Document:

SECURITIES PURCHASE AGREEMENT

 

SECURITIES PURCHASE
AGREEMENT (the "Agreement"), dated as of December 17, 2013, by and among eOn Communications Corporation, a
Delaware corporation, with headquarters located at 1703 Sawyer Road, Corinth, MS 38834 (the "Company"), and the
investors listed on the Schedule of Buyers attached hereto (individually, a "Buyer" and collectively, the "Buyers").

 

WHEREAS:

 

A.          The
Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act"), and Rule 506(b) of Regulation D
("Regulation D") as promulgated by the United States Securities and Exchange Commission (the "SEC")
under the 1933 Act.

 

B.           The
Company has authorized a new series of convertible preferred stock of the Company designated as Series B Convertible Preferred
Stock, the terms of which are set forth in the certificate of designation for such series of preferred stock (the "Certificate
of Designations") in the form attached hereto as Exhibit A (together with any convertible preferred shares issued
in replacement thereof in accordance with the terms thereof, the "Preferred Shares"), which Preferred Shares shall
be convertible into the Company's common stock, par value $0.005 per share (the "Common Stock"), in accordance
with the terms of the Certificate of Designations (as converted, collectively, the "Conversion Shares").

 

C.           Each
Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) that aggregate
number of Preferred Shares set forth opposite such Buyer's name in column (3) on the Schedule of Buyers (which aggregate number
for all Buyers shall be 2,750) and (ii) Warrants, in substantially the form attached hereto as Exhibit B (the "Warrants"),
representing the right to acquire that number of shares of Common Stock set forth opposite such Buyer's name in column (4) on the
Schedule of Buyers (which aggregate number for all Buyers shall be 1,401,870) (as exercised, collectively, the "Warrant
Shares").

 

D.           Contemporaneously
with the execution and delivery of this Agreement, the Company and Buyers whose Purchase Price (as defined below) payable at the
Closing (as defined below) equals or exceeds $350,000 are executing and delivering a Registration Rights Agreement, substantially
in the form attached hereto as Exhibit C (the "Registration Rights Agreement"), pursuant to which the Company
has agreed to provide certain registration rights with respect to the Registrable Securities (as defined in the Registration Rights
Agreement) under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.

 

E.           The
Preferred Shares, the Conversion Shares, the Warrants and the Warrant Shares collectively are referred to herein as the "Securities".

 

    	 

    	 

    

 

NOW, THEREFORE,
the Company and each Buyer hereby agree as follows:

 

1.          PURCHASE
AND SALE OF PREFERRED SHARES AND WARRANTS.

 

(a)          Purchase
of Preferred Shares and Warrants. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below,
the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company
on the Closing Date (as defined below), (x) the number of Preferred Shares as is set forth opposite such Buyer's name in column
(3) on the Schedule of Buyers and (y) Warrants to acquire up to that number of Warrant Shares as is set forth opposite such Buyer's
name in column (4) on the Schedule of Buyers (the "Closing").

 

(b)          Closing.
The date and time of the Closing (the "Closing Date") shall be 10:00 a.m., New York City time, on the date hereof
(or such other date and time as is mutually agreed to by the Company and each Buyer) after notification of satisfaction (or waiver)
of the conditions to the Closing set forth in Sections 6 and 7 below, at the offices of Schulte Roth & Zabel LLP, 919 Third
Avenue, New York, New York 10022.

 

(c)          Purchase
Price. The aggregate purchase price for the Preferred Shares and the Warrants to be purchased by each Buyer at the Closing
(the "Purchase Price") shall be the amount set forth opposite each Buyer's name in column (5) of the Schedule
of Buyers. Each Buyer shall pay $1,000 for each Preferred Share and related Warrants to be purchased by such Buyer at the Closing.

 

(d)          Form
of Payment. On the Closing Date, (i) each Buyer shall pay its Purchase Price to the Company for the Preferred Shares and the
Warrants to be issued and sold to such Buyer at the Closing by wire transfer of immediately available funds in accordance with
the Company's written wire instructions and (ii) the Company shall deliver to each Buyer the Preferred Shares (in such denominations
as is set forth opposite such Buyer's name in column (3) on the Schedule of Buyers) which such Buyer is then purchasing hereunder
along with the Warrants (exercisable for the number of shares of Common Stock as is set forth opposite such Buyer's name in column
(4) on the Schedule of Buyers) which such Buyer is purchasing hereunder, in each case duly executed on behalf of the Company and
registered in the name of such Buyer or its designee.

 

2.          BUYER'S
REPRESENTATIONS AND WARRANTIES. Each Buyer, severally and not jointly, represents and warrants with respect to only itself
that:

 

(a)          No
Public Sale or Distribution. Such Buyer is (i) acquiring the Preferred Shares and the Warrants, (ii) upon conversion of the
Preferred Shares will acquire the Conversion Shares and (iii) upon exercise of the Warrants (other than pursuant to a Cashless
Exercise (as defined in the Warrants)) will acquire the Warrant Shares issuable upon exercise of the Warrants, in each case, solely
for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except
pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations
herein, such Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933
Act. Such Buyer is acquiring the Securities hereunder in the ordinary course of its business. Such Buyer does not presently have
any agreement or understanding, directly or indirectly, with any Person (as defined below) to distribute any of the Securities
or act in concert or as a group with any other Buyer with respect to the transactions contemplated by the Transaction Documents
or the several obligations of the Buyers thereunder. For purposes of this Agreement, "Person" means an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government
or any department or agency thereof.

 

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

 

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

 

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

 

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

 

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(f)          Transfer
or Resale. Such Buyer understands that except as provided in the Registration Rights Agreement: (i) the Securities have not
been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned
or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the Company an opinion of
counsel, in a generally acceptable form, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration, or (C) such Buyer provides the Company with reasonable assurance
that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as
amended, (or a successor rule thereto) (collectively, "Rule 144"); (ii) any sale of the Securities 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 Securities 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 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities
under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding
the foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement
secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including,
without limitation, this Section 2(f).

 

(g)          Legends.
Such Buyer understands that the certificates or other instruments representing the Preferred Shares and the Warrants and, until
such time as the resale of the Conversion Shares and the Warrant Shares have been registered under the 1933 Act, the stock certificates
representing the Conversion Shares and the Warrant Shares, except as set forth below, shall bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

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

 

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The legend set forth above shall be removed
and the Company shall issue a certificate without such legend to the holder of the Securities upon which it is stamped or issue
to such holder by electronic delivery at the applicable balance account at The Depository Trust Company ("DTC"),
if (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer,
such holder provides the Company with an opinion of counsel, in a generally acceptable form, to the effect that such sale, assignment
or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act, or (iii) the
Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. The Company shall be responsible for the fees
of its transfer agent and all DTC fees associated with such issuance.

 

(h)          Organization;
Validity; Enforcement. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, with full right, corporate or partnership power and authority to enter into and consummate the
transactions contemplated by this Agreement and otherwise carry out its obligations hereunder. This Agreement and the other Transaction
Documents to which such Buyer is a party have been duly and validly authorized, executed and delivered on behalf of such Buyer
and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.

 

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

 

(j)           Residency.
Such Buyer is a resident of that jurisdiction specified below its address on the Schedule of Buyers.

 

(k)          No
General Solicitation and Advertising. Such Buyer represents and acknowledges that, to its knowledge, it has not been solicited
to offer to purchase or to purchase any Securities by means of any general solicitation or advertising within the meaning of Regulation
D under the 1933 Act.

 

(l)           Not
a 10% Owner. Upon acquisition of the Preferred Shares and Warrants contemplated by this Agreement, such Buyer will not be a
“beneficial owner” (as determined in accordance with Rule 13d-3 of the 1934 Act) of more than 10% of the shares of
Common Stock.

 

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(m)         Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Buyer has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Buyer, executed any purchases
or sales, including Short Sales (as defined in SEC Rule 200), of the securities of the Company during the period commencing as
of the time that such Buyer first received a term sheet (written or oral) from the Company or any other Person representing the
Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution
hereof. Notwithstanding the foregoing, in the case of a Buyer that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Buyer’s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Buyer’s assets, the representation set forth above
shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than disclosure (i) to other Persons party to this Agreement, (ii) its representatives,
counsel and agents, and (iii) to employees, officers, directors and stockholders of Inventergy, Inc. ("Inventergy"),
such Buyer has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall
constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or
securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

(n)          Registration
Rights Agreement. Such Buyer acknowledges and agrees that only Buyers whose Purchase Price, as set forth opposite such Buyer's
name in column (5) of the Schedule of Buyers, equals or exceeds $350,000 will become a party to the Registration Rights Agreement.

 

3.          REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to each of the Buyers that:

 

(a)          Organization
and Qualification. Each of the Company and its "Subsidiaries" (which for purposes of this Agreement means
any joint venture or any entity in which the Company, directly or indirectly, owns any of the capital stock or holds an equity
or similar interest) are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in
which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as
now being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign entity to do business and is in good
standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to
have a Material Adverse Effect. As used in this Agreement, "Material Adverse Effect" means any material adverse
effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects
of the Company and its Subsidiaries taken as a whole, or on the transactions contemplated hereby or in the other Transaction Documents
(as defined in Section 3(b)) or by the agreements and instruments to be entered into in connection herewith or therewith, or on
the authority or ability of the Company to perform its obligations under the Transaction Documents except as set forth in Schedule
3(a). The Company has no Subsidiaries except as set forth in Schedule 3(a).

 

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(b)          Authorization;
Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Certificate of Designations, the Warrants, the Registration Rights Agreement, the Irrevocable Transfer
Agent Instructions (as defined in Section 5(b)), the Voting Agreements (as defined in Section 4(q)), the Lock-Up Agreements (as
defined in Section 7(xii)), the Letters of Credit (as defined in Section 4(p)) and each of the other agreements entered into by
the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the "Transaction Documents")
and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents
by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation,
the issuance of the Preferred Shares and the Warrants, the reservation for issuance and the issuance of the Conversion Shares
issuable upon conversion of the Preferred Shares and the reservation for issuance and issuance of Warrant Shares issuable upon
exercise of the Warrants have been duly authorized by the Company's Board of Directors and (other than the filing with the SEC
of one or more Registration Statements (as defined in the Registration Rights Agreement) in accordance with the requirements of
the Registration Rights Agreement and other filings as may be required by state securities agencies) no further filing, consent,
or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement and the other Transaction
Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of applicable creditors' rights and remedies. The Certificate of Designations in the
form attached hereto as Exhibit A has been filed with the Secretary of State of the State of Delaware and is in full force and
effect, enforceable against the Company in accordance with its terms and has not been amended.

 

(c)          Issuance
of Securities. The issuance of the Preferred Shares and the Warrants are duly authorized and, upon issuance in accordance with
the terms of the Transaction Documents, shall be validly issued and free from all taxes, liens and charges with respect to the
issue thereof and the Preferred Shares shall be entitled to the rights and preferences set forth in the Certificate of Designations.
As of the Closing, a number of shares of Common Stock shall have been duly authorized and reserved for issuance which equals or
exceeds (the "Required Reserved Amount) the sum of (i) 130% of the maximum number of Conversion Shares issuable upon
conversion of the Preferred Shares (assuming for purposes hereof, that the Preferred Shares are convertible at the Conversion Price
and without taking into account any limitations on the conversion of the Preferred Shares set forth in the Certificate of Designations),
and (ii) the maximum number of Warrant Shares issuable upon exercise of the Warrants (without taking into account any limitations
on the exercise of the Warrants set forth in the Warrants). As of the date hereof, there are 6,969,303 shares of Common Stock authorized
and unissued. Upon conversion of the Preferred Shares in accordance with the Certificate of Designations or exercise of the Warrants
in accordance with the Warrants, as the case may be, the Conversion Shares and the Warrant Shares, respectively, will be validly
issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens and charges with respect to the
issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Assuming the accuracy of each
of the representations and warranties of the Buyers set forth in Section 2 of this Agreement, the offer and issuance by the Company
of the Securities is exempt from registration under the 1933 Act.

 

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(d)          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 issuance of the Preferred Shares
and the Warrants and reservation for issuance and issuance of the Conversion Shares and the Warrant Shares) will not (i) result
in a violation of the Certificate of Incorporation or Bylaws (each, as defined in Section 3(r)) of the Company, any memorandum
of association, certificate of incorporation, certificate of formation, any certificate of designations or other constituent documents
of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or the articles of association
or bylaws of the Company or any of its Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party,
or (iii) assuming the accuracy of the representations of the Buyers in Section 2, 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 NASDAQ
Capital Market (the "Principal Market") and applicable laws of the State of Delaware and any other state laws)
applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries
is bound or affected.

 

(e)          Consents.
The Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court,
governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform
any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or
thereof, other than the filing and acceptance of a Listing of Additional Shares application with the Principal Market. All consents,
authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have
been obtained or effected on or prior to the Closing Date, and the Company and its Subsidiaries are unaware of any facts or circumstances
that might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the consent, registration, application
or filings pursuant to the preceding sentence. Except as set forth in Schedule 3(e), the Company is not in violation of
the listing requirements of the Principal Market and has no knowledge of any facts that would reasonably lead to delisting or suspension
of the Common Stock in the foreseeable future. The issuance by the Company of the Securities shall not have the effect of delisting
or suspending the Common Stock from the Principal Market.

 

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

 

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(g)          No
General Solicitation; Placement Agent's Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor any Person
acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of any placement agent's
fees, financial advisory fees, or brokers' commissions (other than for persons engaged by any Buyer or its investment advisor)
relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold each Buyer harmless against,
any liability, loss or expense (including, without limitation, attorney's fees and out-of-pocket expenses) arising in connection
with any such claim. Neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection
with the sale of the Securities.

 

(h)          No
Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and 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 any of the Securities under the 1933 Act, whether through integration with prior offerings or
otherwise, or cause this offering of the Securities to require the approval of the stockholders of the Company for purposes of
the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations
of any exchange or automated quotation system on which any of the securities of the Company are listed or designated (except for
the Stockholder Approval requirements contemplated pursuant to Section 4(s) of this Agreement and as required pursuant to the Certificate
of Designations). None of the Company, its Subsidiaries, their affiliates and any Person acting on their behalf will take any action
or steps referred to in the preceding sentence that would require registration of any of the Securities under the 1933 Act or cause
the offering of the Securities to be integrated with other offerings for purposes of any such applicable stockholder approval provisions.

 

(i)           Dilutive
Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion of the Preferred
Shares will increase in certain circumstances. The Company further acknowledges that its obligation to issue Conversion Shares
upon conversion of the Preferred Shares in accordance with this Agreement and the Certificate of Designations, and its obligation
to issue the Warrant Shares upon exercise of the Warrants in accordance with this Agreement and the Warrants is, in each case,
absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders
of the Company.

 

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(j)           Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, 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 jurisdiction
of its formation which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement,
including, without limitation, the Company's issuance of the Securities and any Buyer's ownership of the Securities. The Company
has not adopted a stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock
or a change in control of the Company.

 

(k)          SEC
Documents; Financial Statements. Except as disclosed in Schedule 3(k), during the two (2) years prior to the date hereof,
the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the
SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof or prior to the
Closing Date, and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated
by reference therein being hereinafter referred to as the "SEC Documents"). The Company has delivered to the Buyers
or their respective representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR system.
As of their respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act
and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. As of their respective filing dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles, consistently applied, during the periods involved ("GAAP")
(except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material
respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

(l)           Absence
of Certain Changes. Except as disclosed in Schedule 3(l), since July 31, 2013, there has been no material adverse change
and no material adverse development in the business, assets, properties, operations, condition (financial or otherwise), results
of operations or prospects of the Company or its Subsidiaries. Except as disclosed in Schedule 3(l), since July 31, 2013,
neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in
the aggregate, in excess of $100,000 outside of the ordinary course of business or (iii) had capital expenditures, individually
or in the aggregate, in excess of $100,000. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection
pursuant to any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so. The Company
and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions
contemplated hereby to occur at the Closing, will not be Insolvent (as defined below). For purposes of this Section 3(l), "Insolvent"
means, with respect to any Person, (i) the present fair saleable value of such Person's assets is less than the amount required
to pay such Person's total Indebtedness (as defined in Section 3(s)), (ii) such Person is unable to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to
incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has
unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed
to be conducted.

 

    	- 10 -

    	 

    

 

(m)         No
Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has occurred
or exists, or is contemplated to occur with respect to the Company, its Subsidiaries or their respective business, properties,
prospects, operations or financial condition, that would be required to be disclosed by the Company on its SEC Documents pursuant
to the 1934 Act and which has not been publicly announced, other than the information to be disclosed in the 8-K Filing, as contemplated
in Section 4(i) hereof.

 

(n)          Conduct
of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default
under any certificate of designations of any outstanding series of preferred stock of the Company (if any), its Certificate of
Incorporation or Bylaws or their organizational charter or memorandum of association or certificate of incorporation or articles
of association or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree
or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company
nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except, in each case, for possible
violations which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Without
limiting the generality of the foregoing, except as set forth in Schedule 3(n), the Company is not in violation of any of
the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that would reasonably
lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. Except as set forth in Schedule
3(n), during the two (2) years prior to the date hereof, the Common Stock has been designated for quotation on the Principal
Market. Except as set forth in Schedule 3(n), during the two (2) years prior to the date hereof, (i) trading in the Common
Stock has not been suspended by the SEC or the Principal Market and (ii) the Company has received no communication, written or
oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market.
The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state
or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates,
authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company
nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit.

 

(o)          Foreign
Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor to the knowledge of the Company or any of its Subsidiaries,
any director or executive officer has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries
(i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

    	- 11 -

    	 

    

 

(p)          Sarbanes-Oxley
Act. The Company is in material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that
are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are
effective as of the date hereof.

 

(q)        
Transactions With Affiliates. Except as set forth in Schedule 3(q), none of the officers, directors or employees
of the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries (other
than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any such officer, director or employee or, to the knowledge of the Company or any of its Subsidiaries, any
corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or
is an officer, director, trustee or partner.

 

(r)           Equity
Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 10,000,000 shares of Common
Stock, of which as of the date hereof, 3,030,697 shares are issued and outstanding, 339,797 shares are reserved for issuance pursuant
to the Company's stock option and purchase plans and zero (0) shares are reserved for issuance pursuant to securities (other than
the aforementioned options, the Preferred Shares and the Warrants) exercisable or exchangeable for, or convertible into, Common
Stock and (ii) 10,000,000 shares of preferred stock, par value $0.001 per share, of which as of the date hereof, no shares are
issued and outstanding. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and
nonassessable. Except as disclosed in Schedule 3(r): (i) none of the Company's capital stock is 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 options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares 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, or exercisable or exchangeable
for, any shares of capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes,
credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any
of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements
securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company or any of
its Subsidiaries; (v) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act (except pursuant to the Registration Rights Agreement); (vi) 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; (vii) there are no securities or instruments
containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) the Company does
not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement; and (ix)
the Company and its Subsidiaries have no liabilities or obligations required to be disclosed in the SEC Documents but not so disclosed
in the SEC Documents, other than those incurred in the ordinary course of the Company's or any of its Subsidiary's' respective
businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect. The Company has furnished
or made available to the Buyers true, correct and complete copies of the Company's Certificate of Incorporation, as amended and
as in effect on the date hereof (the "Certificate of Incorporation"), and the Company's Bylaws, as amended and
as in effect on the date hereof (the "Bylaws"), and the terms of all securities convertible into, or exercisable
or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto.

