Document:

fox-ex1031_1117.htm

 

 Exhibit 10.31

 

 

as of June 22, 2018

 

John P. Nallen

Senior Executive Vice President and Chief Financial Officer

Twenty-First Century Fox, Inc.

1211 Avenue of the Americas

New York, NY 10036

			
	
 
	
 
	
 

 

Dear John:

 

This letter agreement (the “Letter Agreement”) is intended to constitute a binding modification to your Employment Agreement (the “Agreement”) dated as of July 1, 2013, and as amended as of July 1, 2015, between you and 21st Century Fox America, Inc. (the “Company”), a wholly owned subsidiary of Twenty-First Century Fox, Inc. (“21st Century Fox”), and shall confirm the terms and conditions which will apply to your Agreement as from the date hereof. All terms and conditions set forth in the Agreement remain applicable unless otherwise amended by the terms and conditions outlined below.  Capitalized terms used and not defined herein shall have the meanings given such terms in the Agreement.

 

The Company and you agree that the Agreement is hereby amended as follows:

 

1.Term.  

 

	
 
	
a.
	
Section 2 of the Agreement states that the Term of Employment shall mean the period from July 1, 2013 through June 30, 2018. The Company and you hereby agree to extend the Term of Employment through June 30, 2021.

 

	
 
	
b.
	
The reference to “March 1, 2018” in Section 2 of the Agreement shall be deleted and replaced with “March 1, 2021”. 

 

2.Compensation.

 

Section 4(b) of the Agreement states that you will be entitled to receive an Annual Bonus with a target of not less than $4,000,000 (the “Target Bonus”) with a maximum payout of not less than $8,000,000 for the fiscal years ending June 30, 2016, 2017 and 2018. The Company and you hereby agree that your Target Bonus shall remain unchanged for the fiscal years ending June 30, 2019, 2020 and 2021.

 

1

 

 

3.Confidentiality; Restriction on Competition.

 

A new Section 7(e) shall be added to the Agreement as follows: 

 

“(e)  The Executive understands that notwithstanding any other provision of this Agreement, nothing in this Agreement prohibits Executive from truthfully reporting to any governmental agency or entity information concerning possible violations of law, rule or regulation, or from filing a charge or complaint with any federal, state or local governmental agency or commission, or from participating in any agency or commission investigation, or from receiving an award for information provided to any such governmental entity. Executive does not need the Company’s prior authorization to make any such reports or disclosures and Executive is not required to notify the Company that he has made such reports or disclosures. With respect to Executive’s obligation to safeguard trade secrets, pursuant to 18 USC § 1833(b), an individual may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.”

2

 

 

By counter-signing this letter agreement, you acknowledge and agree to be bound by the terms hereof.

 

	
Sincerely,

	
 
	
 
	
 

	
21ST CENTURY FOX AMERICA, INC.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Janet Nova

	
 
	
 
	
 

	
Name:
	
 
	
Janet Nova

	
Title:
	
 
	
EVP and Deputy General Counsel

 

 

	
Acknowledged and Agreed:

	
 

	
/s/ John P. Nallen

	
John P. Nallen

3

 

 

Guaranty 

The undersigned guarantees the performance of the foregoing amendment in all respects. 

 

	
TWENTY-FIRST CENTURY FOX, INC.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Janet Nova

	
 
	
 
	
 

	
Name:
	
 
	
Janet Nova

	
Title:
	
 
	
EVP and Deputy Group General Counsel

 

4Execution
Version

 

PURCHASE
AGREEMENT

 

PURCHASE
AGREEMENT (the “Agreement”), dated as of August 10, 2018, by and between AIT THERAPEUTICS, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability
company (the “Investor”).

 

WHEREAS:

 

Subject
to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to
buy from the Company, up to Twenty Million Dollars ($20,000,000) of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”). The shares of Common Stock to be purchased hereunder (including, without limitation,
the Initial Purchase Shares (as defined herein), if any) are referred to herein as the “Purchase Shares.”

 

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

 

1.
CERTAIN DEFINITIONS. 

 

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

 

(a)
“Accelerated Purchase Date” means, with respect to any Accelerated Purchase made pursuant to Section 2(c)
hereof, the Business Day immediately following the applicable Purchase Date with respect to the corresponding Regular Purchase
referred to in Section 2(c) hereof.

 

(b)
“Accelerated Purchase Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such
reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Accelerated Purchase Floor
Price shall mean the lower of (i) the adjusted price and (ii) $1.00.

 

(c)
“Accelerated Purchase Minimum Price Threshold” means, with respect to any Accelerated Purchase made pursuant
to Section 2(c) hereof, the greater of (i) seventy-five percent (75%) of the Closing Sale Price of the Common Stock on
the applicable Purchase Date with respect to the corresponding Regular Purchase referred to in Section 2(c) hereof and
(ii) the minimum per share price threshold set forth by the Company in the applicable Accelerated Purchase Notice.

 

(d)
“Accelerated Purchase Notice” means, with respect to an Accelerated Purchase made pursuant to Section 2(c)
hereof, an irrevocable written notice from the Company to the Investor directing the Investor to purchase the applicable Accelerated
Purchase Share Amount at the Accelerated Purchase Price on the Accelerated Purchase Date for such Accelerated Purchase in accordance
with this Agreement.

 

(e)
“Accelerated Purchase Price” means, with respect to an Accelerated Purchase made pursuant to Section 2(c)
hereof, the lower of (i) ninety-five percent (95%) of the VWAP for the period beginning at 9:30:01 a.m., Eastern time, on
the applicable Accelerated Purchase Date, or such other time publicly announced by the Principal Market as the official open (or
commencement) of trading on the Principal Market on such applicable Accelerated Purchase Date (the “Accelerated Purchase
Commencement Time”), and ending at the earliest of (A) 4:00:00 p.m., Eastern time, on such applicable Accelerated Purchase
Date, or such other time publicly announced by the Principal Market as the official close of trading on the Principal Market on
such applicable Accelerated Purchase Date, (B) such time, from and after the Accelerated Purchase Commencement Time for such Accelerated
Purchase, that total number (or volume) of shares of Common Stock traded on the Principal Market has exceeded the applicable Accelerated
Purchase Share Volume Maximum, and (C) such time, from and after the Accelerated Purchase Commencement Time for such Accelerated
Purchase, that the Sale Price has fallen below the applicable Accelerated Purchase Minimum Price Threshold (such earliest of (i)(A),
(i)(B) and (i)(C) above, the “Accelerated Purchase Termination Time”), and (ii) the Closing Sale Price of the
Common Stock on such applicable Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	 

    	 

    

 

(f)
“Accelerated Purchase Share Amount” means, with respect to an Accelerated Purchase made pursuant to Section
2(c) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor in an Accelerated Purchase
Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed by the
Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase
referred to in Section 2(c) hereof (subject to the Purchase Share limitations contained in Section 2(b) hereof)
and (ii) an amount equal to (A) the Accelerated Purchase Share Percentage multiplied by (B) the total number (or volume) of shares
of Common Stock traded on the Principal Market during the period on the applicable Accelerated Purchase Date beginning at the
Accelerated Purchase Commencement Time for such Accelerated Purchase and ending at the Accelerated Purchase Termination Time for
such Accelerated Purchase.

 

(g)
“Accelerated Purchase Share Percentage” means, with respect to an Accelerated Purchase made pursuant to Section
2(c) hereof, thirty percent (30%).

 

(h)
“Accelerated Purchase Share Volume Maximum” means, with respect to an Accelerated Purchase made pursuant to
Section 2(c) hereof, a number of shares of Common Stock equal to (i) the applicable Accelerated Purchase Share Amount properly
directed by the Company to be purchased by the Investor in the applicable Accelerated Purchase Notice for such Accelerated Purchase,
divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(i)
“Additional Accelerated Purchase Date” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, the Business Day (i) that is the Accelerated Purchase Date with respect to the corresponding Accelerated
Purchase referred to in Section 2(c) hereof and (ii) on which the Investor receives, prior to 1:00 p.m., Eastern time,
on such Business Day, a valid Additional Accelerated Purchase Notice for such Additional Accelerated Purchase in accordance with
this Agreement.

 

(j)
“Additional Accelerated Purchase Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such
reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Additional Accelerated Purchase
Floor Price shall mean the lower of (i) the adjusted price and (ii) $1.00.

 

(k)
“Additional Accelerated Purchase Minimum Price Threshold” means, with respect to an Additional Accelerated
Purchase made pursuant to Section 2(d) hereof, the greater of (i) seventy-five percent (75%) of the Closing Sale Price
of the Common Stock on the Business Day immediately preceding the applicable Additional Accelerated Purchase Date with respect
to such Additional Accelerated Purchase and (ii) the minimum per share price threshold set forth by the Company in the applicable
Additional Accelerated Purchase Notice.

 

    	-2-

    	 

    

 

(l)
“Additional Accelerated Purchase Notice” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to purchase
the applicable Additional Accelerated Purchase Share Amount at the Additional Accelerated Purchase Price for such Additional Accelerated
Purchase in accordance with this Agreement.

 

(m)
“Additional Accelerated Purchase Price” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, the lower of (i) ninety-five percent (95%) of the VWAP for the period on the applicable Additional
Accelerated Purchase Date, beginning at the latest of (A) the applicable Accelerated Purchase Termination Time with respect to
the corresponding Accelerated Purchase referred to in Section 2(d) hereof on such Additional Accelerated Purchase Date,
(B) the applicable Additional Accelerated Purchase Termination Time with respect to the most recently completed prior Additional
Accelerated Purchase on such Additional Accelerated Purchase Date, as applicable, and (C) the time at which all Purchase Shares
subject to all prior Accelerated Purchases and Additional Accelerated Purchases (as applicable), including, without limitation,
those that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with respect to
which the applicable Additional Accelerated Purchase relates, have theretofore been received by the Investor as DWAC Shares in
accordance with this Agreement (such latest of (i)(A), (i)(B) and (i)(C) above, the “Additional Accelerated Purchase
Commencement Time”), and ending at the earliest of (X) 4:00 p.m., Eastern time, on such Additional Accelerated Purchase
Date, or such other time publicly announced by the Principal Market as the official close of trading on the Principal Market on
such Additional Accelerated Purchase Date, (Y) such time, from and after the Additional Accelerated Purchase Commencement Time
for such Additional Accelerated Purchase, that total number (or volume) of shares of Common Stock traded on the Principal Market
has exceeded the applicable Additional Accelerated Purchase Share Volume Maximum, and (Z) such time, from and after the Additional
Accelerated Purchase Commencement Time for such Additional Accelerated Purchase, that the Sale Price has fallen below the applicable
Additional Accelerated Purchase Minimum Price Threshold (such earliest of (i)(X), (i)(Y) and (i)(Z) above, the “Additional
Accelerated Purchase Termination Time”), and (ii) the Closing Sale Price of the Common Stock on such Additional Accelerated
Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse
stock split or other similar transaction).

 

(n)
“Additional Accelerated Purchase Share Amount” means, with respect to an Additional Accelerated Purchase made
pursuant to Section 2(d) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor
on an Additional Accelerated Purchase Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number
of Purchase Shares directed by the Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice
for the corresponding Regular Purchase referred to in Section 2(d) hereof (subject to the Purchase Share limitations contained
in Section 2(a) hereof) and (ii) an amount equal to (A) the Additional Accelerated Purchase Share Percentage multiplied
by (B) the total number (or volume) of shares of Common Stock traded on the Principal Market during the period on the applicable
Additional Accelerated Purchase Date beginning at the Additional Accelerated Purchase Commencement Time for such Additional Accelerated
Purchase and ending at the Additional Accelerated Purchase Termination Time for such Additional Accelerated Purchase.

 

(o)
“Additional Accelerated Purchase Share Percentage” means, with respect to an Additional Accelerated Purchase
made pursuant to Section 2(d) hereof, thirty percent (30%).

 

(p)
“Additional Accelerated Purchase Share Volume Maximum” means, with respect to an Additional Accelerated Purchase
made pursuant to Section 2(d) hereof, a number of shares of Common Stock equal to (i) the applicable Additional Accelerated
Purchase Share Amount properly directed by the Company to be purchased by the Investor in the applicable Additional Accelerated
Purchase Notice for such Additional Accelerated Purchase, divided by (ii) the Additional Accelerated Purchase Share Percentage
(to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or
other similar transaction).

 

    	-3-

    	 

    

 

(q)
“Alternate Adjusted Regular Purchase Share Limit” means, with respect to a Regular Purchase made pursuant to
Section 2(b) hereof, the maximum number of Purchase Shares which, taking into account the applicable per share Purchase
Price therefor calculated in accordance with this Agreement, would enable the Company to deliver to the Investor, on the applicable
Purchase Date for such Regular Purchase, a Regular Purchase Notice for a Purchase Amount equal to, or as closely approximating
without exceeding, Seventy-Five Thousand Dollars ($75,000).

