptly (but in no event later than 24 hours) notify the Investor (and, if required under applicable law, including, without limitation,
Regulation FD promulgated by the Commission, or under the applicable rules and regulations of the Trading Market, the Company shall publicly
disclose such information in accordance with Regulation FD and the applicable rules and regulations of the Trading Market) upon becoming
aware of any of the events set forth in the immediately preceding sentence.

 

Section
7.3 Effect of Termination. In the event of termination by the Company or the Investor pursuant to Section 7.1 or 7.2, as applicable,
written notice thereof shall forthwith be given to the other party as provided in Section 9.4 and the transactions contemplated by this
Agreement shall be terminated without further action by either party. If this Agreement is terminated as provided in Section 7.1 or 7.2
herein, this Agreement shall become void and of no further force and effect, except that (a) the provisions of Article VIII (Indemnification),
Section 9.1 (Fees and Expenses), Section 9.2 (Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial), Section 9.4 (Notices),
Section 9.8 (Governing Law), Section 9.9 (Survival), Section 9.11 (Publicity), Section 9.12 (Severability) and this Article VII (Termination)
shall remain in full force and effect notwithstanding such termination, (b) if the Investor owns any Securities at the time of such termination,
the covenants and agreements of the Company and the Investor, as applicable, contained in Section 5.1(a) (Securities Compliance), Section
5.3 (Compliance with Laws), Section 5.6 (Stop Orders), Section 5.7 (Amendments to the Registration Statement; Prospectus Supplements;
Free Writing Prospectuses), Section 5.8 (Prospectus Delivery), Section 5.10 (Effective Registration Statement), Section 5.11 (Non-Public
Information) and Section 5.12 (Broker/Dealer) shall remain in full force and effect notwithstanding such termination for a period of
six (6) months following such termination, and (c) if the Investor or its designee(s) own any Securities at the time of such termination,
the covenants and agreements of the Company contained in Section 5.2 (Registration and Listing) shall remain in full force and effect
notwithstanding such termination for a period of thirty (30) days following such termination. Notwithstanding anything in this Agreement
to the contrary, no termination of this Agreement by any party shall (i) become effective prior to the fifth (5th) Trading
Day immediately following the applicable VWAP Purchase Settlement Date related to any pending VWAP Purchase Notice that has not been
fully settled in accordance with the terms and conditions of this Agreement (it being hereby acknowledged and agreed that no termination
of this Agreement shall limit, alter, modify, change or otherwise affect any of the Company’s or the Investor’s rights or
obligations under this Agreement with respect to any pending VWAP Purchase, and that the parties shall fully perform their respective
obligations with respect to any such pending VWAP Purchase under this Agreement), (ii) affect any cash fees paid to the Investor’s
counsel pursuant to Section 9.1, all of which fees shall be non-refundable when paid on or prior to the Commencement Date pursuant to
Section 9.1, regardless of whether any VWAP Purchases are effected hereunder or any subsequent termination of this Agreement, or (iii)
affect any Commitment Shares previously issued or delivered, or any rights of any holder thereof, it being hereby acknowledged and agreed
that all of the Commitment Shares shall be fully earned as of the Commencement Date, regardless of whether any VWAP Purchases are effected
hereunder or any subsequent termination of this Agreement. Nothing in this Section 7.3 shall be deemed to release the Company or the
Investor from any liability for any breach or default under this Agreement, or to impair the rights of the Company and the Investor to
compel specific performance by the other party of its obligations under this Agreement.

 

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Article
VIII

INDEMNIFICATION

 

Section
8.1 General Indemnity.

 

(a)
Indemnification by the Company. The Company shall indemnify and hold harmless the Investor, each of its directors, officers,
partners, employees, investment managers, investment advisors and Affiliates, and each Person, if any, who controls the Investor within
the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act from and against all losses, claims, damages, liabilities
and expenses (including reasonable costs of defense and investigation and all reasonable attorneys’ fees) to which the Investor
and each such other Person may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities
and expenses arise out of or are based upon (i) any violation of United States federal or state securities laws or the rules and regulations
of the Trading Market in connection with the transactions contemplated by this Agreement by the Company or any of its Subsidiaries, affiliates,
officers, directors or employees, (ii) any untrue statement or alleged untrue statement of a material fact contained, or incorporated
by reference, in the Registration Statement or any amendment thereto or any omission or alleged omission to state therein, or in any
document incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements therein
not misleading, or (iii) any untrue statement or alleged untrue statement of a material fact contained, or incorporated by reference,
in the Prospectus, any Issuer Free Writing Prospectus, or in any amendment thereof or supplement thereto, or in any “issuer information”
(as defined in Rule 433 under the Securities Act) of the Company, which “issuer information” is required to be, or is, filed
with the Commission or otherwise contained in any Free Writing Prospectus, or any amendment or supplement thereto, or any omission or
alleged omission to state therein, or in any document incorporated by reference therein, a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however,
that (A) the Company shall not be liable under this Section 8.1(a) to the extent that a court of competent jurisdiction shall have determined
by a final judgment (from which no further appeals are available) that such loss, claim, damage, liability or expense resulted directly
and solely from any such acts or failures to act, undertaken or omitted to be taken by the Investor or such Person through its bad faith
or willful misconduct, (B) the foregoing indemnity shall not apply to any loss, claim, damage, liability or expense to the extent, but
only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Investor expressly for use
in the Current Report or any Prospectus Supplement or Permitted Free Writing Prospectus, or any amendment thereof or supplement thereto,
and (C) with respect to the Prospectus, the foregoing indemnity shall not inure to the benefit of the Investor or any such Person from
whom the Person asserting any loss, claim, damage, liability or expense purchased Common Stock, if copies of all Prospectus Supplements
required to be filed pursuant to Section 1.4, together with the Base Prospectus, were timely delivered or made available to the Investor
pursuant hereto and a copy of the Base Prospectus, together with a Prospectus Supplement (as applicable), was not sent or given by or
on behalf of the Investor or any such Person to such Person, if required by law to have been delivered, at or prior to the written confirmation
of the sale of the Common Stock to such Person, and if delivery of the Base Prospectus, together with a Prospectus Supplement (as applicable),
would have cured the defect giving rise to such loss, claim, damage, liability or expense.

 

    	41

     

    

 

The
Company shall reimburse the Investor and each such controlling Person promptly upon demand (with accompanying presentation of documentary
evidence) for all legal and other costs and expenses reasonably incurred by the Investor or such indemnified Persons in investigating,
defending against, or preparing to defend against any such claim, action, suit or proceeding with respect to which it is entitled to
indemnification.

 

(b)
Indemnification by the Investor. The Investor shall indemnify and hold harmless the Company, each of its directors, officers,
employees and Affiliates, and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act from and against all losses, claims, damages, liabilities and expenses (including reasonable costs
of defense and investigation and all reasonable attorneys’ fees) to which the Company and each such other Person may become subject,
under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in the Current Report, the Registration Statement or any
Prospectus Supplement or Permitted Free Writing Prospectus, or in any amendment thereof or supplement thereto, or any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, in each case, to the extent, but only to the extent, the untrue statement,
alleged untrue statement, omission or alleged omission was made in reliance upon, and in conformity with, written information furnished
by the Investor to the Company expressly for inclusion in the Current Report, the Registration Statement or such Prospectus Supplement
or Permitted Free Writing Prospectus, or any amendment thereof or supplement thereto.

 

The
Investor shall reimburse the Company and each such director, officer or controlling Person promptly upon demand for all legal and other
costs and expenses reasonably incurred by the Company or such indemnified Persons in investigating, defending against, or preparing to
defend against any such claim, action, suit or proceeding with respect to which it is entitled to indemnification.

 

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Section
8.2 Indemnification Procedures. Promptly after a Person receives notice of a claim or the commencement of an action for which
the Person intends to seek indemnification under Section 8.1, the Person will notify the indemnifying party in writing of the claim or
commencement of the action, suit or proceeding; provided, however, that failure to notify the indemnifying party will not
relieve the indemnifying party from liability under Section 8.1, except to the extent it has been materially prejudiced by the failure
to give notice. The indemnifying party will be entitled to participate in the defense of any claim, action, suit or proceeding as to
which indemnification is being sought, and if the indemnifying party acknowledges in writing the obligation to indemnify the party against
whom the claim or action is brought, the indemnifying party may (but will not be required to) assume the defense against the claim, action,
suit or proceeding with counsel satisfactory to it. After an indemnifying party notifies an indemnified party that the indemnifying party
wishes to assume the defense of a claim, action, suit or proceeding, the indemnifying party will not be liable for any legal or other
expenses incurred by the indemnified party in connection with the defense against the claim, action, suit or proceeding except that if,
in the opinion of counsel to the indemnifying party, one or more of the indemnified parties should be separately represented in connection
with a claim, action, suit or proceeding, the indemnifying party will pay the reasonable fees and expenses of one separate counsel for
the indemnified parties. Each indemnified party, as a condition to receiving indemnification as provided in Section 8.1, will cooperate
in all reasonable respects with the indemnifying party in the defense of any action or claim as to which indemnification is sought. No
indemnifying party will be liable for any settlement of any action effected without its prior written consent. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested (by written notice provided in accordance with Section 9.4) an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for
any settlement of the nature contemplated hereby effected without its written consent if (a) such settlement is entered into more than
45 days after receipt by such indemnifying party of the aforesaid request, (b) such indemnifying party shall have received written notice
of the terms of such settlement at least 30 days prior to such settlement being entered into and (c) such indemnifying party shall not
have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party will,
without the prior written consent of the indemnified party, effect any settlement of a pending or threatened action with respect to which
an indemnified party is, or is informed that it may be, made a party and for which it would be entitled to indemnification, unless the
settlement includes an unconditional release of the indemnified party from all liability and claims which are the subject matter of the
pending or threatened action.

 

If
for any reason the indemnification provided for in this Agreement is not available to, or is not sufficient to hold harmless, an indemnified
party in respect of any loss or liability referred to in Section 8.1 as to which such indemnified party is entitled to indemnification
thereunder, each indemnifying party shall, in lieu of indemnifying the indemnified party, contribute to the amount paid or payable by
the indemnified party as a result of such loss or liability, (i) in the proportion which is appropriate to reflect the relative benefits
received by the indemnifying party, on the one hand, and by the indemnified party, on the other hand, from the sale of Securities which
is the subject of the claim, action, suit or proceeding which resulted in the loss or liability or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above, but also the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other
hand, with respect to the statements or omissions which are the subject of the claim, action, suit or proceeding that resulted in the
loss or liability, as well as any other relevant equitable considerations.

 

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The
remedies provided for in Section 8.1 and this Section 8.2 are not exclusive and shall not limit any rights or remedies which may otherwise
be available to any indemnified Person at law or in equity.

 

Article
IX

MISCELLANEOUS

 

Section
9.1 Fees and Expenses. Each party shall bear its own fees and expenses related to the transactions contemplated by this Agreement;
provided, however, that the Company shall pay, on or prior to the Commencement Date, by wire transfer of immediately available
funds to an account designated by the Investor on or prior to the date of this Agreement, an aggregate amount up to $50,000 (which includes
$10,000 previously paid to the Investor as an initial deposit) as reimbursement for the Investor’s reasonable out-of-pocket expenses
(including the Investor’s legal fees and expenses), in connection with the preparation, negotiation, execution and delivery of
this Agreement, legal due diligence of the Company and review of the Registration Statement, the Initial Prospectus Supplement, the Current
Report, any Permitted Free Writing Prospectus and all other related transaction documentation. The Company shall pay all U.S. federal,
state and local stamp and other similar transfer and other taxes and duties levied in connection with issuance of the Securities pursuant
hereto. For the avoidance of doubt, all of the fees payable to the Investor or its counsel pursuant to this Section 9.1 shall be non-refundable,
regardless of whether any VWAP Purchases are made or settled hereunder or any subsequent termination of this Agreement.

 

Section
9.2 Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.

 

(a)
The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that either
party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the other
party and to enforce specifically the terms and provisions hereof (without the necessity of showing economic loss and without any bond
or other security being required), this being in addition to any other remedy to which either party may be entitled by law or equity.

 

(b)
Each of the Company and the Investor (i) hereby irrevocably submits to the jurisdiction of the U.S. District Court and other courts of
the United States sitting in the State of New York for the purposes of any suit, action or proceeding arising out of or relating to this
Agreement, and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue
of the suit, action or proceeding is improper. Each of the Company and the Investor consents to process being served in any such suit,
action or proceeding by mailing a copy thereof 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 in this Section 9.2 shall affect
or limit any right to serve process in any other manner permitted by law.

 

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(c)
EACH OF THE COMPANY AND THE INVESTOR HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR DISPUTES RELATING HERETO. EACH OF THE COMPANY AND THE INVESTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.2.

 

Section
9.3 Entire Agreement; Amendment. This Agreement, together with the exhibits referred to herein and the Disclosure Schedule,
represents the entire agreement of the parties with respect to the subject matter hereof, and there are no promises, undertakings, representations
or warranties by either party relative to subject matter hereof not expressly set forth herein. No provision of this Agreement may be
amended other than by a written instrument signed by both parties hereto. The Disclosure Schedule and all exhibits to this Agreement
are hereby incorporated by reference in, and made a part of, this Agreement as if set forth in full herein.

 

Section
9.4 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery or electronic mail delivery at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
of such mailing, whichever shall first occur. The address for such communications shall be:

 

If
to the Company:

 

Verb
Technology Company, Inc.

2210
Newport Blvd., Suite 200

Newport
Beach, CA 92663

Telephone
Number: (855) 250-2300

Email:
legal@verb.tech

Attention:
Legal Department

 

    	45

     

    

 

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

 

Stradling
Yocca Carlson & Rauth

A
Professional Corporation

660
Newport Center Drive, Suite 1600

Newport
Beach, CA 92660-6422

Telephone Number: (949) 725-4000

Email:
rwilkins@stradlinglaw.com

Attention: Ryan C. Wilkins, Esq.

 

If
to the Investor:

 

Tumim
Stone Capital LLC

140
Broadway, 38th Floor

New
York, NY 10005

Telephone Number: (646) 845-0040

Email:
mjtarlow@3ifund.com

Attention:
Maier Joshua Tarlow

 

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

 

Tumim
Stone Capital LLC

140
Broadway, 38th Floor

New
York, NY 10005

Telephone Number: (646) 845-0040

Email:
mjtarlow@3ifund.com

Attention:
Maier Joshua Tarlow

 

Either
party hereto may from time to time change its address for notices by giving at least five (5) days’ advance written notice of such
changed address to the other party hereto.