 

    	- 12 -

    	 

    

 

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

 

    	- 13 -

    	 

    

 

(t)           Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against
or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company's Subsidiaries or any of the Company's
or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, except
as set forth in Schedule 3(t). The matters set forth in Schedule 3(t) would not reasonably be expected to have a
Material Adverse Effect.

 

(u)          Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or
applied for and neither the Company nor any such Subsidiary has any reason to believe that it will 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 have a Material Adverse Effect.

 

(v)          Employee
Relations.

 

(i)          Neither
the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. No
executive officer of the Company or any of its Subsidiaries (as defined in Rule 501(f) of the 1933 Act) has notified the Company
or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer's
employment with the Company or any such Subsidiary. No executive officer of the Company or any of its Subsidiaries, to the knowledge
of the Company or any of its Subsidiaries, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement
or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters.

 

(ii)         The
Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor,
employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure
to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

 

    	- 14 -

    	 

    

 

(w)         Title.
The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title
to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free
and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property
and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property
and buildings by the Company and its Subsidiaries.

 

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

 

(y)          Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with any and all Environmental Laws (as hereinafter defined),
(ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval where,
in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect. The term "Environmental Laws" means all federal, state, local
or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively, "Hazardous Materials") into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes,
decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations
issued, entered, promulgated or approved thereunder.

 

    	- 15 -

    	 

    

 

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

 

(aa)        Investment
Company Status. The Company is not, and upon consummation of the sale of the Securities, will not be, an "investment company,"
a company controlled by an "investment company" or an "affiliated person" of, or "promoter" or "principal
underwriter" for, an "investment company" as such terms are defined in the Investment Company Act of 1940, as amended,
nor does the Company ever intend to become an "investment company".

 

(bb)        Tax
Status. Except as set forth in Schedule 3(bb), the Company and each of its Subsidiaries (i) has made or filed all U.S.
federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it
is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its
books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Company know of no basis for any such claim.

 

(cc)        Internal
Accounting and Disclosure Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP
and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance
with management's general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared
with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference.
The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the 1934 Act) that are effective
in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act
is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including,
without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the
reports that it files or submits under the 1934 Act is accumulated and communicated to the Company's management, including its
principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions
regarding required disclosure. During the twelve months prior to the date hereof neither the Company nor any of its Subsidiaries
has received any notice or correspondence from any accountant relating to any potential material weakness in any part of the system
of internal accounting controls of the Company or any of its Subsidiaries.

 

    	- 16 -

    	 

    

 

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

 

(ee)        Eligibility
for Registration. The Company is eligible to register the Conversion Shares and the Warrant Shares for resale by the Buyers
using Form S-3 promulgated under the 1933 Act, subject to any limitations on the amount of such securities that may be registered
imposed by the Staff of the SEC in any particular instance.

 

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

 

(gg)       Manipulation
of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased,
or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Company.

 

(hh)       Acknowledgement
Regarding Buyers' Trading Activity. The Company acknowledges and agrees that (i) none of the Buyers has been asked to agree,
nor has any Buyer agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or "derivative"
securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) any Buyer, and counter-parties
in "derivative" transactions to which any such Buyer is a party, directly or indirectly, presently may have a "short"
position in the Common Stock, and (iii) each Buyer shall not be deemed to have any affiliation with or control over any arm's length
counter-party in any "derivative" transaction. The Company further understands and acknowledges that one or more Buyers
may engage in hedging and/or trading activities at various times during the period that the Securities are outstanding, including,
without limitation, during the periods that the value of the Conversion Shares and/or the Warrant Shares are being determined and
(b) such hedging and/or trading activities, if any, can reduce the value of the existing stockholders' equity interest in the Company
both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that such aforementioned
hedging and/or trading activities do not constitute a breach of this Agreement or any of the Transaction Documents.

 

(ii)          U.S.
Real Property Holding Corporation. The Company is not, has never been, and so long as any Securities remain outstanding, shall
not become, a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as
amended, and the Company shall so certify upon any Buyer's request.

 

    	- 17 -

    	 

    

 

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

 

(kk)        No
Additional Agreements. Neither the Company nor any of its Subsidiaries has any agreement or understanding with any Buyer with
respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

(ll)          Disclosure.
The representations and warranties by the Company contained in this Agreement, including any disclosures made in the disclosure
schedules to this Agreement, are true and correct and do not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made,
not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the
date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. Except for the events, circumstances and information contemplated to be disclosed in the
8-K Filing pursuant to Section 4(i) hereof, no event or circumstance has occurred or information exists with respect to the Company
or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable
law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced
or disclosed. The Company acknowledges and agrees that no Buyer makes or has made any representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth in this Agreement.

 

(mm)      Shell
Company Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1) of the 1933 Act.

 

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

 

    	- 18 -

    	 

    

 

(oo)       No
Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's
ability to perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof,
the Company had discussions with its accountants about its financial statements previously filed with the SEC. Based on those discussions,
the Company has no reason to believe that it will need to restate any such financial statements or any part thereof.

 

(pp)       No
Disqualification Events.  With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under the
1933 Act ("Regulation D Securities"), none of the Company, any of its predecessors, any affiliated issuer, any
director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20%
or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each,
an "Issuer Covered Person" and, together, "Issuer Covered Persons") is subject to any of the
"Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a "Disqualification
Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent
applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided
thereunder.

 

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

 

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

 

4.          COVENANTS.

 

(a)          Reasonable
Best Efforts. Each party shall use its reasonable best efforts timely to satisfy each of the covenants and the conditions to
be satisfied by it as provided in Sections 6 and 7 of this Agreement.

 

(b)          Form
D and Blue Sky. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof to each Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as
the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to
the Buyers at the Closing pursuant to this Agreement under applicable securities or "Blue Sky" laws of the states of
the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to
the Buyers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and sale of the
Securities required under applicable securities or "Blue Sky" laws of the states of the United States following the Closing
Date.

 

    	- 19 -

    	 

    

 

(c)          Reporting
Status. Until the date on which the Buyers shall have sold all of the Conversion Shares and Warrant Shares and none
of the Preferred Shares or Warrants are outstanding (the "Reporting Period"), the Company shall timely
file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as
an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer
require or otherwise permit such termination, and the Company use its reasonable best efforts to maintain its eligibility to register
the Conversion Shares and Warrant Shares for resale by the Investors on Form S-3.

 

(d)          Use
of Proceeds. The Company shall use (i) not more than $2,000,000 of the proceeds from the sale of the Securities for the payment
of the Initial Dividend (as defined in the Certificate of Designations) and the repayment of the Outstanding Notes (as defined
in the Certificate of Designations) and (ii) at least $500,000 of the proceeds from the sale of the Securities for general corporate
and for working capital purposes, and, with respect to clause (ii), not for (A) repayment of any outstanding Indebtedness of the
Company or any of its Subsidiaries or (B) redemption or repurchase of any of its or its Subsidiaries' equity securities.

 

(e)          Financial
Information. The Company agrees to send the following to each Investor during the Reporting Period (i) unless the following
are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one (1) Business Day after
the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, any Quarterly Reports on Form 10-Q, any Current Reports
on Form 8-K (or any analogous reports under the 1934 Act) and any registration statements (other than on Form S-8) or amendments
filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile or e-mailed copies of all press releases
issued by the Company or any of its Subsidiaries, and (iii) copies of any notices and other information made available or given
to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders.
As used herein, "Business Day" means any day other than Saturday, Sunday or other day on which commercial banks
in The City of New York are authorized or required by law to remain closed.

 

(f)           Listing.
The Company shall promptly secure the listing of all of (i) the Registrable Securities (as defined in the Registration Rights Agreement)
and (ii) the shares of Common Stock issuable upon the conversion of the Preferred Shares and upon exercise of the Warrants of such
Buyers that are not a party to the Registration Rights Agreement (collectively, the "Underlying Shares"), upon
each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to
official notice of issuance) and shall maintain such listing of all Underlying Securities from time to time issuable under the
terms of the Transaction Documents. The Company shall use reasonable best efforts to maintain the authorization for quotation of
the Common Stock on the Principal Market or any other Eligible Market (as defined in the Warrants). Neither the Company nor any
of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common
Stock on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under
this Section 4(f).

 

    	- 20 -

    	 

    

 

(g)          Fees.
The Company shall be responsible for the payment of any placement agent's fees or commissions, financial advisory fees, or broker's
commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby. The
Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable
attorney's fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise
set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of
the Securities to the Buyers.

 

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

 

    	- 21 -

    	 

    

 

(i)           Disclosure
of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on the first Business Day following
the date of this Agreement, the Company shall issue a press release and file a Current Report on Form 8-K describing the terms
of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction
Documents (including, without limitation, this Agreement (and all schedules and exhibits to this Agreement), the form of the Certificate
of Designations, the form of Warrant, the form of the Registration Rights Agreement, the form of Letter of Credit, the form of
Voting Agreement and the form of Lock-Up Agreement as exhibits to such filing (including all attachments), the "8-K Filing").
In addition, the Company hereby covenants and agrees that it shall include in the 8-K Filing any information that constitutes,
or could reasonably be expected to constitute, material, nonpublic information regarding the Company or any of its Subsidiaries
received by any of the Buyers from the Company or any of its Subsidiaries or any of their respective officers, directors, affiliates
or agents, as well as any information received by the Company from Inventergy that Inventergy has represented to the Company constitutes
or could reasonably be expected to constitute, material, nonpublic information regarding Inventergy received by any of the Buyers
from Inventergy or its respective officers, directors, affiliates or agents. Accordingly, from and after the filing of the 8-K
Filing with the SEC, no Buyer shall be in possession of any material, nonpublic information received from the Company, Inventergy
(based solely on Inventergy’s representations to the Company), any of their respective Subsidiaries or any of their respective
officers, directors, employees or agents, that is not disclosed in the 8-K Filing. The Company understands and confirms that each
of the Buyers will rely on the foregoing in effecting transactions in securities of the Company. The Company shall not, and shall
cause its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to, provide any Buyer
with any material, nonpublic information regarding the Company, Inventergy or any of their respective Subsidiaries from and after
the filing of the 8-K Filing with the SEC without the express prior written consent of such Buyer. If a Buyer has, or believes
it has, received any such material, nonpublic information regarding the Company, Inventergy or any of their respective Subsidiaries
from the Company, Inventergy any of their respective Subsidiaries or any of their respective officers, directors, affiliates or
agents, it may provide the Company with written notice thereof. The Company shall, within two (2) Trading Days (as defined in the
Warrants) of receipt of such notice, make public disclosure of such material, nonpublic information. In the event of a breach of
the foregoing covenant by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees
and agents, in addition to any other remedy provided herein or in the Transaction Documents, a Buyer shall have the right to make
a public disclosure, in the form of a press release, public advertisement or otherwise, of such material, nonpublic information
without the prior approval by the Company, Inventergy, their respective Subsidiaries, or any of its or their respective officers,
directors, employees or agents. No Buyer shall have any liability to the Company, Inventergy, their respective Subsidiaries, or
any of its or their respective officers, directors, employees, stockholders or agents for any such disclosure. To the extent that
the Company delivers any material, non-public information to a Buyer without such Buyer's consent, the Company hereby covenants
and agrees that, as between the Company and such Buyer, such Buyer shall not have any duty of confidentiality with respect to,
or a duty not to trade on the basis of, such material, non-public information. Subject to the foregoing, neither the Company, its
Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated
hereby; provided, however, that the Company shall be entitled, without the prior approval of any Buyer, to make any
press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and
contemporaneously therewith and (ii) as is required by applicable law and regulations, including, without limitation, the rules
and regulations of the Principal Market (provided that in the case of clause (i) each Buyer shall be consulted by the Company in
connection with any such press release or other public disclosure prior to its release). Except for the Registration Statement
required to be filed pursuant to the Registration Rights Agreement, and this Agreement, which will be filed as an exhibit to the
8-K Filing, without the prior written consent of any applicable Buyer, neither the Company nor any of its Subsidiaries or affiliates
shall disclose the name of such Buyer in any filing, announcement, release or otherwise, unless required by applicable federal,
state or local law, regulation or a valid order issued by a court or governmental agency of competent jurisdiction.

 

(j)           Additional
Preferred Shares; Variable Securities. So long as any Buyer beneficially owns any Securities, the Company will not issue any
Preferred Shares other than to the Buyers as contemplated hereby and the Company shall not issue any other securities that would
cause a breach or default under the Certificate of Designations or Warrants. Until the earlier of (i) the date that no Preferred
Shares or Warrants remain outstanding and (ii) the two (2) year anniversary of the Closing Date, the Company shall not, in any
manner, issue or sell any rights, warrants or options to subscribe for or purchase Common Stock or directly or indirectly convertible
into or exchangeable or exercisable for Common Stock at a price which varies or may vary with the market price of the Common Stock,
including by way of one or more reset(s) to any fixed price unless the conversion, exchange or exercise price of any such security
cannot be less than the then applicable Conversion Price (as defined in the Certificate of Designations) with respect to the Common
Stock into which any Preferred Shares is convertible or the then applicable Exercise Price (as defined in the Warrants) with respect
to the Common Stock into which any Warrant is exercisable (such security, a "Variable Security"). For the avoidance
of doubt, no security shall be deemed a Variable Security solely by virtue of the fact that such security provides for full ratchet
or weighted average dilution adjustments.

 

    	- 22 -

    	 

    

 

(k)          Corporate
Existence. So long as any Buyer beneficially owns any Securities, the Company shall (i) maintain its corporate existence and
(ii) not be party to any Fundamental Transaction (as defined in the Certificate of Designations) unless the Company is in compliance
with the applicable provisions governing Fundamental Transactions set forth in the Certificate of Designations and the Warrants.

 

(l)           Reservation
of Shares. So long as any Buyer owns any Securities, the Company shall take all action necessary to at all times have authorized,
and reserved for the purpose of issuance, no less than the sum of (i) 130% of the maximum number of Conversion Shares issuable
upon conversion of the Preferred Shares (assuming for purposes hereof, that the Preferred Shares are convertible at the then current
Conversion Price and without taking into account any limitations on the conversion of the Preferred Shares set forth in the Certificate
of Designations), and (ii) the maximum number of shares of Common Stock issuable upon exercise of the Warrants then outstanding
(without taking into account any limitations on the exercise of the Warrants set forth in the Warrants). If at any time the number
of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company
will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of stockholders to authorize additional shares to meet the Company's obligations under Section 3(c),
in the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number
of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure
that the number of authorized shares is sufficient to meet the Required Reserved Amount.

 

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

 

(n)          Filing
of Registration Statements. From the date hereof until the date that is the earlier of (i) the date that one or more Registration
Statement(s) covering the resale of all Registrable Securities has been effective and available for the re-sale of all such Registrable
Securities and (ii) the date the Conversion Shares and the Warrant Shares are eligible for sale by non-affiliates of the Company
without restriction pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor
thereto) promulgated under the 1933 Act, the Company will not, directly or indirectly, file any registration statement with the
SEC other than the Registration Statements and the S-4 Registration Statement (each as defined in the Registration Rights Agreement).
Notwithstanding the foregoing, the Company may file one or more registration statements on Form S-8 registering shares of Common
Stock issued or issuable pursuant to an Approved Stock Plan (as defined in the Certificate of Designations), provided that such
shares either (i) shall not vest prior to the date that is the one (1) year anniversary of the consummation of the Reverse Merger
or (ii) shall be subject to a lock-up agreement until at least the one (1) year anniversary of the consummation of the Reverse
Merger, in each case, such that no such shares of Common Stock shall be sold prior to such date.

 

    	- 23 -

    	 

    

 

(o)          Public
Information. At any time during the period commencing from the six (6) month anniversary of the Closing Date and ending at
such time that all of the Securities, if a registration statement is not available for the resale of all of the Securities, may
be sold without restriction or limitation pursuant to Rule 144 by a non-affiliate of the Company and without the requirement to
be in compliance with Rule 144(c)(1), if the Company shall (i) fail for any reason to satisfy the requirements of Rule 144(c)(1),
including, without limitation, the failure to satisfy the current public information requirement under Rule 144(c) or (ii) if the
Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail
to satisfy any condition set forth in Rule 144(i)(2) (a "Public Information Failure") then, as partial relief
for the damages to any holder of Securities by reason of any such delay in or reduction of its ability to sell the Securities (which
remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to each such holder an
amount in cash equal to two percent (2.0%) of the aggregate Purchase Price of such holder's Securities still owned by such holder
on the day of a Public Information Failure and on every thirtieth day (pro rated for periods totaling less than thirty days) thereafter
until the earlier of (i) the date such Public Information Failure is cured and (ii) such time that such public information is no
longer required pursuant to Rule 144. The payments to which a holder shall be entitled pursuant to this Section 4(o) are referred
to herein as "Public Information Failure Payments." Public Information Failure Payments shall be paid on
the earlier of (I) the last day of the calendar month during which such Public Information Failure Payments are incurred
and (II) the third Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.
In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure
Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full.

 

(p)          Letters
of Credit.

 

(i)          On
or prior to the Closing Date, the Company shall obtain an irrevocable letter of credit for each Buyer (each, a "Letter
of Credit" and collectively, the "Letters of Credit"), each Letter of Credit in the amount of the Purchase
Price set forth opposite the applicable Buyer's name in column (5) on the Schedule of Buyers attached hereto (as may be decreased
pursuant to the terms of this Section 4(p), the "Letter of Credit Amount") issued in favor of such Buyer by Wells
Fargo, National Association (the "Letter of Credit Bank"), and in form and substance acceptable to such Buyer.
Each Letter of Credit, including any renewals, extensions or replacements referred to below, shall expire not earlier than the
one (1) year anniversary of the Closing Date (the "LC Expiration Date"), unless such Letter of Credit shall have
been reduced to zero in accordance with the terms contained in this Section 4(p) prior to such date. The Company shall obtain such
renewals, extensions or replacements of each Letter of Credit as necessary to ensure that such Letter of Credit shall not expire
prior to the LC Expiration Date (unless such Letter of Credit shall have been reduced to zero in accordance with the terms contained
in this Section 4(p) prior to such date). If, at any time, the Company cannot obtain a renewal, extension or replacement of a Letter
of Credit such that the Letter of Credit will expire prior to the LC Expiration Date (a "Withdrawal Event"), the
Company and the Letter of Credit Bank shall each give each Buyer written notice of the occurrence of a Withdrawal Event at least
forty-five (45) days prior to the then current expiration date of the Letter of Credit. Following a Withdrawal Event, each Buyer
shall be entitled to draw down the Letter of Credit Amount in its entirety and hold such amount as collateral security for the
obligations under the Certificate of Designations to the applicable Buyer for the benefit of such Buyer.