 

(r)
“Available Amount” means, initially, Twenty Million Dollars ($20,000,000) in the aggregate, which amount shall
be reduced by (i) the Initial Purchase Amount upon the purchase of the Initial Purchase Shares by the Investor on the date hereof
pursuant to Section 2(a) hereof, as applicable, and (ii) the Purchase Amount each time the Investor purchases shares of
Common Stock (other than the Initial Purchase Shares, if any) pursuant to Section 2 hereof.

 

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

 

(t)
“Business Day” means any day on which the Principal Market is open for trading, including any day on which
the Principal Market is open for trading for a period of time less than the customary time.

 

(u)
“Closing Sale Price” means, for any security as of any date, the last closing sale price for such security
on the Principal Market as reported by the Principal Market.

 

(v)
“Confidential Information” means any information disclosed by either party to the other party, either directly
or indirectly, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes,
samples, plant and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation.
Information communicated orally shall be considered Confidential Information if such information is confirmed in writing as being
Confidential Information within ten (10) Business Days after the initial disclosure. Confidential Information may also include
information disclosed to a disclosing party by third parties. Confidential Information shall not, however, include any information
which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing
party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving party
through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party without confidential
restriction at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately
prior to the time of disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third party’s
obligations of confidentiality; or (v) is independently developed by the receiving party without use of or reference to the disclosing
party’s Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession.

 

(w)
“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

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

 

(y)
“DWAC Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and
transferable and without restriction on resale and (iii) timely credited by the Company 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,
or any similar program hereafter adopted by DTC performing substantially the same function.

 

    	-4-

    	 

    

 

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

 

(aa)
“Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction, the Floor Price shall mean the lower of (i) the adjusted price
and (ii) $1.00.

 

(bb)
“Fully Adjusted Regular Purchase Share Limit” means, with respect to any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction from and after the date of this Agreement, the Regular Purchase Share
Limit (as defined in Section 2(b) hereof) in effect on the applicable date of determination, after giving effect to the
full proportionate adjustment thereto made pursuant to Section 2(b) hereof for or in respect of such reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction.

 

(cc)
“Initial Purchase Amount” means, with respect to the Initial Purchase made pursuant to Section 2(a)
hereof, as applicable, the number of Initial Purchase Shares directed by the Company to be purchased by the Investor in the Initial
Purchase Notice, which number of Initial Purchase Shares shall not exceed 117,000 (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

 

(dd)
“Initial Purchase Date” means, with respect to the Initial Purchase made pursuant to Section 2(a) hereof,
as applicable, the Business Day during the Initial Purchase Period on which the Investor receives by 5:00 p.m., Eastern time,
of such Business Day a valid Initial Purchase Notice that the Investor is to buy the Initial Purchase Amount of Initial Purchase
Shares pursuant to Section 2(a) hereof.

 

(ee)
“Initial Purchase Notice” means, with respect to the Initial Purchase made pursuant to Section 2(a)
hereof, as applicable, an irrevocable written notice from the Company to the Investor directing the Investor to buy the Initial
Purchase Amount of Initial Purchase Shares as specified by the Company therein at the Initial Purchase Price on the Initial Purchase
Date.

 

(ff)
“Initial Purchase Period” means, with respect to the Initial Purchase made pursuant to Section 2(a)
hereof, as applicable, the period beginning on the Business Day after the date hereof on which all of the conditions set forth
in Sections 7(I) and 8(I) hereof have been fully satisfied and ending on the earlier of (i) the thirtieth (30th)
Business Day immediately following the date of this Agreement and (ii) the third (3rd) Business Day immediately preceding
the date on which the initial Registration Statement is filed with the SEC.

 

(gg)
“Initial Purchase Price” means, with respect to the Initial Purchase made pursuant to Section 2(a) hereof,
as applicable, $4.50 per share (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction that occurs on or after the date of this Agreement).

 

    	-5-

    	 

    

 

(hh)
“Material Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document,
(ii) the results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole,
other than any material adverse effect that resulted exclusively from (A) any change in the United States or foreign economies
or securities or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries,
taken as a whole, (B) any change that generally affects the industry in which the Company and its Subsidiaries operate that does
not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection
with earthquakes, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening
of any such hostilities, acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action
taken by the Investor, its affiliates or its or their successors and assigns with respect to the transactions contemplated by
this Agreement, (E) the effect of any change in applicable laws or accounting rules that does not have a disproportionate effect
on the Company and its Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement
or the consummation of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(ii)
“Maturity Date” means the first day of the month immediately following the thirty-six (36) month anniversary
of the Commencement Date.

 

(jj)
“PEA Period” means the period commencing at 9:30 a.m., Eastern time, on the fifth (5th) Business
Day immediately prior to the filing of any post-effective amendment to the Registration Statement (as defined herein) or New Registration
Statement (as such term is defined in the Registration Rights Agreement), and ending at 9:30 a.m., Eastern time, on the Business
Day immediately following, the effective date of any post-effective amendment to the Registration Statement (as defined herein)
or New Registration Statement (as such term is defined in the Registration Rights Agreement).

 

(kk)
“Person” means an individual or entity including but not limited to any limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

(ll)
“Principal Market” means the OTCQB operated by the OTC Markets Group, Inc. (or any nationally recognized successor
thereto); provided, however, that in the event the Company’s Common Stock is ever listed or traded on The Nasdaq Capital
Market, The Nasdaq Global Market, The Nasdaq Global Select Market, the New York Stock Exchange, the NYSE American, the NYSE Arca,
the OTC Bulletin Board, or the OTCQX operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of
the foregoing), then the “Principal Market” shall mean such other market or exchange on which the Company’s
Common Stock is then listed or traded.

 

(mm)
“Purchase Amount” means, with respect to the Initial Purchase, any Regular Purchase, any Accelerated Purchase,
any Additional Accelerated Purchase or the Tranche Purchase made hereunder, as applicable, the portion of the Available Amount
to be purchased by the Investor pursuant to Section 2 hereof.

 

(nn)
“Purchase Date” means, with respect to a Regular Purchase made pursuant to Section 2(b) hereof, the
Business Day on which the Investor receives, after 4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, on such Business
Day, a valid Regular Purchase Notice for such Regular Purchase in accordance with this Agreement.

 

(oo)
“Purchase Price” means, with respect to a Regular Purchase made pursuant to Section 2(b) hereof, the
lower of: (i) the lowest Sale Price on the Purchase Date for such Regular Purchase and (ii) the arithmetic average of the three
(3) lowest Closing Sale Prices for the Common Stock during the twelve (12) consecutive Business Days ending on the Business Day
immediately preceding such Purchase Date for such Regular Purchase (in each case, to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

 

    	-6-

    	 

    

 

(pp)
“Regular Purchase Notice” means, with respect to a Regular Purchase pursuant to Section 2(b) hereof,
an irrevocable written notice from the Company to the Investor directing the Investor to buy a specified number of Purchase Shares
(subject to the Purchase Share limitations contained in Section 2(b) hereof) at the applicable Purchase Price for such
Regular Purchase in accordance with this Agreement.

 

(qq)
“Sale Price” means any trade price for the shares of Common Stock on the Principal Market as reported by the
Principal Market.

 

(rr)
“SEC” means the U.S. Securities and Exchange Commission.

 

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

 

(tt)
“Subsidiary” means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly,
owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21)
of Regulation S-K promulgated under the Securities Act.

 

(uu)
“Tranche Purchase Amount” means, with respect to the Tranche Purchase made pursuant to Section 2(e)
hereof, as applicable, the number of Purchase Shares directed by the Company to be purchased by the Investor in the Tranche Purchase
Notice, which number of Purchase Shares shall not exceed the number obtained by subtracting (i) the number of Initial Purchase
Shares purchased by the Investor hereunder during the Initial Purchase Period, if any, from (ii) 117,000 (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on
or after the date of this Agreement).

 

(vv)
“Tranche Purchase Date” means, with respect to the Tranche Purchase made pursuant to Section 2(e) hereof,
as applicable, the Business Day on which the Investor receives by 5:00 p.m., Eastern time, of such Business Day a valid Tranche
Purchase Notice that the Investor is to buy Purchase Shares pursuant to Section 2(e) hereof.

 

(ww)
“Tranche Purchase Notice” means, with respect to the Tranche Purchase pursuant to Section 2(e) hereof,
as applicable, an irrevocable written notice from the Company to the Investor directing the Investor to buy the Tranche Purchase
Amount of Purchase Shares as specified by the Company therein at the Tranche Purchase Price on the Tranche Purchase Date.

 

(xx)
“Tranche Purchase Period” means, with respect to the Tranche Purchase made pursuant to Section 2(e)
hereof, as applicable, the period beginning on the Business Day immediately following the Commencement Date and ending on the
thirtieth (30th) Business Day immediately following the Commencement Date.

 

(yy)
“Tranche Purchase Price” means, with respect to the Tranche Purchase made pursuant to Section 2(e) hereof,
as applicable, $4.50 per share (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction that occurs on or after the date of this Agreement).

 

(zz)
“Transaction Documents” means, collectively, this Agreement and the schedules and exhibits hereto, the Registration
Rights Agreement and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments
entered into or furnished by the parties hereto in connection with the transactions contemplated hereby and thereby.

 

    	-7-

    	 

    

 

(aaa)
“Transfer Agent” means Action Stock Transfer, or such other Person who is then serving as the transfer agent
for the Company in respect of the Common Stock.

 

(bbb)
“VWAP” means in respect of an Accelerated Purchase Date and an Additional Accelerated Purchase Date, as applicable,
the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal Market.

 

2.
PURCHASE OF COMMON STOCK. 

 

Subject
to the terms and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has
the obligation to purchase from the Company, Purchase Shares as follows:

 

(a)
Initial Purchase of Common Stock. Subject to the satisfaction of all of the conditions set forth in Sections 7(I)
and 8(I) hereof, during the Initial Purchase Period only, the Company shall have the right, but not the obligation, to
direct the Investor by the Company’s delivery to the Investor of the Initial Purchase Notice, and the Investor thereupon
shall have the obligation, to buy the Initial Purchase Amount of Initial Purchase Shares as specified by the Company therein at
the Initial Purchase Price on the Initial Purchase Date (such purchase, the “Initial Purchase”); provided,
however, that (i) the Company may deliver the Initial Purchase Notice to the Investor only on a Business Day during the
Initial Purchase Period and the Company shall not have the right to (and shall not) deliver an Initial Purchase Notice in respect
of the Initial Purchase at any other time during the term of this Agreement, (ii) the Company may not deliver to the Investor
more than one (1) Initial Purchase Notice pursuant to this Agreement, (iii) the Company may not deliver the Initial Purchase Notice
for an Initial Purchase Amount in excess of 117,000 Initial Purchase Shares (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction after the date of this Agreement), and (iv) the
Investor’s total committed obligation under the Initial Purchase shall not exceed Five Hundred Twenty-Six Thousand Five
Hundred Thousand Dollars ($526,500). If the Company delivers the Initial Purchase Notice for an Initial Purchase Amount in excess
of the limitations contained in this Section 2(a), such Initial Purchase Notice shall be void ab initio to the extent
of the amount by which the number of Initial Purchase Shares set forth in such Initial Purchase Notice exceeds the number of Initial
Purchase Shares which the Company is permitted to include in such Initial Purchase Notice in accordance herewith, and the Investor
shall have no obligation to purchase such excess Initial Purchase Shares in respect of such Initial Purchase Notice; provided
that the Investor shall remain obligated to purchase the number of Initial Purchase Shares which the Company is permitted to include
in such Initial Purchase Notice.