 

Section
9.5 Waivers. No waiver by either party 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 other provisions, 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 accruing to it
thereafter. No provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement
of such waiver is sought.

 

Section
9.6 Headings; Construction. The article, section and subsection headings in this Agreement are for convenience only and shall
not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.
Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall
be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found. The
parties agree that each of them and their respective counsel has reviewed and had an opportunity to revise this Agreement 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 this Agreement. In addition, each and every reference to share prices and number of shares of Common Stock in
this Agreement shall, in all cases, be subject to adjustment for any stock splits, stock combinations, stock dividends, recapitalizations,
reorganizations and other similar transactions that occur on or after the date of this Agreement. Any reference in this Agreement to
“Dollars” or “$” shall mean the lawful currency of the United States of America. Any references to “Section”
or “Article” in this Agreement shall, unless otherwise expressly stated herein, refer to the applicable Section or Article
of this Agreement.

 

    	46

     

    

 

Section
9.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors. Neither the Company nor the Investor may assign this Agreement or any of their respective rights or obligations
hereunder to any Person.

 

Section
9.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal procedural and substantive
laws of the State of New York, without giving effect to the choice of law provisions of such state that would cause the application of
the laws of any other jurisdiction.

 

Section
9.9 Survival. The representations, warranties, covenants and agreements of the Company and the Investor contained in this
Agreement shall survive the execution and delivery hereof until the termination of this Agreement; provided, however, that (a) the provisions
of Article VII (Termination), Article VIII (Indemnification), Section 9.1 (Fees and Expenses), Section 9.2 (Specific Enforcement, Consent
to Jurisdiction, Waiver of Jury Trial), Section 9.4 (Notices), Section 9.8 (Governing Law), Section 9.11 (Publicity), Section 9.12 (Severability)
and this Section 9.9 (Survival) shall remain in full force and effect notwithstanding such termination, (b) if the Investor owns any
Securities at the time of such termination, the covenants and agreements of the Company and the Investor, as applicable, contained in
Section 5.1(a) (Securities Compliance), Section 5.3 (Compliance with Laws), Section 5.6 (Stop Orders), Section 5.7 (Amendments to the
Registration Statement; Prospectus Supplements; Free Writing Prospectuses), Section 5.8 (Prospectus Delivery), Section 5.10 (Effective
Registration Statement), Section 5.11 (Non-Public Information) and Section 5.12 (Broker/Dealer) shall remain in full force and effect
notwithstanding such termination for a period of six (6) months following such termination, and (c) if the Investor owns any Securities
at the time of such termination, the covenants and agreements of the Company contained in Section 5.2 (Registration and Listing) shall
remain in full force and effect notwithstanding such termination for a period of thirty (30) days following such termination.

 

Section
9.10 Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file, including any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

    	47

     

    

 

Section
9.11 Publicity. The Company shall afford the Investor and its counsel with a reasonable opportunity to review and comment
upon, shall consult with the Investor and its counsel on the form and substance of, and shall give reasonable consideration to all such
comments from the Investor or its counsel on, any press release, Commission filing or any other public disclosure made by or on behalf
of the Company relating to the Investor, its purchases hereunder or any aspect of this Agreement or the transactions contemplated hereby,
prior to the issuance, filing or public disclosure thereof. For the avoidance of doubt, the Company shall not be required to submit for
review any such disclosure (i) contained in periodic reports filed with the Commission under the Exchange Act if it shall have previously
provided substantially similar disclosure to the Investor or its counsel for review in connection with a previous filing or (ii) any
Prospectus Supplement if it contains disclosure that does not reference the Investor, its purchases hereunder or any aspect of this Agreement
or the transactions contemplated hereby.

 

Section
9.12 Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction
shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision or part of a provision of this Agreement, and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal
and enforceable to the maximum extent possible.

 

Section
9.13 No Third Party Beneficiaries. Except as expressly provided in Article VIII, this Agreement is intended only for the benefit
of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof
be enforced by, any other Person.

 

Section
9.14 Further Assurances. From and after the date of this Agreement, upon the request of the Investor or the Company, each
of the Company and the Investor shall execute and deliver such instrument, documents and other writings as may be reasonably necessary
or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

[Signature
Page Follows]

 

    	48

     

    

 

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

 

	 	VERB
    TECHNOLOGY COMPANY, INC.:
	 	 	 
	 	By:	/s/
    Rory J. Cutaia
	 	Name:	Rory
    J. Cutaia
	 	Title:	Chairman
    of the Board, Chief Executive Officer, President and Secretary

 

	 	TUMIM
    STONE CAPITAL, LLC:
	 	 	 
	 	By:	/s/
    Maier J Tarlow
	 	Name:	Maier
    J Tarlow
	 	Title:	Manager
    on behalf of the GP

 

    	49

     

    

 

ANNEX
I TO THE

COMMON STOCK PURCHASE AGREEMENT

DEFINITIONS

 

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

 

“Aggregate
Limit” shall have the meaning assigned to such term in Section 1.1.

 

“Agreement”
shall have the meaning assigned to such term in the Preamble.

 

“Average
Price” means a price per Share (rounded to the nearest tenth of a cent) equal to the quotient obtained by dividing (i) the
aggregate gross purchase price paid by the Investor for all Shares purchased pursuant to this Agreement, by (ii) the aggregate number
of Shares issued pursuant to this Agreement.

 

“Bankruptcy
Law” means Title 11, U.S. Code, or any similar U.S. federal or state law for the relief of debtors.

 

“Base
Prospectus” shall mean the Company’s prospectus, dated April 30, 2020, a preliminary form of which is included in the
Registration Statement, including the documents incorporated by reference therein.

 

“Base
Price” means a price per Share equal to the sum of (i) the Minimum Price and (ii) $0.052 (subject to adjustment for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction that occurs on or after the date of
this Agreement).

 

“Beneficial
Ownership Limitation” shall have the meaning assigned to such term in Section 2.4.

 

“BHCA”
shall have the meaning assigned to such term in Section 4.34.

 

“Bloomberg”
means Bloomberg, L.P.

 

“Broker-Dealer”
shall have the meaning assigned to such term in Section 5.12.

 

“Bylaws”
shall have the meaning assigned to such term in Section 4.3.

 

“Charter”
shall have the meaning assigned to such term in Section 4.3.

 

“Cleansing
Date” shall have the meaning assigned to such term in Section 5.11.

 

“Code”
shall have the meaning assigned to such term in Section 4.24.

 

“Commencement”
shall have the meaning assigned to such term in Section 2.1.

 

“Commencement
Date” shall have the meaning assigned to such term in Section 2.1.

 

    	I-1

     

    

 

“Commission”
means the U.S. Securities and Exchange Commission or any successor entity.

 

“Commission
Documents” shall mean (1) all reports, schedules, registrations, forms, statements, information and other documents filed with
or furnished to the Commission by the Company pursuant to the reporting requirements of the Exchange Act, including all material filed
with or furnished to the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, since December 31, 2020, including,
without limitation, the Annual Report on Form 10-K filed by the Company for its fiscal year ended December 31, 2020 (the “2020
Form 10-K”), and which hereafter shall be filed with or furnished to the Commission by the Company during the Investment Period,
including, without limitation, the Current Report, (2) the Registration Statement, as the same may be amended from time to time, the
Prospectus, each Prospectus Supplement, and each Permitted Free Writing Prospectus and (3) all information contained in such filings
and all documents and disclosures that have been and heretofore shall be incorporated by reference therein.

 

“Commitment
Shares means 607,287 shares of duly authorized, validly issued, fully paid and non-assessable shares of Common Stock which, concurrently
with the execution and delivery of this Agreement on the Commencement Date, the Company has caused its transfer agent to issue and deliver
to the Investor not later than 4:00 p.m. (New York City time) on the Trading Day immediately following the Commencement Date.

 

“Common
Stock” shall have the meaning assigned to such term in the Recitals.

 

“Common
Stock Equivalents” means any securities of the Company or its Subsidiaries which 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.

 

“Company”
shall have the meaning assigned to such term in the Preamble.

 

“Cover
Price” shall have the meaning assigned to such term in Section 2.3.

 

“Current
Report” shall have the meaning assigned to such term in Section 1.4.

 

“Custodian”
shall mean any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Disclosure
Schedule” shall have the meaning assigned to such term in Article IV.

 

“DTC”
means The Depository Trust Company, a subsidiary of The Depository Trust & Clearing Corporation, or any successor thereto.

 

“DWAC”
shall have the meaning assigned to such term in Section 4.28.

 

    	I-2

     

    

 

“DWAC
Shares” means shares of Common Stock issued pursuant to this Agreement that are (i) issued in electronic form, (ii) freely
tradable and transferable and without restriction on resale and without stop transfer instructions maintained against the transfer thereof
and (iii) timely credited by the Company to the Investor’s or its designated Broker-Dealer at which the account or accounts to
be credited with the Securities being purchased or acquired by Investor are maintained specified DWAC account with DTC under its Fast
Automated Securities Transfer (FAST) Program, or any similar program hereafter adopted by DTC performing substantially the same function.

 

“EDGAR”
shall have the meaning assigned to such term in Section 4.3.

 

“Eligible
Market” means the New York Stock Exchange, The Nasdaq Global Market, The Nasdaq Global Select Market, the NYSE American, the
NYSE Arca, or the OTCQX Best Market or OTCQB Venture Market operated by OTC Markets Group Inc. (or any nationally recognized successor
to any of the foregoing).

 

“Environmental
Laws” shall have the meaning assigned to such term in Section 4.17.

 

“ERISA”
shall have the meaning assigned to such term in Section 4.24.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.

 

“Evaluation
Date” shall have the meaning assigned to such term in Section 4.6(c).

 

“Exchange
Cap” shall have the meaning assigned to such term in Section 2.3(a).

 

“Exempt
Issuance” means the issuance of (a) Common Stock, options or other equity incentive awards to employees, officers, directors
or vendors of the Company pursuant to any equity incentive plan duly adopted for such purpose, by the Company’s Board of Directors
or a majority of the members of a committee of the Board of Directors established for such purpose, (b)(1) any Securities issued to the
Investor pursuant to this Agreement, (2) any shares of Common Stock issued upon conversion of the Convertible Note issued in the Note
Financing, (3) any securities issued upon the exercise, exchange or conversion of any shares of Common Stock or Common Stock Equivalents
held by the Investor or any of its Affiliates at any time, or (4) any securities issued upon the exercise, exchange or conversion of
any Common Stock Equivalents issued and outstanding on the date of this Agreement, provided that such securities referred to in this
clause (3) 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, (c) securities issued pursuant to acquisitions, divestitures, licenses,
partnerships, collaborations or strategic transactions approved by the Company’s Board of Directors or a majority of the members
of a committee of directors established for such purpose, which acquisitions, divestitures, licenses, partnerships, collaborations or
strategic transactions can have a Variable Rate Transaction component, provided that any such issuance shall only be to a Person (or
to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an 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, or (d) Common Stock issued by the Company following the Commencement Date having an aggregate
gross purchase price of $30,000,000 by any method deemed to be an “at the market offering” as defined in Rule 415(a)(4) under
the Securities Act, exclusively to or through one or more registered broker-dealers pursuant to a written agreement between the Company
and such registered broker-dealer(s).

 

    	I-3

     

    

 

“FCPA”
shall have the meaning assigned to such term in Section 4.29.

 

“Federal
Reserve” shall have the meaning assigned to such term in Section 4.24

 

“FINRA”
means the Financial Industry Regulatory Authority.

 

“Free
Writing Prospectus” shall mean a “free writing prospectus” as defined in Rule 405 promulgated under the Securities
Act.

 

“Fundamental
Transaction” means that (i) the Company shall, directly or indirectly, in one or more related transactions, (1) consolidate
or merge with or into (whether or not the Company is the surviving corporation) another Person, with the result that the holders of the
Company’s capital stock immediately prior to such consolidation or merger together beneficially own less than 50% of the outstanding
voting power of the surviving or resulting corporation, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of
all or substantially all of the properties or assets of the Company to another Person, or (3) take action to facilitate a purchase, tender
or exchange offer by another Person that is accepted by the holders of more than 50% of the outstanding shares of Common Stock (excluding
any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party
to, such purchase, tender or exchange offer), or (4) consummate 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), or (5) reorganize, recapitalize or reclassify its Common Stock, or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock.

 

“GAAP”
shall have the meaning assigned to such term in Section 4.6(b).

 

“Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal,
state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any
nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing.

 

“Indebtedness”
shall have the meaning assigned to such term in Section 4.11.

 

    	I-4

     

    

 

“Initial
Prospectus Supplement” shall have the meaning assigned to such term in Section 1.4.

 

“Intellectual
Property” shall have the meaning assigned to such term in Section 4.16(b).

 

“Investment
Period” means the period commencing on the Commencement Date and expiring on the date this Agreement is terminated pursuant
to Article VII.

 

“Investor”
shall have the meaning assigned to such term in the Preamble.

 

“Issuer
Free Writing Prospectus” shall mean an “issuer free writing prospectus,” as defined in Rule 433 promulgated under
the Securities Act, relating to the Shares that (i) is required to be filed with the Commission by the Company or (ii) is exempt from
filing pursuant to Rule 433(d)(5)(i) under the Securities Act, in each case, in the form filed or required to be filed with the Commission
or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act.

 

“IT
Systems and Data” shall have the meaning assigned to such term in Section 4.35.

 

“Knowledge”
means the actual knowledge of any of (i) the Company’s Chief Executive Officer, (ii) the Company’s Chief Financial Officer,
(iii) the Company’s Lead Independent Director and (iv) the Company’s General Counsel, in each case after reasonable inquiry
of all officers, directors and employees of the Company and its Subsidiaries under such Person’s direct supervision who would reasonably
be expected to have knowledge or information with respect to the matter in question.