 

    	- 24 -

    	 

    

 

(ii)         Upon
a Holder Optional Redemption or a Change of Control Redemption (each, as defined in the Certificate of Designations) by a Buyer,
such Buyer shall be entitled to draw under its applicable Letter of Credit, including any renewals, extensions or replacements
referred to above, for the applicable Holder Optional Redemption Triggering Event Redemption Price or Change of Control Redemption
Price, as applicable, up to such Buyer's Letter of Credit Amount then available thereunder. If at any time a Buyer is entitled
to draw down on its Letter of Credit pursuant to the immediately preceding sentence then such Buyer may issue a written instruction
to the Letter of Credit Bank (with a copy to the Company) to request the reduction of its Letter of Credit Amount by an amount
equal to the applicable Holder Optional Redemption Triggering Event Price or Change of Control Redemption Price, as applicable
and the payment in cash by wire of immediately available funds of such amount to such Buyer pursuant to wire instructions provided
in writing by such Buyer. If at any time a Buyer has drawn on its Letter of Credit pursuant to the immediately preceding sentence
and has received the amount drawn down from the Letter of Credit Bank (the "Draw Down Amount"), then on the Business
Day following the receipt of such Draw Down Amount, such amount will be applied to redeem a number of Preferred Shares equal to
the Stated Value (as defined in the Certificate of Designations) of such Buyer's Preferred Shares in an amount equal to the Draw
Down Amount and a corresponding percentage of the outstanding Warrants issued to such Buyer at Closing. In the event a Buyer does
not elect to draw under its applicable Letter of Credit within thirty (30) days after the occurrence of a Holder Optional Redemption
or a Change of Control Redemption in accordance hereof, such Buyer shall within three (3) Business Days after the expiration of
such period issue a written instruction to the Letter of Credit Bank (with a copy to the Company) to cancel its applicable Letter
of Credit Amount and to deliver any remaining Letter of Credit Amount in cash by wire transfer of immediately available funds to
the Company pursuant to wire instructions provided by the Company in writing.

 

(iii)        After
the latest of (i) the Stockholder Approval Date, (ii) the date that the Initial Registration Statement registering the Initial
Required Registration Amount (as such terms are defined in the Registration Rights Agreement) is declared effective and has been
continuously available for at least ten (10) Trading Days, (iii) the date that the Company has given notice to each Buyer as to
the date scheduled for the consummation of the Reverse Merger (as defined in the Certificate of Designations); provided,
however, that the requirements set forth in clause (ii) above shall be deemed to have been satisfied with respect to a Buyer
if the SEC refuses to declare the Initial Registration Statement effective solely because it requires such Buyer to be named as
an underwriter therein (the “Scheduled Closing Date”), which notice shall be given at least ten (10) Trading
Days prior to the Scheduled Closing Date and (iv) all conditions to the consummation of the Reverse Merger, including, without
limitation, the occurrence of the Reverse Split (as defined in the Certificate of Designations), either have been satisfied or
are reasonably expected to be satisfied by the Scheduled Closing Date, each Buyer shall issue a written instruction to the Letter
of Credit Bank (with a copy to the Company) not later than three (3) Trading Days prior to Scheduled Closing Date to cancel its
applicable Letter of Credit Amount and to deliver any remaining Letter of Credit Amount in cash by wire transfer of immediately
available funds to the Company pursuant to wire instructions provided by the Company in writing.

 

    	- 25 -

    	 

    

 

(iv)        In
the event that any Buyer shall convert all or a portion of such Buyer's Preferred Shares, which leaves such Buyer with an aggregate
Stated Value (as defined in the Certificate of Designations) of Preferred Shares that is less than such Buyer's Letter of Credit
Allocation, then each Buyer shall promptly issue a written instruction to the Letter of Credit Bank (with a copy to the Company)
to request the reduction of its Letter of Credit Amount to the Stated Value of Preferred Shares held by such Buyer, and to deliver
in cash by wire transfer of immediately available funds the amount by which such Letter of Credit Amount is being reduced to the
Company pursuant to wire instructions provided by the Company in writing.

 

(v)         In
the event that any Buyer shall sell or otherwise transfer any of such Buyer's Preferred Shares, the transferee shall be allocated
a pro rata portion of such Buyer's Letter of Credit Amount, and the rights of the applicable transferor contained in this Section
4(p) shall apply to the applicable transferee with respect to the portion of the Letter of Credit Amount allocated to such transferee
as if the transferee were a Buyer hereunder. Any Buyer that transfers any Preferred Shares shall provide written notice to the
Company and the Letter of Credit Bank contemporaneously with any such transfer, identifying such transferee and providing any information
reasonably requested by the Letter of Credit Bank.

 

(q)          Voting
Agreement. The Company shall use its reasonable best efforts to effectuate the transactions contemplated by the Voting Agreements,
substantially in the form attached hereto as Exhibit D (the "Voting Agreements"), executed by the Company
and each of David Lee and Lee Family Trust (together, the "Principal Stockholders"). The Company shall not amend
or waive any provision of the Voting Agreements and shall enforce the provisions of the Voting Agreements in accordance with its
terms. If any of the Principal Stockholders breaches any provisions of the Voting Agreements, the Company shall promptly use its
reasonable best efforts to seek specific performance of the terms of the Voting Agreements in accordance with Section 4.02 thereof.
In addition, if the Company receives any notice from any Principal Stockholder pursuant to any Voting Agreement, the Company shall
promptly, but in no event later than two (2) Business Days, deliver a copy of such notice to each Buyer.

 

(r)           Lock-Up.
The Company shall not amend or waive any provision of any of the Lock-Up Agreements except to extend the term of the lock-up period
and shall enforce the provisions of each Lock-Up Agreement in accordance with its terms. If any officer or director that is a party
to a Lock-Up Agreement breaches any provision of a Lock-Up Agreement, the Company shall promptly use its reasonable best efforts
to seek specific performance of the terms of such Lock-Up Agreement.

 

(s)          Stockholder
Approval. The Company shall provide each stockholder entitled to vote at a special or annual meeting of stockholders of the
Company (the "Stockholder Meeting"), which shall be called as promptly as practicable after the date hereof, but
in no event later than the date of the meeting of stockholders called to vote for the Reverse Merger and the Reverse Split, which
shall not be later than the date that is five (5) months immediately following the Closing Date (the "Stockholder Meeting
Deadline"), a proxy statement, which may be contained in the S-4 Registration Statement, in a form reasonably acceptable
to the Buyers after review by Schulte Roth & Zabel LLP, soliciting each such stockholder's affirmative vote at the Stockholder
Meeting for approval of resolutions (the "Resolutions") providing for the issuance of all of the Securities as
described in the Transaction Documents in accordance with applicable law, the provisions of the Bylaws and the rules and regulations
of the Principal Market without giving effect to the Exchange Cap provisions set forth in the Certificate of Designations and the
Warrants (such affirmative approvals being referred to herein, collectively, as the "Stockholder Approval" and
the date such approval is obtained, the "Stockholder Approval Date"), and the Company shall use its reasonable
best efforts to solicit its stockholders' approval of such Resolutions and to cause the Board of Directors of the Company to recommend
to the stockholders that they approve the Resolutions, subject to the Company's Board of Directors compliance with its fiduciary
duties under applicable law. The Company shall be obligated to seek to obtain the Stockholder Approval by the Stockholder Meeting
Deadline.

 

    	- 26 -

    	 

    

 

(t)           Record
Date. The Company shall cause the record date for holders of Common Stock to receive the Initial Dividend to be no later than
ten (10) days prior to the date of the Stockholder Meeting.

 

(u)          Closing
Documents. On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver, or cause to be
delivered, to each Buyer and Schulte Roth & Zabel LLP a complete closing set of the executed Transaction Documents, Securities
and any other documents required to be delivered to any party pursuant to Section 7 hereof or otherwise.

 

5.          REGISTER;
TRANSFER AGENT INSTRUCTIONS.

 

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

 

(b)          Transfer
Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent,
in the form of Exhibit E attached hereto (the "Irrevocable Transfer Agent Instructions") to issue certificates
or credit shares to the applicable balance accounts at DTC, registered in the name of each Buyer or its respective nominee(s),
for the Conversion Shares and the Warrant Shares issued at the Closing or upon conversion of the Preferred Shares or exercise of
the Warrants in such amounts as specified from time to time by each Buyer to the Company upon conversion of the Preferred Shares
or exercise of the Warrants. The Company warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred
to in this Section 5(b), and stop transfer instructions to give effect to Section 2(f) hereof, will be given by the Company to
its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books
and records of the Company as and to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects
a sale, assignment or transfer of the Securities in accordance with Section 2(f), the Company shall permit the transfer and shall
promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC
in such name and in such denominations as specified by such Buyer to effect such sale, transfer or assignment. In the event that
such sale, assignment or transfer involves the Conversion Shares or the Warrant Shares sold, assigned or transferred pursuant to
an effective registration statement or pursuant to Rule 144, the transfer agent shall issue such Securities to the Buyer, assignee
or transferee, as the case may be, without any restrictive legend. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of
its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company
of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available remedies, to an order
and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic
loss and without any bond or other security being required.

 

    	- 27 -

    	 

    

 

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

 

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

 

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

 

(ii)         Such
Buyer shall have delivered to the Letter of Credit Bank the Purchase Price for the Preferred Shares and the related Warrants being
purchased by such Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided
by the Letter of Credit Bank.

 

(iii)        The
representations and warranties of such Buyer shall be true and correct as of the date when made and as of the Closing 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 specified date), and such Buyer shall have performed, satisfied and complied in all respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Closing
Date.

 

(iv)        No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

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

 

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

 

    	- 28 -

    	 

    

 

(i)          The
Company shall have duly executed and delivered to such Buyer (A) each of the Transaction Documents (other than the Registration
Rights Agreement), (B) the Preferred Shares (in such numbers as is set forth across from such Buyer's name in column (3) of the
Schedule of Buyers), being purchased by such Buyer at the Closing pursuant to this Agreement and (C) the related Warrants (allocated
in such amounts as is set forth opposite such Purchaser's name in column (4) of the Schedule of Buyers) being purchased by such
Buyer at the Closing pursuant to this Agreement.

 

(ii)         Such
Buyer shall have received the opinion of Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, the Company's outside counsel,
dated as of the Closing Date, in substantially the form of Exhibit F attached hereto.

 

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

 

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

 

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

 

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

 

(vii)       The
Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the Closing
Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company's Board of Directors in a form reasonably
acceptable to such Buyer, (ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect at the Closing, in the
form attached hereto as Exhibit G.

 

(viii)      The
representations and warranties of the Company shall be true and correct as of the date when made and as of the Closing 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 specified date) and the Company shall have performed, satisfied and complied in all respects 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 Closing Date. Such Buyer shall have received a certificate, executed by the Chief Executive Officer of the Company, dated as
of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form
attached hereto as Exhibit H.

 

    	- 29 -

    	 

    

 

(ix)         The
Company shall have delivered to such Buyer a letter from the Company's transfer agent certifying the number of shares of Common
Stock outstanding as of a date within five (5) days of the Closing Date.

 

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

 

(xi)         The
Letter of Credit Bank shall have issued a Letter of Credit to such Buyer in the amount set forth opposite such Buyer's name in
column (5) of the Schedule of Buyers, each in form and substance satisfactory to the Required Holders.

 

(xii)        The
Voting Agreements shall have been executed and delivered to such Buyer by the Company and each of the Principal Stockholders.

 

(xiii)       The
Company shall have delivered to each Buyer a lock-up agreement in the form attached hereto as Exhibit I executed and delivered
by each of the Persons listed on Schedule 7(xii) (collectively, the "Lock Up Agreements").

 

(xiv)      The
Certificate of Designations in the form attached here to as Exhibit A shall have been filed with the Secretary of State
of the State of Delaware and shall be in full force and effect, enforceable against the Company in accordance with its terms and
shall not have been amended.

 

(xv)       The
Company shall have executed and delivered the Registration Rights Agreement to each Buyer whose Purchase Price, as set forth opposite
such Buyer's name in column (5) of the Schedule of Buyers, equals or exceeds $350,000.

 

(xvi)      The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities.

 

(xvii)     The
Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement as
such Buyer or its counsel may reasonably request.

 

8.          TERMINATION.
In the event that the Closing shall not have occurred with respect to a Buyer on or before ten (10) Business Days from the date
hereof due to the Company's or such Buyer's failure to satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching
party's failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement
with respect to such breaching party at the close of business on such date by delivering a written notice to that effect to each
other party to this Agreement and without liability of any party to any other party.

 

    	- 30 -

    	 

    

 

9.          MISCELLANEOUS.

 

(a)          Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, 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 WITH
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 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, not a facsimile 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 is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

    	- 31 -

    	 

    

 

(e)          Entire
Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements
between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein,
and this Agreement, the other Transaction Documents and the instruments referenced herein and therein 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 any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the holders of at least sixty percent (60%) of
the aggregate number of shares of Common Stock issued or issuable hereunder and under the Preferred Shares and Warrants (the "Required
Holders"); provided that any such amendment or waiver that complies with the foregoing but that disproportionately, materially
and adversely affects the rights and obligations of any Buyer relative to the comparable rights and obligations of the other Buyers
shall require the prior written consent of such adversely affected Buyer. Any amendment or waiver effected in accordance with this
Section 9(e) shall be binding upon each Buyer and subsequent holder of Securities and the Company. No such amendment shall be effective
to the extent that it applies to less than all of the Buyers or holders of Securities. No consideration shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same
consideration (other than the reimbursement of legal fees) also is offered to all of the parties to the Transaction Documents,
holders of Preferred Shares or holders of the Warrants, as the case may be. The Company has not, directly or indirectly, made any
agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except
as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this
Agreement, no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise.

 

(f)           Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or by electronic mail; or (iii) one Business Day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall
be:

 

If to the Company:

 

eOn Communications Corporation

1703 Sawyer Road

Corinth, MS 38834

 

    	- 32 -

    	 

    

 

		Telephone:	408-694-3339

		Facsimile:	408-996-9722

		Attention:	David Lee, Chairman

		E-mail:	mking@sparktech.com

 

With a copy to:

 

Baker, Donelson, Bearman, Caldwell & Berkowitz,
PC

First Tennessee Building

165 Madison Avenue

Suite 2000

Memphis, Tennessee 38103

		Telephone:	(901) 577-8114

		Facsimile:	(901) 577-0762

		Attention:	Jackie Prester, Esq.

		E-mail:	jprester@bakerdonelson.com

 

If to the Transfer Agent:

 

Computershare Trust Company, N.A.

350 Indiana St. Suite 750

Golden, CO 80401

		Telephone:	(303) 262-0765

		Facsimile:	(303) 262-0610

		Attention:	Adam Burnham

 

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

 

with a copy (for informational purposes only) to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022 

		Telephone:	(212) 756-2000

		Facsimile:	(212) 593-5955

		Attention:	Eleazer N. Klein, Esq.

		E-mail:	eleazer.klein@srz.com

 

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

 

    	- 33 -

    	 

    

 

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

 

(h)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that
each Indemnitee shall have the right to enforce the obligations of the Company with respect to Section 9(k).

 

(i)           Survival.
Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the Buyers contained
in Sections 2 and 3, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing and the deliver
and exercise of Securities, as applicable. Each Buyer shall be responsible only for its own representations, warranties, agreements
and covenants hereunder.

 

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

 

    	- 34 -

    	 

    

 

(k)          Indemnification.
In consideration of each Buyer's execution and delivery of the Transaction Documents and acquiring the Securities thereunder and
in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless each Buyer and each other holder of the Securities and all of their stockholders, partners, members, officers,
directors, employees and direct or indirect investors and any of the foregoing Persons' agents or other representatives (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "Indemnitees"),
as incurred, 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 by a third party (including for these purposes a derivative action brought on behalf of the Company) and
arising out of or resulting from (i) the execution, delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or
in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any disclosure made by such Buyer pursuant
to Section 4(i) hereof except to the extent such Indemnified Liabilities arise solely as a result of such Buyer’s breach
of this Agreement, 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) or willful misconduct, or (iv) the status of such Buyer
or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents.
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 that is permissible under applicable law. Except
as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this Section 9(k)
shall be the same as those set forth in Section 6 of the Registration Rights Agreement.

 

(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.
Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event
that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law
may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary
and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or
other security.

 

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

 

    	- 35 -

    	 

    

 

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

 

(p)          Independent
Nature of Buyers' Obligations and Rights. The obligations of each Buyer under any Transaction Document are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations
of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action
taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the
Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Buyers are in any way acting in concert or as a group, and the Company shall not assert any such claim with respect to
such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that, to its knowledge,
the Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. The Company acknowledges and each Buyer confirms that it has independently participated in the negotiation of the transaction
contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents,
and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose.

 

[Signature Page Follows]

 

    	- 36 -

    	 

    

 

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

 

	 	COMPANY:
	 	 
	 	EON COMMUNICATIONS CORPORATION
	 	 
	 	By:	/s/ David S. Lee
	 	 	Name: David S. Lee
	 	 	Title:  Chairman

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	BUYERS:
	 	 
	 	HUDSON BAY IP OPPORTUNITIES MASTER FUND LP
	 	 
	 	By: Hudson Bay Capital Management LP, as its Investment Manager
	 	 
	 	By:	/s/ Yoav Roth
	 	 	Name:  Yoav Roth
	 	 	Title:  Authorized Signatory

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	/s/ Michael Howard Brauser	 
	 	Michael Howard Brauser	 

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	MELECHDAVID, INC.
	 	 
	 	By:	/s/ Mark Groussman
	 	 	Name:  Mark Groussman
	 	 	Title: President

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	MELECHDAVID, INC. RETIREMENT PLAN
	 	 	 
	 	By:	/s/ Mark Groussman
	 	 	Name: Mark Groussman
	 	 	Title: Trustee

 

    	 

    	 

    

 

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

 

	 	/s/ Jill Strauss	 

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	/s/ Hope Adams Custodian for Sara Adams
	 	Name:  Hope Adams
	 	Title:  Custodian for Sara Adams

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	/s/ John Hampton Ford
	 	  John Hampton Ford

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	/s/ Jonathan Honig
	 	 Jonathan Honig

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	EMPERY ASSET MASTER, LTD.
	 	 