 

    	-8-

    	 

    

 

(b)
Commencement of Regular Sales of Common Stock. Upon the satisfaction of all of the conditions set forth in Sections
7(II) and 8(II) hereof (the “Commencement” and the date of satisfaction of such conditions the “Commencement
Date”) and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery
to the Investor of a Regular Purchase Notice from time to time, to purchase up to Ten Thousand (10,000) Purchase Shares, subject
to adjustment as set forth below in this Section 2(b) (such maximum number of Purchase Shares, as may be adjusted from
time to time, the “Regular Purchase Share Limit”), at the Purchase Price on the Purchase Date (each such purchase
a “Regular Purchase”); provided, however, that the Regular Purchase Share Limit shall be increased
to: (i) Fifteen Thousand (15,000) Purchase Shares, if the Closing Sale Price of the Common Stock on the applicable Purchase Date
is not below $4.50, (ii) Twenty Thousand (20,000) Purchase Shares, if the Closing Sale Price of the Common Stock on the applicable
Purchase Date is not below $5.00, (iii) Twenty-Five Thousand (25,000) Purchase Shares, if the Closing Sale Price of the Common
Stock on the applicable Purchase Date is not below $6.00, and (iv) Thirty Thousand (30,000) Purchase Shares, if the Closing Sale
Price of the Common Stock on the applicable Purchase Date is not below $7.00 (all of which share and dollar amounts shall be appropriately
proportionately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction;
provided that if, after giving effect to the full proportionate adjustment to the Regular Purchase Share Limit therefor,
the Fully Adjusted Regular Purchase Share Limit then in effect would preclude the Company from delivering to the Investor a Regular
Purchase Notice hereunder for a Purchase Amount (calculated by multiplying (X) the number of Purchase Shares equal to the Fully
Adjusted Regular Purchase Share Limit, by (Y) the Purchase Price per Purchase Share covered by such Regular Purchase Notice on
the applicable Purchase Date therefor) equal to or greater than Seventy-Five Thousand Dollars ($75,000), the Regular Purchase
Share Limit for such Regular Purchase Notice shall not be fully adjusted to equal the applicable Fully Adjusted Regular Purchase
Share Limit, but rather the Regular Purchase Share Limit for such Regular Purchase Notice shall be adjusted to equal the applicable
Alternate Adjusted Regular Purchase Share Limit as of the applicable Purchase Date for such Regular Purchase Notice); and provided,
further, however, that the Investor’s committed obligation under any single Regular Purchase, other than any
Regular Purchase with respect to which an Alternate Adjusted Regular Purchase Share Limit shall apply, shall not exceed Seven
Hundred Fifty Thousand Dollars ($750,000). If the Company delivers any Regular Purchase Notice for a Purchase Amount in excess
of the limitations contained in the immediately preceding sentence, such Regular Purchase Notice shall be void ab initio
to the extent of the amount by which the number of Purchase Shares set forth in such Regular Purchase Notice exceeds the number
of Purchase Shares which the Company is permitted to include in such Purchase Notice in accordance herewith, and the Investor
shall have no obligation to purchase such excess Purchase Shares in respect of such Regular Purchase Notice; provided,
however, that the Investor shall remain obligated to purchase the number of Purchase Shares which the Company is permitted
to include in such Regular Purchase Notice. The Company may deliver a Regular Purchase Notice to the Investor as often as every
Business Day, so long as the Company has not failed to deliver Purchase Shares for the most recent prior Regular Purchase. Notwithstanding
the foregoing, the Company shall not deliver a Regular Purchase Notice to the Investor on any Purchase Date that the Closing Sale
Price of the Common Stock is less than the Floor Price. Notwithstanding the foregoing, the Company shall not deliver any Regular
Purchase Notices during the PEA Period.

 

(c)
Accelerated Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement Date, in
addition to purchases of Purchase Shares as described in Section 2(b) above, the Company shall also have the right, but
not the obligation, to direct the Investor, by its delivery to the Investor of an Accelerated Purchase Notice from time to time
in accordance with this Agreement, to purchase the applicable Accelerated Purchase Share Amount at the Accelerated Purchase Price
on the Accelerated Purchase Date therefor in accordance with this Agreement (each such purchase, an “Accelerated Purchase”).
The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which (i) the Company also properly
submitted a Regular Purchase Notice providing for a Regular Purchase of a number of Purchase Shares not less than the Regular
Purchase Share Limit then in effect on such Purchase Date in accordance with this Agreement (including, without limitation, giving
effect to any automatic increase to the Regular Purchase Share Limit as a result of the Closing Sale Price of the Common Stock
exceeding certain thresholds set forth in Section 2(b) above on such Purchase Date and any other adjustments to the Regular
Purchase Share Limit, in each case pursuant to Section 2(b) above) and (ii) the Closing Sale Price of the Common Stock
is not less than the Accelerated Purchase Floor Price. If the Company delivers any Accelerated Purchase Notice directing the Investor
to purchase an amount of Purchase Shares that exceeds the Accelerated Purchase Share Amount that the Company is then permitted
to include in such Accelerated Purchase Notice, such Accelerated Purchase Notice shall be void ab initio to the extent
of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase Notice exceeds the Accelerated Purchase
Share Amount that the Company is then permitted to include in such Accelerated Purchase Notice (which shall be confirmed in an
Accelerated Purchase Confirmation), and the Investor shall have no obligation to purchase such excess Purchase Shares in respect
of such Accelerated Purchase Notice; provided, however, that the Investor shall remain obligated to purchase the
Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice. Within one (1)
Business Day after completion of each Accelerated Purchase Date for an Accelerated Purchase, the Investor will provide to the
Company a written confirmation of such Accelerated Purchase setting forth the applicable Accelerated Purchase Share Amount and
Accelerated Purchase Price for such Accelerated Purchase (each, an “Accelerated Purchase Confirmation”). Notwithstanding
the foregoing, the Company shall not deliver any Accelerated Purchase Notices during the PEA Period.

 

    	-9-

    	 

    

 

(d)
Additional Accelerated Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement
Date, in addition to purchases of Purchase Shares as described in Section 2(b) and Section 2(c) above, the Company
shall also have the right, but not the obligation, to direct the Investor, by its timely delivery to the Investor of an Additional
Accelerated Purchase Notice on an Additional Accelerated Purchase Date in accordance with this Agreement, to purchase the applicable
Additional Accelerated Purchase Share Amount at the applicable Additional Accelerated Purchase Price therefor in accordance with
this Agreement (each such purchase, an “Additional Accelerated Purchase”). The Company may deliver multiple
Additional Accelerated Purchase Notices to the Investor on an Additional Accelerated Purchase Date; provided, however,
that the Company may deliver an Additional Accelerated Purchase Notice to the Investor only (i) on a Business Day that is also
the Accelerated Purchase Date for an Accelerated Purchase with respect to which the Company properly submitted to the Investor
an Accelerated Purchase Notice in accordance with this Agreement on the applicable Purchase Date for a Regular Purchase of a number
of Purchase Shares not less than the Regular Purchase Share Limit then in effect in accordance with this Agreement (including,
without limitation, giving effect to any automatic increase to the Regular Purchase Share Limit as a result of the Closing Sale
Price of the Common Stock exceeding certain thresholds set forth in Section 2(b) above on such Purchase Date and any other
adjustments to the Regular Purchase Share Limit, in each case pursuant to Section 2(b) above), (ii) if the Closing Sale
Price of the Common Stock on the Business Day immediately preceding the Business Day on which such Additional Accelerated Purchase
Notice is delivered is not less than the Additional Accelerated Purchase Floor Price, and (iii) if all Purchase Shares subject
to all prior Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, including, without limitation, those
that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with respect to which
the applicable Additional Accelerated Purchase relates, and, if the Tranche Purchase has occurred prior thereto, all Purchase
Shares subject to the Tranche Purchase, in each case have theretofore been received by the Investor as DWAC Shares in accordance
with this Agreement. If the Company delivers any Additional Accelerated Purchase Notice directing the Investor to purchase an
amount of Purchase Shares that exceeds the Additional Accelerated Purchase Share Amount that the Company is then permitted to
include in such Additional Accelerated Purchase Notice, such Additional Accelerated Purchase Notice shall be void ab initio
to the extent of the amount by which the number of Purchase Shares set forth in such Additional Accelerated Purchase Notice
exceeds the Additional Accelerated Purchase Share Amount that the Company is then permitted to include in such Additional Accelerated
Purchase Notice (which shall be confirmed in an Additional Accelerated Purchase Confirmation), and the Investor shall have no
obligation to purchase such excess Purchase Shares in respect of such Additional Accelerated Purchase Notice; provided,
however, that the Investor shall remain obligated to purchase the Additional Accelerated Purchase Share Amount which the
Company is permitted to include in such Additional Accelerated Purchase Notice. Within one (1) Business Day after completion of
each Additional Accelerated Purchase Date, the Investor will provide to the Company a written confirmation of each Additional
Accelerated Purchase on such Additional Accelerated Purchase Date setting forth the applicable Additional Accelerated Purchase
Share Amount and Additional Accelerated Purchase Price for each such Additional Accelerated Purchase on such Additional Accelerated
Purchase Date (each, an “Additional Accelerated Purchase Confirmation”). Notwithstanding the foregoing, the
Company shall not deliver any Additional Accelerated Purchase Notices during the PEA Period.

 

    	-10-

    	 

    

 

(e)
Tranche Purchase. Subject to the terms and conditions of this Agreement, during the Tranche Purchase Period only, in addition
to purchases of Purchase Shares as described in Section 2(b), Section 2(c) and Section 2(d) above, the Company
shall have the right, but not the obligation, to direct the Investor by the Company’s delivery to the Investor of the Tranche
Purchase Notice, and the Investor thereupon shall have the obligation, to buy the Tranche Purchase Amount of Purchase Shares as
specified by the Company therein at the Tranche Purchase Price on the Tranche Purchase Date (such purchase, the “Tranche
Purchase”); provided, however, that (i) the Company may deliver the Tranche Purchase Notice to the Investor only on
a Business Day during the Tranche Purchase Period and the Company shall not have the right to (and shall not) deliver the Tranche
Purchase Notice in respect of the Tranche Purchase at any other time during the term of this Agreement, (ii) the Company may not
deliver to the Investor more than one (1) Tranche Purchase Notice pursuant to this Agreement, (iii) the Company may not deliver
the Tranche Purchase Notice for a Tranche Purchase Amount in excess of the number obtained by subtracting (A) the number of Initial
Purchase Shares purchased by the Investor hereunder during the Initial Purchase Period, if any, from (B) 117,000 (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on
or after the date of this Agreement), and (iv) the Investor’s total committed obligation under the Tranche Purchase shall
not exceed the dollar amount equal to (A) Five Hundred Twenty-Six Thousand Five Hundred Thousand Dollars ($526,500) minus (B)
the total aggregate Purchase Amount paid by the Investor to the Company in the Initial Purchase, if any. If the Company delivers
the Tranche Purchase Notice for a Tranche Purchase Amount in excess of the limitations contained in this Section 2(e),
such Tranche Purchase Notice shall be void ab initio to the extent of the amount by which the number of Tranche Purchase Shares
set forth in such Tranche Purchase Notice exceeds the number of Tranche Purchase Shares which the Company is permitted to include
in such Tranche Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase
Shares in respect of such Tranche Purchase Notice; provided that the Investor shall remain obligated to purchase the number of
Tranche Purchase Shares which the Company is permitted to include in such Tranche Purchase Notice. Notwithstanding the foregoing,
the Company shall not deliver the Tranche Purchase Notice during the PEA Period.

 

(f)
Payment for Purchase Shares. For the Initial Purchase, each Regular Purchase and the Tranche Purchase, the Investor shall
pay to the Company an amount equal to the Purchase Amount with respect to such Initial Purchase, Regular Purchase or Tranche Purchase,
as applicable, as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business
Day that the Investor receives such Purchase Shares, if such Purchase Shares are received by the Investor before 1:00 p.m., Eastern
time, or, if such Purchase Shares are received by the Investor after 1:00 p.m., Eastern time, the next Business Day. For each
Accelerated Purchase and each Additional Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase
Amount with respect to such Accelerated Purchase and Additional Accelerated Purchase, respectively, as full payment for such Purchase
Shares via wire transfer of immediately available funds on the second Business Day following the date that the Investor receives
such Purchase Shares. If the Company or the Transfer Agent shall fail for any reason or for no reason to electronically transfer
any Purchase Shares as DWAC Shares with respect to any Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase
(as applicable) within two (2) Business Days following the receipt by the Company of the Purchase Price, Accelerated Purchase
Price or Additional Accelerated Purchase Price, respectively, therefor in compliance with this Section 2(f), and if on
or after such Business 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 Purchase Shares that the Investor anticipated receiving from the Company in
respect of such Initial Purchase, Regular Purchase, Accelerated Purchase, Additional Accelerated Purchase or Tranche Purchase
(as applicable), then the Company shall, within two (2) Business Days after the Investor’s request, either (i) pay cash
to the Investor in an amount equal to the Investor’s total purchase price (including customary 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 Purchase Shares as DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to the Investor
such Purchase 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 Amount paid by the Investor pursuant to this Agreement for all of the Purchase Shares to be purchased
by the Investor in connection with such purchases. The Company shall not issue any fraction of a share of Common Stock upon the
Initial Purchase, any Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase, or the Tranche 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 or 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 Business Day, the same shall instead be due on the next succeeding day
that is a Business Day.

 

    	-11-

    	 

    

 

(g)
Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall
not issue or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor
and its affiliates of more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership
Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later than one Business
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.

 

3.
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)
Organization, Authority. Investor 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 this Agreement and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
Investment Purpose. The Investor is acquiring the Purchase Shares as principal for its own account for investment only
and not with a view to or for distributing or reselling such Purchase Shares or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present intention of distributing any of such Purchase Shares in violation
of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with
any other Persons to distribute or regarding the distribution of such Purchase Shares in violation of the Securities Act or any
applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Purchase
Shares at any time pursuant to the Registration Statement described herein or otherwise in compliance with applicable federal
and state securities laws). The Investor is acquiring the Purchase Shares hereunder in the ordinary course of its business.

 

(c)
Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3)
of Regulation D promulgated under the Securities Act.

 

(d)
Reliance on Exemptions. The Investor understands that the Purchase Shares 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 the Investor’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such
exemptions and the eligibility of the Investor to acquire the Purchase Shares.