 

“Material
Adverse Effect” means (i) any condition, occurrence, state of facts or event having, or insofar as reasonably can be foreseen
would likely have, any material adverse effect on the legality, validity or enforceability of this Agreement or the transactions contemplated
hereby, (ii) any condition, occurrence, state of facts or event having, or insofar as reasonably can be foreseen would likely have, any
effect on the business, operations, properties or financial condition of the Company that is material and adverse to the Company and
its Subsidiaries, taken as a whole, and/or (iii) any condition, occurrence, state of facts or event that would, or insofar as reasonably
can be foreseen would likely, prohibit or otherwise materially interfere with or delay the ability of the Company to perform any of its
obligations under this Agreement; provided, however, that no facts, circumstances, changes or effects exclusively and directly
resulting from, relating to or arising out of the following, individually or in the aggregate, shall be taken into account in determining
whether a Material Adverse Effect has occurred or insofar as reasonably can be foreseen would likely occur: (a) changes in conditions
in the U.S. or global capital, credit or financial markets generally, including changes in the availability of capital or currency exchange
rates, provided such changes shall not have affected the Company in a materially disproportionate manner as compared to other similarly
situated companies; (b) changes generally affecting the industries in which the Company and its Subsidiaries operate, provided such changes
shall not have affected the Company and its Subsidiaries, taken as a whole, in a materially disproportionate manner as compared to other
similarly situated companies; (c) any effect of the announcement of, or the consummation of the transactions contemplated by, this Agreement
on the Company’s relationships, contractual or otherwise, with customers, suppliers, vendors, bank lenders, strategic venture partners
or employees; (d) changes arising in connection with earthquakes, pandemics, hostilities, acts of war, sabotage or terrorism or military
actions or any escalation or material worsening of any such pandemic, hostilities, acts of war, sabotage or terrorism or military actions
existing as of the date hereof; (e) any action taken by the Investor with respect to the transactions contemplated by this Agreement;
and (f) the effect of any changes in applicable laws or accounting rules, provided such changes shall not have affected the Company in
a materially disproportionate manner as compared to other similarly situated companies.

 

    	I-5

     

    

 

“Material
Agreements” shall have the meaning assigned to such term in Section 4.18.

 

“Minimum
Price” means $1.211, representing the average Nasdaq official closing price of the Common Stock on the Trading Market (as reflected
on Nasdaq.com) for the five (5) consecutive Trading Days ending on the Trading Day immediately preceding the date of this Agreement (subject
to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction
that occurs on or after the date of this Agreement).

 

“Money
Laundering Laws” shall have the meaning assigned to such term in Section 4.30.

 

“Non-Affiliate
Shares” shall have the meaning assigned to such term in Section 4.20(b).

 

“Note
Financing” means the issuance of that certain Convertible Note in an original principal amount of $6,300,000 to be executed
by the Company in favor of the Note Investors, which is convertible into shares of Common Stock on the terms and subject to the conditions
set forth therein, pursuant to that certain Securities Purchase Agreement to be entered into by and between Company and the Note Investors,
that certain Security Agreement to be entered into by and between Company and the Note Investors, and the other agreements and documents
to be entered into by the Company in connection therewith.

 

“Note
Investors” means 3i, LP, BPY Limited and Nomis Bay, Ltd.

 

“Permits”
shall have the meaning assigned to such term in Section 4.16(a).

 

“Permitted
Free Writing Prospectus” shall have the meaning assigned to such term in Section 5.7(b).

 

“Person”
means any person or entity, whether a natural person, trustee, corporation, partnership, limited partnership, limited liability company,
trust, unincorporated organization, business association, firm, joint venture, governmental agency or authority.

 

“Policies”
shall have the meaning assigned to such term in Section 4.36.

 

“Privacy
Laws” shall have the meaning assigned to such term in Section 4.36.

 

“Prospectus”
shall mean the Base Prospectus, as supplemented by any Prospectus Supplement, including the documents incorporated by reference therein,
together with any Permitted Free Writing Prospectus.

 

    	I-6

     

    

 

“Prospectus
Supplement” shall mean any prospectus supplement to the Base Prospectus (including the Initial Prospectus Supplement) filed
with the Commission pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein.

 

“Registration
Period” shall have the meaning assigned to such term in Section 5.10.

 

“Registration
Statement” shall mean the registration statement on Form S-3, Commission File Number 333-252167, filed by the Company with
the Commission under the Securities Act for the registration of the Securities, as such Registration Statement may be amended and supplemented
from time to time (including any related registration statement to register additional shares of Common Stock filed by the Company pursuant
to Rule 462(b) under the Securities Act), including all documents filed as part thereof or incorporated by reference therein, and including
all information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430B under the Securities Act, including any
comparable successor registration statement filed by the Company with the Commission under the Securities Act for the registration of
shares of its Common Stock, including the Shares.

 

“Representation
Date” shall have the meaning assigned to such term in Section 6.3(l).

 

“Restricted
Period” shall have the meaning assigned to such term in Section 5.9.

 

“Restricted
Person” shall have the meaning assigned to such term in Section 5.9.

 

“Restricted
Persons” shall have the meaning assigned to such term in Section 5.9.

 

“Securities”
shall mean, collectively, the Shares and the Commitment Shares.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder.

 

“Shares”
shall mean the shares of Common Stock that are and/or may be purchased by the Investor under this Agreement pursuant to one or more VWAP
Purchase Notices, but not including the Commitment Shares.

 

“Short
Sales” means “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act.

 

“SOXA”
shall have the meaning assigned to such term in Section 4.6(c).

 

“Subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other Persons performing similar functions are at the time
owned directly or indirectly by the Company and/or any of its other Subsidiaries.

 

“Total
Commitment” shall have the meaning assigned to such term in Section 1.1.

 

    	I-7

     

    

 

“Trading
Day” shall mean a full trading day, beginning at 9:30:01 a.m., New York time, or such other time publicly announced by the
Trading Market (or if the Common Stock is listed on an Eligible Market, by such Eligible Market), as the official open (or commencement)
of trading on the Trading Market (or on such Eligible Market), and ending at 4:00:00 p.m., New York time, or such other time publicly
announced by the Trading Market (or if the Common Stock is listed on an Eligible Market, by such Eligible Market), as the official close
of trading on the Trading Market (or on such Eligible Market).

 

“Trading
Market” means The Nasdaq Capital Market (or any nationally recognized successor thereto).

 

“Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any equity or debt securities that are convertible
into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock or Common Stock Equivalents
either (A) at a conversion price, exercise price, exchange rate or other price that is based upon and/or varies with the trading prices
of or quotations for the Common Stock at any time after the initial issuance of such equity or debt securities, or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such equity or debt security
or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market
for the Common Stock (including, without limitation, any “full ratchet” or “weighted average” anti-dilution provisions,
but not including any standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock split or other
similar transaction), (ii) issues or sells any equity or debt securities, including without limitation, Common Stock or Common Stock
Equivalents, either (A) at a price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the
market for the Common Stock (other than standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend,
stock split or other similar transaction), or (B) that are subject to or contain any put, call, redemption, buy-back, price-reset or
other similar provision or mechanism (including, without limitation, a “Black-Scholes” put or call right, other than in connection
with a “fundamental transaction”) that provides for the issuance of additional equity securities of the Company or the payment
of cash by the Company, or (iii) enters into any agreement, including, but not limited to, an “equity line of credit” (other
than with the Investor or an Affiliate of the Investor) or “at the market offering” or other continuous offering or similar
offering of Common Stock or Common Stock Equivalents, whereby the Company may sell Common Stock or Common Stock Equivalents at a future
determined price.

 

“VWAP”
means, for the Common Stock as of any date, the dollar volume-weighted average price for the Common Stock on the Trading Market during
the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00 p.m., New York City time, as reported by Bloomberg through
its “AQR” function or, if the foregoing does not apply, the dollar volume-weighted average price of the Common Stock in the
over-the-counter market on the electronic bulletin board for the Common Stock during the period beginning at 9:30:01 a.m., New York City
time, and ending at 4:00 p.m., New York City time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported
for the Common Stock by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any
of the market makers for such security as reported by OTC Markets Group Inc. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.

 

    	I-8

     

    

 

“VWAP
Purchase” shall have the meaning assigned to such term in Section 2.1.

 

“VWAP
Purchase Commencement Time” means, with respect to a VWAP Purchase made pursuant to Section 2.1, 9:30:01 a.m., New York City
time, on the Trading Day immediately following the applicable VWAP Purchase Exercise Date, or such other time publicly announced by the
Trading Market as the official open (or commencement) of trading on the Trading Market on such Trading Day.

 

“VWAP
Purchase Condition Satisfaction Time” means, with respect to any VWAP Purchase made pursuant to Section 2.1, 9:00 a.m., New
York City time, on the Trading Day immediately following the applicable VWAP Purchase Exercise Date on which the VWAP Purchase Commencement
Time for such VWAP Purchase shall occur.

 

“VWAP
Purchase Confirmation” shall have the meaning assigned to such term in Section 2.1.

 

“VWAP
Purchase Exercise Date” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the Trading Day on which the Investor
receives, after 4:00 p.m., New York City time, but prior to 6:30 p.m., New York City time, on such Trading Day, a valid VWAP Purchase
Notice for such VWAP Purchase in accordance with this Agreement.

 

“VWAP
Purchase Maximum Amount” means, with respect to a VWAP Purchase made pursuant to Section 2.1, a number of shares of Common
Stock equal to the lesser of (i) 100% of the average daily trading volume in the Common Stock on the Trading Market for the five (5)
consecutive Trading Day period ending on (and including) the Trading Day immediately preceding the applicable VWAP Purchase Exercise
Date for such VWAP Purchase (or, in the event the Common Stock is then listed on an Eligible Market, the average daily trading volume
in the Common Stock on such Eligible Market during such period) and (ii) 20% of the daily trading volume in the Common Stock on the Trading
Market (or Eligible Market, as applicable) on the applicable VWAP Purchase Exercise Date for such VWAP Purchase (in each case to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction during
the applicable period); provided, however, that the Investor’s maximum financial commitment in any single VWAP Purchase
shall not exceed $25,000,000.

 

“VWAP
Purchase Notice” means, with respect to a VWAP Purchase made pursuant to Section 2.1, an irrevocable written notice delivered
by the Company to the Investor on a VWAP Purchase Exercise Date directing the Investor to purchase a VWAP Purchase Share Amount (such
specified VWAP Purchase Share Amount subject to adjustment as set forth in Section 2.1 as necessary to give effect to the VWAP Purchase
Maximum Amount), at the applicable VWAP Purchase Price therefor in accordance with this Agreement.

 

    	I-9

     

    

 

“VWAP
Purchase Price” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the purchase price per Share to be purchased
by the Investor in such VWAP Purchase equal to ninety-four percent (94%) of the lowest daily VWAP during the applicable VWAP Purchase
Valuation Period for such VWAP Purchase (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock
split, reverse stock split or other similar transaction during the applicable period).

 

“VWAP
Purchase Settlement Date” shall have the meaning assigned to such term in Section 2.1.

 

“VWAP
Purchase Share Amount” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the number of Shares to be purchased
by the Investor in such VWAP Purchase as specified by the Company in the applicable VWAP Purchase Notice, which number of Shares shall
not exceed the applicable VWAP Purchase Maximum Amount.

 

“VWAP
Purchase Termination Time” means, with respect to a VWAP Purchase made pursuant to Section 2.1, 4:00:00 p.m., New York City
time, on the third (3rd) consecutive Trading Day immediately following the applicable VWAP Purchase Exercise Date, or such
other time publicly announced by the Trading Market as the official close of trading on the Trading Market on such third (3rd)
consecutive Trading Day immediately following the applicable VWAP Purchase Exercise Date.

 

“VWAP
Purchase Valuation Period” means, with respect to a VWAP Purchase made pursuant to Section 2.1, the three (3) consecutive Trading-Day
Period immediately following the applicable VWAP Purchase Exercise Date for such VWAP Purchase, beginning at the VWAP Purchase Commencement
Time for such VWAP Purchase and ending at the applicable VWAP Purchase Termination Time for such VWAP Purchase.

 

    	I-10Exhibit
10.2

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of January 12, 2022, is by and among VERB Technology
Company, Inc., a Nevada corporation with offices located at 782 S. Auto Mall Drive, American Fork, Utah (the “Company”),
and each of the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively,
the “Buyers”).

 

RECITALS

 

A.
The Company and each Buyer are executing and delivering this Agreement pursuant to a currently effective shelf registration statement
on Form S-3, which has at least $6,300,000 of unallocated securities, including Common Stock (as defined below) and warrants to purchase
Common Stock registered thereunder (Registration Number 333-242167) (the “Registration Statement”), which Registration
Statement has been declared effective in accordance with the 1933 Act by the SEC

 

B.
The Company has authorized a new series of senior secured convertible notes of the Company, in the aggregate original principal amount
of $6,300,000, substantially in the form attached hereto as Exhibit A (the “Notes”), which Notes shall
be convertible into shares of Common Stock (as defined below).

 

C.
Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, a Note in the
aggregate original principal amount set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers (each, an “Note”,
and collectively, the “Notes”) (the shares of Common Stock issuable pursuant to the terms of the Notes collectively,
the “Conversion Shares”).

 

D.
At the Closing, the parties hereto shall execute and deliver a Security Agreement, in the form attached hereto as Exhibit B
(the “Security Agreement”), pursuant to which the Company has agreed to provide a first priority perfected lien (subject
to the Permitted Liens) in all of its assets to the Buyers.

 

E.
The Notes and the Conversion Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

 

	1.	PURCHASE
    AND SALE OF NOTES.

 

(a)
Purchase of Notes.

 

(i)
Closing. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(a) and 7(a) below, the Company shall
issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date (as
defined below) a Note in the original principal amount as is set forth opposite such Buyer’s name in column (3) on the Schedule
of Buyers (the “Closing”).

 

    	 

     

    

 

(b)
Closing. The Closing shall take place electronically. The date and time of the Closing (the “Closing Date”)
shall be 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to the Closing set forth in Sections 6(a)
and 7(a) below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer). As used herein “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
are open for use by customers on such day.

 

(c)
Purchase Price. The aggregate purchase price for the Notes to be purchased by each Buyer (the “Purchase Price”)
shall be the amount set forth opposite such Buyer’s name in column (5) on the Schedule of Buyers. The aggregate purchase price
for the Notes to be purchased by each Buyer shall be $1.00 for each $1.050 of original principal amount of the Note to be purchased by
such Buyer at the Closing (such aggregate amount for such Buyer, the “Purchase Price”).