	 	By: EMPERY ASSET MANAGEMENT, LP, 
	 	its Authorized Agent
	 	 
	 	By: EMPERY AM GP, LLC,
	 	its General Partner
	 	 
	 	By	/s/ Martin D. Hoe
	 	 	Name: Martin D. Hoe 
	 	 	Title: Managing Member 

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	ALLIANCE FUNDS, LLC
	 	 
	 	By:	/s/ Thomas P. Walsh
	 	 	Name:  Thomas P. Walsh
	 	 	Title: President

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

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

 

	 	/s/ Barry C. Honig
	 	Barry C. Honig

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

	(1)	 	(2)	 	(3)	 	 	(4)	 	 	(5)	 	 	(6)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Buyer	 	Address
    and 
Facsimile Number	 	Aggregate
    
Number of Preferred 
Shares	 	 	Number
    of 
Warrant Shares	 	 	Purchase
    Price	 	 	Legal
    Representative's Address and 
Facsimile Number
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hudson Bay IP Opportunities Master
    Fund LP	 	777 Third Avenue, 30th Floor
 New York, NY 10017

    Attention: Yoav Roth
 Facsimile: 646-214-7946
 Telephone: 212-571-1244 
Residence: Cayman Islands
 E-mail: investments@hudsonbaycapital.com
    
          operations@hudsonbaycapital.com	 	 	1,120	 	 	 	570,943	 	 	$	1,120,000	 	 	Schulte Roth & Zabel LLP

    919 Third Avenue
 New York, New York  10022
 Attention:  Eleazer Klein, Esq.
 Facsimile: (212)
    593-5955
 Telephone:  (212) 756-2376
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barry C. Honig	 	215 SE Spanish Trail 
Boca Raton, FL 33432
    
Telephone: 561-235-5379 
                     561-302-2287
    
E-mail: brhonig@aol.com 
	 	 	361	 	 	 	184,027	 	 	$	361,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alliance Funds, LLC	 	61 Kinderkamack Road 
Woodcliffe Lake, NJ 07677 
Attention:
    Thomas P. Walsh
 Facsimile: 914-669-0220
 Telephone: 201-424-4573 
Residence: Delaware
 E-mail: twalsh@alliancefund.net	 	 	60	 	 	 	30,586	 	 	$	60,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Empery Asset Master Ltd.	 	c/o Empery Asset Management, LP 
One Rockefeller Plaza, Suite
    1205 
New York, NY 10020 
Attention: Ryan M. Lane 
Facsimile: 212-608-3307 
Telephone: 212-608-3300 
Residence:
    Cayman Islands 
Email: notices@emperyam.com	 	 	200	 	 	 	101,954	 	 	$	200,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jonathan Honig	 	4263
                                 NW 61st Lane
 Boca
                                         Raton, FL 33496
 Telephone:
                                         561-241-4749
      561-445-3665
 Email:
                                         jonathanhonig@aol.com
	 	 	279	 	 	 	142,226	 	 	$	279,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	John Hampton Ford	 	PO Box 471 
Bolinas, CA 94924 
Telephone: 415-2348215 
Email:
    bajarest@gmail.com	 	 	30	 	 	 	15,293	 	 	$	30,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hope Adams Custodian For Sara Adams	 	1601 Sunset Plaza Drive 
Los Angeles, CA 90069 
Attention:
    Hope Adams 
Facsimile: 310-855-9375 
Email: hopeadamsemail@gmail.com 
           susan@5stardiscounthomes.com	 	 	130	 	 	 	66,270	 	 	$	130,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jill Strauss	 	224 Quadro Vecchio Drive 
Pacific Palisades, CA 90272 
Facsimile:
    310-855-9475 
Telephone: 516-297-8585 
E-mail: jillys12@aol.com	 	 	70	 	 	 	35,684	 	 	$	70,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Melechdavid Inc.	 	100 S Pointe Drive #1405 
Miami Beach, FL 33139 
Attention:
    Mark Groussman 
Facsimile: 8000-476-1582 
Telephone: 212-628-1591 
Residence: Florida 
Email: mgman@bullhunterllc.com	 	 	210	 	 	 	107,052	 	 	$	210,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Michael Howard Brauser	 	3164
                                 NE 31st Avenue
 Lighhouse
                                         Point, FL 33064
 Facsimile:
                                         305-576-9298
 Telephone:
                                         305-576-5116
 Email:
                                         mike@marlincapital.com
	 	 	250	 	 	 	127,443	 	 	$	250,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Melechdavid Inc. Retirement Plan	 	

100 S Pointe Drive #1405

Miami Beach, FL 33139

Attention: Mark Groussman

Facsimile: 8000-476-1582

Telephone: 212-628-1591

Residence: Florida

Email: mgman@bullhunterllc.com

	 	 	40

	 	 	 	20,391

	 	 	$	40,000

	 	 	 

 

[Signature Page to Securities Purchase
Agreement]

 

    	 

    	 

    

 

EXHIBITS

 

	Exhibit A	Form of Certificate of Designations
	Exhibit B	Form of Warrants
	Exhibit C	Form of Registration Rights Agreement
	Exhibit D	Form of Voting Agreement
	Exhibit E	Form of Irrevocable Transfer Agent Instructions
	Exhibit F	Form of Opinion of Company Counsel
	Exhibit G	Form of Secretary's Certificate
	Exhibit H	Form of Officer's Certificate
	Exhibit I	Form of Lock-Up Agreement

 

SCHEDULES 

 

	Schedule 3(a)	Subsidiaries
	Schedule 3(e)	Consents
	Schedule 3(k)	SEC Documents
	Schedule 3(l)	Absence of Certain Changes
	Schedule 3(n)	Regulatory Permits
	Schedule 3(q)	Transactions with Affiliates
	Schedule 3(r)	Equity Capitalization
	Schedule 3(s)	Indebtedness and Other Contracts
	Schedule 3(t) 	Absence of Litigation
	Schedule 3(x)	Intellectual Property Rights
	Schedule 3(bb)	Tax Status
	Schedule 7(xii)	Lock-Up Parties

 

    	 

    	 

    

 

EXHIBIT A:

 

FORM OF CERTIFICATE OF DESIGNATIONS,
PREFERENCES

AND RIGHTS OF SERIES B CONVERTIBLE PREFERRED STOCK

OF

EON COMMUNICATIONS CORPORATION

 

eOn Communications Corporation
(the "Company"), a corporation organized and existing under the General Corporation Law of the State of Delaware
(the "DGCL"), does hereby certify that, pursuant to authority conferred upon the Board of Directors of the Company
by the Certificate of Incorporation, as amended, of the Company, and pursuant to the provisions of the DGCL, the Board of Directors
of the Company adopted resolutions (i) designating a series of the Company's previously authorized preferred stock, par value $0.001
per share, and (ii) providing for the designations, preferences and relative, participating, optional or other rights, and the
qualifications, limitations or restrictions thereof, of two thousand seven hundred fifty (2,750) shares of Series B Convertible
Preferred Stock of the Company, as follows:

 

RESOLVED, that the Company
is authorized to issue two thousand seven hundred fifty (2,750) shares of Series B Convertible Preferred Stock, par value $0.001
per share (the "Preferred Shares"), which shall have the following powers, designations, preferences and other
special rights:

 

(1)         Dividends.
Subject to Section 14, the holders of the Preferred Shares (each, a "Holder" and collectively, the "Holders"),
as a class, shall not be entitled to receive dividends ("Dividends").

 

(2)         Conversion
of Preferred Shares. On or after the Initial Convertibility Date, Preferred Shares shall be convertible into shares of the
Company's Common Stock, par value $0.005 per share (the "Common Stock"), on the terms and conditions set forth
in this Section 2.

 

(a)          Holder's
Conversion Right. Subject to the provisions of Section 2(f), at any time or times on or after the Initial Convertibility Date,
any Holder shall be entitled to convert any whole number of Preferred Shares into fully paid and nonassessable shares of Common
Stock in accordance with Section 2(c) at the Conversion Rate (as defined below).

 

(b)          Conversion.
The number of shares of Common Stock issuable upon conversion of each Preferred Share pursuant to Section 2(a) shall be determined
according to the following formula (the "Conversion Rate"):

 

Conversion Amount

Conversion Price

 

    	 

    	 

    

 

No fractional shares of Common
Stock are to be issued upon the conversion of any Preferred Share, but rather the number of shares of Common Stock to be issued
in the aggregate upon any conversion shall be rounded up to the nearest whole number.

 

(c)          Mechanics
of Conversion. The conversion of Preferred Shares shall be conducted in the following manner:

 

(i)           Holder's
Delivery Requirements. To convert Preferred Shares into shares of Common Stock on any date (a "Conversion Date"),
the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York City Time, on
such date, a copy of a properly completed notice of conversion executed by the registered Holder of the Preferred Shares subject
to such conversion in the form attached hereto as Exhibit I (the "Conversion Notice") to the Company and
the Company's designated transfer agent (the "Transfer Agent") and (B) if required by Section 2(d)(viii), surrender
to a common carrier for delivery to the Company as soon as practicable following such date the original certificates representing
the Preferred Shares being converted (or compliance with the procedures set forth in Section 14) (the "Preferred Stock
Certificates").

 

(ii)           Company's
Response. Upon receipt by the Company of copy of a duly completed Conversion Notice, the Company shall (I) as soon as practicable,
but in any event within one (1) Trading Day, send, via facsimile, a notice of any dispute pursuant to Section 2(c)(iii) below or
a confirmation of receipt of such Conversion Notice to such Holder and the Transfer Agent, which confirmation shall constitute
an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein and (II) on or before
the third (3rd) Trading Day following the date of receipt by the Company of such Conversion Notice (the "Share
Delivery Date"), (1) provided the Transfer Agent is participating in The Depository Trust Company ("DTC")
Fast Automated Securities Transfer Program and the Conversion Shares are subject to an effective resale registration statement
in favor of the Holder or, if converted at a time when Rule 144 would be available for immediate resale of the Conversion Shares
by such Holder, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or
its designee's balance account with DTC through its Deposit/Withdrawal At Custodian system, or (2) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program or the Conversion Shares are not subject to an effective resale
registration statement in favor of such Holder and Rule 144 is not available for immediate resale of the Conversion Shares by such
Holder, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. If the number of Preferred Shares
represented by the Preferred Stock Certificate(s) submitted for conversion, as may be required pursuant to Section 2(c)(vii), is
greater than the number of Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later
than three (3) Business Days after receipt of the Preferred Stock Certificate(s) (the "Preferred Stock Delivery Date")
and at its own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred
Shares not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred
Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

    	- 2 -

    	 

    

 

(iii)           Dispute
Resolution. In the case of a dispute as to the determination of the Closing Sale Price, Closing Bid Price, Weighted Average
Price or the arithmetic calculation of the Conversion Rate, the Company shall instruct the Transfer Agent to issue to the Holder
the number of shares of Common Stock that is not disputed and shall transmit an explanation of the disputed determinations or arithmetic
calculations to the Holder via facsimile within one (1) Business Day of receipt of such Holder's Conversion Notice or other date
of determination. If such Holder and the Company are unable to agree upon the determination of the Closing Sale Price, Closing
Bid Price or Weighted Average Price or arithmetic calculation of the Conversion Rate within two (2) Business Days of such disputed
determination or arithmetic calculation being transmitted to the Holder, then the Company shall within one (1) Business Day after
approval of the investment bank or outside accountant by the Required Holders submit via facsimile the disputed determination of
the Closing Sale Price, Closing Bid Price or Weighted Average Price, as applicable, or the disputed arithmetic calculation of the
Conversion Rate to an independent, reputable investment bank selected by the Company and approved by the Required Holders or to
the Company's independent, outside accountant. The Company shall cause, at the Company's expense, the investment bank or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the Holders of the results no later
than two (2) Business Days from the time it receives the disputed determinations or calculations. Such investment bank's or accountant's
determination or calculation, as the case may be, shall be binding upon all parties absent manifest error.

 

(iv)          Record
Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares
shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(v)          Company's
Failure to Timely Convert.

 

    	- 3 -

    	 

    

 

(A)         Cash
Damages. If (x) within three (3) Trading Days after the Company's receipt of the facsimile copy of a duly completed Conversion
Notice the Company shall fail to credit a Holder's balance account with DTC, if the Transfer Agent is participating in the DTC
Fast Automated Securities Transfer Program and the Conversion Shares are eligible for immediate resale by such Holder, or issue
and deliver a certificate to such Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer
Program, in each case for the number of shares of Common Stock to which such Holder is entitled upon such Holder's conversion of
Preferred Shares (subject to the resolution of any bona fide dispute pursuant to Section 2(c)(iii) above solely as to any disputed
shares) or (y) within three (3) Trading Days of the Company's receipt of a Preferred Stock Certificate the Company shall fail to
issue and deliver a new Preferred Stock Certificate representing the number of Preferred Shares to which such Holder is entitled
pursuant to Section 2(c)(ii), then in addition to all other available remedies which such holder may pursue hereunder and under
the Securities Purchase Agreement (including indemnification pursuant to Section 9(k) thereof), the Company shall pay additional
damages to such Holder for each day after the Share Delivery Date that such conversion is not timely effected in an amount equal
to one and one half percent (1.5%) of the product of (I) the sum of the number of shares of Common Stock not issued to the
Holder on or prior to the Share Delivery Date and to which such Holder is entitled as set forth in the applicable Conversion Notice
and the terms of this Certificate of Designations and (II) the Closing Sale Price of the Common Stock on the Share Delivery Date,
in the case of the failure to deliver Common Stock. If the Company fails to pay the additional damages set forth in this Section
2(c)(v)(A) within five (5) Trading Days of the date incurred, then the Holder entitled to such payments shall have the right at
any time, so long as the Company continues to fail to make such payments, to require the Company, upon written notice, to immediately
issue, in lieu of such cash damages, the number of shares of Common Stock equal to the quotient of (X) the aggregate amount of
the damages payments described herein divided by (Y) the Conversion Price in effect on such Conversion Date as specified by the
Holder in the Conversion Notice. In addition to the foregoing, if on the Share Delivery Date the Company shall fail to issue and
deliver a certificate to a Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
or credit such Holder's balance account with DTC, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program and the Conversion Shares are eligible for immediate resale by such Holder, in each case for the number of shares of Common
Stock to which such Holder is entitled upon such Holder's conversion or the Company's Conversion, as applicable, of Preferred Shares,
and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the shares of Common Stock issuable upon such conversion that the Holder anticipated
receiving from the Company (a "Buy-In"), then the Company shall, within three (3) Trading Days after the Holder's
request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price
(including brokerage commissions and out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In
Price"), at which point the Company's obligation to deliver such certificate (and to issue such Common Stock) shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and
pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares
of Common Stock, times (B) the Closing Sale Price on the Conversion Date. Nothing herein shall limit a Holder's right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock
upon conversion of the Preferred Shares as required pursuant to the terms hereof.

 

    	- 4 -

    	 

    

 

(B)         Void
Conversion Notice; Adjustment of Conversion Price. If for any reason a Holder has not received all of the shares of Common
Stock to which such Holder is entitled prior to the fifth (5th) Trading Day after the Share Delivery Date with respect
to a conversion of Preferred Shares, then the Holder, upon written notice to the Company, with a copy to the Transfer Agent, may
void its Conversion Notice with respect to, and retain or have returned, as the case may be, any Preferred Shares that have not
been converted pursuant to such Holder's Conversion Notice; provided that the voiding of a Holder's Conversion Notice shall not
affect the Company's obligations to make any payments which have accrued prior to the date of such notice pursuant to Section 2(c)(v)(A)
or otherwise.

 

(C)         Conversion
Failure. If for any reason a Holder has not received all of the shares of Common Stock to which such Holder is entitled prior
to the tenth (10th) Trading Day after the Share Delivery Date with respect to a conversion of Preferred Shares, subject
to the resolution of any bona fide dispute pursuant to Section 2(c)(iii) above, then the Holder, upon written notice to the Company,
may require that the Company redeem all Preferred Shares held by such Holder, including the Preferred Shares previously submitted
for conversion and with respect to which the Company has not delivered shares of Common Stock, in accordance with Section 3.

 

    	- 5 -

    	 

    

 

(vi) Pro
Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion
Date and the Company can convert some, but not all, of such Preferred Shares, the Company shall convert from each Holder electing
to have Preferred Shares converted at such time a pro rata amount of such Holder's Preferred Shares submitted for conversion based
on the number of Preferred Shares submitted for conversion on such date by such Holder relative to the number of Preferred Shares
submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to a Holder
in connection with a conversion of Preferred Shares, the Company shall issue to such Holder the number of shares of Common Stock
not in dispute and resolve such dispute in accordance with Section 2(c)(iii).

 

(vii) Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of Preferred Shares in accordance with the terms hereof,
the Holder thereof shall not be required to physically surrender the certificate representing the Preferred Shares to the Company
unless (A) the full or remaining number of Preferred Shares represented by the certificate are being converted or (B) a Holder
has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance
of Preferred Shares upon physical surrender of any Preferred Shares. The Holder and the Company shall maintain records showing
the number of Preferred Shares so converted and the dates of such conversions or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of the certificate representing the Preferred Shares upon
each such conversion. In the event of any dispute or discrepancy, such records of the Company establishing the number of Preferred
Shares to which the record holder is entitled shall be controlling and determinative in the absence of manifest error. Notwithstanding
the foregoing, if Preferred Shares represented by a certificate are converted as aforesaid, a Holder may not transfer the certificate
representing the Preferred Shares unless such Holder first physically surrenders the certificate representing the Preferred Shares
to the Company, whereupon the Company will forthwith issue and deliver upon the order of such Holder a new certificate of like
tenor, registered as such Holder may request, representing in the aggregate the remaining number of Preferred Shares represented
by such certificate. A Holder and any assignee, by acceptance of a certificate,
acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred Shares, the number
of Preferred Shares represented by such certificate may be less than the number of Preferred Shares stated on the face thereof.
Each certificate for Preferred Shares shall bear the following legend:

 

    	- 6 -

    	 

    

 

ANY TRANSFEREE OF THIS CERTIFICATE
SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY'S CERTIFICATE OF DESIGNATIONS RELATING TO THE PREFERRED SHARES REPRESENTED BY
THIS CERTIFICATE, INCLUDING SECTION 2(c)(vii) THEREOF. THE NUMBER OF PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE MAY BE LESS
THAN THE NUMBER OF PREFERRED SHARES STATED ON THE FACE HEREOF PURSUANT TO SECTION 2(c)(vii) OF THE CERTIFICATE OF DESIGNATIONS
RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE.

 

(d)          Adjustments
to Conversion Price. The Conversion Price will be subject to adjustment from time to time as provided in this Section 2(d).

 

(i) Adjustment
of Conversion Price upon Issuance of Common Stock. If and whenever on or after the Subscription Date, the Company issues or
sells, or in accordance with this Section 2(d)(i) is deemed to have issued or sold, any shares of Common Stock (including the issuance
or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded Securities) for
a consideration per share (the "New Issuance Price") less than a price (the "Applicable Price")
equal to the Conversion Price in effect immediately prior to such issuance or sale (a "Dilutive Issuance"), then
immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance
Price. For purposes of determining the adjusted Conversion Price under this Section 2(d)(i), the following shall be applicable:

 

    	- 7 -

    	 

    

 

(A)         Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option is less than the Applicable Price, then each such share of Common Stock underlying such Option
shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option
for such price per share. For purposes of this Section 2(d)(i)(A), the "lowest price per share for which one share of Common
Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option" shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon granting or sale of the Option, upon exercise of
the Option and upon conversion or exchange or exercise of any Convertible Security issuable upon exercise of such Option less any
consideration paid or payable by the Company to the Holder thereof with respect to such one share of Common Stock upon the granting
or sale of such Option, upon exercise of such Option and upon conversion exercise or exchange of any Convertible Security issuable
upon exercise of such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share
of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Common
Stock upon conversion or exchange or exercise of such Convertible Securities.

 

(B)         Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon such conversion or exchange or exercise thereof is less than the Applicable
Price, then each such share of Common Stock underlying such Convertible Securities shall be deemed to be outstanding and to have
been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share.
For the purposes of this Section 2(d)(i)(B), the "lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange or exercise" shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon the issuance or sale of the Convertible Security
and upon the conversion or exchange or exercise of such Convertible Security less any consideration paid or payable by the Company
to the Holder thereof with respect to such one share of Common Stock upon the issuance or sale of such Convertible Security and
upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Conversion Price shall be made
upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible Securities,
and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of the Conversion
Price had been or are to be made pursuant to other provisions of this Section 2(d)(i), no further adjustment of the Conversion
Price shall be made by reason of such issue or sale.