 

    	-12-

    	 

    

 

(e)
Information. The Investor understands that its investment in the Purchase Shares involves a high degree of risk. The Investor
(i) is able to bear the economic risk of an investment in the Purchase Shares including a total loss thereof, (ii) has such knowledge
and experience in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment
in the Purchase Shares and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company
concerning the financial condition and business of the Company and others matters related to an investment in the Purchase Shares.
Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify,
amend or affect the Investor’s right to rely on the Company’s representations and warranties contained in Section
4 below. 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 Purchase Shares. The Investor acknowledges and agrees that the Company
neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 4 hereof.

 

(f)
No Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Purchase Shares or the fairness or suitability of an investment
in the Purchase Shares nor have such authorities passed upon or endorsed the merits of the offering of the Purchase Shares.

 

(g)
Transfer or Sale. The Investor understands that (i) the Purchase Shares may not be offered for sale, sold, assigned or
transferred unless (A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Purchase Shares to
be sold, assigned or transferred without such registration; (ii) any sale of the Purchase Shares made in reliance on Rule 144
may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Purchase
Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter
(as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the
rules and regulations of the SEC thereunder.

 

(h)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor
and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as
to enforceability to general principles of equity and 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)
Residency. The Investor is a resident of the State of Illinois.

 

(j)
No Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement
has any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly
or indirectly, any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of
the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.

 

    	-13-

    	 

    

 

4.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investor that, as of the date hereof and as of the Commencement Date:

 

(a)
Organization and Qualification. The Company and each of its 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
corporate 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 of its Subsidiaries is in violation or default of any of the provisions of its respective certificate or articles
of formation or incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, would not 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. The Company has no Subsidiaries except as set forth on Exhibit 21.1 to the
Company’s Current Report on Form 8-K filed on January 20, 2017.

 

(b)
Authorization; Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement and each of the other Transaction Documents, and to issue the Purchase Shares in
accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the reservation for
issuance and the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s
Board of Directors and no further consent or authorization is required by the Company, its Board of Directors or any committee
thereof, or its stockholders (save to the extent provided in this agreement), (iii) this Agreement has been, and each other Transaction
Document shall be on the Commencement Date, duly executed and delivered by the Company and (iv) this Agreement constitutes, and
each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations
of the Company enforceable against the Company in accordance with their 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 creditors’ rights and remedies. The Board of Directors of the Company has
approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth as Exhibit B
attached hereto to authorize this Agreement and the transactions contemplated hereby. The Signing Resolutions are valid, in
full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Investor a true
and correct copy of a unanimous written consent adopting the Signing Resolutions executed by all of the members of the Board of
Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Company’s Board of
Directors, any other authorized committee thereof, and/or stockholders is necessary under applicable laws and the Company’s
Certificate of Incorporation and/or Bylaws to authorize the execution and delivery of this Agreement or any of the transactions
contemplated hereby, including, but not limited to, the issuance of the Purchase Shares.

 

(c)
Capitalization. As of the date hereof, the authorized capital stock of the Company is set forth in the Company’s
Transition Report on Form 10-KT for the transition period ended March 31, 2018. Except as disclosed in the SEC Documents (as defined
below) or Schedule 4(c), (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt securities, (iii)
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, any shares of 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 of 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, any shares of capital stock of
the Company or any of its Subsidiaries, (iv) 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 Securities Act (except the Registration Rights Agreement
and those registration rights for which a registration statement has been filed and is effective), (v) 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, (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Purchase Shares as described in this Agreement and (vii) the
Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or
agreement. The Company has furnished to the Investor true and correct copies of the Certificate of Incorporation and the Bylaws,
each as in effect on the date hereof, and copies of any documents containing the material rights of holders of securities convertible
or exercisable for Common Stock.

 

    	-14-

    	 

    

 

(d)
Issuance of Purchase Shares. Upon issuance and payment therefor in accordance with the terms and conditions of this Agreement,
the Purchase Shares (including, without limitation, the Initial Purchase Shares) shall be validly issued, fully paid and nonassessable
and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue
thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. 4,000,000 shares of Common Stock
have been duly authorized and reserved for issuance upon purchase under this Agreement as Purchase Shares (other than the Initial
Purchase Shares).

 

(e)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance
and issuance of the Purchase Shares) will not (i) result in a violation of the Certificate of Incorporation, any Certificate of
Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws 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
the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and the rules and regulations of the Principal Market 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, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its
Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or
bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any
material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments
that would not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, ordinance, regulation of any governmental entity, except
for possible violations, the sanctions for which either individually or in the aggregate would not reasonably be expected to have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable
state securities laws and the rules and regulations of the Principal Market, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory
agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents
in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, (i) all consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence on or prior to the
date hereof or on or prior to the Initial Purchase Date shall be obtained or effected on or prior to the date hereof and on or
prior to the Initial Purchase Date, respectively, and (ii) all consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence with respect to the Commencement shall be obtained or effected
on or prior to the Commencement Date.

 

    	-15-

    	 

    

 

(f)
SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective
dates, to the Company’s knowledge, the SEC Documents complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the
SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. Except as publicly
available through the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) or in connection with a confidential
treatment request submitted to the SEC, the Company has received no notices or correspondence from the SEC for the one year preceding
the date hereof other than SEC comment letters relating to the Company’s filings under the Exchange Act and the Securities
Act. There are no “open” SEC comments. To the Company’s knowledge, the SEC has not commenced any enforcement
proceedings against the Company or any of its Subsidiaries.

 

(g)
Absence of Certain Changes. Except as disclosed in the SEC Documents, since December 31, 2017, there has been no material
adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as
they become due.

 

(h)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company, the Common Stock or any of the Company’s or its Subsidiaries’ officers
or directors in their capacities as such, which could reasonably be expected to have a Material Adverse Effect.

 

(i)
Acknowledgment Regarding Investor’s Status. The Company acknowledges and agrees that the Investor is acting solely
in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby. 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 the Transaction Documents and the transactions contemplated hereby and thereby and
any advice given by the Investor or any of its representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Purchase Shares. The
Company further represents to the Investor that the Company’s decision to enter into the Transaction Documents has been
based solely on the independent evaluation by the Company and its representatives and advisors.

 

    	-16-

    	 

    

 

(j)
No General Solicitation; No Integrated Offering. Neither the Company, nor any of its 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 under the Securities Act) in connection with the offer or sale of the Purchase Shares. Neither the Company, nor 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 require registration of the offer and sale of any of the Purchase
Shares under the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the
Purchase Shares to be integrated with prior offerings by the Company in a manner that would require stockholder approval pursuant
to the rules of the Principal Market on which any of the securities of the Company are listed or designated. The issuance and
sale of the Purchase Shares hereunder does not contravene the rules and regulations of the Principal Market.

 

(k)
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as
now conducted. None of the Company’s material trademarks, trade names, service marks, service mark registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other
intellectual property rights have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within
two years from the date of this Agreement, except as would not reasonably be expected to have a Material Adverse Effect. The Company
and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical
information by others, and there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge,
being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention,
copyright, license, service names, service marks, service mark registrations, trade secret or other infringement, which could
reasonably be expected to have a Material Adverse Effect.

 

(l)
Environmental Laws. The Company and its Subsidiaries (i) are in compliance with any and all applicable foreign, federal,
state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval, except where, in each of the three foregoing
clauses, the failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

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

 

    	-17-

    	 

    

 

(n)
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 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 at a cost that would not materially and adversely affect the condition, financial
or otherwise, or the earnings, business or operations of the Company and its Subsidiaries, taken as a whole.

 

(o)
Regulatory Permits. Except as disclosed in the Registration Statement or the SEC Documents, the Company and its Subsidiaries
possess all material certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities
necessary to conduct their respective businesses as currently conducted, except where the failure to possess such certificates,
authorizations, or permits would not reasonably be expected to have 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.

 

(p)
Tax Status. The Company and each of its Subsidiaries has made or filed all federal and state income and all other material
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and 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. Except as set forth on Schedule 4(p), 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 know of no basis for any such claim.

 

(q)
Transactions With Affiliates. Except as disclosed in the SEC Documents, to the Company’s knowledge, none of the Company’s
stockholders, officers or directors or any family member or affiliate of any of the foregoing, has either directly or indirectly
an interest in, or is a party to, any transaction that would be required to be disclosed as a related party transaction pursuant
to Item 404 of Regulation S-K promulgated under the Securities Act.

 

(r)
Application of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement
Date 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 Certificate of Incorporation
or the laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s issuance of the Purchase Shares and the Investor’s
ownership of the Purchase Shares.

 

    	-18-

    	 

    

 

(s)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents that will be timely publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting
on its behalf has provided the Investor or its agents or counsel with any information that it believes constitutes or might constitute
material, non-public information that is not otherwise disclosed in the Registration Statement or the SEC Documents. The Company
understands and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of securities
of the Company. All of the disclosure furnished by or on behalf of the Company to the Investor regarding the Company, its business
and the transactions contemplated hereby, taken as a whole, is true and correct in all material respects 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 light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during
the twelve months preceding the date of this Agreement taken as a whole did not as of their issue date 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 and when made, not misleading. The Company acknowledges and
agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3 hereof.

 

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

 

(u)
DTC Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

 

(v)
Sarbanes-Oxley. To the knowledge of the Company, the Company is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002, as amended, which are applicable to it as of the date hereof.

 

(w)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by the Transaction Documents. The Investor shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section 4(w) that may be due in connection with
the transactions contemplated by the Transaction Documents.

 

(x)
Investment Company. The Company is not required to be registered as, and immediately after receipt of payment for the Purchase
Shares will not be required to be registered as, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.

 

    	-19-

    	 

    

 

(y)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(g) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. The Common Stock shall be approved for listing or quotation, and shall be so listed or quoted,
on the OTCQB operated by the OTC Markets Group, Inc. (or on any other Principal Market), not later than the earlier of (i) the
Business Day immediately preceding the Initial Purchase Date (as applicable) and (ii) the Business Day immediately preceding the
date the initial Registration Statement contemplated by Section 2(a) of the Registration Rights Agreement is initially filed with
the SEC. The Company has taken no action designed to, or likely to have the effect of, delisting the Common Stock from the OTCQB
operated by the OTC Markets Group, Inc. (or from any other Principal Market on which the Common Stock may be listed or quoted),
nor has the Company received any notice from any Person to the effect that the Company is not in compliance with the listing or
maintenance requirements of the Principal Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements.

 

(z)
Accountants. The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such
accountants are an independent registered public accounting firm as required by the Securities Act.

 

(aa)
No Market Manipulation. The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Purchase Shares, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Purchase Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

(bb)
Shell Company Status. The Company is not, and has not been at any time since at least January 13, 2017, an issuer identified
in Rule 144(i)(1) under the Securities Act and has filed with the SEC current “Form 10 information” (as defined in
Rule 144(i)(3) under the Securities Act) at least 12 calendar months prior to the date of this Agreement reflecting its status
as an entity that is no longer an issuer identified in Rule 144(i)(1) under the Securities Act.

 

(cc)
No Disqualification Events. 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 Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer
Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable care to determine whether any Issuer Covered
Person is subject to a Disqualification Event.

 

5.
COVENANTS.

 

(a)
Filing of Current Report and Registration Statement. The Company agrees that it shall, within the time required under the
Exchange Act, file with the SEC a Current Report on Form 8-K relating to the transactions contemplated by, and describing the
material terms and conditions of, the Transaction Documents (the “Current Report”). The Company shall also
file with the SEC, within forty (40) Business Days from the date hereof, a new registration statement (the “Registration
Statement”) covering only the resale of the Purchase Shares (including, without limitation, all of the Initial Purchase
Shares) in accordance with the terms of the Registration Rights Agreement between the Company and the Investor, dated as of the
date hereof (the “Registration Rights Agreement”). The Company shall permit the Investor to review and comment
upon the final pre-filing draft version of the Current Report at least two (2) Business Days prior to its filing with the SEC,
and the Company shall give due consideration to all such comments. The Investor shall use its reasonable best efforts to comment
upon the final pre-filing draft version of the Current Report within one (1) Business Day from the date the Investor receives
it from the Company.

 

    	-20-

    	 

    

 

(b)
Blue Sky. The Company shall take all such action, if any, as is reasonably necessary in order to obtain an exemption for
or to register or qualify (i) the issuance and the sale of the Purchase Shares to the Investor under this Agreement and (ii) any
subsequent resale of all Purchase Shares by the Investor, in each case, under applicable securities or “Blue Sky”
laws of the states of the United States in such states as is reasonably requested by the Investor from time to time, and shall
provide evidence of any such action so taken to the Investor.