 

(d)
Form of Payment. On the Closing Date, (i) each Buyer shall pay its respective Purchase Price (less, in the case of any Buyer,
the amounts withheld pursuant to Section 4(g)) to the Company for the Notes to be issued and sold to such Buyer at the Closing, by wire
transfer of immediately available funds in accordance with the Flow of Funds Letter (as defined below) and (ii) the Company shall deliver
to each Buyer (A) an Note in the aggregate original principal amount as is set forth opposite such Buyer’s name in column (3) of
the Schedule of Buyers.

 

	2.	BUYER’S
    REPRESENTATIONS AND WARRANTIES.

 

Each
Buyer, severally and not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and
as of the Closing Date:

 

(a)
Organization; Authority. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
No Public Sale or Distribution. Such Buyer (i) is acquiring its Note, and (ii) upon conversion of its Note will acquire the Conversion
Shares issuable upon conversion thereof for its own account and not with a view towards, or for resale in connection with, the public
sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933
Act; provided, however, by making the representations herein, such Buyer does not agree, or make any representation or warranty, to hold
any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance
with or pursuant to a registration statement or an exemption from registration under the 1933 Act. Such Buyer does not presently have
any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable
securities laws. For purposes of this Agreement, “Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental Entity or any department
or agency thereof.

 

(c)
Accredited Investor Status. Such Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation
D.

 

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

 

(e)
Information. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such
Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other
due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such
Buyer’s right to rely on the Company’s representations and warranties contained herein. Such Buyer understands that its investment
in the Securities involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities.

 

(f)
No Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(g)
Intentionally Omitted.

 

    	 

     

    

 

(h)
Validity; Enforcement. This Agreement and the Security Agreement have been duly and validly authorized, executed and delivered
on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in
accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.

 

(i)
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the Security Agreement and the consummation
by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents
of such Buyer, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse effect
on the ability of such Buyer to perform its obligations hereunder.

 

	3.	REPRESENTATIONS
    AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to each of the Buyers that, as of the date hereof and as of the Closing Date:

 

(a)
Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly existing
and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their
properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each
of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership
of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to
be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used
in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets,
liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary,
individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other
agreements or instruments to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or
any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents (as defined below). Other
than the Persons (as defined below) set forth on Schedule 3(a), the Company has no Subsidiaries. “Subsidiaries” means
any Person in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar
interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and
each of the foregoing, is individually referred to herein as a “Subsidiary.”

 

    	 

     

    

 

(b)
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof.
Each Subsidiary has the requisite power and authority to enter into and perform its obligations under the Transaction Documents to which
it is a party. The execution and delivery of this Agreement and the other Transaction Documents by the Company and its Subsidiaries,
and the consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Notes and the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Notes)
have been duly authorized by the Company’s board of directors and each of its Subsidiaries’ board of directors or other governing
body, as applicable, and (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements
of the Registration Rights Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies)
no further filing, consent or authorization is required by the Company, its Subsidiaries, their respective boards of directors or their
shareholders or other governing body. This Agreement has been, and the other Transaction Documents to which it is a party will be prior
to the Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be
limited by federal or state securities law. Prior to the Closing, the Transaction Documents to which each Subsidiary is a party will
be duly executed and delivered by each such Subsidiary, and shall constitute the legal, valid and binding obligations of each such Subsidiary,
enforceable against each such Subsidiary in accordance with their respective terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution
may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement, the
Notes, the Security Documents , the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements and instruments
entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be
amended from time to time.

 

    	 

     

    

 

(a)
(c) Issuance of Securities. The issuance of the Notes are duly authorized and upon issuance in accordance with the terms of the
Transaction Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages,
defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively
“Liens”) with respect to the issuance thereof. As of the Closing, the Company shall have reserved from its duly authorized
capital stock not less than the sum of (i) 200% of the maximum number of Conversion Shares issuable upon conversion of the Notes (assuming
for purposes hereof that (x) the Notes are convertible at the Alternate Conversion Price (as defined in the Notes) assuming an Alternate
Conversion Price (as defined in the Notes) as of the date hereof, and (y) any such conversion shall not take into account any limitations
on the conversion of the Notes set forth in the Notes) and the Conversion Shares, when issued, will be validly issued, fully paid and
nonassessable and free from all preemptive or similar rights or Liens with respect to the issue thereof, with the holders being entitled
to all rights accorded to a holder of Common Stock. The issuance by the Company of the Notes and Conversion Shares (“RD Securities”)
has been registered under the 1933 Act, the RD Securities are being issued pursuant to the Registration Statement and all of the RD Securities
are freely transferable and freely tradable by each of the Buyers without restriction, whether by way of registration or some exemption
therefrom. The Registration Statement is effective and available for the issuance of the RD Securities thereunder and the Company has
not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration Statement or that the
SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends
or has threatened in writing to do so. The “Plan of Distribution” section under the Registration Statement (including the
Prospectus Supplement) permits the issuance and sale of the RD Securities hereunder and as contemplated by the other Transaction Documents.
Upon receipt of the RD Securities, each of the Buyers will have acquire ownership of the RD Securities free of any adverse claim. The
Registration Statement and any prospectus included therein, including the Prospectus and the Prospectus Supplement, complied in all material
respects with the requirements of the 1933 Act, and the documents incorporated by reference into the Registration Statement when filed,
complied in all material respects with the requirements of the 1934 Act and, in each case, with the rules and regulations of the SEC
promulgated under the 1933 Act or the 1934 Act, as the case may be. At the time the Registration Statement and any amendments thereto
became effective the Registration Statement and any amendments thereto complied and, upon the filing of the Prospectus Supplement after
the date of this Agreement the Registration Statement will comply. in all material respects with the requirements of the 1933 Act and
did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading. The Prospectus and any amendments or supplements thereto, at the time the
Prospectus or any amendment or supplement thereto was issued and the Prospectus Supplement at the Closing Date, complied and will comply,
as the case may be, in all material respects with the requirements of the 1933 Act and did not, and will not, contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The Company meets all of the requirements of General Instruction I.B.6 for the use of Form
S-3 under the 1933 Act for the offering and sale of the RD Securities contemplated by this Agreement and the other Transaction Documents,
and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1)
under the 1933 Act. The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x) under the 1933 Act. The Company
(i) has not distributed any offering material in connection with the offer or sale of any of the RD Securities and (ii) until no Buyer
holds any of the RD Securities, shall not distribute any offering material in connection with the offer or sale of any of the RD Securities
to, or by, any of the Buyers (if required), in each case, other than the Registration Statement, the Prospectus or the Prospectus Supplement.
In accordance with Rule 5110(b)(7)(C)(i) of the Financial Industry Regulatory Authority Manual, the offering of the Securities has been
registered with the SEC on Form S-3 under the 1933 Act pursuant to the standards for Form S-3 in effect prior to October 21, 1992, and
the RD Securities are being offered pursuant to Rule 415 promulgated under the 1933 Act. The Company is eligible to register the issuance
of the RD Securities by the Company using Form S-3 promulgated under the 1933 Act. The Company is eligible to register the Registrable
Securities (as defined in the Registration Rights Agreement) for resale by the Buyers using Form S-3 promulgated under the 1933 Act.

 

    	 

     

    

 

(d)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries and the
consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Notes and the Conversion Shares and the reservation for issuance of the Conversion Shares) will not (i) result in
a violation of the Articles of Incorporation (as defined below) (including, without limitation, any certificate of designation contained
therein), Bylaws (as defined below), certificate of formation, memorandum of association, articles of association, bylaws or other organizational
documents of the Company or any of its Subsidiaries, or any capital stock or other securities of the Company or any of its Subsidiaries,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules and regulations of
the Nasdaq Capital Markets (the “Principal Market”) and including all applicable foreign, federal and state laws,
rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of
its Subsidiaries is bound or affected.

 

(e)
Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any
filing or registration with any Governmental Entity (as defined below) or any regulatory or self-regulatory agency or any other Person
in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Transaction Documents,
in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the
Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior
to the Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent
the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the
Transaction Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts
or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. “Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal,
state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any
nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing.

 

    	 

     

    

 

(f)
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate”
(as defined in Rule 144) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more
than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the
“1934 Act”)). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the
Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities. The Company
further represents to each Buyer that the Company’s and each Subsidiary’s decision to enter into the Transaction Documents
to which it is a party has been based solely on the independent evaluation by the Company, each Subsidiary and their respective representatives.

 

(g)
No General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor any
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of any placement agent’s
fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by any Buyer or its investment advisor)
relating to or arising out of the transactions contemplated hereby, including, without limitation, placement agent fees payable to Alliance
Global Partners, as placement agent (the “Placement Agent”) in connection with the sale of the Securities. The fees
and expenses of the Placement Agent to be paid by the Company or any of its Subsidiaries are as set forth on Schedule 3(g) attached hereto.
The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, attorney’s
fees and out-of-pocket expenses) arising in connection with any such claim. The Company acknowledges that it has engaged the Placement
Agent in connection with the sale of the Securities. Other than the Placement Agent, neither the Company nor any of its Subsidiaries
has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

 

(h)
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on 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 require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior offerings
or otherwise, or cause this offering of the Securities to require approval of shareholders of the Company for purposes of the 1933 Act
or under any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange
or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company,
its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would require registration
of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated with other
offerings of securities of the Company.

 

    	 

     

    

 

(i)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares will increase in certain circumstances.
The Company further acknowledges that its obligation to issue the Conversion Shares pursuant to the terms of the Notes in accordance
with this Agreement and the Notes in accordance with this Agreement, is absolute and unconditional regardless of the dilutive effect
that such issuance may have on the ownership interests of other shareholders of the Company.

 

(j)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, interested shareholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement), shareholder rights plan or other similar anti-takeover provision under
the Articles of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without limitation,
the Company’s issuance of the Securities and any Buyer’s ownership of the Securities. The Company and its board of directors
have taken all necessary action, if any, in order to render inapplicable any shareholder rights plan or similar arrangement relating
to accumulations of beneficial ownership of shares of Common Stock or a change in control of the Company or any of its Subsidiaries.

 

(k)
SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all reports,
schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and
financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the
“SEC Documents”). The Company has delivered or has made available to the Buyers or their respective representatives
true, correct and complete copies of each of the SEC Documents not available on the EDGAR system. As of their respective dates, the SEC
Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated
thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, 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. As of their respective dates, the financial statements
of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared
in accordance with generally accepted accounting principles (“GAAP”), consistently applied, during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or
in the aggregate). The reserves, if any, established by the Company or the lack of reserves, if applicable, are reasonable based upon
facts and circumstances known by the Company on the date hereof and there are no loss contingencies that are required to be accrued by
the Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by the Company
in its financial statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers which is
not included in the SEC Documents (including, without limitation, information referred to in Section 2(e) of this Agreement or in the
disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary
in order to make the statements therein not misleading, in the light of the circumstance under which they are or were made. The Company
is not currently contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any letter
of the independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial Statements”),
nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial
Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of
the SEC. The Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of
the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

 

    	 

     

    

 

(l)
Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in a Form
10-K, there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries. Since
the date of the Company’s most recent audited financial statements contained in a Form 10-K, neither the Company nor any of its
Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside of the ordinary
course of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary course of business.
Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy,
insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason
to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any
fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis, are
not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent
(as defined below). For purposes of this Section 3(l), “Insolvent” means, (i) with respect to the Company and its
Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company’s and its Subsidiaries’ assets
is less than the amount required to pay the Company’s and its Subsidiaries’ total Indebtedness (as defined below), (B) the
Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or believe that they will incur debts
that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each Subsidiary, individually,
(A) the present fair saleable value of the Company’s or such Subsidiary’s (as the case may be) assets is less than the amount
required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable to pay its respective
debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company
or such Subsidiary (as the case may be) intends to incur or believes that it will incur debts that would be beyond its respective ability
to pay as such debts mature. Neither the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is
not about to engage in any business or in any transaction, for which the Company’s or such Subsidiary’s remaining assets
constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and
is proposed to be conducted.

 

    	 

     

    

 

(m)
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has occurred
or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective
businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i)
would be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with
the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced, (ii) could have
a material adverse effect on any Buyer’s investment hereunder or (iii) could have a Material Adverse Effect.

 

(n)
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in
default under its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of
preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation, memorandum
of association, articles of association, Articles of Incorporation or certificate of incorporation or bylaws, respectively. Neither the
Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable
to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation
of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate, have a Material
Adverse Effect. Without limiting the generality of the foregoing, the Company is not in violation of any of the rules, regulations or
requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension
of the Common Stock by the Principal Market in the foreseeable future. During the two years prior to the date hereof, (i) the Common
Stock has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by
the SEC or the Principal Market and (iii) the Company has received no communication, written or oral, from the SEC or the Principal Market
regarding the suspension or delisting of the Common Stock from the Principal Market. The Company and each of its Subsidiaries possess
all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses,
except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a
Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation
or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction, order or decree
binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which has or would
reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries,
any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries
as currently conducted other than such effects, individually or in the aggregate, which have not had and would not reasonably be expected
to have a Material Adverse Effect on the Company or any of its Subsidiaries.

 

    	 

     

    

 

(o)
Foreign Corrupt Practices. Neither the Company, the Company’s subsidiary or any director, officer, agent, employee, nor
any other person acting for or on behalf of the foregoing (individually and collectively, a “Company Affiliate”) have
violated the U.S. Foreign Corrupt Practices Act (the “FCPA”) or any other applicable anti-bribery or anti-corruption
laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised
to give, or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for
any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively,
a “Government Official”) or to any person under circumstances where such Company Affiliate knew or was aware of a
high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to
any Government Official, for the purpose of:

 

(i)
(A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official to
do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official
to influence or affect any act or decision of any Governmental Entity, or

 

(ii)
assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its
Subsidiaries.

 

(p)
Sarbanes-Oxley Act. The Company and each Subsidiary is in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder.

 

(q)
Transactions With Affiliates. No current or former employee, partner, director, officer or shareholder (direct or indirect) of
the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof, or any relative
with a relationship no more remote than first cousin of any of the foregoing, is presently, or has ever been, (i) a party to any transaction
with the Company or its Subsidiaries (including any contract, agreement or other arrangement providing for the furnishing of services
by, or rental of real or personal property from, or otherwise requiring payments to, any such director, officer or shareholder or such
associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees, officers or directors of the Company
or any of its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation, firm, association or business organization
which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect)
in less than 5% of the common stock of a company whose securities are traded on or quoted through an Eligible Market (as defined in the
Notes)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates to the business
of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee, officer, shareholder or
director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company or its Subsidiaries,
as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or extend or guarantee credit)
to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf
of the Company, and (iii) for other standard employee benefits made generally available to all employees or executives (including stock
option agreements outstanding under any stock option plan approved by the Board of Directors of the Company).