 

    	- 8 -

    	 

    

 

(C)         Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exchangeable or exercisable for Common Stock changes at any time, the Conversion Price in effect
at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options
or Convertible Securities provided for such changed purchase price, additional consideration or changed conversion rate, as the
case may be, at the time initially granted, issued or sold. For purposes of this Section 2(d)(i)(C), if the terms of any Option
or Convertible Security that was outstanding as of the Subscription Date are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise, conversion or
exchange thereof shall be deemed to have been issued as of the date of such change. For clarity, adjustments to the purchase price
or exercise price of Options already provided for in the terms of such outstanding Options or adjustments to the rate at which
Convertible Securities are convertible into or exchangeable or exercisable for Common Stock already provided for in the terms of
such outstanding Convertible Securities (or assumed by the Company in the Reverse Merger) shall not result in the deemed issuance
of Common Stock as of the date of such adjustment, if any. No adjustment shall be made if such adjustment would result in an increase
of the Conversion Price then in effect.

 

(D)         Calculation
of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities of the Company,
together comprising one integrated transaction, (x) the Options will be deemed to have been issued for the Option Value and (y)
the other securities issued or sold in such integrated transaction shall be deemed to have been issued for the difference of (I)
the aggregate consideration received by the Company less any consideration paid or payable by the Company pursuant to the terms
of such other securities of the Company, less (II) the Option Value. If any Common Stock, Options or Convertible Securities are
issued or sold or deemed to have been issued or sold for cash, the consideration received or receivable therefor will be deemed
to be the gross purchase price paid by the purchaser therefor. If any Common Stock, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of
such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration
received by the Company will be the Closing Sale Price of such securities on the date of receipt of such securities. The fair value
of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Required Holders.
If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "Valuation
Event"), the fair value of such consideration will be determined within five (5) Business Days after the tenth (10th)
day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Required Holders.
The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses
of such appraiser shall be borne by the party whose calculation is farther from the determination or calculation of the appraiser.

 

    	- 9 -

    	 

    

 

(E)         Record
Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (I) to receive a dividend
or other distribution payable in Common Stock, Options or in Convertible Securities or (II) to subscribe for or purchase Common
Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares
of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution
or the date of the granting of such right of subscription or purchase, as the case may be.

 

(ii) Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time after the Subscription Date
subdivides (by any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common Stock into a greater
number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the
Company at any time after the Subscription Date combines (by combination, reverse stock split, including, without limitation, the
Reverse Split, or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination will be proportionately increased.

 

(iii) Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2(d) but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Company's Board of Directors will make an appropriate adjustment in the Conversion Price so as
to protect the rights of the Holders; provided that no such adjustment will increase the Conversion Price as otherwise determined
pursuant to this Section 2(d).

 

    	- 10 -

    	 

    

  

(iv) Voluntary
Adjustment By Company. Subject to compliance with any applicable listing rules of the Principal Market, the Company may at
any time reduce the then current Conversion Price to any amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

 

(e)          Notices.

 

(i) Immediately
upon any adjustment of the Conversion Price pursuant to Section 2(d), the Company will give written notice thereof to each Holder,
setting forth in reasonable detail, and certifying, the calculation of such adjustment. In the case of a dispute as to the determination
of such adjustment, then such dispute shall be resolved in accordance with the procedures set forth in Section 2(c)(iii).

 

(ii) The
Company will give written notice to each Holder at least ten (10) Business Days prior to the date on which the Company closes its
books or takes a record (I) with respect to any dividend or distribution upon the Common Stock, (II) with respect to any pro rata
subscription offer to holders of Common Stock or (III) for determining rights to vote with respect to any Fundamental Transaction
or Liquidation Event, provided that such information shall be made known to the public prior to or in conjunction with such notice
being provided to such Holder.

 

(iii) The
Company will also give written notice to each Holder at least ten (10) Business Days prior to the date on which any Fundamental
Transaction or Liquidation Event will take place, provided that such information shall be made known to the public prior to or
in conjunction with such notice being provided to such Holder.

 

    	- 11 -

    	 

    

 

(f)          Automatic
Conversion. On and after the Initial Convertibility Date, each share of Preferred Stock shall automatically be converted into
shares of Common Stock (an "Automatic Conversion"), based on the then-effective applicable Conversion Price (A)
five (5) Trading Days following the affirmative election of the Required Holders, or (B) provided that there is no Equity Conditions
Failure, five (5) Trading Days following (I) the closing of an underwritten public offering on a firm commitment basis with a nationally
recognized underwriter of Common Stock of the Company pursuant to an effective registration statement under the Securities Act,
with an anticipated aggregate offering price to the public of not less than $20,000,000 (before deduction of underwriters commissions,
fees and expenses) at a price per share that equals or exceeds $1.61 (as adjusted for any stock dividend, stock split, reverse
stock split, stock combination, reclassification or similar transaction after the Subscription Date), as determined on the applicable
date of determination, that results in the listing of Common Stock of the Company on a national securities exchange and (II) the
redemption in full of those certain senior secured notes issued by Inventergy, Inc., a Delaware corporation, on May 10, 2013. Upon
the occurrence of either of the events specified in this Section 2(f), all of the outstanding shares of Preferred Stock shall be
converted automatically without any further action by the holders of such shares and whether or not the certificates representing
such shares are surrendered to the Company or the Transfer Agent; provided, however, that to the extent that an Automatic
Conversion would result in a Holder and its other Attribution Parties exceeding the Maximum Percentage (as defined in Section 9(i)),
if applicable, then such Holder's Series B Preferred Stock shall not be automatically converted into Common Stock (and such Holder's
shares of Series B Preferred Stock shall remain outstanding and benefit from all preferences and rights set forth in this Certificate
of Designations (except that the provisions set forth in Sections 4 and 12 shall immediately terminate and be of no further force
and effect) to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such
Automatic Conversion (and beneficial ownership) to such extent) and the shares of Common Stock issuable upon the automatic conversion
of Series B Preferred Stock to such extent shall be held in abeyance for such Holder until such time or times as conversion of
such Series B Preferred Stock would not result in such Holder and its other Attribution Parties exceeding the Maximum Percentage,
at which time or times such Holder shall be issued such shares of Common Stock (and any shares of Common Stock granted or issued
with respect to the shares of Common Stock issuable upon conversion of Series B Preferred Stock to be held similarly in abeyance)
to the same extent as if there had been no such limitation; provided, further, that the Company shall not
be obligated to issue certificates evidencing the shares of Common Stock issuable upon such conversion unless the certificates
evidencing such shares of Preferred Stock are either delivered to the Company or the Transfer Agent as provided below, or the Holder
provides evidence that such certificates have been lost, stolen or destroyed in accordance with Section 16. Upon the occurrence
of such Automatic Conversion of the Preferred Stock, the holders of Preferred Stock shall surrender the certificates representing
such shares at the office of the Company or any Transfer Agent for the Preferred Stock. Thereupon, there shall be issued and delivered
to such holder promptly at such office and in its name as shown on such surrendered certificate or certificates, a certificate
or certificates for the number of shares of Common Stock into which the shares of Preferred Stock surrendered were convertible
on the date on which such Automatic Conversion occurred.

 

    	- 12 -

    	 

    

 

(3)         Redemption
at Option of Holders.

 

(a)          Holder
Optional Redemption. In addition to all other rights of the Holders contained herein, in the event (i) the Company has not
entered into definitive documentation on terms and conditions reasonably acceptable to the Required Holders providing for the consummation
of the Reverse Merger on or before the date that is two (2) months after the Issuance Date, (ii) the Company amends the definitive
documentation with respect to the Reverse Merger without the consent of the Required Holders, which consent shall not be unreasonably
withheld, (iii) the Reverse Merger has not been consummated in accordance with the definitive documentation with respect to the
Reverse Merger by the date that is six (6) months following the Issuance Date, (iv) the Reverse Split has not occurred by the date
that is five (5) months following the Issuance Date or (v) the Company has not obtained the approval of its stockholders as required
by the applicable rules of the Principal Market for issuances of Common Stock in excess of the Exchange Cap by the date that is
five (5) months following the Issuance Date, each Holder shall have the right, at such Holder's option (each, a "Holder
Optional Redemption Triggering Event"), to require the Company to redeem (a "Holder Optional Redemption")
all or a portion of such Holder's Preferred Shares at a price per Preferred Share equal to 100% of the Conversion Amount (the "Holder
Optional Redemption Triggering Event Redemption Price").

 

(b)          Mechanics
of Redemption at Option of Buyer. Within two (2) Business Days after the occurrence of any Holder Optional Redemption Triggering
Event, the Company shall deliver written notice thereof via facsimile and overnight courier ("Notice of Holder Optional
Redemption Triggering Event") to each Holder. At any time after the earlier of a Holder's receipt of a Notice of Holder
Optional Redemption Triggering Event and such Holder becoming aware of a Holder Optional Redemption Triggering Event, but in no
event later than thirty (30) days after such Holder's receipt of a Notice of Holder Optional Redemption Triggering Event, any Holder
of Preferred Shares then outstanding may require the Company to redeem up to all of such Holder's Preferred Shares by delivering
written notice thereof via facsimile and overnight courier ("Notice of Redemption at Option of Holder") to the
Company, which Notice of Redemption at Option of Holder shall indicate the number of Preferred Shares that such Holder is electing
to redeem.

 

(c)          Payment
of Redemption Price. Upon the Company's receipt of a Notice(s) of Redemption at Option of Holder from any Holder, the Company
shall within one (1) Business Day of such receipt notify each other Holder by facsimile of the Company's receipt of such notice(s).
The Company shall deliver on the fifth (5th) Business Day after the Company's receipt of the first Notice of Redemption
at Option of Holder (the "Holder Optional Redemption Triggering Event Redemption Date") by wire transfer
of immediately available funds, an amount in cash equal to the applicable Holder Optional Redemption Triggering Event Redemption
Price to all Holders that deliver a Notice of Redemption at Option of Holder prior to the fifth (5th) Business Day after
the Company's receipt of the first Notice of Redemption at Option of Holder, to the extent not paid by means of the Holder drawing
on its Letter of Credit (as defined in the Securities Purchase Agreement). To the extent redemptions required by this Section 3
are deemed or determined by a court of competent jurisdiction to be prepayments of the Preferred Shares by the Company, such redemptions
shall be deemed to be voluntary prepayments. If the Company is unable to redeem all of the Preferred Shares submitted for redemption,
the Company shall redeem a pro rata amount from each Holder based on the number of Preferred Shares submitted for redemption by
such Holder relative to the total number of Preferred Shares submitted for redemption by all Holders. The Holders and Company agree
that in the event of the Company's redemption of any Preferred Shares under this Section 3, the Holders' damages would be uncertain
and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of the availability
of a suitable substitute investment opportunity for the Holders. Accordingly, any redemption premium due under this Section 3 is
intended by the parties to be, and shall be deemed, a reasonable estimate of the Holders' actual loss of its investment opportunity
and not as a penalty.

 

    	- 13 -

    	 

    

 

(4)         Change
of Control. No sooner than thirty (30) days nor later than five (5) days prior to the consummation of a Change of Control or
a Non-Public Fundamental Transaction, but not prior to the public announcement of such Change of Control or Non-Public Fundamental
Transaction, as applicable, the Company shall deliver written notice thereof via facsimile and overnight courier to the Holders
(a "Change of Control Notice") setting forth a description of such transaction in reasonable detail and
the anticipated Change of Control Redemption Date if then known. At any time during the period (the "Change of Control
Period") beginning after a Holder's receipt of a Change of Control Notice and ending on the date that is twenty (20) Trading
Days after the consummation of such Change of Control or Non-Public Fundamental Transaction, as applicable, such Holder may require
the Company to redeem (a "Change of Control Redemption") all or any portion of such Holder's Preferred Shares
by delivering written notice thereof ("Change of Control Redemption Notice") to the Company, which Change of Control
Redemption Notice shall indicate the Conversion Amount the Holder is electing to redeem. Any Preferred Shares subject to redemption
pursuant to this Section 4 shall be redeemed by the Company in cash at a price equal to the greater of (i) 125% of the Conversion
Amount being redeemed and (ii) the product of (A) the Conversion Amount being redeemed and (B) the quotient determined by dividing
(1) the greatest Closing Sale Price of the Common Stock during the period commencing as of the Trading Day immediately prior to
the public announcement of such proposed Change of Control or Non-Public Fundamental Transaction, as applicable, and ending as
of the Trading Day immediately prior to the consummation of such Change of Control or Non-Public Fundamental Transaction, as applicable
, by (2) the Conversion Price (the "Change of Control Redemption Price"). The Company shall make payment of the
Change of Control Redemption Price concurrently with the consummation of such Change of Control or Non-Public Fundamental Transaction,
as applicable, if such a Change of Control Redemption Notice is received prior to the consummation of such Change of Control or
Non-Public Fundamental Transaction, as applicable, and within five (5) Trading Days after the Company's receipt of such notice
otherwise (the "Change of Control Redemption Date"), to the extent not paid by means of the Holder drawing on
its Letter of Credit. To the extent redemptions required by this Section 4 are deemed or determined by a court of competent jurisdiction
to be prepayments of the Preferred Shares by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding
anything to the contrary in this Section 4, until the Change of Control Redemption Price (together with any interest thereon) is
paid in full, the Conversion Amount submitted for redemption under this Section 4 may be converted, in whole or in part, by the
Holder into shares of Common Stock, or in the event the Conversion Date is after the consummation of the Change of Control, shares
or equity interests of the Successor Entity substantially equivalent to the Company's Common Stock pursuant to Section 2(c). The
parties hereto agree that in the event of the Company's redemption of any portion of the Preferred Shares under this Section 4,
the Holder's damages would be uncertain and difficult to estimate because of the parties' inability to predict future interest
rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any
redemption premium due under this Section 4 is intended by the parties to be, and shall be deemed, a reasonable estimate of the
Holder's actual loss of its investment opportunity and not as a penalty. In the event that the Company does not pay the Change
of Control Redemption Price on the Change of Control Redemption Date, then the Holder shall have the right to void the redemption
pursuant to Section 5(a).

 

    	- 14 -

    	 

    

 

(5)         Redemptions.

 

(a)          Void
Redemption. In the event that the Company does not pay a Redemption Price within the applicable time period and the applicable
Letter of Credit is not drawn, at any time thereafter and until the Company pays such unpaid applicable Redemption Price in full
(whether by payment by the Company or such Holder being paid by means of such Holder drawing on its Letter of Credit, or a combination
thereof) a Holder shall have the option to, in lieu of redemption, require the Company to promptly return to such Holder any or
all of the Preferred Shares that were submitted for redemption by such Holder and for which the applicable Redemption Price has
not been paid, by sending written notice thereof to the Company via facsimile (the "Void Optional Redemption Notice").
Upon the Company's receipt of such Void Optional Redemption Notice, (i) the Redemption Notice of Holder shall be null and void
with respect to those Preferred Shares subject to the Void Optional Redemption Notice and (ii) the Company shall immediately return
any Preferred Shares subject to the Void Optional Redemption Notice.

 

(b)          Disputes;
Miscellaneous. In the event of a dispute as to the determination of the arithmetic calculation of any Redemption Price, such
dispute shall be resolved pursuant to Section 2(c)(iii) above with the term "Redemption Price" being substituted for
the term "Conversion Rate". A Holder's delivery of a Void Optional Redemption Notice and exercise of its rights following
such notice shall not affect the Company's obligations to make any payments which have accrued prior to the date of such notice.
In the event of a redemption pursuant to this Certificate of Designations of less than all of the Preferred Shares represented
by a particular Preferred Stock Certificate, the Company shall promptly cause to be issued and delivered to the Holder of such
Preferred Shares a Preferred Stock Certificate representing the remaining Preferred Shares which have not been redeemed, if necessary.

 

(6)         Company
Optional Redemption. In the event of any Holder Optional Redemption Triggering Event and after thirty (30) days have elapsed
since such Holder Optional Redemption Triggering Event (the "Company Optional Redemption Date"), the Company may
redeem all, but not less than all, of the outstanding Preferred Shares (a "Company Optional Redemption") at any
time upon not less than ten (10) days prior written notice to each Holder (the "Company Optional Redemption Deadline").
Such Preferred Shares shall be redeemed by providing written notice via facsimile and overnight courier to the Holders (the "Notice
of Company Redemption") on or prior to the Company Optional Redemption Deadline and shall be redeemed at a redemption
price equal to the Stated Value of the Preferred Shares. The Company shall deliver to Holders owning outstanding Preferred Shares
to be redeemed by the Company by wire transfer of immediately available funds an amount in cash equal to the Stated Value of the
Preferred Shares being redeemed no later than five (5) days after providing the Notice of Company Redemption. If the Company elects
to cause a Company Optional Redemption pursuant to Section 6(a), then it must simultaneously take the same action in the same proportion
with respect to all the outstanding Preferred Shares.

 

    	- 15 -

    	 

    

 

(7)         Other
Rights of Holders.

 

(a)          Assumption.
The Company shall not enter into or be party to a Fundamental Transaction (other than the Reverse Merger) unless the Successor
Entity assumes in writing all of the obligations of the Company under this Certificate of Designations and the other Transaction
Documents (as defined in the Securities Purchase Agreement) in accordance with the provisions of this Section 7 pursuant to written
agreements in form and substance reasonably satisfactory to the Required Holders and approved by the Required Holders prior to
such Fundamental Transaction, including agreements to deliver to each Holder of Preferred Shares in exchange for such Preferred
Shares a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Certificate of Designations including, without limitation, having a stated value equal to the Stated Value of the Preferred Shares
held by such Holder and having similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders. Upon
the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and
after the date of such Fundamental Transaction, the provisions of this Certificate of Designations referring to the "Company"
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Certificate of Designations with the same effect as if such Successor Entity had been named
as the Company herein. Upon consummation of the Fundamental Transaction with a Successor Entity whose stock is publicly traded,
such Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion of the Preferred Shares
at any time after the consummation of the Fundamental Transaction, in lieu of the shares of Common Stock (or other securities,
cash, assets or other property) issuable upon the conversion of the Preferred Shares prior to such Fundamental Transaction (without
regard to any limitations on the conversion of the Preferred Shares, including without limitation, the Maximum Percentage), such
shares of publicly traded common stock (or their equivalent) of the Successor Entity, as adjusted in accordance with the provisions
of this Certificate of Designations, which the Holder would have been entitled to receive had such Holder converted the Preferred
Shares in full (without regard to any limitations on conversion, including without limitation, the Maximum Percentage) immediately
prior to such Fundamental Transaction (provided, however, to the extent that a Holder's right to receive any such
shares of publicly traded common stock (or their equivalent) of the Successor Entity would result in such Holder and its other
Attribution Parties exceeding the Maximum Percentage, if applicable, then such Holder shall not be entitled to receive such shares
to such extent (and shall not be entitled to beneficial ownership of such shares of publicly traded common stock (or their equivalent)
of the Successor Entity as a result of such consideration to such extent) and the portion of such shares shall be held in abeyance
for such Holder until such time or times, as its right thereto would not result in such Holder and its other Attribution Parties
exceeding the Maximum Percentage, at which time or times such Holder shall be delivered such shares to the extent as if there had
been no such limitation). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory
to the Required Holders. In addition to and not in substitution for any other rights hereunder, prior to the occurrence or consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities, cash, assets
or other property with respect to or in exchange for shares of Common Stock (a "Corporate Event"), the Company
shall make appropriate provision to ensure that, and any applicable Successor Entity or Successor Entities shall ensure that, and
it shall be a required condition to the occurrence or consummation of such Corporate Event that, if so elected by a Holder on or
prior to the occurrence or consummation of such Corporate Event, such Holder will have the right to receive upon surrender of such
Holder's Preferred Shares upon the occurrence or consummation of the Corporate Event, in lieu of the shares of Common Stock (or
other securities, cash, assets or other property) such Holder is entitled to receive upon the conversion of such Holder's Preferred
Shares prior to such Corporate Event (but not in lieu of such items still issuable under Sections 7(b) and 14, which shall continue
to be receivable on the Common Stock or on such shares of stock, securities, cash, assets or any other property otherwise receivable
with respect to or in exchange for shares of Common Stock), such shares of stock, securities, cash, assets or any other property
whatsoever (including warrants or other purchase or subscription rights and any shares of Common Stock) which the Holder would
have been entitled to receive upon the occurrence or consummation of such Corporate Event or the record, eligibility or other determination
date for the event resulting in such Corporate Event, had such Holder's Preferred Shares been converted immediately prior to such
Corporate Event or the record, eligibility or other determination date for the event resulting in such Corporate Event (without
regard to any limitations on conversion, including without limitation, the Maximum Percentage) (provided, however,
to the extent that a Holder's right to receive any such shares of publicly traded common stock (or their equivalent) of the Successor
Entity would result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such
Holder shall not be entitled to receive such shares to such extent (and shall not be entitled to beneficial ownership of such shares
of publicly traded common stock (or their equivalent) of the Successor Entity as a result of such consideration to such extent)
and the portion of such shares shall be held in abeyance for such Holder until such time or times, as its right thereto would not
result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall
be delivered such shares to the extent as if there had been no such limitation). Provision made pursuant to the preceding sentence
shall be in a form and substance reasonably satisfactory to the Required Holders. The provisions of this Section shall apply similarly
and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of
Preferred Shares.