 

(c)
Listing/DTC. The Company shall promptly secure the listing of all of the Purchase Shares to be issued to the Investor hereunder
on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market, not later than the earlier of (i) the Business
Day immediately preceding the Initial Purchase Date (as applicable) and (ii) the Business Day immediately preceding the date the
initial Registration Statement contemplated by Section 2(a) of the Registration Rights Agreement is initially filed with the SEC,
and shall use commercially reasonable efforts to maintain, so long as any shares of Common Stock shall be so listed, such listing
of all such Securities from time to time issuable hereunder. The Company shall use commercially reasonable efforts to maintain
the listing of the Common Stock on the Principal Market and shall comply in all respects with the Company’s reporting, filing
and other obligations under the bylaws or rules and regulations of the Principal Market. Neither the Company nor any of its Subsidiaries
shall take any action that would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal
Market. The Company shall promptly, and in no event later than the following Business Day, provide to the Investor copies of any
notices it receives from any Person regarding the continued eligibility of the Common Stock for listing on the Principal Market;
provided, however, that the Company shall not be required to provide the Investor copies of any such notice that the Company reasonably
believes constitutes material non-public information and the Company would not be required to publicly disclose such notice in
any report or statement filed with the SEC and under the Exchange Act or the Securities Act. The Company shall pay all fees and
expenses in connection with satisfying its obligations under this Section 5(c). The Company shall take all action necessary
to ensure that its Common Stock can be transferred electronically as DWAC Shares.

 

(d)
Prohibition of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and
ending on the date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and
affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as
such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which
establishes a net short position with respect to the Common Stock.

 

(e)
Payment of Commitment Fee. In consideration for the Investor’s execution and delivery of this Agreement, the Company
shall cause to be paid to the Investor a commitment fee of $500,000 (the “Commitment Fee”) immediately upon
the execution of this Agreement and shall deliver the Commitment Fee in full to the Investor by wire transfer of immediately available
funds to an account designated by the Investor by written notice to the Company on or prior to the date of this Agreement. For
the avoidance of doubt, all of the Commitment Fee shall be fully earned as of the date of this Agreement, whether or not the Commencement
shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any subsequent termination
of this Agreement.

 

    	-21-

    	 

    

 

(f)
Due Diligence; Non-Public Information. The Investor shall have the right, from time to time as the Investor may reasonably
deem appropriate, and upon reasonable advance notice to the Company, to perform reasonable due diligence on the Company during
normal business hours. The Company and its officers and employees shall provide information and reasonably cooperate with the
Investor in connection with any reasonable request by the Investor related to the Investor’s due diligence of the Company.
Each party hereto agrees not to disclose any Confidential Information of the other party to any third party and shall not use
the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions contemplated
hereby. Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing party and
agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other
party. The receiving party may disclose Confidential Information to the extent such information is required to be disclosed by
law, regulation or order of a court of competent jurisdiction or regulatory authority, provided that the receiving party shall
promptly notify the disclosing party when such requirement to disclose arises, and shall cooperate with the disclosing party so
as to enable the disclosing party to: (i) seek an appropriate protective order; and (ii) make any applicable claim of confidentiality
in respect of such Confidential Information; and provided, further, that the receiving party shall disclose Confidential Information
only to the extent required by the protective order or other similar order, if such an order is obtained, and, if no such order
is obtained, the receiving party shall disclose only the minimum amount of such Confidential Information required to be disclosed
in order to comply with the applicable law, regulation or order. In addition, any such Confidential Information disclosed pursuant
to this section shall continue to be deemed Confidential Information. Notwithstanding anything in this Agreement to the contrary,
the Company and the Investor agree that neither the Company nor any other Person acting on its behalf shall provide the Investor
or its agents or counsel with any information that constitutes or may reasonably be considered to constitute material, non-public
information, 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 Person acting on its behalf (as determined in the
reasonable good faith judgment of the Investor), in addition to any other remedy provided herein or in the other Transaction Documents,
if the Investor is holding any Purchase Shares at the time of the disclosure of such material non-public information, the Investor
shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material,
non-public information without the prior approval by the Company; provided the Investor shall have first provided notice to the
Company that it believes it has received information that constitutes material, non-public information; and the Company shall
have at least 24 hours to either publicly disclose such material, non-public information or to demonstrate to the Investor that
such information does not constitute material, non-public information, prior to any such disclosure by the Investor; and the Company
shall have failed to either publicly disclose such material, non-public information or to demonstrate to the Investor that such
information does not constitute material, non-public information within such time period. 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. The Company understands and confirms that the Investor shall be relying on the foregoing covenants in effecting
transactions in securities of the Company.

 

(g)
Purchase Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at any
given time and the dates and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Purchase or shall
use such other method, reasonably satisfactory to the Investor and the Company.

 

(h)
Taxes. The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance
and delivery of any shares of Common Stock to the Investor made under this Agreement.

 

(i)
Use of Proceeds. The Company will use the net proceeds from the offering as described in the Registration Statement or
the SEC Documents.

 

    	-22-

    	 

    

 

(j)
Other Transactions. 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 the Transaction Documents, including, without limitation, the obligation of the
Company to deliver the Purchase Shares to the Investor in accordance with the terms of the Transaction Documents.

 

(k)
Integration. From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the
Company shall use its reasonable best efforts to ensure that no Person acting on their behalf will, directly or indirectly, make
any offers or sales of any security or solicit any offers to buy any security, under circumstances that would (i) require registration
of the offer and sale of any of the Purchase Shares by the Company to the Investor under the Securities Act, or (ii) cause this
offering of the Purchase Shares by the Company to the Investor to be integrated with other offerings by the Company in a manner
that would require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of the Company
are listed or designated, unless in the case of this clause (ii), stockholder approval is obtained before the closing of such
subsequent transaction in accordance with the rules of such Principal Market.

 

(l)
Limitation on Variable Rate Transactions. From and after the date of this Agreement until the later of: (i) the 36-month
anniversary of the date of this Agreement and (ii) the 36-month anniversary of the Commencement Date (if the Commencement has
occurred), in each case irrespective of any earlier termination of this Agreement, the Company shall be prohibited from effecting
or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock
Equivalents (or a combination of units thereof) involving a Variable Rate Transaction, 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. “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. “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 (including, without limitation,
pursuant to any “cashless exercise” provision), 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) 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” 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. “Exempt Issuance” means the issuance of (a) Common Stock or Common Stock Equivalents
to employees, officers, directors or vendors of the Company pursuant to any stock or option plan duly adopted for such purpose,
by the Board of Directors or a majority of the members of a committee of directors established for such purpose, (b) securities
upon the exercise or exchange of or conversion of any Purchase Shares issued hereunder and/or other securities exercisable or
exchangeable for or convertible into Common Stock issued and outstanding on the date of this Agreement, provided that such securities
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, (c) securities issued pursuant to acquisitions, divestitures, licenses,
partnerships, collaborations or strategic transactions approved by the 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 pursuant to an “at-the-market
offering” by the Company exclusively through a registered broker-dealer acting as agent of the Company pursuant to a written
agreement between the Company and such registered broker-dealer.

 

    	-23-

    	 

    

 

6.
TRANSFER AGENT INSTRUCTIONS.

 

(b)
On the Initial Purchase Date, as applicable, the Company shall issue irrevocable instructions to the Transfer Agent substantially
in the form attached hereto as Exhibit D to issue the Initial Purchase Shares in accordance with the terms of this
Agreement (the “Irrevocable Transfer Agent Instructions”). The certificate(s) or book-entry statement(s) representing
the Initial Purchase Shares, except as set forth below, shall bear the following restrictive legend (the “Restrictive
Legend”):

 

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 HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2)
AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
SECURITIES LAWS.

 

(c)
If the Initial Purchase shall have occurred hereunder, then on the earlier of (i) the Commencement Date and (ii) such time that
the Investor shall request, provided all conditions of Rule 144 under the Securities Act are met, the Company shall, no later
than two (2) Business Days following the delivery by the Investor to the Company or the Transfer Agent of one or more legended
certificates or book-entry statements representing the Initial Purchase Shares (which certificates or book-entry statements the
Investor shall promptly deliver on or prior to the first to occur of the events described in clauses (i) and (ii) of this sentence),
as directed by the Investor, issue and deliver (or cause to be issued and delivered) to the Investor, as requested by the Investor,
either: (A) a certificate or book-entry statement representing such Initial Purchase Shares that is free from all restrictive
and other legends or (B) a number of shares of Common Stock equal to the number of Initial Purchase Shares a represented by the
certificate(s) or book-entry statement(s) so delivered by the Investor as DWAC Shares. The Company shall take all actions to carry
out the intent and accomplish the purposes of the immediately preceding sentence, including, without limitation, delivering all
such legal opinions, consents, certificates, resolutions and instructions to the Transfer Agent, and any successor transfer agent
of the Company, as may be requested from time to time by the Investor or necessary or desirable to carry out the intent and accomplish
the purposes of the immediately preceding sentence. On the Commencement Date, the Company shall issue to the Transfer Agent, and
any subsequent transfer agent, (i) irrevocable instructions in the form substantially similar to those used by the Investor in
substantially similar transactions (the “Commencement Irrevocable Transfer Agent Instructions”) and (ii) the
notice of effectiveness of the Registration Statement in the form attached as an exhibit to the Registration Rights Agreement
(the “Notice of Effectiveness of Registration Statement”), in each case to issue the Purchase Shares in accordance
with the terms of this Agreement and the Registration Rights Agreement. All Purchase Shares to be issued from and after Commencement
to or for the benefit of the Investor pursuant to this Agreement shall be issued only as DWAC Shares. The Company represents and
warrants to the Investor that, while this Agreement is effective, no instruction other than the Commencement Irrevocable Transfer
Agent Instructions and the Notice of Effectiveness of Registration Statement referred to in this Section 6(b) will be given
by the Company to the Transfer Agent with respect to the Purchase Shares from and after Commencement, and the Purchase Shares
covered by the Registration Statement shall otherwise be freely transferable on the books and records of the Company. The Company
agrees that if the Company fails to fully comply with the provisions of this Section 6(b) within five (5) Business Days
of the Investor providing the deliveries referred to above, the Company shall, at the Investor’s written instruction, purchase
such shares of Common Stock containing the Restrictive Legend from the Investor at the greater of the (i) purchase price paid
for such shares of Common Stock (as applicable) and (ii) the Closing Sale Price of the Common Stock on the date of the Investor’s
written instruction.

 

    	-24-

    	 

    

 

7.
CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES
OF SHARES OF COMMON STOCK.

 

I.
The right of the Company hereunder to sell the Initial Purchase Shares during the Initial Purchase Period is subject to the satisfaction
of each of the following conditions:

 

(a)
The Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)
The Common Stock shall be listed or quoted on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
not later than the Business Day immediately preceding the Initial Purchase Date, trading in the Common Stock shall not have been
within the last 365 days suspended by the SEC or the Principal Market and such suspension has not subsequently been cured, and
all Initial Purchase Shares to be issued by the Company to the Investor in the Initial Purchase pursuant to this Agreement shall
have been approved for listing or quotation on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
in accordance with the applicable rules and regulations of such Principal Market, subject only to official notice of issuance,
not later than the Business Day immediately preceding the Initial Purchase Date; and

 

(c)
The representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof.

 

II.
The right of the Company hereunder to commence sales of the Purchase Shares (other than the Initial Purchase Shares, if any) on
the Commencement Date is subject to the satisfaction of each of the following conditions:

 

    	-25-

    	 

    

 

(a)
The Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)
The Registration Statement covering the resale of the Purchase Shares (including, without limitation, all of the Initial Purchase
Shares, if any) shall have been declared effective under the Securities Act by the SEC, and no stop order with respect to the
Registration Statement shall be pending or threatened by the SEC;

 

(c)
The Common Stock shall be listed or quoted on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
not later than the Business Day immediately preceding the date the initial Registration Statement contemplated by Section 2(a)
of the Registration Rights Agreement is initially filed with the SEC, trading in the Common Stock shall not have been within the
last 365 days suspended by the SEC or the Principal Market and such suspension has not subsequently been cured, and all Purchase
Shares to be issued by the Company to the Investor pursuant to this Agreement shall have been approved for listing or quotation
on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market, in accordance with the applicable rules
and regulations of such Principal Market, subject only to official notice of issuance, not later than the Business Day immediately
preceding the date the initial Registration Statement contemplated by Section 2(a) of the Registration Rights Agreement is initially
filed with the SEC; and

 

(d)
The representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof and
as of the Commencement Date as though made at that time.