 

    	 

     

    

 

(r)
Equity Capitalization.

 

(i)
Definitions:

 

(A)
“Common Stock” means (x) the Company’s shares of common stock, $0.0001 par value per share, and (y) any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(B)
“Preferred Stock” means (x) the Company’s blank check preferred stock, $0.0001 par value per share, the terms
of which may be designated by the board of directors of the Company in a certificate of designations and (y) any capital stock into which
such preferred stock shall have been changed or any share capital resulting from a reclassification of such preferred stock (other than
a conversion of such preferred stock into Common Stock in accordance with the terms of such certificate of designations).

 

(i)
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists of (A) shares
of Common Stock, of which, are issued and outstanding and no shares are reserved for issuance pursuant to Convertible Securities (as
defined below) (other than the Notes) exercisable or exchangeable for, or convertible into, shares of Common Stock and (B) [shares of
Preferred Stock, none of which are issued and outstanding]. shares of Common Stock are held in the treasury of the Company. No shares
of Common Stock are held in the treasury of the Company. “Convertible Securities” means any capital stock or other
security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible
into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock or other security
of the Company (including, without limitation, Common Stock) or any of its Subsidiaries; provided that (1) any warrants issued by the
Company in connection with a securities purchase agreement dated on or about August 14, 2019 and (2) the Company’s publicly traded
warrants trading under the symbol “VERBW” shall be excluded from the definition of “Convertible Securities.”
..

 

(ii)
Valid Issuance; Available Shares; Affiliates. All of such outstanding shares are duly authorized and have been, or upon issuance
will be, validly issued and are fully paid and nonassessable. Schedule 3(r)(iii) sets forth the number of shares of Common Stock
that are (A) reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Notes) and (B) that are, as
of the date hereof, owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on
the assumption that only officers, directors and holders of at least 10% of the Company’s issued and outstanding Common Stock are
“affiliates” without conceding that any such Persons are “affiliates” for purposes of federal securities laws)
of the Company or any of its Subsidiaries. To the Company’s knowledge, no Person owns 10% or more of the Company’s issued
and outstanding shares of Common Stock (calculated based on the assumption that all Convertible Securities (as defined below), whether
or not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations
on exercise or conversion (including “blockers”) contained therein without conceding that such identified Person is a 10%
shareholder for purposes of federal securities laws).

 

    	 

     

    

 

(iv)
Existing Securities; Obligations. (A) none of the Company’s or any Subsidiary’s shares, interests or capital stock
is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) other
than any warrants issued by the Company in connection with a securities purchase agreement dated on or about August 14, 2019, (2) the
Company’s publicly traded warrants trading under the symbol “VERBW” and (3) any options issued by the Company under
its employee stock plan, there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital
stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any
of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries;
(C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any
of their securities under the 1933 Act; (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E) there
are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities;
and (F) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or
any similar plan or agreement.

 

(v)
Organizational Documents. The Company has furnished to the Buyers true, correct and complete copies of the Company’s Articles
of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s
bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all Convertible Securities
and the material rights of the holders thereof in respect thereto.

 

(s)
Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed on Schedule 3(s)
has any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing
Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii)
is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such
contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (iv) is in violation of any term
of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults
would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument
relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a
Material Adverse Effect. Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed
in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s
or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse
Effect. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness
for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including,
without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course
of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds
and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations
so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under
any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets
acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the
event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement
which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness
referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person,
even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and
(H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G)
above; and (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent
of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that
such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such
liability will be protected (in whole or in part) against loss with respect thereto.

 

    	 

     

    

 

(t)
Litigation. There is no action, suit, arbitration, proceeding, inquiry or investigation before or by the Principal Market, any
court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened
against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’
officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule
3(t). No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged
in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or
any current or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act. After reasonable
inquiry of its employees, the Company is not aware of any fact which might result in or form the basis for any such action, suit, arbitration,
investigation, inquiry or other proceeding. Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment,
injunction, decree, determination or award of any Governmental Entity.

 

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

 

(v)
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs
any member of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No executive officer
(as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified
the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such
officer’s employment with the Company or any such Subsidiary. No executive officer or other key employee of the Company or any
of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and
the continued employment of each such executive officer or other key employee (as the case may be) 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 federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms
and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

(w)
Title.

 

(i)
Real Property. Each of the Company and its Subsidiaries holds good title to all real property, leases in real property, facilities
or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real Property”)
owned by the Company or any of its Subsidiaries (as applicable). The Real Property is free and clear of all Liens and is not subject
to any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for (a) Liens
for current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of
the property subject thereto. Any Real Property held under lease by the Company or any of its Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be
made of such property and buildings by the Company or any of its Subsidiaries.

 

    	 

     

    

 

(ii)
Fixtures and Equipment. Each of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold interest
in, the tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances that are used by
the Company or its Subsidiary in connection with the conduct of its business (the “Fixtures and Equipment”). The Fixtures
and Equipment are structurally sound, are in good operating condition and repair, are adequate for the uses to which they are being put,
are not in need of maintenance or repairs except for ordinary, routine maintenance and repairs and are sufficient for the conduct of
the Company’s and/or its Subsidiaries’ businesses (as applicable) in the manner as conducted prior to the Closing. Each of
the Company and its Subsidiaries owns all of its Fixtures and Equipment free and clear of all Liens except for (a) liens for current
taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of the property
subject thereto.

 

(x)
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now
conducted and presently proposed to be conducted. Each of patents owned by the Company or any of its Subsidiaries is listed on Schedule
3(x)(i). Except as set forth in Schedule 3(x)(ii), none of the Company’s Intellectual Property Rights have expired or terminated
or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this
Agreement. The Company does not have any knowledge of any infringement by the Company or its Subsidiaries of Intellectual Property Rights
of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries,
being threatened, against the Company or any of its Subsidiaries regarding its Intellectual Property Rights. Neither the Company nor
any of its Subsidiaries is aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims,
actions or proceedings. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their Intellectual Property Rights.

 

(y)
Environmental Laws. (i) The Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined
below), (B) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in each
of the foregoing clauses (A), (B) and (C), the failure to so comply could be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, 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.

 

    	 

     

    

 

(ii)
No Hazardous Materials:

 

(A)
have been disposed of or otherwise released from any Real Property of the Company or any of its Subsidiaries in violation of any Environmental
Laws; or

 

(B)
are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation of
any Environmental Laws. No prior use by the Company or any of its Subsidiaries of any Real Property has occurred that violates any Environmental
Laws, which violation would have a material adverse effect on the business of the Company or any of its Subsidiaries.

 

(iii)
Neither the Company nor any of its Subsidiaries knows of any other person who or entity which has stored, treated, recycled, disposed
of or otherwise located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and
polychlorinated biphenyls.

 

(iv)
None of the Real Properties are on any federal or state “Superfund” list or Liability Information System (“CERCLIS”)
list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens.

 

(z)
Subsidiary Rights. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed
by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such
Subsidiary.

 

(aa)
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations,
except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries know of no
basis for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined
in Section 1297 of the Internal Revenue Code of 1986, as amended (the “Code”). The net operating loss carryforwards
(“NOLs”) for United States federal income tax purposes of the consolidated group of which the Company is the common
parent, if any, shall not be adversely affected by the transactions contemplated hereby. The transactions contemplated hereby do not
constitute an “ownership change” within the meaning of Section 382 of the Code, thereby preserving the Company’s ability
to utilize such NOLs.

 

    	 

     

    

 

(bb)
Internal Accounting and Disclosure Controls. The Company and each of its Subsidiaries maintains internal control over financial
reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles, including 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 and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with
management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with
the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company
maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring
that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed,
summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls
and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under
the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers
and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Neither the
Company nor any of its Subsidiaries has received any notice or correspondence from any accountant, Governmental Entity or other Person
relating to any potential material weakness or significant deficiency in any part of the internal controls over financial reporting of
the Company or any of its Subsidiaries.

 

(cc)
Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any of its
Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act
filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

(dd)
Investment Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment
company,” an affiliate of an “investment company,” a company controlled by an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”
as such terms are defined in the Investment Company Act of 1940, as amended.

 

    	 

     

    

 

(ee)
Acknowledgement Regarding Buyers’ Trading Activity. It is understood and acknowledged by the Company that (i) following
the public disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, none of the
Buyers have been asked by the Company or any of its Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its Subsidiaries,
to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short)
any securities of the Company, or “derivative” securities based on securities issued by the Company or to hold any of the
Securities for any specified term ;(ii) any Buyer, and counterparties in “derivative” transactions to which any such Buyer
is a party, directly or indirectly, presently may have a “short” position in the Common Stock which was established prior
to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; (iii) each Buyer shall not be deemed to
have any affiliation with or control over any arm’s length counterparty in any “derivative” transaction; and (iv) each
Buyer may rely on the Company’s obligation to timely deliver shares of Common Stock upon conversion, exercise or exchange, as applicable,
of the Securities as and when required pursuant to the Transaction Documents for purposes of effecting trading in the Common Stock of
the Company. The Company further understands and acknowledges that following the public disclosure of the transactions contemplated by
the Transaction Documents pursuant to the Press Release and/or, the 8-K Filing, as applicable, one or more Buyers may engage in hedging
and/or trading activities (including, without limitation, the location and/or reservation of borrowable shares of Common Stock) at various
times during the period that the Securities are outstanding, including, without limitation, during the periods that the value and/or
number of the Conversion Shares, as applicable, deliverable with respect to the Securities are being determined and such hedging and/or
trading activities (including, without limitation, the location and/or reservation of borrowable shares of Common Stock), if any, can
reduce the value of the existing shareholders’ equity interest in the Company both at and after the time the hedging and/or trading
activities are being conducted. The Company acknowledges that such aforementioned hedging and/or trading activities do not constitute
a breach of this Agreement, the Notes or any other Transaction Document or any of the documents executed in connection herewith or therewith.

 

(ff)
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting
on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation
of the price of any security of the Company or any of its Subsidiaries 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 (other than the Placement Agent),
(iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company or
any of its Subsidiaries or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company
or any of its Subsidiaries.

 

(gg)
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so long as any
of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of Section
897 of the Code, and the Company and each Subsidiary shall so certify upon any Buyer’s request.

 

(hh)
Registration Eligibility. The Company is eligible to register the Registrable Securities (defined as all securities of the Company
to be issued and issuable hereunder) for resale by the Buyers using Form S-3 promulgated under the 1933 Act.

 

    	 

     

    

 

(ii)
Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required
to be paid in connection with the issuance, sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have
been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

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

 

(kk)
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

(ll)
Illegal or Unauthorized Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the best of
the Company’s knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents
or other representatives of the Company or any of its Subsidiaries or any other business entity or enterprise with which the Company
or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution
or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person
or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal
political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

 

(mm)
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot Act
of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the laws,
regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, but not
limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR,
Subtitle B, Chapter V.

 

(nn)
Management. Except as set forth in Schedule 3(nn) hereto, during the past five year period, no current or former officer
or director or, to the knowledge of the Company, no current ten percent (10%) or greater shareholder of the Company or any of its Subsidiaries
has been the subject of:

 

(i)
a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent
or similar officer for such Person, or any partnership in which such person was a general partner at or within two years before the filing
of such petition or such appointment, or any corporation or business association of which such person was an executive officer at or
within two years before the time of the filing of such petition or such appointment;

 

    	 

     

    

 

(ii)
a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not relate
to driving while intoxicated or driving under the influence);

 

(iii)
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or
temporarily enjoining any such person from, or otherwise limiting, the following activities:

 

(1)
Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person of
any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director
or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct
or practice in connection with such activity;

 

(2)
Engaging in any particular type of business practice; or

 

(3)
Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of
securities laws or commodities laws;

 

(iv)
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise limiting
for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub paragraph, or to
be associated with persons engaged in any such activity;

 

(v)
a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities law,
regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently reversed,
suspended or vacated; or

 

(vi)
a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any
federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

 

    	 

     

    

 

(oo)
Stock Option Plans(b). Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable
stock option plan of the Company 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 policy or practice of the Company
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.

 

(pp)
No Disagreements with Accountants and Lawyers(c). There are no material 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. In addition, on or prior to the date hereof, the Company had
discussions with its accountants about its financial statements previously filed with the SEC. Based on those discussions, the Company
has no reason to believe that it will need to restate any such financial statements or any part thereof.

 

(qq)
No Disqualification Events(d). With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the
1933 Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director,
executive officer, other officer of the Company participating in the offering contemplated hereby, 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 1933 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 1933 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 Buyers a copy of any disclosures provided thereunder.

 

(rr)
Other Covered Persons(e). The Company is not aware of any Person (other than the Placement Agent) that has been or will be paid
(directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of any Regulation
D Securities.

 

(ss)
No Additional Agreements. The Company does not have any agreement or understanding with any Buyer with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

(tt)
Public Utility Holding Act. None of the Company nor any of its Subsidiaries is a “holding company,” or an “affiliate”
of a “holding company,” as such terms are defined in the Public Utility Holding Act of 2005.

 

    	 

     

    

 

(uu)
Federal Power Act. None of the Company nor any of its Subsidiaries is subject to regulation as a “public utility”
under the Federal Power Act, as amended.

 

(vv)
Ranking of Notes. No Indebtedness of the Company, as of any Closing, will be senior to, or pari passu with, the Notes in
right of payment, whether with respect to payment or redemptions, interest, damages, upon liquidation or dissolution or otherwise.