 

    	- 16 -

    	 

    

 

(b)          Purchase
Rights. If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of Common Stock (the "Purchase Rights"),
then the Holders will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion
of the Preferred Shares (without taking into account any limitations or restrictions on the convertibility of the Preferred Shares)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights (provided, however, that to the extent that a Holder's right to participate in any such Purchase
Right would result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such
Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such Purchase
Right to such extent shall be held in abeyance for such Holder until such time or times as its right thereto would not result in
such Holder and its other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall be granted
such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right to
be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

(8)         Reservation
of Shares.

 

(a)          The
Company shall have sufficient authorized and unissued shares of Common Stock for each of the Preferred Shares equal to 130% of
the number of shares of Common Stock necessary to effect the conversion at the Conversion Rate (without regard to any limitations
or restrictions herein on any such conversion) with respect to the Conversion Amount of each such Preferred Share as of the Issuance
Date. The Company shall, so long as any of the Preferred Shares are outstanding, take all action necessary to reserve and keep
available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversions of the Preferred
Shares, such number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred
Shares then outstanding; provided that at no time shall the number of shares of Common Stock so reserved be less than 130% of the
number of shares of Common Stock for which the Preferred Shares are at any time convertible (without regard to any limitations
or restrictions on conversions) (the "Required Reserve Amount"). The initial number of shares of Common Stock
reserved for conversions of the Preferred Shares and each increase in the number of shares so reserved shall be allocated pro rata
among the Holders based on the number of Preferred Shares held by each Holder at the time of issuance of the Preferred Shares or
increase in the number of reserved shares, as the case may be (the "Authorized Share Allocation"). In the event
a Holder shall sell or otherwise transfer any of such Holder's Preferred Shares, each transferee shall be allocated a pro rata
portion of the number of reserved shares of Common Stock reserved for such transferor. Any shares of Common Stock reserved and
allocated to any Person which ceases to hold any Preferred Shares (other than pursuant to a transfer of Preferred Shares in accordance
with the immediately preceding sentence) shall be allocated to the remaining Holders of Preferred Shares, pro rata based on the
number of Preferred Shares then held by such Holders.

 

    	- 17 -

    	 

    

 

(b)          Insufficient
Authorized Shares. If at any time while any of the Preferred Shares remain outstanding the Company does not have a sufficient
number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of
the Preferred Shares at least a number of shares of Common Stock equal to the Required Reserve Amount (an "Authorized Share
Failure"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of
Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Preferred Shares then
outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence
of an Authorized Share Failure, but in no event later than seventy-five (75) days after the occurrence of such Authorized Share
Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares
of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use
its reasonable best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to
cause its board of directors to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing, if
at such time of an Authorized Share Failure, the Company is able, consistent with its Certificate of Incorporation and Bylaws as
then in effect, to obtain the written consent of a majority of the shares of its issued and outstanding Common Stock to approve
the increase in the number of authorized shares of Common Stock, the Company may satisfy this obligation by obtaining such consent
and submitting for filing with the SEC an Information Statement on Schedule 14C.

 

    	- 18 -

    	 

    

 

(9)         Limitations
on Conversion.

 

(i) Beneficial
Ownership Limitation on Conversions. The Company shall not effect the conversion of any portion of the Preferred Shares, and
no Holder shall have the right to convert any portion of the Preferred Shares, to the extent that after giving effect to such conversion,
the beneficial owner of such shares (together with such Person's Affiliates) would have acquired, through conversion of Preferred
Shares or otherwise, beneficial ownership of a number of shares of Common Stock that exceeds 4.99% (the "Maximum Percentage")
of the shares of Common Stock outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentences,
the aggregate number of shares of Common Stock beneficially owned by a Holder and the other Attribution Parties shall include the
number of shares of Common Stock held by such Holder and all of its other Attribution Parties plus the number of shares of Common
Stock issuable upon conversion of the Preferred Shares with respect to which the determination of such sentences is being made,
but shall exclude shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted Preferred Shares
beneficially owned by such Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible
preferred stock or warrants, including the Preferred Shares) beneficially owned by such Holder or any of its other Attribution
Parties subject to a limitation on conversion or exercise analogous to the limitation contained in this Section. For purposes of
this Section 9(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. For purposes
of determining the number of outstanding shares of Common Stock, a Holder may acquire upon the conversion of the Preferred Shares
without exceeding the Maximum Percentage, such Holder may rely on the number of outstanding shares of Common Stock as reflected
in (1) the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (2) a more recent public announcement by the Company, or (3) any other written
notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any
time, upon the written or oral request of any Holder, the Company shall within one (1) Business Day confirm orally and in writing
or by electronic mail to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
the Preferred Shares, by such Holder and any of its other Attribution Parties since the date as of which such number of outstanding
shares of Common Stock was reported. Upon delivery of a written notice to the Company, any Holder may from time to time increase
or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i)
any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered
to the Company, and (ii) any such increase or decrease will apply only to such Holder and its other Attribution Parties and not
to any other holder of Preferred Shares that is not an Attribution Party. For purposes of clarity, the shares of Common Stock underlying
the Preferred Shares in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose
including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. Holder providing such written notice and not to
any other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 9(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may
be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 9(i) or to make changes
or supplements necessary or desirable to properly give effect to such limitation.

 

    	- 19 -

    	 

    

 

(ii) Principal
Market Regulation. The Company shall not be obligated to issue any shares of Common Stock upon conversion of Preferred Shares,
and the Holders of Preferred Shares shall not have the right to receive upon conversion of Preferred Shares (x) any shares of Common
Stock or (y) any compensatory payments solely in respect of the Company's failure to obtain Stockholder Approval (as defined in
the Securities Purchase Agreement), if the issuance of such shares of Common Stock would exceed the aggregate number of shares
of Common Stock which the Company may issue upon conversion of Preferred Shares or otherwise without breaching the Company's obligations
under the rules or regulations of the Principal Market, whether or not the Common Stock is listed on the Principal Market (the
"Exchange Cap"), except that such limitation shall not apply in the event that the Company obtains the approval
of its stockholders as required by the applicable rules of the Principal Market for issuances of Common Stock in excess of such
amount. Until such approval is obtained, no Holder of Preferred Shares shall be issued in the aggregate, upon conversion or payment,
as applicable, of Preferred Shares, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied
by a fraction, the numerator of which is the number of Preferred Shares issued to such Holder pursuant to the Securities Purchase
Agreement on the Closing Date (as defined in the Securities Purchase Agreement) and the denominator of which is the aggregate number
of all Preferred Shares issued to the Holders pursuant to the Securities Purchase Agreement on the Closing Date (with respect to
each such Holder, the "Exchange Cap Allocation"). In the event that any Holder shall sell or otherwise transfer
any of such Holder's Preferred Shares, the transferee shall be allocated a pro rata portion of such Holder's Exchange Cap Allocation,
and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation
allocated to such transferee. In the event that any Holder shall convert all of such Holder's Preferred Shares into a number of
shares of Common Stock which, in the aggregate, is less than such holder's Exchange Cap Allocation, then the difference between
such holder's Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder shall be allocated
to the respective Exchange Cap Allocations of the remaining Holders of Preferred Shares on a pro rata basis in proportion to the
shares of Common Stock underlying the Preferred Shares then held by each such Holder.

 

    	- 20 -

    	 

    

 

(10)        Voting
Rights. Each Holder shall be entitled to the whole number of votes equal to the number of shares of Common Stock into which
such Holder's Preferred Shares would be convertible on the record date for the vote or consent of stockholders, but in lieu of
using the Conversion Price in effect as of the record date, such votes shall calculated based on the higher of (i) the initial
Conversion Price of $1.07 per share and (ii) the Closing Bid Price on the Closing Date (the "Number of Preferred Share
Votes"); provided that if the Company at any time after the Subscription Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Number of Preferred
Share Votes in effect immediately prior to such subdivision will be proportionately increased and if the Company at any time after
the Subscription Date combines (by combination, reverse stock split, including, without limitation, the Reverse Split, or otherwise)
its outstanding shares of Common Stock into a smaller number of shares, the Number of Preferred Share Votes in effect immediately
prior to such combination will be proportionately decreased. Each Holder shall otherwise have voting rights and powers equal to
the voting rights and powers of the Common Stock, subject to Section 9(ii) hereof and except that such Holder shall have no right
to vote the Preferred Shares to approve the issuance of shares of Common Stock in excess of the Exchange Cap. Each Holder shall
be entitled to receive the same prior notice of any stockholders' meeting as is provided to the holders of Common Stock in accordance
with the bylaws of the Company, as well as prior notice of all stockholder actions to be taken by legally available means in lieu
of a meeting, and shall vote as a class with the holders of Common Stock as if they were a single class of securities upon any
matter submitted to a vote of stockholders, except those matters required by law or by the terms hereof to be submitted to a class
vote of the Holders of Preferred Shares, in which case the Holders of Preferred Shares only shall vote as a separate class.

 

(11)        Liquidation.
In the event of a Liquidation Event, the Holders shall be entitled to receive in cash out of the assets of the Company, whether
from capital or from earnings available for distribution to its stockholders (the "Liquidation Funds"), before
any amount shall be paid to the holders of any of the Capital Stock of the Company of any class junior in rank to the Preferred
Shares in respect of the preferences as to distributions and payments on the liquidation, dissolution and winding up of the Company,
an amount per Preferred Share equal to the Conversion Amount; provided that, if the Liquidation Funds are insufficient to pay the
full amount due to the Holders and holders of shares of other classes or series of preferred stock of the Company that are of equal
rank with the Preferred Shares as to payments of Liquidation Funds (such stock being referred to hereinafter collectively as the
"Pari Passu Stock"), if any, then each Holder and each holder of any such Pari Passu Shares shall receive a percentage
of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder as a liquidation preference, in accordance
with their respective Certificate of Designations, Preferences and Rights, as a percentage of the full amount of Liquidation Funds
payable to all holders of Preferred Shares and Pari Passu Shares. After the foregoing distributions, the Holders shall be entitled,
on a pari passu basis with the holders of Common Stock and treating for the purpose thereof all of the Preferred Shares
as having been converted into Common Stock pursuant to Section 2, to participate in the distribution of any remaining assets of
the Company to the holders of the outstanding Common Stock. To the extent necessary, the Company shall cause such actions to be
taken by any of its Subsidiaries so as to enable, to the maximum extent permitted by law, the proceeds of a Liquidation Event to
be distributed to the Holders in accordance with this Section. All the preferential amounts to be paid to the Holders under this
Section shall be paid or set apart for payment before the payment or setting apart for payment of any amount for, or the distribution
of any Liquidation Funds of the Company to the holders of, shares of other classes or series of preferred stock of the Company
junior in rank to the Preferred Shares in connection with a Liquidation Event as to which this Section applies. The purchase or
redemption by the Company of stock of any class, in any manner permitted by law, shall not, for the purposes hereof, be regarded
as a Liquidation Event.

 

    	- 21 -

    	 

    

 

		(12)	Covenants.

 

(a)  Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not, and shall not permit any of the Subsidiaries to, directly
or indirectly incur or guarantee, assume or suffer to exist any Indebtedness, other than trade payables incurred in the ordinary
course of business consistent with past practice.

 

(b)  Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not enter into, or be a party to, a Fundamental Transaction.

 

(c)  Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not (i) grant, issue or sell any Purchase Rights, (ii)
declare or make any Distribution (other than the Initial Dividend) or (iii) repay any outstanding Indebtedness of the Company or
any of its Subsidiaries (other than the repayment of the Outstanding Notes), and in cases of clause (ii) and (iii) only in compliance
with Section 12(e).

 

(d)  Prior
to the consummation of the Reverse Merger and except pursuant to definitive documentation on terms and conditions acceptable to
the Required Holders providing for the consummation of the Reverse Merger, the Company will not, directly or indirectly, offer,
sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other
disposition of) any of its or its Subsidiaries' equity or equity equivalent securities, including without limitation any debt,
preferred stock or other instrument or security that is, at any time during its life and under any circumstances, convertible into
or exchangeable or exercisable for Common Stock or Common Stock Equivalents or (ii) be party to any solicitations, negotiations
or discussions with regard to the foregoing.

 

(e)  The
aggregate amount of the Initial Dividend and any payments to the holders of the Outstanding Notes being paid with proceeds received
from the Holders in respect of the Company's issuance and sale of the Preferred Shares, shall not exceed $2,000,000.

 

(f)  The
Company shall distribute the Initial Dividend and make the payment to the holders of the Outstanding Notes, subject to the limitation
set forth in Section 12(e) above, contemporaneously with the consummation of the Reverse Merger.

 

    	- 22 -

    	 

    

 

(13)        Ranking.
All shares of Common Stock shall be of junior rank to all Preferred Shares with respect to the preferences as to dividends, distributions
and payments upon the liquidation, dissolution and winding up of the Company. The rights of the shares of Common Stock shall be
subject to the preferences and relative rights of the Preferred Shares. Without the prior express written consent of the Required
Holders, the Company shall not hereafter authorize or issue additional or other Capital Stock that is of senior or pari-passu rank
to the Preferred Shares in respect of the preferences as to distributions and payments upon a Liquidation Event. The Company shall
be permitted to issue preferred stock that is junior in rank to the Preferred Shares in respect of the preferences as to dividends
and other distributions, amortization and redemption payments and payments upon the liquidation, dissolution and winding up of
the Company. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares
shall maintain their relative powers, designations and preferences provided for herein and no merger shall result inconsistent
therewith.

 

(14)        Participation.
Except for the Initial Dividend as to which the Holders shall have no right, the Holders shall, as holders of Preferred Stock,
be entitled to such dividends paid and distributions made to the holders of Common Stock to the same extent as if such Holders
had converted the Preferred Shares into Common Stock (without regard to any limitations on conversion, including, without limitation,
the Maximum Percentage (as defined in Section 9(i), if applicable) and had held such shares of Common Stock on the record date
for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution
to the holders of Common Stock. Following the occurrence of a Liquidation Event and the payment in full to a Holder of its applicable
liquidation preference, other than as set forth in Section 11, such Holder shall cease to have any rights hereunder to participate
in any future dividends or distributions made to the holders of Common Stock. Subject to any voting or consent rights contained
herein, except for the Initial Dividend, the Company shall not declare or pay any dividends on any other shares of Capital Stock
whether such Capital Stock is Pari Passu Stock or junior (such stock being referred to hereinafter collectively as "Junior
Stock") unless the holders of Preferred Shares then outstanding shall simultaneously receive a dividend on a pro rata
basis as if the Preferred Shares had been converted into shares of Common Stock pursuant to Section 2 immediately prior to the
record date for determining the stockholders eligible to receive such dividends. Notwithstanding the foregoing, to the extent that
a Holder's right to participate in any such dividend or distribution pursuant to this Section 14 would result in such Holder and
its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such Holder shall not be entitled to participate
in such dividend or distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock
as a result of such dividend or distribution (and beneficial ownership) to such extent) and the portion of such dividend or distribution
shall be held in abeyance for such Holder until such time or times as its right thereto would not result in such Holder and its
other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall be granted such rights (and
any rights under this Section 14 on such initial rights or on any subsequent such rights to be held similarly in abeyance) to the
same extent as if there had been no such limitation.

 

    	- 23 -

    	 

    

 

(15)        Vote
to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the vote or
written consent of the holders of a greater number of shares is required by law or by another provision of the Certificate of Incorporation,
the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required Holders,
voting together as a single class, shall be required before the Company may: (a) amend or repeal any provision of, or add any provision
to, the Certificate of Incorporation or bylaws, or file any articles of amendment, certificate of designations, preferences, limitations
and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges
or powers of, or restrictions provided for the benefit of the Preferred Shares, regardless of whether any such action shall be
by means of amendment to the Certificate of Incorporation or by merger, consolidation or otherwise other than with respect to the
Reverse Merger and the Reverse Split; (b) increase or decrease (other than by conversion) the authorized number of shares of Preferred
Shares; (c) create or authorize (by reclassification or otherwise) any new class or series of shares that has a preference over
or is on a parity with the Preferred Shares with respect to dividends or the distribution of assets on the liquidation, dissolution
or winding up of the Company; (d) purchase, repurchase or redeem any shares of Common Stock (other than pursuant to equity incentive
agreements with employees giving the Company the right to repurchase shares upon the termination of services at cost); (e) pay
dividends or make any other distribution on the Common Stock or other Junior Stock other than the Initial Dividend; (f) amend or
waive any provision of the Certificate of Designation with respect to the Preferred Shares; provided that any such amendment
or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the rights and obligations
of any Holder relative to the comparable rights and obligations of the other Holders shall require the prior written consent of
such adversely affected Holder or (g) whether or not prohibited by the terms of the Preferred Shares, circumvent a right of the
Preferred Shares. Any Preferred Shares which are converted, repurchased or redeemed shall be automatically and immediately cancelled
and shall not be reissued, sold or transferred.

 

(16)        Lost
or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of any Preferred Stock Certificates representing the Preferred Shares, and, in the case of loss, theft
or destruction, of an indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation,
upon surrender and cancellation of the Preferred Stock Certificate(s), the Company shall execute and deliver new preferred stock
certificate(s) of like tenor and date; provided, however, the Company shall not be obligated to re-issue preferred
stock certificates if the Holder contemporaneously requests the Company to convert such Preferred Shares into Common Stock.

 

(17)        Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designations
shall be cumulative and in addition to all other remedies available under this Certificate of Designations, at law or in equity
(including a decree of specific performance and/or other injunctive relief). No remedy contained herein shall be deemed a waiver
of compliance with the provisions giving rise to such remedy. Nothing herein shall limit a Holder's right to pursue actual damages
for any failure by the Company to comply with the terms of this Certificate of Designations. The Company covenants to each Holder
that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or
provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be
received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holders 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 Holders 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.