 

8.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

I.
The obligation of the Investor to buy the Initial Purchase Shares under this Agreement during the Initial Purchase Period is subject
to the satisfaction of each of the following conditions on or prior to the Initial Purchase Date and, once such conditions have
been initially satisfied, there shall not be any ongoing obligation to satisfy such conditions with respect to the Initial Purchase:

 

(a)
The Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)
The Company shall have paid the Commitment Fee in full to the Investor in accordance with Section 5(e);

 

(c)
The Common Stock shall be listed or quoted on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
not later than the Business Day immediately preceding the Initial Purchase Date, trading in the Common Stock shall not have been
within the last 365 days suspended by the SEC or the Principal Market and such suspension has not subsequently been cured, and
all Initial Purchase Shares to be issued by the Company to the Investor in the Initial Purchase pursuant to this Agreement shall
have been approved for listing or quotation on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
in accordance with the applicable rules and regulations of such Principal Market, subject only to official notice of issuance,
not later than the Business Day immediately preceding the Initial Purchase Date;

 

(d)
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that
any of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such
representations and warranties shall be true and correct without further qualification) as of the date hereof and as of the Initial
Purchase Date as though 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 date) and the Company shall have performed, satisfied and complied with the covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company on or prior to
the Initial Purchase Date. The Investor shall have received a certificate, executed by the Chief Executive Officer (“CEO”),
President or Chief Financial Officer (“CFO”) of the Company, dated as of the Initial Purchase Date, to the
foregoing effect in the form attached hereto as Exhibit
A;

 

    	-26-

    	 

    

 

(e)
The Board of Directors of the Company shall have adopted resolutions in substantially the form attached hereto as Exhibit
B which shall be in full force and effect without any amendment or supplement thereto as of the date hereof and as of
the Initial Purchase Date;

 

(f)
The Irrevocable Transfer Agent Instructions shall have been delivered to and acknowledged in writing by the Company and the Transfer
Agent (or any successor transfer agent);

 

(g)
The Current Report shall have been filed with the SEC, as required pursuant to Section 5(a). All reports, schedules, registrations,
forms, statements, information and other documents required to have been filed by the Company with the SEC at or prior to the
Initial Purchase Date pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the
applicable time periods prescribed for such filings under the Exchange Act, including any applicable extension periods contemplated
by the Exchange Act;

 

(h)
None of the events set forth in any of subsections (b), (c), or (f) through (i) of Section 10 hereof has occurred or would reasonably
be expected to occur;

 

(i)
All federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution and delivery of the Transaction Documents, the performance of the covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with on or prior to the Initial Purchase
Date and the consummation of the transactions contemplated thereby in accordance with the terms thereof, in each case shall have
been complied with, and all consents, authorizations and orders of, and all filings and registrations with, all federal, state
and local courts or governmental agencies and all federal, state and local regulatory or self-regulatory agencies necessary for
the execution and delivery of the Transaction Documents, the performance of the covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with on or prior to the Initial Purchase Date and the consummation
of the transactions contemplated thereby in accordance with the terms thereof, in each case shall have been obtained or made,
including, without limitation, in each case those required to be obtained or made after the date hereof and prior to the Initial
Purchase Date under the Securities Act, the Exchange Act, applicable state securities or “Blue Sky” laws or applicable
rules and regulations of the Principal Market, or otherwise required by the SEC, the Principal Market or any state securities
regulators;

 

(j)
No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or
endorsed by any federal, state or local court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

(k)
No action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of
competent jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or
foreign governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any
of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated
by the Transaction Documents, or seeking material damages in connection with such transactions.

 

    	-27-

    	 

    

 

II.
The obligation of the Investor to buy Purchase Shares (other than the Initial Purchase Shares, if any) under this Agreement is
subject to the satisfaction of each of the following conditions on or prior to the Commencement Date and, once such conditions
have been initially satisfied, there shall not be any ongoing obligation to satisfy such conditions after the Commencement has
occurred:

 

(a)
The Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)
(i) The Company shall have paid the Commitment Fee in full to the Investor in accordance with Section 5(e), and (ii) the
Company shall have issued or caused to be issued to the Investor (i) one or more certificates or book-entry statements representing
the Initial Purchase Shares, if any, free from all restrictive and other legends or (ii) a number of shares of Common Stock equal
to the number of Initial Purchase Shares, if any, as DWAC Shares in accordance with Section 6(b);

 

(c)
The Common Stock shall be listed or quoted on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market,
not later than the Business Day immediately preceding the date the initial Registration Statement contemplated by Section 2(a)
of the Registration Rights Agreement is initially filed with the SEC, trading in the Common Stock shall not have been within the
last 365 days suspended by the SEC or the Principal Market and such suspension has not subsequently been cured, and all Purchase
Shares to be issued by the Company to the Investor pursuant to this Agreement shall have been approved for listing or quotation
on the OTCQB operated by the OTC Markets Group, Inc., or on another Principal Market, in accordance with the applicable rules
and regulations of such Principal Market, subject only to official notice of issuance, not later than the Business Day immediately
preceding the date the initial Registration Statement contemplated by Section 2(a) of the Registration Rights Agreement is initially
filed with the SEC;

 

(d)
The Investor shall have received the opinions of the Company’s legal counsel dated as of the Commencement Date substantially
in the forms agreed prior to the date of this Agreement by the Company’s legal counsel and the Investor’s legal counsel;

 

(e)
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that
any of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such
representations and warranties shall be true and correct without further qualification) as of the date hereof and as of the Commencement
Date as though 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 date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement
Date. The Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement
Date, to the foregoing effect in the form attached hereto as Exhibit A;

 

(f)
The Board of Directors of the Company shall have adopted resolutions in substantially the form attached hereto as Exhibit
B which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date;

 

(g)
As of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose
of effecting purchases of Purchase Shares (other than the Initial Purchase Shares) hereunder, 4,000,000 shares of Common Stock;

 

    	-28-

    	 

    

 

(h)
The Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement each shall
have been delivered to and acknowledged in writing by the Company and the Transfer Agent (or any successor transfer agent);

 

(i)
The Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of the Company in
the State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of
the Commencement Date;

 

(j)
The Company shall have delivered to the Investor a certified copy of the Certificate of Incorporation as certified by the Secretary
of State of the State of Delaware within ten (10) Business Days of the Commencement Date;

 

(k)
The Company shall have delivered to the Investor a secretary’s certificate executed by the Secretary of the Company, dated
as of the Commencement Date, in the form attached hereto as Exhibit C;

 

(l)
The Registration Statement covering the resale of the Purchase Shares (including, without limitation, all of the Initial Purchase
Shares, if any) shall have been declared effective under the Securities Act by the SEC, and no stop order with respect to the
Registration Statement shall be pending or threatened by the SEC. The Company shall have prepared and filed with the SEC, not
later than one (1) Business Day after the effective date of the Registration Statement, a final and complete prospectus (the preliminary
form of which shall be included in the Registration Statement) and shall have delivered to the Investor a true and complete copy
thereof. Such prospectus shall be current and available for the resale by the Investor of all of the Purchase Shares covered thereby.
The Current Report shall have been filed with the SEC, as required pursuant to Section 5(a). All reports, schedules, registrations,
forms, statements, information and other documents required to have been filed by the Company with the SEC at or prior to the
Commencement Date pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable
time periods prescribed for such filings under the Exchange Act, including any applicable extension periods contemplated by the
Exchange Act;

 

(m)
No Event of Default has occurred, and no event which, after notice and/or lapse of time, would reasonably be expected to become
an Event of Default has occurred;

 

(n)
All federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and
orders of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal,
state and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction
Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained
or made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state
securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by
the SEC, the Principal Market or any state securities regulators;

 

(o)
No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or
endorsed by any federal, state or local court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

    	-29-

    	 

    

 

(p)
No action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of
competent jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or
foreign governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any
of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated
by the Transaction Documents, or seeking material damages in connection with such transactions.

 

9.
INDEMNIFICATION. 

 

In
consideration of the Investor’s execution and delivery of the Transaction Documents and acquiring the Purchase Shares hereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless the Investor and all of its affiliates, stockholders, officers, directors and employees and any of
the foregoing Person’s 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 (a) any misrepresentation or breach of any representation
or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any
other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or
made against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c),
with respect to Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct
of an Indemnitee. The indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or
delayed. 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. Payment under this indemnification shall be made within thirty (30) days from the date Investor makes written request for
it. A certificate containing reasonable detail as to the amount of such indemnification submitted to the Company by Investor shall
be conclusive evidence, absent manifest error, of the amount due from the Company to Investor, provided that the Indemnitee shall
undertake to repay any amounts paid to it hereunder if it is ultimately determined, by a final and non-appealable order of a court
of competent jurisdiction, that the Indemnitee is not entitled to be indemnified against such Indemnified Liabilities by the Company
pursuant to this Agreement. If any action shall be brought against any Indemnitee in respect of which indemnity may be sought
pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee shall have
the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on
any material issue between the position of the Company and the position of such Indemnitee, in which case the Company shall be
responsible for the reasonable fees and expenses of no more than one such separate counsel.

 

    	-30-

    	 

    
 

10.
EVENTS OF DEFAULT. 

 

An
“Event of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)
the effectiveness of a registration statement registering the resale of the Purchase Shares lapses for any reason (including,
without limitation, the issuance of a stop order or similar order) or such registration statement (or the prospectus forming a
part thereof) is unavailable to the Investor for resale of any or all of the Purchase Shares to be issued to the Investor under
the Transaction Documents that are required to be included therein, and such lapse or unavailability continues for a period of
ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period, but excluding
a lapse or unavailability where (i) the Company terminates a registration statement after the Investor has confirmed in writing
that all of the Purchase Shares covered thereby have been resold or (ii) the Company supersedes one registration statement with
another registration statement, including (without limitation) by terminating a prior registration statement when it is effectively
replaced with a new registration statement covering Purchase Shares (provided in the case of this clause (ii) that all of the
Purchase Shares covered by the superseded (or terminated) registration statement that have not theretofore been resold are included
in the superseding (or new) registration statement);

 

(b)
the suspension of the Common Stock from trading on the Principal Market for a period of one (1) Business Day, provided that the
Company may not direct the Investor to purchase any shares of Common Stock during any such suspension;

 

(c)
the delisting of the Common Stock from the Principal Market;

 

(d)
the failure for any reason by the Transfer Agent to issue Purchase Shares to the Investor within three (3) Business Days after
the applicable Purchase Date, Accelerated Purchase Date or Additional Accelerated Purchase Date (as applicable) on which the Investor
is entitled to receive such Purchase Shares;

 

(e)
the Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such
breach could have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only
if such breach continues for a period of at least five (5) Business Days;

 

(f)
if any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g)
if the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the
entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally
unable to pay its debts as the same become due;

 

(h)
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company
in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders
the liquidation of the Company; or

 

(i)
if at any time the Company is not eligible to transfer its Common Stock electronically as DWAC Shares.

 

In
addition to any other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred
and is continuing, or if any event that, after notice and/or lapse of time, would reasonably be expected to become an Event of
Default, has occurred and is continuing, the Company shall not deliver to the Investor any Regular Purchase Notice, Accelerated
Purchase Notice or Additional Purchase Notice, or the Tranche Purchase Notice.

 

    	-31-

    	 

    

 

11.
TERMINATION

 

This
Agreement may be terminated only as follows:

 

(a)
If 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, 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 (any of which would be an Event of Default as described in Sections
10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or payment
to the Company (except as set forth below) without further action or notice by any Person.

 

(b)
In the event that (i) the Common Stock shall not be listed or quoted on the OTCQB operated by the OTC Markets Group, Inc. or on
any other Principal Market on or prior to the thirty-ninth (39th) Business Day after the date of this Agreement, (ii)
the Company fails to file the Registration Statement with the SEC within the period specified in Section 5(a) hereof in
accordance with the terms of the Registration Rights Agreement or (iii) the Commencement shall not have occurred on or before
November 30, 2018, due to the failure to satisfy the conditions set forth in Sections 7(II) and 8(II) above with
respect to the Commencement, then, in the case of clauses (i) and (ii) above, this Agreement may be terminated by the Investor
at any time prior to the filing of the Registration Statement and, in the case of clause (iii) above, this Agreement may be terminated
by either party at the close of business on November 30, 2018 or thereafter, in each case without liability of such party to the
other party (except as set forth below); provided, however, that the right to terminate this Agreement under this Section 11(b)
shall not be available to any party if such party is then in breach of any covenant or agreement contained in this Agreement
or any representation or warranty of such party contained in this Agreement fails to be true and correct such that the conditions
set forth in Section 7(II)(c) or Section 8(II)(e), as applicable, could not then be satisfied.

 

(c)
At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no
reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement
without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). The Company
Termination Notice shall not be effective until one (1) Business Day after it has been received by the Investor.

 

(d)
This Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full Available
Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party
to any other party under this Agreement (except as set forth below).

 

(e)
If, for any reason or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of this
Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice
on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as
set forth below).

 

Except
as set forth in Sections 11(a) (in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)),
11(d) and 11(e), any termination of this Agreement pursuant to this Section 11 shall be effected by written
notice from the Company to the Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination
hereof. The representations and warranties and covenants of the Company and the Investor contained in Sections 3, 4,
5, and 6 hereof, the indemnification provisions set forth in Section 9 hereof and the agreements and covenants
set forth in Sections 10, 11 and 12 shall survive the execution and delivery of this Agreement and any termination
of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations
under (A) this Agreement with respect to any pending Initial Purchase, Regular Purchases, Accelerated Purchases, Additional Purchases
or Tranche Purchase, and the Company and the Investor shall complete their respective obligations with respect to any pending
Initial Purchase, Regular Purchases, Accelerated Purchases, Additional Purchases and Tranche Purchase under this Agreement and
(B) the Registration Rights Agreement, which shall survive any such termination, or (ii) be deemed to release the Company or the
Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction Documents.