 

(ww)
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their
agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information
concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the
other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing representations
in effecting transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the
Company or any of its Subsidiaries 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. All of the written information furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries
to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken as a whole, will be true and
correct in all material respects as of the date on which such information is so provided and will 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. Each press release issued by the Company or any of its Subsidiaries during the twelve (12)
months preceding the date of this Agreement did not at the time of release 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 are made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or
any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions
(financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or
announcement by the Company but which has not been so publicly disclosed. All financial projections and forecasts that have been prepared
by or on behalf of the Company or any of its Subsidiaries and made available to you have been prepared in good faith based upon reasonable
assumptions and represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company’s
best estimate of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed
as facts and that the actual results during the period or periods covered by any such financial projections or forecasts may differ from
the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

    	 

     

    

 

	4.	COVENANTS.

 

(a)
Best Efforts. Each Buyer shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied
by it as provided in Section 6 of this Agreement. The Company shall use its best efforts to timely satisfy each of the covenants hereunder
and conditions to be satisfied by it as provided in Section 7 of this Agreement.

 

(b)
Form D and Blue Sky. The Company shall file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof to each Buyer promptly after such filing. The Company shall, on or before the Closing Date, 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 Buyers at
such applicable Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United
States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or
prior to such applicable Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely
make all filings and reports relating to the offer and sale of the Securities required under all applicable securities laws (including,
without limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply
with all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to the offering and sale
of the Securities to the Buyers.

 

(c)
Reporting Status. Until the date on which the Buyers shall have sold all of the Registrable Securities (the “Reporting
Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company
shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would no longer require or otherwise permit such termination. From the time Form S-3 is available to the Company for the registration
of the Registrable Securities, the Company shall take all actions necessary to maintain its eligibility to register the Registrable Securities
for resale by the Buyers on Form S-3.

 

(d)
Use of Proceeds. The Company will use the proceeds from the sale of the Securities for general corporate purposes, but not, directly
or indirectly, for (i) except as set forth on Schedule 4(d), the satisfaction of any indebtedness of the Company or any of its Subsidiaries
(which schedule may not include the approximately $750,000 principal amount of indebtedness due to the Company’s Chief Executive
Officer, which indebtedness must be full subordinated in all respects to the obligations of the Company under this Agreement and under
the Note, or (ii) the redemption or repurchase of any securities of the Company or any of its Subsidiaries, or (iii) the settlement of
any outstanding litigation.

 

(e)
Financial Information. The Company agrees to send the following to each Buyer during the Reporting Period (i) unless the following
are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one (1) Business Day after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any interim reports or any
consolidated balance sheets, income statements, shareholders’ equity statements and/or cash flow statements for any period other
than annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to
the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are otherwise widely disseminated via a recognized
news release service (such as PR Newswire), on the same day as the release thereof, facsimile copies of all press releases issued by
the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through EDGAR, copies of any notices and
other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or
giving thereof to the shareholders.

 

    	 

     

    

 

(f)
Listing. The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Registrable
Securities upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed
or designated for quotation (as the case may be) (subject to official notice of issuance) and shall maintain such listing or designation
for quotation (as the case may be) of all Registrable Securities from time to time issuable under the terms of the Transaction Documents
on such national securities exchange or automated quotation system. The Company shall maintain the Common Stock’s listing or authorization
for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market,
the Nasdaq Global Market or the Nasdaq Global Select Market (each, an “Eligible Market”). Neither the Company nor
any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common
Stock on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section
4(f).

 

(g)
Fees. The Company shall reimburse the lead Buyer for all costs and expenses incurred by it or its affiliates in connection with
the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents (including, without
limitation, as applicable, all reasonable legal fees of outside counsel in an amount of $60,0001 and disbursements of Jolie
Kahn, Esq., counsel to the lead Buyer, any other reasonable fees and expenses in connection with the structuring, documentation, negotiation
and closing of the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection therewith)
(the “Transaction Expenses”) and shall be withheld by the lead Buyer from its Purchase Price, less any amount previously
paid by the Company to Jolie Kahn, Esq.; provided, that the Company shall promptly reimburse Jolie Kahn, Esq. on demand for all Transaction
Expenses not so reimbursed through such withholding at a Closing. The Company shall be responsible for the payment of any placement agent’s
fees, financial advisory fees, transfer agent fees, DTC (as defined below) fees or broker’s commissions (other than for Persons
engaged by any Buyer) relating to or arising out of the transactions contemplated hereby (including, without limitation, any fees or
commissions payable to the Placement Agent, who is the Company’s sole placement agent in connection with the transactions contemplated
by this Agreement). The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation,
reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except
as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the
sale of the Securities to the Buyers.

 

    	 

     

    

 

(h)
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees
that the Securities may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including, without limitation, Section
2(g) hereof; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(g) hereof
in order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such
documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by
a Buyer.

 

(i)
Disclosure of Transactions and Other Material Information.

 

(i)
Disclosure of Transaction.

 

(1)
Closing. The Company shall, on or before 9:30 a.m., New York time, on the first (1st) Business Day after the date of
this Agreement, issue a press release (the “Press Release”) reasonably acceptable to the Buyers disclosing all the
material terms of the transactions contemplated by the Transaction Documents. On or before 9:30 a.m., New York time, on the first (1st)
Business Day after the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the material terms
of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction
Documents (including, without limitation, this Agreement (and all schedules to this Agreement), the form of Notes, and the form of Security
Documents(including all attachments, the “ 8-K Filing”). From and after the filing of the 8-K Filing, the Company
shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction
Documents. In addition, effective upon the filing of the 8-K Filing, 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, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other
hand, shall terminate.

 

    	 

     

    

 

(ii)
Limitations on Disclosure. The Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their
respective officers, directors, employees and agents not to, provide any Buyer with any material, non-public information regarding the
Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of such Buyer (which may
be granted or withheld in such Buyer’s sole discretion). In the event of a breach of any of the foregoing covenants, or any of
the covenants or agreements contained in any other Transaction Document, by the Company, any of its Subsidiaries, or any of its or their
respective officers, directors, employees and agents (as determined in the reasonable good faith judgment of such Buyer), in addition
to any other remedy provided herein or in the Transaction Documents, such Buyer shall have the right to make a public disclosure, in
the form of a press release, public advertisement or otherwise, of such breach or such material, non-public information, as applicable,
without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees
or agents. No Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors,
employees, affiliates, shareholders or agents, for any such disclosure. To the extent that the Company delivers any material, non-public
information to a Buyer without such Buyer’s consent, the Company hereby covenants and agrees that such Buyer shall not have any
duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public information. Subject to the
foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect
to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval of any Buyer, to
make the Press Release and any press release or other public disclosure with respect to such transactions (i) in substantial conformity
with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case
of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior
to its release). Without the prior written consent of the applicable Buyer (which may be granted or withheld in such Buyer’s sole
discretion), the Company shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of such Buyer in
any filing, announcement, release or otherwise. Notwithstanding anything contained in this Agreement to the contrary and without implication
that the contrary would otherwise be true, the Company expressly acknowledges and agrees that no Buyer shall have (unless expressly agreed
to by a particular Buyer after the date hereof in a written definitive and binding agreement executed by the Company and such particular
Buyer (it being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality with
respect to, or a duty not to trade on the basis of, any material, non-public information regarding the Company or any of its Subsidiaries.

 

(iii)
Other Confidential Information. Disclosure Failures; Disclosure Delay Payments. In addition to other remedies set forth in this
Section 4(i), and without limiting anything set forth in any other Transaction Document, at any time after the Closing Date if the Company,
any of its Subsidiaries, or any of their respective officers, directors, employees or agents, provides any Buyer with material non-public
information relating to the Company or any of its Subsidiaries (each, the “Confidential Information”), the Company
shall, on or prior to the applicable Required Disclosure Date (as defined below), publicly disclose such Confidential Information on
a Current Report on Form 8-K or otherwise (each, a “Disclosure”). From and after such Disclosure, the Company shall
have disclosed all Confidential Information provided to such Buyer by the Company or any of its Subsidiaries or any of their respective
officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition,
effective upon such Disclosure, 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, affiliates,
employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate. In the event
that the Company fails to effect such Disclosure on or prior to the Required Disclosure Date and such Buyer shall have possessed Confidential
Information for at least ten (10) consecutive Trading Days (each, a “Disclosure Failure”), then, as partial relief
for the damages to such Buyer by reason of any such delay in, or reduction of, its ability to buy or sell shares of Common Stock after
such Required Disclosure Date (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company
shall pay to such Buyer an amount in cash equal to the greater of (I) two percent (2%) of the aggregate Purchase Price and (II) the applicable
Disclosure Restitution Amount, on each of the following dates (each, a “Disclosure Delay Payment Date”): (i) on the
date of such Disclosure Failure and (ii) on every thirty (30) day anniversary such Disclosure Failure until the earlier of (x) the date
such Disclosure Failure is cured and (y) such time as all such non-public information provided to such Buyer shall cease to be Confidential
Information (as evidenced by a certificate, duly executed by an authorized officer of the Company to the foregoing effect) (such earlier
date, as applicable, a “Disclosure Cure Date”). Following the Disclosure Delay Payment for any particular Disclosure
Failure, without limiting the foregoing, if a Disclosure Cure Date occurs prior to any thirty (30) day anniversary of such Disclosure
Failure, then such Disclosure Delay Payment (prorated for such partial month) shall be made on the second (2nd) Business Day after such
Disclosure Cure Date. The payments to which an Investor shall be entitled pursuant to this Section 4(i)(iii) are referred to herein as
“Disclosure Delay Payments.” In the event the Company fails to make Disclosure Delay Payments in a timely manner in
accordance with the foregoing, such Disclosure Delay Payments shall bear interest at the rate of two percent (2%) per month (prorated
for partial months) until paid in full.

 

    	 

     

    

 

(iv)
For the purpose of this Agreement the following definitions shall apply:

 

(1)
“Disclosure Failure Market Price” means, as of any Disclosure Delay Payment Date, the price computed as the quotient
of (I) the sum of the five (5) highest VWAPs of the Common Stock during the applicable Disclosure Restitution Period (as defined below),
divided by (II) five (5) (such period, the “Disclosure Failure Measuring Period”). All such determinations to be appropriately
adjusted for any share dividend, share split, share combination, reclassification or similar transaction that proportionately decreases
or increases the Common Stock during such Disclosure Failure Measuring Period.

 

(2)
“Disclosure Restitution Amount” means, as of any Disclosure Delay Payment Date, the product of (x) difference of (I)
the Disclosure Failure Market Price less (II) the lowest purchase price, per share of Common Stock, of any Common Stock issued or issuable
to such Buyer pursuant to this Agreement or any other Transaction Documents, multiplied by (y) 10% of the aggregate daily dollar trading
volume (as reported on Bloomberg) of the Common Stock on the Principal Market for each Trading Day either (1) with respect to the Disclosure
Delay Payment Date, during the period commencing on the applicable Required Disclosure Date through and including the Trading Day immediately
prior to the Disclosure Delay Payment Date or (2) with respect to each other Disclosure Delay Payment Date, during the period commencing
the immediately preceding Disclosure Delay Payment Date through and including the Trading Day immediately prior to such applicable Disclosure
Delay Payment Date (such applicable period, the “Disclosure Restitution Period”).

 

    	 

     

    

 

(3)
“Required Disclosure Date” means (x) if such Buyer authorized the delivery of such Confidential Information, either
(I) if the Company and such Buyer have mutually agreed upon a date (as evidenced by an e-mail or other writing) of Disclosure of such
Confidential Information, such agreed upon date or (II) otherwise, the seventh (7th) calendar day after the date such Buyer
first received any Confidential Information or (y) if such Buyer did not authorize the delivery of such Confidential Information, the
first (1st) Business Day after such Buyer’s receipt of such Confidential Information.

 

(j)
Intentionally Omitted.

 

(k)
Intentionally Omitted.

 

(l)
Reservation of Shares. So long as any of the Notes remain outstanding, the Company shall take all action necessary to at all times
have authorized, and reserved for the purpose of issuance, no less than (i) 200% of the maximum number of shares of Common Stock issuable
upon conversion of all the Notes then outstanding (assuming for purposes hereof that (x) the Notes are convertible at the Alternate Conversion
Price assuming an Alternate Conversion Price as of such time of determination, and (y) any such conversion shall not take into account
any limitations on the conversion of the Notes set forth in the Notes (collectively, the “Required Reserve Amount”);
provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 4(l) be reduced other than proportionally
in connection with any conversion, exercise and/or redemption, as applicable of Notes. If at any time the number of shares of Common
Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will promptly take all
corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting
of shareholders to authorize additional shares to meet the Company’s obligations pursuant to the Transaction Documents, in the
case of an insufficient number of authorized shares, obtain shareholder approval of an increase in such authorized number of shares,
and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number
of authorized shares is sufficient to meet the Required Reserve Amount.

 

    	 

     

    

 

(m)
Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance
or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

(n)
Other Notes; Variable Securities. So long as any Notes remain outstanding, the Company and each Subsidiary shall be prohibited
from effecting or entering into an agreement to affect any Subsequent Placement involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues or sells any Convertible Securities
either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations
for the shares of Common Stock at any time after the issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange
price that is subject to being reset at some future date after the issuance of such Convertible Securities or upon the occurrence of
specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, other
than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any agreement (including, without
limitation, an equity line of credit or an “at-the-market” offering) whereby the Company or any Subsidiary may sell securities
at a future determined price (other than standard and customary “preemptive” or “participation” rights), except
for an equity line of credit or an “at-the-market” offering where the Company could sell securities at a price below $3.00
per share or unit. Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any
such issuance, which remedy shall be in addition to any right to collect damages.

 

(o)
Dilutive Issuances. For so long as any Notes remain outstanding, the Company shall not, in any manner, enter into or affect any
Dilutive Issuance (as defined in the Notes) if the effect of such Dilutive Issuance is to cause the Company to be required to issue upon
conversion of any Notes any shares of Common Stock in excess of that number of shares of Common Stock which the Company may issue upon
conversion of the Notes without breaching the Company’s obligations under the rules or regulations of the Principal Market.

 

(p)
Passive Foreign Investment Company. The Company shall conduct its business, and shall cause its Subsidiaries to conduct their
respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment
company within the meaning of Section 1297 of the Code.

 

(q)
Restriction on Redemption and Cash Dividends. So long as any Notes are outstanding, the Company shall not, directly or indirectly,
redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent
of the Buyers.

 

(r)
Corporate Existence. So long as any Buyer beneficially owns any Notes, the Company shall not be party to any Fundamental Transaction
(as defined in the Notes) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth
in the Notes.