 

    	- 24 -

    	 

    

 

(18)        Construction.
This Certificate of Designations shall be deemed to be jointly drafted by the Company and all Buyers (as defined in the Securities
Purchase Agreement) and shall not be construed against any person as the drafter hereof.

 

(19)        Failure
or Indulgence Not Waiver. No failure or delay on the part of a Holder 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.

 

(20)        Notice.
Whenever notice or other communication is required to be given under this Certificate of Designations, unless otherwise provided
herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement (provided that if the Preferred
Shares are not held by a Buyer then substituting the words "holder of securities" for the word "Buyer).

 

(21)        Transfer
of Preferred Shares. A Holder may assign some or all of the Preferred Shares and the accompanying rights hereunder held by
such Holder without the consent of the Company; provided that such assignment is in compliance with applicable securities
laws.

 

(22)        Preferred
Share Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name
and address of the persons in whose name the Preferred Shares have been issued, as well as the name and address of each transferee.
The Company may treat the person in whose name any Preferred Share is registered on the register as the owner and holder thereof
for all purposes, notwithstanding any notice to the contrary, but in all events recognizing any properly made transfers.

 

(23)        Stockholder
Matters. Subject to any contrary provision in the Company's Certificate of Incorporation, as amended or Bylaws, as amended,
any stockholder action, approval or consent required, desired or otherwise sought by the Company pursuant to the rules and regulations
of the Principal Market, the DGCL, this Certificate of Designations or otherwise with respect to the issuance of the Preferred
Shares or the Common Stock issuable upon conversion thereof may be effected by written consent of the Company's stockholders or
at a duly called meeting of the Company's stockholders, all in accordance with the applicable rules and regulations of the Principal
Market and the DGCL. This provision is intended to comply with the applicable sections of the DGCL permitting stockholder action,
approval and consent affected by written consent in lieu of a meeting.

 

    	- 25 -

    	 

    

 

(24)        Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designations, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information
relating to the Company or any of its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery
publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company shall
so indicate to the Holders contemporaneously with delivery of such notice, and in the absence of any such indication, the Holders
shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information relating
to the Company or its Subsidiaries.

 

(25)        Certain
Definitions. For purposes of this Certificate of Designations, the following terms shall have the following meanings:

 

(a)           "Affiliate"
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power
directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such
Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(b)          "Approved
Stock Plan" means any employee benefit plan which has been approved by the Board of Directors of the Company, pursuant
to which the Company's securities may be issued to any employee, officer, director or consultant for services provided to the Company;
provided, that the aggregate number of shares of Common Stock (together with securities convertible, exercisable or exchangeable
into Common Stock) issued pursuant to an Approved Stock Plan does not exceed ten percent (10%) of the number of shares of Common
Stock issued and outstanding as of the Subscription Date; provided, further, that and securities issued pursuant
to an Approved Stock Plan shall be issued a price (or with a conversion price, exchange price or exercise price) equal to or greater
than the then prevailing market price of the Common Stock.

 

(c)           "Attribution
Parties" means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or
any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of
the foregoing and (iv) any other Persons whose beneficial ownership of the Company's Common Stock would or could be aggregated
with the Holder's and the other Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

    	- 26 -

    	 

    

 

(d)           "Bloomberg"
means Bloomberg Financial Markets.

 

(e)           "Business
Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(f)           "Capital
Stock" means: (A) in the case of a corporation, corporate stock; (B) in the case of an association or business entity,
any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (C) in the
case of a partnership or limited liability company, partnership interests (whether general or limited) or membership or limited
liability company interests; and (D) any other interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing Person.

 

(g)          "Certificate
of Designations" means this Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock
of the Company.

 

(h)          "Change
of Control" means any Fundamental Transaction other than (A) any reorganization, recapitalization or reclassification
of the Common Stock in which holders of the Company's voting power immediately prior to such reorganization, recapitalization or
reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and,
directly or indirectly, the voting power of the surviving entity or entities necessary to elect a majority of the members of the
board of directors (or their equivalent if other than a corporation) of such entity or entities, (B) pursuant to a migratory merger
effected solely for the purpose of changing the jurisdiction of incorporation of the Company, or (C) the Reverse Merger.

 

(i)            "Closing
Bid Price" and "Closing Sale Price" mean, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security
(by trading volume for the prior 365 consecutive calendar days), the last closing bid price or last trade price, respectively,
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in
the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by the Company and the Required Holders. If the Company
and the Required Holders are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant
to Section 2(c)(iii). All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or similar transaction during the applicable calculation period.

 

    	- 27 -

    	 

    

 

(j)            "Common
Stock Equivalents" means, collectively, Options and Convertible Securities.

 

(k)           "Contingent
Obligation" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

(l)            "Conversion
Amount" means the Stated Value.

 

(m)          "Conversion
Price" means $1.07, subject to adjustment as provided herein.

 

(n)          "Convertible
Securities" means any stock or securities (other than Options) directly or indirectly convertible into or exchangeable
or exercisable for Common Stock.

 

(o)          "Eligible
Market" means the Principal Market, The New York Stock Exchange, Inc., the NYSE MKT LLC, The NASDAQ Global Select Market
or The NASDAQ Global Market.

 

(p)          "Equity
Conditions" means each of the following conditions: (i) either (a) a registration statement shall be effective and available
for the resale of all Registrable Securities pursuant to Rule 415 and there shall not have been any postponement or failure to
maintain the effectiveness of such registration statement and the Company shall have no knowledge of any fact that would cause
such registration statement not to be effective and available for the resale of all remaining Registrable Securities or (b) all
Registrable Securities shall be eligible for sale without restriction or limitation pursuant to Rule 144 and without the requirement
to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act and without the need for
registration under any applicable federal or state securities laws and the Company shall have no knowledge of any fact that would
cause the Registrable Securities not to be eligible for sale without restriction pursuant to Rule 144 and without the requirement
to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act and any applicable federal
or state securities laws; (ii) any applicable shares of Common Stock to be issued in connection with the event requiring determination
may be issued in full, subject to any shares that must be held in abeyance due to the provisions of Section 9 hereof, and without
violating the rules or regulations of the Principal Market or any other applicable Eligible Market; (iii) during the Equity Conditions
Measuring Period, the Company shall not have failed to timely make any payments within five (5) Business Days of when such payment
is due pursuant to any Transaction Document (as defined in the Securities Purchase Agreement); (vi) during the Equity Conditions
Measuring Period, there shall not have occurred the public announcement of a pending, proposed or intended Fundamental Transaction
which has not been abandoned, terminated or consummated; (v) during the Equity Conditions Measuring Period, the Company otherwise
shall have been in compliance with and shall not have breached any provision, covenant, representation or warranty of any Transaction
Document; and (vi) no Holder shall be in possession of any material, nonpublic information received from the Company, any Subsidiary
or its respective agent or affiliates.

 

    	- 28 -

    	 

    

 

(q)          "Equity
Conditions Failure" means that on the applicable date of determination, any of the Equity Conditions have not been satisfied
(or waived in writing by the Required Holders).

 

(r)           "Equity
Conditions Measuring Period" means the period beginning thirty (30) Trading Days prior to the applicable date of determination
and ending on and including the applicable date of determination.

 

(s)           "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

 

(t)           "Excluded
Securities" means any Common Stock issued or issuable or deemed to be issued in accordance with Section 2(d) hereof by
the Company: (A) under any Approved Stock Plan; (B) in respect of a conversion or redemption of the Preferred Shares in accordance
herewith; (C) upon the exercise of the Warrants; provided that the Warrants are not amended, modified or changed on or after the
Subscription Date; (D) upon conversion, exercise or exchange of any Options or Convertible Securities which are outstanding on
the day immediately preceding the Subscription Date, provided that such issuance of Common Stock upon exercise of such Options
or Convertible Securities is made pursuant to the terms of such Options or Convertible Securities in effect on the date immediately
preceding the Subscription Date and such Options or Convertible Securities are not amended, modified or changed on or after the
Subscription Date; and (E) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which
is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business
of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include
a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities.

 

    	- 29 -

    	 

    

 

(u)          "Fundamental
Transaction" means (i) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, (a) consolidate or merge with or into (whether or not the Company is the surviving corporation)
another Subject Entity, or (b) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one
or more Subject Entities, or (c) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that
is accepted by the holders of at least either (1) 50% of the outstanding shares of Common Stock, (2) 50% of the outstanding shares
of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with
any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (3) such number of shares
of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act)
of at least 50% of the outstanding shares of Common Stock, or (d) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby such Subject Entities, individually or in the aggregate, acquire, either (1) at least 50% of the outstanding shares
of Common Stock, (2) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by
all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement
or other business combination were not outstanding; or (3) such number of shares of Common Stock such that the Subject Entities
become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding
shares of Common Stock, or (e) reorganize, recapitalize or reclassify its Common Stock, (ii) that the Company shall, directly or
indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject
Entity individually or the Subject Entities in the aggregate to be or become the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender
offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of either (a) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock,
(b) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such
Subject Entities as of the date of this Certificate of Designations calculated as if any shares of Common Stock held by all such
Subject Entities were not outstanding, or (c) a percentage of the aggregate ordinary voting power represented by issued and outstanding
shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other stockholders of the Company to surrender their shares of Common Stock without
approval of the stockholders of the Company or (iii) directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner
to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

    	- 30 -

    	 

    

 

(v)          "GAAP"
means United States generally accepted accounting principles, consistently applied.

 

(w)          "Group"
means a "group" as that term is used in Section 13(d) of the Exchange Act and as defined in Rule 13d-5 thereunder.

 

(x)           "Indebtedness"
of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services, including (without limitation) "capital leases" in accordance
with GAAP (other than trade payables entered into in the ordinary course of business), (iii) all reimbursement or payment obligations
with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or
incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or
sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP,
consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses
(i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not
assumed or become liable for the payment of such indebtedness, and (viii) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

(y)          "Initial
Convertibility Date" means the date that is the earliest of (i) the date that one or more Registration Statement(s) (as
defined in the Registration Rights Agreement) has been declared effective, (ii) the date as of which Conversion Shares may be sold
pursuant to Rule 144 promulgated under the Securities Act and (iii) the date on which the Company obtained the approval of its
stockholders for the Reverse Merger, but in no event prior to the day after the record date for holders of Common Stock to receive
the Initial Dividend so long as such record date is not later than ten (10) days prior to the date of the Stockholder Meeting (as
defined in the Securities Purchase Agreement).

 

    	- 31 -

    	 

    

 

(z)           "Initial
Dividend" means that certain dividend to be distributed by the Company to its common stockholders contemporaneously with
the consummation of the Reverse Merger.

 

(aa)         "Issuance
Date" means December [__], 2013.

 

(bb)        "Liquidation
Event" means the voluntary or involuntary liquidation, dissolution or winding up of the Company or such Subsidiaries the
assets of which constitute all or substantially all of the assets of the business of the Company and its Subsidiaries taken as
a whole, in a single transaction or series of transactions, or adoption of any plan for the same.

 

(cc)         "Non-Public
Fundamental Transaction" means any Fundamental Transaction other than one in which the Successor Entity is a publicly
traded corporation whose Common Stock is quoted on or listed for trading on an Eligible Market assumes the Preferred Shares such
that the Preferred Shares shall be convertible for the publicly traded Common Stock of such Successor Entity.

 

(dd)         "Option
Value" means the value of an Option based on the Black and Scholes Option Pricing Model obtained from the "OV"
function on Bloomberg determined as of (A) the Trading Day prior to the public announcement of the issuance of the applicable Option,
if the issuance of such Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable
Option if the issuance of such Option is not publicly announced, for pricing purposes and reflecting (i) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the remaining term of the applicable Option as of the applicable
date of determination, (ii) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg,
(iii) the underlying price per share used in such calculation shall be the average of the Weighted Average Prices for each Trading
Day during the period beginning on the day prior to the execution of definitive documentation relating to the issuance of the applicable
Option and ending on (A) the Trading Day immediately following the public announcement of such issuance, if the issuance of such
Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance
of such Option is not publicly announced, (iv) a zero cost of borrow, and (v) a 360 day annualization factor.

 

(ee)         "Options"
means any rights, warrants or options to subscribe for or purchase (i) Common Stock or (ii) Convertible Securities.

 

(ff)          "Outstanding
Notes" means that certain Contingent Note issued by the Company, dated April 1, 2009, in the original principal amount
of $11,000,00 in favor of former stockholders of Cortelco Systems Holding Corp.

 

(gg)        "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(hh)        "Principal
Market" means The NASDAQ Capital Market.

 

    	- 32 -

    	 

    

 

(ii)           "Redemption
Prices" means, collectively, the Holder Optional Redemption Triggering Event Redemption Price, the Change of Control Redemption
Price and any other redemption price set forth herein, each of the foregoing, individually, a Redemption Price.

 

(jj)           "Registration
Rights Agreement" means the registration rights agreement, dated as of the Subscription Date, by and among the Company
and the investors referred to therein, as such agreement further may be amended from time to time as provided in such agreement.

 

(kk)         "Required
Holders" means the Holders of Preferred Shares representing at least sixty percent (60%) of the aggregate Preferred Shares
then outstanding.

 

(ll)           "Reverse
Merger" means a merger by and among the Company, a Subsidiary of the Company and Inventergy, Inc., a Delaware corporation,
on terms acceptable to the Required Holders.

 

(mm)       "Reverse
Split" means a reverse split of the Company's shares of Common Stock in a ratio between one-for-three
and one-for-five effected by the Company on or before the consummation of the Reverse Merger.

 

(nn)        "SEC"
means the Securities and Exchange Commission.

 

(oo)        "Securities
Act" means the Securities Act of 1933, as amended.

 

(pp)        "Securities
Purchase Agreement" means the Securities Purchase Agreement, dated as of the Subscription Date, by and among the Company
and the investors referred to therein, as such agreement further may be amended from time to time as provided in such agreement.

 

(qq)        "Stated
Value" means $1,000.

 

(rr)          "Subject
Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(ss)         "Subscription
Date" means December 16, 2013.

 

(tt)          "Subsidiaries"
means any joint venture or entity in which the Company, directly or indirectly, owns a majority of the Capital Stock or an equity
or similar interest or a majority of the voting power with respect thereto, including any subsidiaries, joint ventures or entities
formed or acquired after the Subscription Date.

 

(uu)        "Successor
Entity" means one or more Person or Persons formed by, resulting from or surviving any Fundamental Transaction or one
or more Person or Persons with which such Fundamental Transaction shall have been entered into.

 

    	- 33 -

    	 

    

 

(vv)        "Trading
Day" means any day on which shares of Common Stock are traded on the Principal Market, or, if the Principal Market is
not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which
the shares of Common Stock are then traded; provided that "Trading Day" shall not include any day on which the shares
of Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the shares of Common
Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does
not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New
York Time).

 

(ww)        "Transaction
Documents" means this Certificate of Designations, the Securities Purchase Agreement, the Registration Rights Agreement
and the Warrants.

 

(xx)         "Weighted
Average Price" means, for any security as of any date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York Time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as the Principal Market
publicly announces is the official close of trading) as reported by Bloomberg through its "Volume at Price" functions,
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time
as such market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Required Holders are unable to agree upon the fair market
value of such security, then such dispute shall be resolved pursuant to Section 2(c)(iii) with the term "Weighted Average
Price" being substituted for the term "Conversion Rate.". All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination, reclassification or similar transaction during the applicable calculation period.

 

(yy)        "Warrants"
means the warrants to purchase Common Stock issued in connection with the Preferred Shares on the Issuance Date.

 

* * * * *

 

    	- 34 -

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Certificate of Designations to be signed by [     ], its [    ],
as of the [    ]th day of December, 2013.

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

EXHIBIT I

 

EON COMMUNICATIONS CORPORATION

 

CONVERSION NOTICE

 

Reference is made to
the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock of eOn Communications Corporation
(the "Certificate of Designations"). In accordance with and pursuant to the Certificate of Designations, the undersigned
hereby elects to convert the number of shares of Series B Convertible Preferred Stock, par value $0.001 per share (the "Preferred
Shares"), of eOn Communications Corporation, a Delaware corporation (the "Company"), indicated below
into shares of Common Stock, par value $0.005 per share (the "Common Stock"), of the Company, as of the date specified
below. By affixing its signature hereto, the undersigned agrees that the information contained herein is accurate and complete
to the best of its knowledge on the date hereof. The undersigned agrees and undertakes to notify the Company until the Share Delivery
Date immediately of any development it become aware of that renders the information contained herein inaccurate or incomplete.

 

	Date of Conversion:	 

 

	Number of Preferred Shares to be converted:	 

 

	Stock certificate no(s). of Preferred Shares to be converted:	 

 

	Tax ID Number (If applicable):	 

 

	Please confirm the following information:	 

 

	Conversion Price:	 

 

	Number of shares of Common Stock to be issued:	 

 

The undersigned represents and warrants that it is
not and has not been during the preceding three months, an “affiliate” of the Company, as such term is defined by Rule
144(a).  (Circle one)   YES     NO

 

The undersigned represents and warrants that it has
beneficially owned the Preferred Shares and they have been paid for in full since ________________.

 

Please issue the Common
Stock into which the Preferred Shares are being converted in the following name and to the following address:

 

	Issue to:	 
	 	 

 

    	 

    	 

    

 

	Address:	 

 

	Telephone Number:	 

 

	Facsimile Number:	 

 

	Authorization:	 

 

	By:	 
	Title:	 

 

Dated:

 

	Account Number (if electronic book entry transfer):	 

 

	Transaction Code Number (if electronic book entry transfer):	 

 

[NOTE TO HOLDER — THIS FORM
MUST BE SENT CONCURRENTLY TO TRANSFER AGENT]

 

    	- 37 -

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion
Notice and hereby directs [NAME OF TRANSFER AGENT] to issue the above indicated number of shares of Common Stock in accordance
with the Irrevocable Transfer Agent Instructions dated December __, 2013 from the Company and acknowledged and agreed to by [NAME
OF TRANSFER AGENT].

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	- 38 -

    	 

    

 

EXHIBIT B

 

[FORM OF WARRANT]

 

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

 

EON COMMUNICATIONS CORPORATION

 

WARRANT TO PURCHASE COMMON STOCK

 

Warrant No.: ______

Number of Shares of Common Stock:_____________

Date of Issuance: December 17, 2013 ("Issuance Date")

 

eOn Communications Corporation,
a Delaware corporation (the "Company"), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [BUYER], the registered holder
hereof or its permitted assigns (the "Holder"), is entitled, subject to the terms set forth below, to purchase
from the Company, at the Exercise Price (as defined below) then in effect, at any time or times on or after the Initial Exercise
Date, but not after 11:59 p.m., New York time, on the Expiration Date, (as defined below), ______________ (_____________)1
fully paid nonassessable shares of Common Stock, subject to adjustment as provided herein (the "Warrant Shares").
Except as otherwise defined herein, capitalized terms in this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, this "Warrant"), shall have the meanings set
forth in Section 17. This Warrant is one of the Warrants to purchase Common Stock (the "SPA Warrants") issued
pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of December 17, 2013 (the "Subscription Date"),
by and among the Company and the investors (the "Buyers") referred to therein (the "Securities Purchase
Agreement"). Capitalized terms used herein and not otherwise defined shall have the definitions ascribed to such terms
in the Securities Purchase Agreement.