 

    	-32-

    	 

    

 

12.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware shall govern all issues concerning
the relative rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement
and interpretation of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or
any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois,
County of Cook, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith
or therewith, or with any transaction contemplated hereby or discussed herein, 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. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(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; provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file 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.

 

(c)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(d)
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

    	-33-

    	 

    

 

(e)
Entire Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor,
the Company, their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement,
the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the
Investor makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and
agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as
expressly set forth in the Transaction Documents.

 

(f)
Notices. Any notices, consents 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 or email (provided confirmation of transmission is mechanically or electronically generated and kept on file
by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same. The addresses for such communications shall be:

 

If
to the Company:

 

	 	AIT
    Therapeutics, Inc.
	 	825
    East Gate Blvd., Suite 320
	 	Garden
    City, New York 11530
	 	Telephone:	(516)
    665-8200
	 	E-mail:	steve@ait-pharma.com
	 	Attention:	Steven
    Lisi

 

With
a copy to (which shall not constitute notice or service of process):

 

	 	Sichenzia
    Ross Ference Kesner LLP
	 	1185
    Avenue of the Americas, 37th Floor
	 	New
    York, New York 10036
	 	Telephone:	(212)
    930-9700
	 	Facsimile:	(212)
    930-9725
	 	E-mail:	gsichenzia@srfkllp.com
	 	Attention:	Gregory
    Sichenzia

 

If
to the Investor:

 

	 	Lincoln
    Park Capital Fund, LLC
	 	440
    North Wells, Suite 410
	 	Chicago,
    IL 60654
	 	Telephone:	312-822-9300
	 	Facsimile:	312-822-9301
	 	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	 	Attention:	Josh
    Scheinfeld/Jonathan Cope

 

With
a copy to (which shall not constitute notice or service of process):

 

	 	Mintz,
    Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 	666
    Third Avenue
	 	New
    York, NY 10017
	 	Telephone:	(212)
    692-6267
	 	Facsimile:
    	(212)
    983-3115
	 	E-mail:
    	ajmarsico@mintz.com
	 	Attention:	Anthony
    J. Marsico, Esq.

 

    	-34-

    	 

    

 

If
to the Transfer Agent:

 

	 	Action
    Stock Transfer
	 	2469
    E. Fort Union Blvd, Suite 214
	 	Salt
    Lake City, UT 84121
	 	Telephone:	(801)
    274-1088
	 	Facsimile:	(801)
    274-1099
	 	Attention:	Justeene
    Blankenship

 

or
at such other 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 three (3) Business Days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or email address,
as applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal
service, receipt by facsimile or email or receipt from a nationally recognized overnight delivery 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. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this
Agreement.

 

(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.

 

(i)
Publicity. The Company shall afford the Investor and its counsel with the opportunity to review and comment upon, shall
consult with the Investor and its counsel on the form and substance of, and shall give due consideration to all such comments
from the Investor or its counsel on, any press release, SEC filing or any other public disclosure by or on behalf of the Company
relating to the Investor, its purchases hereunder or any aspect of the Transaction Documents or the transactions contemplated
thereby, not less than 24 hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with
a final version of any such press release, SEC filing or other public disclosure at least 24 hours prior to any release, filing
or use by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes
a Material Adverse Effect.

 

(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 the other party may reasonably
request in order to consummate and make effective, as soon as reasonably possible, the Commencement, and to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
No Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that it has
not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby.
The Investor represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or
finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or
commissions, if any, of any financial advisor, placement agent, broker or finder relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including,
without limitation, reasonable attorneys’ fees and out of pocket expenses) arising in connection with any such claim.

 

    	-35-

    	 

    

 

(l)
No Strict 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.

 

(m)
Remedies, Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement,
including, without limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all
other remedies available to the Investor under this Agreement, at law or in equity (including a decree of specific performance
and/or other injunctive relief), no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions
giving rise to such remedy and nothing herein shall limit the Investor’s right to pursue actual damages for any failure
by the Company to comply with the terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Investor and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other
security being required.

 

(n)
Enforcement Costs. In the event of a dispute arising out of or relating to this Agreement, if a court of competent jurisdiction
determines in a final, non-appealable order that a party has breached this Agreement, then, in addition to any other available
remedies, the non-breaching party shall be entitled to, and the breaching party shall be liable for, the reasonable legal fees
and expenses incurred by the non-breaching party in connection with the dispute, including any appeals in connection therewith.
If this Agreement is placed by the Investor in the hands of an attorney for enforcement or is enforced by the Investor through
any legal proceeding or an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership or other
proceedings affecting creditors’ rights and involving a claim under this Agreement, then the Company shall pay to the Investor,
as incurred by the Investor, all reasonable costs and expenses including reasonable attorneys’ fees incurred in connection
therewith, in addition to all other amounts due hereunder.

 

(o)
Amendment and Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement may be amended or waived by the
parties from and after the earlier of (i) the Business Day immediately preceding the Initial Purchase Date (as applicable) and
(ii) the Business Day immediately preceding the date the initial Registration Statement contemplated by Section 2(a) of the Registration
Rights Agreement is initially filed with the SEC. Subject to the immediately preceding sentence, (i) no provision of this Agreement
may be amended other than by a written instrument signed by both parties hereto and (ii) 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. No failure or
delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

*
* * * *

 

    	-36-

    	 

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused this Purchase Agreement to be duly executed as of the date first
written above.

 

	 	THE
    COMPANY:
	 	 	 
	 	AIT
    THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/
    Steve Lisi
	 	Name:	Steve
    Lisi
	 	Title:	CEO
	 	 	 
	 	INVESTOR:
	 	 	 
	 	LINCOLN
    PARK CAPITAL FUND, LLC
	 	BY:
    	LINCOLN
    PARK CAPITAL, LLC
	 	BY:	ALEX
    NOAH INVESTORS, INC. 
	 	 	 
	 	By:	/s/Jonathan
    Cope
	 	Name:	Jonathan
    Cope
	 	Title:	President

 

    	-37-

    	 

    

 

EXHIBITS

 

	Exhibit
    A	Form
    of Officer’s Certificate
	Exhibit
    B	Form
    of Resolutions of the Board of Directors of the Company
	Exhibit
    C	Form
    of Secretary’s Certificate
	Exhibit
    D	Form
    of Letter to Transfer Agent

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF OFFICER’S CERTIFICATE

 

This
Officer’s Certificate (“Certificate”) is being delivered pursuant to Section 8(I)(d) of that certain
Purchase Agreement dated as of August 10, 2018, (“Purchase Agreement”), by and between AIT THERAPEUTICS,
INC., a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”).
Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

 

The
undersigned, __________________, Chief Executive Officer of the Company, hereby certifies, on behalf of the Company and not in
his individual capacity, as follows:

 

1.
I am the Chief Executive Officer of the Company;

 

2.
The representations and warranties of the Company are true and correct in all material respects (except to the extent that any
of such representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which
case, such representations and warranties are true and correct without further qualification) as of the date of the Purchase Agreement
and as of [the Initial Purchase Date] [the Commencement Date]1 as though made at that time (except for representations
and warranties that speak as of a specific date, in which case such representations and warranties are true and correct as of
such date);

 

3.
The Company has performed, satisfied and complied in all material respects with covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to [the Initial Purchase Date]
[the Commencement Date].

 

4.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as
they become due.

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ___________, 2018.

 

	 	 
	 	Name:
	 	Title:

 

The
undersigned as Secretary of AIT THERAPEUTICS, INC., a Delaware corporation, hereby certifies that ______________ is the
duly elected, appointed, qualified and acting Chief Executive Officer of the Company, and that the signature appearing above is
his genuine signature.

 

___________________________________

        _________________,
Secretary

 

 

 1
Edit as appropriate.

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF COMPANY RESOLUTIONS

FOR
SIGNING PURCHASE AGREEMENT

 

UNANIMOUS
WRITTEN CONSENT OF

AIT
THERAPEUTICS, INC.

 

The
undersigned, constituting all of the members of the Board of Directors (the “Board”) of AIT
Therapeutics, Inc., a Delaware corporation (the “Company”), pursuant to Section 141(f) of
the Delaware General Corporation Law (the “DGCL”), hereby adopt the following resolutions by unanimous
written consent and direct that this consent be filed with the minutes of the proceedings of the Board:

 

Whereas,
there has been presented to the Board a draft of the Purchase Agreement (the “Purchase Agreement”) by
and between the Company and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for the purchase
by Lincoln Park of up to Twenty Million Dollars ($20,000,000) of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”) and a draft of the Registration Rights Agreement (the “Registration
Rights Agreement”) by and between the Company and Lincoln Park providing for the registration of the shares of the
Company’s Common Stock issuable in respect of the Purchase Agreement on behalf of the Company; and

 

Whereas,
after careful consideration of the Purchase Agreement, the documents incident thereto and other factors deemed relevant by the
Board, the Board has determined that it is advisable and in the best interests of the Company and its stockholders to engage in
the transactions contemplated by the Purchase Agreement, including, but not limited to, the payment of $500,000 to Lincoln Park
as a commitment fee (the “Commitment Fee”) and the sale of shares of Common Stock to Lincoln Park up
to the available amount under the Purchase Agreement (the “Purchase Shares”) and to register such shares
as contemplated by the Registration Rights Agreement.

 

Transaction
Documents

 

Now,
Therefore, Be It Resolved, that the transactions
described in the Purchase Agreement are hereby approved and each of ____- and ___________ (the “Authorized Officers”)
are severally authorized to execute and deliver the Purchase Agreement, and any other agreements or documents contemplated thereby
including, without limitation, the Registration Rights Agreement, with such amendments, changes, additions and deletions as the
Authorized Officers may deem to be appropriate and approve on behalf of, the Company, such approval to be conclusively evidenced
by the signature of an Authorized Officer thereon; and

 

Further
Resolved, that the terms and provisions of
the Registration Rights Agreement by and among the Company and Lincoln Park are hereby approved and the Authorized Officers are
authorized to execute and deliver the Registration Rights Agreement (pursuant to the terms of the Purchase Agreement), with such
amendments, changes, additions and deletions as the Authorized Officer may deem appropriate and approve on behalf of, the Company,
such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and

 

Further
Resolved, that the terms and provisions of
the forms of Irrevocable Transfer Agent Instructions and Notice of Effectiveness of Registration Statement (collectively, the
“Instructions”) are hereby approved and the Authorized Officers are authorized to execute and deliver
the Instructions on behalf of the Company in accordance with the Purchase Agreement, with such amendments, changes, additions
and deletions as the Authorized Officers may deem appropriate and approve on behalf of, the Company, such approval to be conclusively
evidenced by the signature of an Authorized Officer thereon; and

 

    	 

    	 

    

 

Execution
of Purchase Agreement

 

Further
Resolved, that the Company be and it hereby
is authorized to execute the Purchase Agreement providing for the purchase of up to Twenty Million Dollars ($20,000,000) of the
Company’s common stock; and

 

Issuance
of Common Stock

 

Further
Resolved, that the Company is hereby authorized
to issue to Lincoln Park Capital Fund, LLC, [___________] shares of Common Stock as Initial Purchase Shares, and that upon issuance
of the Initial Purchase Shares pursuant to the Purchase Agreement the Initial Purchase Shares shall be duly authorized, validly
issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof; and

 

Further
Resolved, that the Company is hereby authorized
to issue shares of Common Stock upon the purchase of Purchase Shares up to the Available Amount under the Purchase Agreement in
accordance with the terms of the Purchase Agreement and that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
the Purchase Shares will be duly authorized, validly issued, fully paid and nonassessable with no personal liability attaching
to the ownership thereof; and

 

Further
Resolved, that
the Company shall initially reserve [____________] shares of Common Stock for issuance as Purchase Shares (other than Initial
Purchase Shares) under the Purchase Agreement.

 

Approval
of Actions

 

Further
Resolved, that, without limiting the foregoing,
the Authorized Officers are, and each of them hereby is, authorized and directed to proceed on behalf of the Company and to take
all such steps as deemed necessary or appropriate, with the advice and assistance of counsel, to cause the Company to consummate
the agreements referred to herein and to perform its obligations under such agreements; and

 

Further
Resolved, that the Authorized Officers be,
and each of them hereby is, authorized, empowered and directed on behalf of and in the name of the Company, to take or cause to
be taken all such further actions and to execute and deliver or cause to be executed and delivered all such further agreements,
amendments, documents, certificates, reports, schedules, applications, notices, letters and undertakings and to incur and pay
all such fees and expenses as in their judgment shall be necessary, proper or desirable to carry into effect the purpose and intent
of any and all of the foregoing resolutions, and that all actions heretofore taken by any officer or director of the Company in
connection with the transactions contemplated by the agreements described herein are hereby approved, ratified and confirmed in
all respects.