 

(s)
Stock Splits. Until the Notes and all notes issued pursuant to the terms thereof are no longer outstanding, the Company shall
not effect any stock combination, reverse stock split or other similar transaction (or make any public announcement or disclosure with
respect to any of the foregoing) without the prior written consent of the Required Holders (as defined below).

 

    	 

     

    

 

(t)
Conversion and Exercise Procedures. The form of Conversion Notice (as defined in the Notes) included in the Notes sets forth the
totality of the procedures required of the Buyers in order to convert the Notes. Except as provided in Section 5(d), no additional legal
opinion, other information or instructions shall be required of the Buyers to convert their Notes. The Company shall honor conversions
of the Notes and shall deliver the Conversion Shares in accordance with the terms, conditions and time periods set forth in the Notes.

 

(u)
Intentionally omitted.

 

(v)
Intentionally omitted.

 

(w)
Regulation M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the distribution
of the Securities contemplated hereby.

 

(x)
General Solicitation. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act) or any person
acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means of any form
of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement, article, notice
or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and (ii) any seminar
or meeting whose attendees have been invited by any general solicitation or general advertising.

 

(y)
Integration. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting on
behalf of the Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in the 1933 Act) which will be integrated with the sale of the Securities in a manner which would require the registration
of the Securities under the 1933 Act or require shareholder approval under the rules and regulations of the Principal Market and the
Company will take all action that is appropriate or necessary to assure that its offerings of other securities will not be integrated
for purposes of the 1933 Act or the rules and regulations of the Principal Market, with the issuance of Securities contemplated hereby.

 

(z)
Notice of Disqualification Events. The Company will notify the Buyers 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.

 

(aa)
Closing Documents. On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver, or cause
to be delivered, to each Buyer and Jolie Kahn, Esq. a complete closing set of the executed Transaction Documents, Securities and any
other document required to be delivered to any party pursuant to Section 7 hereof or otherwise.

 

    	 

     

    

 

	5.	REGISTER;
    TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may
designate by notice to each holder of Securities), a register for the Notes in which the Company shall record the name and address of
the Person in whose name the Notes have been issued (including the name and address of each transferee), the principal amount of the
Notes held by such Person and the number of Conversion Shares issuable pursuant to the terms of the Notes. The Company shall keep the
register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

 

(b)
Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer
agent (as applicable, the “Transfer Agent”) in a form acceptable to each of the Buyers (the “Irrevocable
Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at The Depository Trust
Company (“DTC”), registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares in such
amounts as specified from time to time by each Buyer to the Company upon conversion of the Notes. The Company represents and warrants
that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop transfer instructions
to give effect to Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the
Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, to the extent provided in this
Agreement and the other Transaction Documents. If a Buyer effects a sale, assignment or transfer of the Securities in accordance with
Section 2(g), the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates
or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect
such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares sold, assigned or transferred
pursuant to an effective registration statement or in compliance with Rule 144, the transfer agent shall issue such shares to such Buyer,
assignee or transferee (as the case may be) without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing
economic loss and without any bond or other security being required. The Company shall cause its counsel to issue the legal opinion referred
to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent on each Effective Date (as defined in the Registration
Rights Agreement). Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of
such opinion or the removal of any legends on any of the Securities shall be borne by the Company.

 

(c)
Legends. Each Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares)
pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set
forth below, the Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend
in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

    	 

     

    

 

[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE]
[EXERCISABLE] HAVE BEEN] [THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

(d)
Removal of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(c) above
or any other legend (i) while a registration statement (including a Registration Statement) covering the resale of such Securities is
effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate
of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 (provided that a Buyer provides
the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule 144 which shall
not include an opinion of Buyer’s counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule
144), provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in a generally acceptable form, to the
effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of
the 1933 Act or (v) if such legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling
judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall
no later than two (2) Trading Days (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation
for the settlement of a trade initiated on the date such Buyer delivers such legended certificate representing such Securities to the
Company) following the delivery by a Buyer to the Company or the transfer agent (with notice to the Company) of a legended certificate
representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect
the reissuance and/or transfer, if applicable), together with any other deliveries from such Buyer as may be required above in this Section
5(d), as directed by such Buyer, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated
Securities Transfer Program and such Securities are Conversion Shares, credit the aggregate number of shares of Common Stock to which
such Buyer shall be entitled to such Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at
Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer Program,
issue and deliver (via reputable overnight courier) to such Buyer, a certificate representing such Securities that is free from all restrictive
and other legends, registered in the name of such Buyer or its designee (the date by which such credit is so required to be made to the
balance account of such Buyer’s or such Buyer’s designee with DTC or such certificate is required to be delivered to such
Buyer pursuant to the foregoing is referred to herein as the “Required Delivery Date”, and the date such shares of
Common Stock are actually delivered without restrictive legend to such Buyer or such Buyer’s designee with DTC, as applicable,
the “Share Delivery Date”). The Company shall be responsible for any transfer agent fees or DTC fees with respect
to any issuance of Securities or the removal of any legends with respect to any Securities in accordance herewith.

 

    	 

     

    

 

(e)
Failure to Timely Deliver; Buy-In. If the Company fails to fail, for any reason or for no reason, to issue and deliver (or cause
to be delivered) to a Buyer (or its designee) by the Required Delivery Date, either (I) if the Transfer Agent is not participating in
the DTC Fast Automated Securities Transfer Program, a certificate for the number of Conversion Shares to which such Buyer is entitled
and register such Conversion Shares on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, to credit the balance account of such Buyer or such Buyer’s designee with DTC for such number
of Conversion Shares submitted for legend removal by such Buyer pursuant to Section 5(d) above or (II) if the Registration Statement
covering the resale of the Conversion Shares submitted for legend removal by such Buyer pursuant to Section 5(d) above (the “Unavailable
Shares”) is not available for the resale of such Unavailable Shares and the Company fails to promptly, but in no event later
than as required pursuant to the Registration Rights Agreement (x) so notify such Buyer and (y) deliver the Conversion Shares electronically
without any restrictive legend by crediting such aggregate number of Conversion Shares submitted for legend removal by such Buyer pursuant
to Section 5(d) above to such Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian
system (the event described in the immediately foregoing clause (II) is hereinafter referred as a “Notice Failure”
and together with the event described in clause (I) above, a “Delivery Failure”), then, in addition to all other remedies
available to such Buyer, the Company shall pay in cash to such Buyer on each day after the Share Delivery Date and during such Delivery
Failure an amount equal to 2% of the product of (A) the sum of the number of shares of Common Stock not issued to such Buyer on or prior
to the Required Delivery Date and to which such Buyer is entitled, and (B) any trading price of the Common Stock selected by such Buyer
in writing as in effect at any time during the period beginning on the date of the delivery by such Buyer to the Company of the applicable
Conversion Shares and ending on the applicable Share Delivery Date. In addition to the foregoing, if on or prior to the Required Delivery
Date either (I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail
to issue and deliver a certificate to a Buyer and register such shares of Common Stock on the Company’s share register or, if the
Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, credit the balance account of such Buyer or such
Buyer’s designee with DTC for the number of shares of Common Stock to which such Buyer submitted for legend removal by such Buyer
pursuant to Section 5(d) above (ii) below or (II) a Notice Failure occurs, and if on or after such Trading Day such Buyer purchases (in
an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Buyer of shares of Common
Stock submitted for legend removal by such Buyer pursuant to Section 5(d) above that such Buyer is entitled to receive from the Company
(a “Buy-In”), then the Company shall, within two (2) Trading Days after such Buyer’s request and in such Buyer’s
discretion, either (i) pay cash to such Buyer in an amount equal to such Buyer’s total purchase price (including brokerage commissions
and other out-of-pocket expenses, if any, for the shares of Common Stock so purchased) (the “Buy-In Price”), at which
point the Company’s obligation to so deliver such certificate or credit such Buyer’s balance account shall terminate and
such shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to such Buyer a certificate or certificates or credit
the balance account of such Buyer or such Buyer’s designee with DTC representing such number of shares of Common Stock that would
have been so delivered if the Company timely complied with its obligations hereunder and pay cash to such Buyer in an amount equal to
the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Conversion Shares that the Company was required
to deliver to such Buyer by the Required Delivery Date multiplied by (B) the lowest Closing Sale Price (as defined in the Notes) of the
Common Stock on any Trading Day during the period commencing on the date of the delivery by such Buyer to the Company of the applicable
Conversion Shares and ending on the date of such delivery and payment under this clause (ii). Nothing shall limit such Buyer’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 Company’s failure to timely deliver certificates representing shares of
Common Stock (or to electronically deliver such shares of Common Stock) as required pursuant to the terms hereof. Notwithstanding anything
herein to the contrary, with respect to any given Notice Failure and/or Delivery Failure, this Section 5(e) shall not apply to the applicable
Buyer the extent the Company has already paid such amounts in full to such Buyer with respect to such Notice Failure and/or Delivery
Failure, as applicable, pursuant to the analogous sections of the Note, as applicable, held by such Buyer.

 

(f)
FAST Compliance. While any Notes remain outstanding, the Company shall maintain a transfer agent that participates in the DTC
Fast Automated Securities Transfer Program.

 

    	 

     

    

 

	6.	CONDITIONS
    TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)
The obligation of the Company hereunder to issue and sell the Notes to each Buyer at the Closing is subject to the satisfaction, at or
before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

(i)
Such Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts withheld
pursuant to Section 4(g)) for the Notes being purchased by such Buyer at the Closing by wire transfer of immediately available funds
in accordance with the Flow of Funds Letter.

 

(iii)
The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of
the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such
Buyer at or prior to the Closing Date.

 

    	 

     

    

 

	7.	CONDITIONS
    TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

(a)
The obligation of each Buyer hereunder to purchase its Note at the Closing is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such
Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)
The Company and each Subsidiary (as the case may be) shall have duly executed and delivered to such Buyer each of the Transaction Documents
to which it is a party and the Company shall have duly executed and delivered to such Buyer a Note in such original principal amount
as is set forth across from such Buyer’s name in column (3) of the Schedule of Buyers.

 

(ii)
Such Buyer shall have received the opinion of Stradling Yocca Carlson & Rauth, PC, the Company’s counsel, dated as of the Closing
Date, in the form acceptable to such Buyer.

 

(iii)
The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to such
Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent.

 

(iv)
The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company and each of its
Subsidiaries in each such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction
of formation as of a date within ten (10) days of the Closing Date.

 

(v)
The Company shall have delivered to such Buyer a certificate evidencing the Company’s and each Subsidiary’s qualification
as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the
Company and each Subsidiary conducts business and is required to so qualify, as of a date within ten (10) days of the Closing Date.

 

(vi)
The Company shall have delivered to such Buyer a certified copy of the Articles of Incorporation as certified by the Nevada Secretary
of State within ten (10) days of the Closing Date.

 

(vii)
Each Subsidiary shall have delivered to such Buyer a certified copy of its Articles of Incorporation (or such equivalent organizational
document) as certified by the Secretary of State (or comparable office) of such Subsidiary’s jurisdiction of incorporation within
ten (10) days of the Closing Date.

 

    	 

     

    

 

(viii)
The Company and each Subsidiary shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the
Secretary of the Company and each Subsidiary and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b)
as adopted by the Company’s and each Subsidiary’s board of directors in a form reasonably acceptable to such Buyer, (ii)
the Articles of Incorporation of the Company and the organizational documents of each Subsidiary and (iii) the Bylaws of the Company
and the bylaws of each Subsidiary, each as in effect at the Closing.

 

(ix)
Each and every representation and warranty of the Company shall be true and correct as of the date when made and as of the Closing Date
as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true
and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Closing Date. Such Buyer
shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

 

(x)
The Company shall have delivered to such Buyer a letter from the Company’s transfer agent certifying the number of shares of Common
Stock outstanding on the Closing Date immediately prior to the Closing.

 

(xi)
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been
suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the
SEC or the Principal Market have been threatened, as of the Closing Date, either (I) in writing by the SEC or the Principal Market or
(II) by falling below the minimum maintenance requirements of the Principal Market.

 

(xii)
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of
the Securities, including without limitation, those required by the Principal Market, if any.

 

(xiii)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(xiv)
Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result
in a Material Adverse Effect.

 

(xv)
The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be) the Conversion
Shares.

 

    	 

     

    

 

(xvi)
In accordance with the terms of the Security Agreement of even date herewith and any financing statements to be filed in conjunction
therewith (the “Security Documents”), the Company shall have delivered to the Collateral Agent (A) original certificates
(I) representing the Subsidiaries’ shares of capital stock to the extent such subsidiary is a corporation or otherwise has certificated
equity and (II) representing all other equity interests and all promissory notes required to be pledged thereunder, in each case, accompanied
by undated stock powers and allonges executed in blank and other proper instruments of transfer and (B) appropriate financing statements
on Form UCC-1 to be duly filed in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to
perfect the security interests purported to be created by each Security Document (the “Perfection Certificate”).

 

(xvii)
Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company,
setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company (the “ Flow of Funds Letter”).

 

(xviii)
The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the
transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

 

	8.	TERMINATION.

 

In
the event that the Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall
have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this
Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been consummated
by such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Notes
shall be applicable only to such Buyer providing such written notice, provided further that no such termination shall affect any obligation
of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(g) above. Nothing contained in this
Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement
or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations
under this Agreement or the other Transaction Documents.

 

    	 

     

    

 

	9.	MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. The Company 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 under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, 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
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address for such 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 manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer. The Company (on behalf of itself and
each of its Subsidiaries) hereby appoints David E. Price, Esq. as its agent for service of process in New York. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR
UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY OR THEREBY. The choice of laws of the State of New York as the governing law of this Agreement will be honored
by competent courts in the State of Israel, subject to compliance with relevant the State of Israel civil procedural requirements. The
Company or any of their respective properties, assets or revenues does not have any right of immunity under the State of Israel or New
York law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from
set-off or counterclaim, from the jurisdiction of the State of Israel, New York or United States federal court, from service of process,
attachment upon or prior to judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal
process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with this Agreement; and, to the extent that the Company, or
any of its properties, assets or revenues may have or may hereafter become entitled to any such right of immunity in any such court in
which proceedings may at any time be commenced, the Company hereby waives such right to the extent permitted by law and hereby consents
to such relief and enforcement as provided in this Agreement and the other Transaction Documents.

 

    	 

     

    

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event
that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an
executed signature page, such signature page 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 signature page were an original thereof.

 

(c)
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words
of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in
which they are found.