 

    	 

    	 

    

 

This
Action by Unanimous Written Consent shall be filed with the minutes of the proceedings of the Board. This Action may be signed
in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one instrument.

 

IN
WITNESS WHEREOF, the undersigned have executed this Unanimous Written Consent of the Board of Directors of AIT Therapeutics,
Inc. as of date written below.

 

	By:	 	 	By:	 
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	By:	 
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	By:	
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	 	 
	Date:	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT
C

 

FORM
OF SECRETARY’S CERTIFICATE

 

This
Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section 8(II)(k) of that certain
Purchase Agreement dated as of August 10, 2018 (“Purchase Agreement”), by and between AIT THERAPEUTICS, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”), pursuant
to which the Company may sell to the Investor up to Twenty Million Dollars ($20,000,000) of the Company’s Common Stock,
$0.0001 par value per share (the “Common Stock”). Terms used herein and not otherwise defined shall have the meanings
ascribed to them in the Purchase Agreement.

 

The
undersigned, ____________, Secretary of the Company, hereby certifies, on behalf of the Company and not in his individual capacity,
as follows:

 

1.
I am the Secretary of the Company.

 

2.
Attached hereto as Exhibit A and Exhibit B are true, correct and complete copies of the Company’s Amended
and Restated Bylaws (“Bylaws”) and Amended and Restated Certificate of Incorporation, as supplemented by a Certificate
of Correction (“Charter”), and no action has been taken by the Company, its directors, officers or stockholders, in
contemplation of the filing of any further amendment relating to or affecting the Bylaws or Charter.

 

3.
Attached hereto as Exhibit C are true, correct and complete copies of the resolutions duly adopted by the Board of Directors
of the Company by unanimous written consent effective as of _______, 2018. Such resolutions have not been amended, modified or
rescinded and remain in full force and effect and such resolutions are the only resolutions adopted by the Company’s Board
of Directors, or any committee thereof, or the stockholders of the Company relating to or affecting (i) the entering into and
performance of the Purchase Agreement, or the issuance, offering and sale of the Purchase Shares and (ii) and the performance
of the Company of its obligation under the Transaction Documents as contemplated therein.

 

4.
As of the date hereof, the authorized, issued and reserved capital stock of the Company is as set forth on Exhibit D hereto.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ____________, 2018.

 

_________________________

 

Secretary

 

The
undersigned as Chief Executive Officer of AIT THERAPEUTICS, INC., a Delaware corporation, hereby certifies that ______________
is the duly elected, appointed, qualified and acting Secretary of AIT Therapeutics, Inc., and that the signature appearing above
is his genuine signature.

 

___________________________________

 

Chief
Executive Officer

 

    	 

    	 

    

 

EXHIBIT
D

 

FORM
OF LETTER TO THE TRANSFER AGENT FOR THE ISSUANCE OF THE INITIAL PURCHASE SHARES

 

[COMPANY
LETTERHEAD]

 

[__________],
2018

 

[TRANSFER
AGENT]

__________________

__________________

__________________

 

Re:
Issuance of Common Stock to Lincoln Park Capital Fund, LLC

 

Dear
________,

 

On
behalf of AIT THERAPEUTICS, INC. (the “Company”), you are hereby instructed to issue as soon as possible
a book-entry statement representing an aggregate of [_________] shares of our common stock in the name of Lincoln
Park Capital Fund, LLC. The book-entry statement should be dated [__________], 2018. I have included a true and correct
copy of a unanimous written consent executed by the Board of Directors of the Company adopting resolutions approving the issuance
of these shares. The book-entry statement should bear the following restrictive legend:

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S
COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

    	 

    	 

    

 

The
book-entry statement should be sent as soon as possible via overnight mail to the following address:

 

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago,
IL 60654

Attention:
Josh Scheinfeld/Jonathan Cope

 

Thank
you very much for your help. Please call me at [__________] if you have any questions or need anything further.

 

AIT
THERAPEUTICS, INC.

 

	BY:		 

 

    	 

    	 

    

 

FORM
OF COMPANY COUNSEL OPINION

 

Capitalized
terms used herein but not defined herein, have the meaning set forth in the Purchase Agreement. Based on the foregoing, and subject
to the assumptions and qualifications set forth herein, we are of the opinion that:

 

1.
The Company is a corporation existing and, based solely on the certificate issued by the Secretary of State of Delaware dated
as of _______, 2018, in good standing under the laws of the State of Delaware. The Company is qualified to do business as a foreign
corporation and, based solely on the certificate issued by the Secretary of State of New York dated as of _______, 2018, is in
good standing in the State of New York.

 

2.
The Company has the corporate power to execute and deliver, and perform its obligations under, each Transaction Document to which
it is a party. The Company has the corporate power to conduct its business as, to the best of our knowledge and as described in
the Registration Statement and Prospectus, it is now conducted, and to own and use the properties owned and used by it.

 

3.
The execution, delivery and performance by the Company of the Transaction Documents to which it is a party have been duly authorized
by all necessary corporate action on the part of the Company. The execution and delivery of the Transaction Documents by the Company,
the performance of the obligations of the Company thereunder and the consummation by it of the transactions contemplated therein
have been duly authorized and approved by the Company’s Board of Directors and no further consent, approval or authorization
of the Company, its Board of Directors or its stockholders is required. The Transaction Documents to which the Company is a party
have been duly executed and delivered by the Company and are the valid and binding obligations of the Company, enforceable against
the Company in accordance with their 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 creditor’s rights
and remedies.

 

4.
The execution, delivery and performance by the Company of the Transaction Documents, the consummation by the Company of the transactions
contemplated thereby including the offering, sale and issuance of the Purchase Shares, including, without limitation the Initial
Purchase Shares in accordance with the terms and conditions of the Purchase Agreement, and fulfillment and compliance with terms
of the Transaction Documents, does not and shall not: (i) conflict with, constitute a breach of or default (or an event which,
with the giving of notice or lapse of time or both, constitutes or could constitute a breach or a default), under (a) the Certificate
of Incorporation or the Bylaws of the Company, (b) any agreement, note, lease, mortgage, deed or other instrument to which the
Company is a party or by which the Company or any of its assets are bound that is filed (or incorporated by reference) as an exhibit
to any of (I) the Registration Statement, (II) the Company’s Transition Report on Form 10-KT for the transition period ended
March 31, 2018, or (III) to any report, schedule or statement filed by the Company with or furnished by the Company to the SEC
from and after March 31, 2018 (collectively, the “Material Agreements”), (ii) result in any violation of any U.S.
federal or New York state statute, law, rule or regulation, which in our experience, is generally applicable to transactions similar
to those contemplated by the Transaction Documents, or the DGCL, provided, however, that we do not express any opinion as to compliance
with the antifraud provisions of U.S. federal and state securities laws, or (iii) to our knowledge, violate any order, writ, injunction
or decree specifically naming the Company or any of its subsidiaries.

 

    	 

    	 

    

 

5.
The issuance of the Purchase Shares, including, without limitation, the Initial Purchase Shares, pursuant to the terms and conditions
of the Transaction Documents has been duly authorized by all necessary corporate action on the part of the Company. [The Initial
Purchase Shares are validly issued, fully paid and non-assessable, to our knowledge, free of all taxes, liens, charges, restrictions,
rights of first refusal and preemptive rights.] 4,000,000 shares of Common Stock have been properly reserved for issuance as Purchase
Shares (other than the Initial Purchase Shares) under the Purchase Agreement. When issued and paid for in accordance with the
Purchase Agreement, the Purchase Shares [(other than the Initial Purchase Shares)]2 shall be validly issued, fully
paid and non-assessable, to our knowledge, free of all taxes, liens, charges, restrictions, rights of first refusal and preemptive
rights. To our knowledge, the execution and delivery of the Registration Rights Agreement do not, and the performance by the Company
of its obligations thereunder shall not, give rise to any rights of any other Person for the registration under the Securities
Act of any shares of Common Stock or other securities of the Company which have not been waived.

 

6.
As of the date hereof, the authorized capital stock of the Company consists of __,___,___ shares of common stock, par value $0.0001
per share, of which to our knowledge __________ shares are issued and outstanding.

 

7.
Assuming the accuracy of the representations and your compliance with the covenants made by you in the Transaction Documents,
the offering, sale and issuance of the Purchase Shares, including, without limitation, the Initial Purchase Shares, to you pursuant
to the Transaction Documents is exempt from registration under the Securities Act.

 

8.
Other than that which has been obtained and completed prior to the date hereof, no authorization, approval, consent, filing or
other order of any federal or state governmental body, regulatory agency, or stock exchange or market, or any court, or, to our
knowledge, is required to be obtained by the Company to enter into and perform its obligations under the Transaction Documents
or for the Company to issue and sell the Purchase Shares, including, without limitation the Initial Purchase Shares, as contemplated
by the Transaction Documents.

 

9.
The Common Stock is registered pursuant to Section 12(g) of the Exchange Act. To our knowledge, since one year preceding the date
of the Purchase Agreement, the Company has been materially in compliance with the reporting requirements of the Exchange Act applicable
to it. To our knowledge, the Company has not received any written notice from any Person stating that the Company has not been
in compliance with any of the rules and regulations (including the requirements for continued listing) of the Principal Market.

 

10.
The Company is not, and after giving effect to the issuance of the Purchase Shares, including, the Initial Purchase Shares (as
applicable) and the application of the proceeds as described in the Prospectus, will not be, an “investment company,”
as that term is defined in the Investment Company Act of 1940, as amended.

 

11.
Except as described in the Registration Statement and the Prospectus, none of the Material Agreements grants to any person the
right to require the Company to file a registration statement under the Securities Act with respect to any securities of the Company
owned or to be owned by such person or to require the Company to include such securities in the securities registered pursuant
to the Registration Statement or in any securities being registered pursuant to any other registration statement filed by the
Company under the Securities Act.

 

[THE
FOLLOWING MAY BE MADE IN A SEPARATE NEGATIVE ASSURANCES LETTER]

 

 

2
Use if Initial Purchase Shares are issued.

 

    	 

    	 

    

 

As
counsel to the Company, we reviewed the Registration Statement and the Prospectus, and participated in discussions with your representatives
and those of the Company, at which the contents of the Registration Statement and the Prospectus were discussed. Between the date
of the Transaction Documents and the time of the delivery of this letter, we participated in further discussions with your representatives
and those of the Company, and we reviewed certain certificates of officers of the Company and public officials delivered to you
today.

 

The
purpose of our professional engagement was not to establish or confirm factual matters or financial, statistical or accounting
data. Therefore, we are not passing upon and do not assume any responsibility for the accuracy, completeness or fairness of the
statements or information contained in or incorporated by reference into the Registration Statement or the Prospectus, and, except
as set forth herein, we have not made, or undertaken any obligation to make, an independent check or verification of the accuracy,
completeness or fairness of the statements or information contained in or incorporated by reference into the Registration Statement
or the Prospectus. Moreover, many of the determinations required to be made in the preparation of the Registration Statement and
the Prospectus involve matters of a non-legal nature, for which we have assumed no responsibility.

 

Subject
to the foregoing, we confirm to you, on the basis of the information that we gained in the course of performing the services referred
to above, that (a) the Registration Statement, at the time it initially became effective (except in as to the financial statements,
schedules and other financial and accounting data, as to which we make no comment), appeared or appears on its face to be appropriately
responsive in all material respects to the applicable requirements of the Securities Act and Form S-1, and (b) each of the documents
incorporated by reference in the Registration Statement (except as to the financial statements, schedules and other financial
and accounting data, as to which we make no comment), at the time such document was filed with the SEC, appeared on its face to
be appropriately responsive in all material respects to the applicable requirements of the Exchange Act. Furthermore, subject
to the foregoing, nothing came to our attention that caused us to believe that: (a) the Registration Statement, as of its effective
date, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, or (b) the Prospectus, as of its date and as of the date and time of delivery of
this letter, contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however,
that we do not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Registration
Statement or the Prospectus, and we do not express any belief as to the financial statements and related notes, financial statement
schedules or financial statistics or other financial or accounting data and information contained in or omitted from the Registration
Statement or the Prospectus.

 

We
inform you that the Registration Statement became effective under the Securities Act on _______, 201__ and that no stop order
suspending the effectiveness of the Registration Statement has been issued under the Securities Act.

 

We
are not representing the Company in any pending litigation in which it is a named defendant that challenges the validity or enforceability
of, or seeks to enjoin the performance of, the Transaction Documents.

 

Further,
we confirm to you that the Registration Statement, as of its effective date, and the Prospectus, as of its date, appeared to us
on their face to respond in all material respects to the requirements of Form S-1, except that the foregoing statement does not
address any requirement relating to financial statements, notes or schedules and financial and accounting data or information
contained in or omitted from the Registration Statement or the Prospectus.

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