 

(d)
Severability; Maximum Payment Amounts. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid
or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall
be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature,
invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal
obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties
will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding anything
to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following is required
or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or any of its Subsidiaries
(as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including without limitation,
any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted under any applicable
law. Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents
is finally judicially determined to be contrary to any such applicable law, such obligation to pay, payment or collection shall be deemed
to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted
with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by the applicable
law. Such adjustment shall be effected, to the extent necessary, by reducing or refunding, at the option of such Buyer, the amount of
interest or any other amounts which would constitute unlawful amounts required to be paid or actually paid to such Buyer under the Transaction
Documents. For greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid to or
received by such Buyer under any of the Transaction Documents or related thereto are held to be within the meaning of “interest”
or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time to which
they relate.

 

    	 

     

    

 

(e)
Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers, the
Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any transactions by any
Buyer with respect to Common Stock or the Securities, and the other matters contained herein and therein, and this Agreement, the other
Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain
the entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained
in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has
entered into with, or any instruments any Buyer has received from, the Company or any of its Subsidiaries prior to the date hereof with
respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations
of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in any agreement entered into
prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer, or any instruments any Buyer received
from the Company and/or any of its Subsidiaries prior to the date hereof, and all such agreements and instruments shall continue in full
force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement. No provision
of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders (as defined below),
and any amendment to any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on
all Buyers and holders of Securities, as applicable; provided that no such amendment shall be effective to the extent that it (A) applies
to less than all of the holders of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such
Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion); and provided further that
the provisions of Sections 4(u) and 4(v) above cannot be amended or waived without the additional prior written approval of the Collateral
Agent or its successor. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving
party, provided that the Required Holders may waive any provision of this Agreement, and any waiver of any provision of this Agreement
made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable,
provided that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Securities then
outstanding (unless a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer’s
prior written consent (which may be granted or withheld in such Buyer’s sole discretion). No consideration (other than reimbursement
of legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the
Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of
the Notes. From the date hereof and while any Notes are outstanding, the Company shall not be permitted to receive any consideration
from a Buyer or a holder of Notes that is not otherwise contemplated by the Transaction Documents in order to, directly or indirectly,
induce the Company or any Subsidiary (i) to treat such Buyer or holder of Notes in a manner that is more favorable than to other similarly
situated Buyers or holders of Notes, as applicable, or (ii) to treat any Buyer(s) or holder(s) of Notes in a manner that is less favorable
than the Buyer or holder of Notes that is paying such consideration; provided, however, that the determination of whether a Buyer has
been treated more or less favorably than another Buyer shall disregard any securities of the Company purchased or sold by any Buyer.
The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions
contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company
confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide
any financing to the Company, any Subsidiary or otherwise. As a material inducement for each Buyer to enter into this Agreement, the
Company expressly acknowledges and agrees that no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors
or any of its representatives shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception
to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document, nothing
contained in any of the SEC Documents shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be
an exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document.
“Required Holders” means (I) prior to the Closing Date, each Buyer entitled to purchase Notes at the Closing and (II)
on or after the Closing Date, holders of a majority of the Registrable Securities as of such time (excluding any Registrable Securities
held by the Company or any of its Subsidiaries as of such time) issued or issuable hereunder or pursuant to the Notes.

 

    	 

     

    

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party)
or electronic mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party and the
sending party does not receive an automatically generated message from the recipient’s email server that such e-mail could not
be delivered to such recipient); or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery
specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for
such communications shall be:

 

If
to the Company:

 

VERB
Technology Company, Inc.

Attn: Legal Department

Email: legal@verb.tech

2210 Newport Blvd Suite 200

Newport Beach, CA 92663

 

And:

 

Stradling
Yocca Carlson & Rauth

 

660
Newport Center Drive, Suite 1600

 

Newport
Beach, CA 92660

 

Attn:
Ryan C. Wilkins

 

Email:
RWilkins@stradlinglaw.com

 

If
to the Transfer Agent:

 

VStock
Transfer, LLC

18
Lafayette Place

Woodmere,
New York 11598

Attn:
Shay Galam

Email: shay@vstocktransfer.com

 

If
to a Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer’s
representatives as set forth on the Schedule of Buyers,

 

with
a copy (for informational purposes only) to:

 

Jolie
Kahn, Esq.

12 E. 49th Street, 11th floor

New
York, NY 10017

Facsimile:
(866) 705-3071

Attention: Jolie Kahn, Esq.

E-mail: joliekahnlaw@sbcglobal.net

 

or
to such other address, e-mail address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party five (5) days prior to the effectiveness of such change, provided that Jolie Kahn,
Esq. shall only be provided copies of notices sent to the lead Buyer. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
or e-mail containing the time, date, recipient facsimile number and, with respect to each facsimile transmission, an image of the first
page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	 

     

    

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns, including any purchasers of any of the Notes. The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Required Holders, including, without limitation, by way of a Fundamental Transaction (as defined
in the Notes) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the
Notes). A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without the consent
of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the
Indemnitees referred to in Section 9(k).

 

(i)
Survival. The representations, warranties, agreements and covenants shall survive the Closing. Each Buyer shall be responsible
only for its own representations, warranties, agreements and covenants hereunder.

 

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

 

(k)
Indemnification. In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the
Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall
defend, protect, indemnify and hold harmless each Buyer and each holder of any Securities and all of their shareholders, partners, members,
officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the
“Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for
which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach
of any representation or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant,
agreement or obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action,
suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action
brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A)
the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed
in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by
such Buyer pursuant to Section 4(i), or (D) the status of such Buyer or holder of the Securities either as an investor in the Company
pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation,
as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief). To the extent that the foregoing
undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law.

 

    	 

     

    

 

(l)
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the
generality or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common
Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock
dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock after the
date of this Agreement. Notwithstanding anything in this Agreement to the contrary, for the avoidance of doubt, nothing contained herein
shall constitute a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement
to borrow, identification of the availability of, and/or securing of, securities of the Company in order for such Buyer (or its broker
or other financial representative) to effect short sales or similar transactions in the future.

 

(m)
Remedies. Each Buyer and in the event of assignment by Buyer of its rights and obligations hereunder, each holder of Securities,
shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted
at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any
rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security),
to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore,
the Company recognizes that in the event that it or any Subsidiary fails to perform, observe, or discharge any or all of its or such
Subsidiary’s (as the case may be) obligations under the Transaction Documents, any remedy at law would inadequate relief to the
Buyers. The Company therefore agrees that the Buyers shall be entitled to specific performance and/or temporary, preliminary and permanent
injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual
damages and without posting a bond or other security. The remedies provided in this Agreement and the other Transaction Documents shall
be cumulative and in addition to all other remedies available under this Agreement and the other Transaction Documents, at law or in
equity (including a decree of specific performance and/or other injunctive relief).

 

(n)
Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company or any Subsidiary
does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its
sole discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights.

 

(o)
Payment Set Aside; Currency. To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to
any of the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, 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. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents
are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction
Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar
equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate” means, in relation
to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in
the Wall Street Journal on the relevant date of calculation.

 

    	 

     

    

 

(p)
Judgment Currency.

 

(i)
If for the purpose of obtaining or enforcing judgment against the Company in connection with this Agreement or any other Transaction
Document in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter
in this Section 9(p) referred to as the “Judgment Currency”) an amount due in US Dollars under this Agreement, the
conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

 

(1)
the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction
that will give effect to such conversion being made on such date: or

 

(2)
the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of
which such conversion is made pursuant to this Section 9(p)(i)(2) being hereinafter referred to as the “Judgment Conversion
Date”).

 

(ii)
If in the case of any proceeding in the court of any jurisdiction referred to in Section 9(p)(i)(2) above, there is a change in the Exchange
Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay
such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate
prevailing on the date of payment, will produce the amount of US Dollars which could have been purchased with the amount of Judgment
Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

 

(iii)
Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained
for any other amounts due under or in respect of this Agreement or any other Transaction Document.

 

(q)
Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under the Transaction Documents are
several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the
obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no
action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that
the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption
that the Buyers are in any way acting in concert or as a group or entity, and the Company shall not assert any such claim with respect
to such obligations or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the
Buyers are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or
the transactions contemplated by the Transaction Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction
Documents has been made by such Buyer independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as agent
for such Buyer in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of such
Buyer in connection with monitoring such Buyer’s investment in the Securities or enforcing its rights under the Transaction Documents.
The Company and each Buyer confirms that each Buyer has independently participated with the Company and its Subsidiaries in the negotiation
of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction
Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose.
The use of a single agreement to effectuate the purchase and sale of the Securities contemplated hereby was solely in the control of
the Company, not the action or decision of any Buyer, and was done solely for the convenience of the Company and its Subsidiaries and
not because it was required or requested to do so by any Buyer. It is expressly understood and agreed that each provision contained in
this Agreement and in each other Transaction Document is between the Company, each Subsidiary and a Buyer, solely, and not between the
Company, its Subsidiaries and the Buyers collectively and not between and among the Buyers.

 

    	 

     

    

 

(r)
Exchange Cap. The Company hereby agrees not issue any shares of Common Stock upon the exercise of the Note if the issuance of
such shares of Common Stock would exceed 14,747,065 shares of Common Stock (19.99% of the shares of Common Stock outstanding as of as
of the date hereof), which is the aggregate number of shares of Common Stock which the Company may issue without breaching the Company’s
obligations under the rules or regulations of the Nasdaq Capital Market (the “Principal Market”) (the number of shares which
may be issued without violating such rules and regulations, the “Exchange Cap”), except that such limitation shall not apply
in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market
for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company
that such approval is not required, which opinion shall be reasonably satisfactory to the Holder. Until such approval or such written
opinion is obtained, the Holder (together with any subsequent holder of any of the Note, collectively, the “Buyers” and each
a “Buyer”) shall be issued in the aggregate, upon exercise of any of the Note shares of Common Stock in an amount greater
than the product of (i) the Exchange Cap as of the Issuance Date multiplied by (ii) the quotient of (1) the aggregate number of shares
of Common Stock initially exercisable pursuant to the Note held by such Buyer without regard for any limitations on exercise set forth
therein (as measured as of the Closing Date (as defined in the Securities Purchase Agreement)) divided by (2) the aggregate number of
shares of Common Stock initially exercisable pursuant to the Note held by all Buyers without regard to any limitations on exercise set
forth therein (as measured as of the Closing Date) (with respect to each Buyer, the “Exchange Cap Allocation”). In the event
that any Buyer shall sell or otherwise transfer any of such Buyer’s Note, the transferee shall be allocated a pro rata portion
of such Buyer’s Exchange Cap Allocation with respect to such portion of such Note so transferred, and the restrictions of the prior
sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation so allocated to such transferee. Upon
exercise in full of the Note, the difference (if any) between such holder’s Exchange Cap Allocation and the number of shares of
Common Stock actually issued to such holder upon such holder’s exercise in full of such Note shall be allocated, to the respective
Exchange Cap Allocations of the remaining holders of Note on a pro rata basis in proportion to the shares of Common Stock underlying
the Note then held by each such holder of Note. In the event that after the Stockholder Meeting Deadline (as defined in the Amendment)
the Company is then prohibited from issuing any shares of Common Stock pursuant to this paragraph (the “Exchange Cap Shares”),
in lieu of issuing and delivering such Exchange Cap Shares to the Holder, the Company shall pay cash to the Holder in exchange for the
cancellation of such portion of this Warrant exercisable into such Exchange Cap Shares (the “Exchange Cap Payment Amount”)
at a price equal to the sum of (x) the product of (A) such number of Exchange Cap Shares and (B) the greatest Closing Sale Price (as
defined in the Note) of the Common Stock on any Trading Day (as defined in the Note) during the period commencing on the date the Holder
delivers the applicable Exercise Notice (as defined in the Note) with respect to such Exchange Cap Shares to the Company and ending on
the date of such payment under this paragraph and (y) to the extent the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of Exchange Cap Shares, any brokerage commissions and other
out-of-pocket expenses, if any, of the Holder incurred in connection therewith.

 

[signature
pages follow]

 

    	 

     

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as
of the date first written above.

 

	COMPANY:	 
	 	 	 
	VERB
    TECHNOLOGY COMPANY, INC.	 
	 	 	 
	By:
    	/s/
Rory J. Cutaia	 
	Name:	Rory
    J. Cutaia	 
	Title:	Chairman
    of the Board, Chief Executive Officer, President and Secretary	 

 

    	 

     

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as
of the date first written above.

 

	 	BUYER:
	 	 	 
	 	3I,
    LP
	 	 	 
	 	By:	/s/
Maier J Tarlow
	 	Name:	Maier
    J Tarlow
	 	Title:	Manager
    on Behalf of the GP

 

    	 

     

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as
of the date first written above.

 

	 	BUYER:
	 	 	 
	 	Nomis
    Bay, Ltd.
	 	 	 
	 	By:	/s/
James Keyes 
	 	Name:	James
    Keyes
	 	Title:	Director

 

    	 

     

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as
of the date first written above.

 

	 	BUYER:
	 	 	 
	 	BPY
    Limited
	 	 	 
	 	By:	/s/
    James Keyes 
	 	Name:	James
    Keyes
	 	Title:	Director

 

    	 

     

    

 

SCHEDULE
OF BUYERS

 

	(1)	 	(2)	 	(3)	 	(4)	 	(5)
	Buyer	 	Address
    and Facsimile Number	 	Original
    Principal Amount of Notes	 	 	 	Purchase
    Price
	Nomis
Bay, Ltd.	 	Wessex
                                            House 3rd Floor, 45 Reid Street Hamilton, HM

                                                         12, Bermuda

    Facsimile:
	 	$1,890,000
    	 	 	 	$1,800,000
	 	 	 	 	 	 	 	 	 
	BPY
    Limited	 	Wessex
                                            House 3rd Floor, 45 Reid Street Hamilton, HM

                                                         12, Bermuda

    Facsimile:
	 	$1,260,000	 	 	 	$1,200,000
	 	 	 	 	 	 	 	 	 
	3i,
    LP	 	3i,
                                            LP

    140
    Broadway, 38th Floor

    New
    York, NY 10005

    Telephone:
    (646) 845-0040

    Facsimile:
    (646) 839-2626

    Attention
    Maier J. Tarlow
	 	$3,150,000	 	 	 	$3,000,000

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