 

 

1
Insert the Holder's pro rata share of 1,401,870 based on the Stated Value of Preferred Shares the Holder is purchasing pursuant
to the Securities Purchase Agreement based on the total Stated Value of Preferred Shares issued by the Company pursuant to the
Securities Purchase Agreement on the Issuance Date.

 

    	 

    	 

    

 

		10.	EXERCISE OF WARRANT.

 

(i)Mechanics of
Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)),
this Warrant may be exercised by the Holder at any time or times on or after the Initial Exercise Date, in whole or in part, by
(i) delivery of a written notice, in the form attached hereto as Exhibit A (the "Exercise Notice"),
of the Holder's election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal to the applicable
Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "Aggregate Exercise
Price") in cash or by wire transfer of immediately available funds or (B) if the provisions of Section 1(d) are applicable,
by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). The
Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of
the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original
Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or before the
first (1st) Trading Day following the date on which the Company has received the Exercise Notice, the Company shall
transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company's transfer
agent (the "Transfer Agent"). On or before the third (3rd) Trading Day following the date on which the Company
has received the Exercise Notice, so long as the Holder delivers the Aggregate Exercise Price (or notice of a Cashless Exercise)
on or prior to the second (2nd) Trading Day following the date on which the Company has received the Exercise Notice (the "Share
Delivery Date") (provided that if the Aggregate Exercise Price has not been delivered by such date, the Share Delivery
Date shall be one (1) Trading Day after the Aggregate Exercise Price (or notice of a Cashless Exercise) is delivered), the Company
shall (X) provided that the Transfer Agent is participating in The Depository Trust Company ("DTC") Fast Automated
Securities Transfer Program and the Warrant Shares are subject to an effective resale registration statement in favor of the Holder
or, if exercised via Cashless Exercise, at a time when Rule 144 would be available for immediate resale of the Warrant Shares by
the Holder, credit such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder's
or its designee's balance account with DTC through its Deposit / Withdrawal At Custodian system, or (Y) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program or the Warrant Shares are not subject to an effective resale
registration statement in favor of the Holder or, if exercised via Cashless Exercise, at a time when Rule 144 would not be available
for immediate resale of the Warrant Shares by the Holder, issue and dispatch by overnight courier to the address as specified in
the Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise. The Company shall be responsible for all fees
and expenses of the Transfer Agent and all fees and expenses with respect to the issuance of Warrant Shares via DTC, if any. Upon
delivery of the Exercise Notice and payment of the Aggregate Exercise Price (whether in cash or pursuant to a Cashless Exercise,
as applicable), the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder's
DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as
soon as practicable and in no event later than three (3) Trading Days after any exercise and at its own expense, issue a new Warrant
(in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares issuable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional
Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be
rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance
and delivery of Warrant Shares upon exercise of this Warrant. The Company's obligations to issue and deliver Warrant Shares in
accordance with the terms and subject to the conditions hereof are absolute and unconditional, irrespective of any action or inaction
by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against
any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination.

 

    	- 40 -

    	 

    

 

(ii)Exercise Price.
For purposes of this Warrant, "Exercise Price" means $1.33, subject to adjustment as provided herein.

 

(iii)Company's Failure
to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue to the Holder on or prior
to the Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer
Program or the Warrant Shares are not eligible for immediate resale by the Holder, a certificate for the number of shares of Common
Stock to which the Holder is entitled and register such shares of Common Stock on the Company's share register or if the Transfer
Agent is participating in the DTC Fast Automated Securities Transfer Program, to credit the Holder's balance account with DTC,
as applicable, for such number of shares of Common Stock to which the Holder is entitled upon the Holder's exercise of this Warrant
or (II) if the Registration Statement (as defined in the Registration Rights Agreement) covering the resale of the Warrant Shares
that are the subject of the Exercise Notice (the "Unavailable Warrant Shares") is not available for the resale
of such Unavailable Warrant Shares and the Company fails to promptly, but in no event later than as required pursuant to the Registration
Rights Agreement so notify the Holder (the event described in the immediately foregoing clause (II) is hereinafter referred as
a "Notice Failure" and together with the event described in clause (I) above, an "Exercise Failure"),
then, in addition to all other remedies available to the Holder, (X) the Company shall pay in cash to the Holder on each day after
the Share Delivery Date and during such Exercise Failure an amount equal to 1.5% of the product of (A) the sum of the number of
shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder is entitled, and
(B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the last possible date which the Company
could have issued such shares of Common Stock to the Holder without violating Section 1(a), and (Y) the Holder, upon written notice
to the Company, may void its Exercise Notice with respect to, and retain or have returned, as the case may be, any portion of this
Warrant that has not been exercised pursuant to such Exercise Notice; provided that the voiding of an Exercise Notice shall not
affect the Company's obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section
1(c) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Date either (I) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver a certificate
to the Holder and register such shares of Common Stock on the Company's share register or, if the Transfer Agent is participating
in the DTC Fast Automated Securities Transfer Program and the Warrant Shares are eligible for immediate resale by the Holder, credit
the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder's
exercise hereunder or pursuant to the Company's obligation pursuant to clause (ii) below or (II) a Notice Failure occurs, and if
on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving
from the Company (a "Buy-In"), then the Company shall, within three (3) Trading Days after the Holder's request
and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In
Price"), at which point the Company's obligation to deliver such certificate (and to issue such shares of Common Stock)
or credit such Holder's balance account with DTC for such shares of Common Stock shall terminate, or (ii) promptly honor its obligation
to deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit such Holder's balance
account with DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock, times (B) the Closing Bid Price on the date of exercise. Nothing shall limit the Holder's
right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of
Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant as required pursuant
to the terms hereof.

 

    	- 41 -

    	 

    

 

(iv)Cashless Exercise.
 Notwithstanding anything contained herein to the contrary, if the Registration Statement (as defined in the Registration
Rights Agreement) covering the resale of the Unavailable Warrant Shares is not available for the resale of such Unavailable Warrant
Shares, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment
otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the "Net Number" of shares of Common Stock determined according to the following formula (a
"Cashless Exercise"):

 

Net Number
= (A x B) - (A x C)

      D

 

For purposes
of the foregoing formula:

 

 

		A=	the total number of shares with respect to which this Warrant
is then being exercised.

 

    	- 42 -

    	 

    

 

		B=	the arithmetic average of the Closing Sale Prices of the
Common Stock for the five (5) consecutive Trading Days ending on the date immediately preceding the date of the Exercise Notice.

 

		C=	the Exercise Price then in effect for the applicable Warrant
Shares at the time of such exercise.

 

		D=	the Closing Sale Price of the Common Stock on the date
of the Exercise Notice.

 

For purposes of Rule
144(d) promulgated under the 1933 Act, as in effect on the date hereof, it is intended that the Warrant Shares issued in a Cashless
Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase Agreement.

 

(v)Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 12.

 

    	- 43 -

    	 

    

 

(vi)(i) Limitation
on Beneficial Ownership. Notwithstanding anything to the contrary contained herein, the Company shall not effect the exercise
of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to the
terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent that
after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially own
in excess of 4.99% (the "Maximum Percentage") of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and
all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution
Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the other SPA Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 1(f)(i). For purposes of this Section 1(f)(i), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act"). For purposes of this Warrant,
in determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing
with the Securities and Exchange Commission (the "SEC"), as the case may be, (y) a more recent public announcement
by the Company or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding (the "Reported Outstanding Share Number"). If the Company receives an Exercise Notice from the
Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number,
the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent
that such Exercise Notice would otherwise cause the Holder's beneficial ownership, as determined pursuant to this Section 1(f)(i),
to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant
to such Exercise Notice (the number of shares by which such purchase is reduced, the "Reduction Shares") and (ii)
as soon as reasonably practicable, the Company shall return to the Holder any exercise price paid by the Holder for the Reduction
Shares. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day
confirm orally and in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder and any other Attribution Party since the date as of which the
Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise
of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more
than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934
Act), the number of shares so issued by which the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds
the Maximum Percentage (the "Excess Shares") shall be deemed null and void and shall be cancelled ab initio, and
the Holder shall not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance
of the Excess Shares has been deemed null and void, the Holder shall return such Excess Shares to the Company or the Transfer Agent
for cancellation and the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery
of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until the sixty-first
(61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of
9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the
sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply
only to the Holder and the other Attribution Parties and not to any other holder of SPA Warrants that is not an Attribution Party
of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess of
the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section
13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall have any
effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective
or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)(i) or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived
and shall apply to a successor holder of this Warrant.

 

    	- 44 -

    	 

    

 

(ii) Principal Market
Regulation. The Company shall not be obligated to issue any shares of Common Stock upon exercise of this Warrant and the Holder
shall not have the right to receive upon exercise of this Warrant (x) any shares of Common Stock or (y) any compensatory payments
solely in respect of the Company's failure to obtain Stockholder Approval (as defined in the Securities Purchase Agreement), if
the issuance of such shares of Common Stock would exceed that number of shares of Common Stock which the Company may issue upon
exercise of the SPA Warrants or otherwise without breaching the Company's obligations under any applicable rules or regulations
of any applicable Eligible Market (the "Exchange Cap"), except that such limitation shall not apply in the event
that the Company obtains the approval of its stockholders as required by the applicable rules of the Eligible Market for issuances
of shares of Common Stock in excess of such amount. Until such approval is obtained, no Holder shall be issued in the aggregate,
upon exercise of any SPA Warrants, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied
by a fraction, the numerator of which is the total number of shares of Common Stock underlying the SPA Warrants issued to such
Holder pursuant to the Securities Purchase Agreement on the Issuance Date and the denominator of which is the aggregate number
of shares of Common Stock underlying the SPA Warrants issued to the Buyers pursuant to the Securities Purchase Agreement on the
Issuance Date (with respect to each Holder, the "Exchange Cap Allocation"). In the event that any Holder shall
sell or otherwise transfer any of such Holder's SPA Warrants, the transferee shall be allocated a pro rata portion of such Holder's
Exchange Cap Allocation, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion
of the Exchange Cap Allocation allocated to such transferee. In the event that any holder of SPA Warrants shall exercise all of
such holder's SPA Warrants into a number of shares of Common Stock which, in the aggregate, is less than such holder's Exchange
Cap Allocation, then the difference between such holder's Exchange Cap Allocation and the number of shares of Common Stock actually
issued to such holder shall be allocated to the respective Exchange Cap Allocations of the remaining holders of SPA Warrants on
a pro rata basis in proportion to the shares of Common Stock underlying the SPA Warrants then held by each such holder.

 

(vii)Insufficient
Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at least
a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect
the exercise of all of this Warrant then outstanding (the "Required Reserve Amount" and the failure to have such
sufficient number of authorized and unreserved shares of Common Stock, an "Authorized Share Failure"), then the
Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for this Warrant then outstanding. Without limiting the generality
of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event
later than seventy-five (75) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its
shareholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting,
the Company shall provide each shareholder with a proxy statement and shall use its best efforts to solicit its shareholders' approval
of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the shareholders that
they approve such proposal. Notwithstanding the foregoing, if any such time of an Authorized Share Failure, the Company is able,
consistent with its Certificate of Incorporation and Bylaws as then in effect, to obtain the written consent of a majority of the
shares of its issued and outstanding Common Stock to approve the increase in the number of authorized shares of Common Stock, the
Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement on
Schedule 14C. In the event that upon any exercise of this Warrant, the Company does not have sufficient authorized shares to deliver
in satisfaction of such exercise, then unless the Holder elects to void such attempted exercise, the Holder may require the Company
to pay to the Holder within three (3) Trading Days of the applicable exercise, cash in an amount equal to the difference between
(i) the arithmetic average of the two (2) highest intra-day trading prices of the Common Stock (as reported by Bloomberg) on the
date of attempted exercise (or, if such date is not a Trading Day, the Trading Day immediately prior to such date) and (ii) the
Exercise Price, if positive, multiplied by the number of Warrant Shares specified in the Notice of Exercise.

 

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11.         ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

(i)Intentionally
omitted.

 

(ii)Voluntary Adjustment
By Company. Subject to compliance with any applicable listing rules of the Principal Market, the Company may at any time during
the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by
the Board of Directors of the Company.

 

(iii)Adjustment
Upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date
combines (by combination, reverse stock split, including, without limitation, the Reverse Split, or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such
combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment
under this Section 2(c) shall become effective at the close of business on the date the subdivision or combination becomes
effective.

 

(iv)Other Events.
If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features),
then the Company's Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares,
as mutually determined by the Company’s Board of Directors and the Required Holders, so as to protect the rights of the Holder;
provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of
Warrant Shares as otherwise determined pursuant to this Section 2.

 

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12.         RIGHTS
UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend (other than the Initial Dividend (as defined
in the Certificate of Designations)) or other distribution of its assets (or rights to acquire its assets) to holders of shares
of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other
securities, property, options, evidence of indebtedness or any other assets by way of a dividend, spin off, reclassification, corporate
rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"), at any time after the issuance
of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that
the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation,
the Maximum Percentage) immediately before the date of which a record is taken for such Distribution, or, if no such record is
taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, that to the extent that the Holder's right to participate in any such Distribution would result
in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate
in such Distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result
of such Distribution (and beneficial ownership) to such extent) and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions
declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent
as if there had been no such limitation). Notwithstanding the foregoing, in the event such Distribution is a cash dividend (a "Cash
Distribution"), the Holder shall only be entitled to receive the amount of any such Cash Distribution upon an exercise
of this Warrant, in whole or in part, to the same extent that the Holder would have received if the Holder had held, immediately
before the date on which a record is taken for such Cash Distribution, or, if no such record is taken, the date as of which the
record holders of shares of Common Stock are to be determined for the participation in such Cash Distribution, the number of shares
of Common Stock that the Holder is entitled to receive upon such exercise. From the time of any Cash Distribution until this Warrant
is exercised or expires, the Company shall hold such Cash Distribution for the benefit of the Holder.

 

    	- 47 -

    	 

    

 

13.         PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(i)Purchase Rights.
In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common
Stock (the "Purchase Rights"), then the Holder will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on exercise
of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of
shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
that to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent
(and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial
ownership) to such extent) and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until
such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such
initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been
no such limitation).

 

(ii)Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes
in writing all of the obligations of the Company under this Warrant and the other Transaction Documents which remain applicable
at the effective time of such Fundamental Transaction in accordance with the provisions of this Section 4(b) pursuant to written
agreements in form and substance reasonably satisfactory to the holders of sixty percent (60%) of the Preferred Shares (as defined
in the Securities Purchase Agreement) then outstanding (the "Required Preferred Holders") and approved by the
Required Preferred Holders prior to such Fundamental Transaction, including agreements , if so requested by the Holder, to deliver
to each holder of the SPA Warrants in exchange for such SPA Warrants a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, exercisable for a corresponding
number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and reasonably satisfactory
to the Required Preferred Holders, and with an exercise price which applies the exercise price hereunder to such shares of capital
stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the
value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the occurrence or consummation of such Fundamental
Transaction. Any security issuable or potentially issuable to the Holder pursuant to the terms of this Warrant on the consummation
of a Fundamental Transaction shall be registered and freely tradable by the Holder without any restriction or limitation or the
requirement to be subject to any holding period pursuant to any applicable securities laws if any securities issued to any other
equityholder of the Company are registered on Form S-4 or any successor form. Upon the occurrence or consummation of any Fundamental
Transaction, and it shall be a required condition to the occurrence or consummation of any Fundamental Transaction that, the Company
and the Successor Entity or Successor Entities, jointly and severally, shall succeed to, and the Company shall cause any Successor
Entity or Successor Entities to jointly and severally succeed to, and be added to the term "Company" under this Warrant
(so that from and after the date of such Fundamental Transaction, each and every provision of this Warrant referring to the "Company"
shall refer instead to each of the Company and the Successor Entity or Successor Entities, jointly and severally), and the Company
and the Successor Entity or Successor Entities, jointly and severally, may exercise every right and power of the Company prior
thereto and shall assume all of the obligations of the Company prior thereto under this Warrant with the same effect as if the
Company and such Successor Entity or Successor Entities, jointly and severally, had been named as the Company in this Warrant.

 

    	- 48 -

    	 

    

 

(iii)Notwithstanding
the foregoing, in the event of a Non-Reverse Merger Fundamental Transaction other than one in which a Successor Entity that is
a publicly traded corporation whose stock is quoted or listed for trading on an Eligible Market assumes this Warrant such that
the Warrant shall be exercisable for the publicly traded Common Stock of such Successor Entity, at the request of the Holder delivered
before the ninetieth (90th) day after the occurrence or consummation of such Non-Reverse Merger Fundamental Transaction,
the Company (or the Successor Entity) shall purchase this Warrant from the Holder by paying to the Holder, within five (5) Business
Days after such request (or, if later, on the effective date of the Non-Reverse Merger Fundamental Transaction), cash in an amount
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such Non-Reverse Merger Fundamental
Transaction.

 

14.         NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are
outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock,
solely for the purpose of effecting the exercise of the SPA Warrants, the number of shares of Common Stock as shall from time to
time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise).

 

    	- 49 -

    	 

    

 

15.         WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity
as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the
Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's
capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices
and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

16.          REISSUANCE
OF WARRANTS.

 

(i)Transfer of Warrant.
If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith
issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request,
representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number
of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder
representing the right to purchase the number of Warrant Shares not being transferred.

 

(ii)Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

 

(iii)Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no SPA
Warrants for fractional Warrant Shares or any amounts with an aggregate Exercise Price of less than $1,000 (other than any final
remainder) shall be given.

 

(iv)Issuance of
New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

    	- 50 -

    	 

    

 

17.          NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment
of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities
or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided in each case that such
information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

18.          AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Holder.

 

19.          GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City
of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or 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. The Company 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 the Company at the address set forth in Section 9(f) of the Securities Purchase Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. THE COMPANY 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 WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

    	- 51 -

    	 

    

 

20.           CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

21.           DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days
of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via facsimile the disputed determination of the Exercise Price or number of Warrant Shares (a) to an independent,
reputable investment bank selected by the Company and approved by the Holder or (b) to the Company's independent, outside accountant.
The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations
or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error.

 

22.          REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder 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 holder of this Warrant 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.

 

23.           TRANSFER.
 This Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of
the Company, except as may otherwise be required by Section 2(f) of the Securities Purchase Agreement.

 

    	- 52 -

    	 

    

 

24.           SEVERABILITY.
 If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of
competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply
to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not
affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

25.          DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries (as defined in the Securities Purchase Agreement), the Company shall within one (1) Business Day after any
such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In
the event that the Company believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries,
the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication,
the Holder shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries.

 

26.          CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(i)"1933 Act"
means the Securities Act of 1933, as amended.

 

(ii)"Affiliate"
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power
directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such
Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(i)"Attribution
Parties" means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or
any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of
the foregoing and (iv) any other Persons whose beneficial ownership of the Company's Common Stock would or could be aggregated
with the Holder's and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of
the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

    	- 53 -

    	 

    

 

(ii)"Black
Scholes Value" means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the "OV"
function on Bloomberg determined as of the day immediately following the public announcement of the applicable Fundamental Transaction,
or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, for pricing
purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of this Warrant as of such date of request, (ii) an expected volatility equal to the 100 day volatility obtained from the
HVT function on Bloomberg as of the day immediately following the public announcement of the applicable Fundamental Transaction,
or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, (iii) the underlying
price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value
of any non-cash consideration, if any, being offered in the Fundamental Transaction, (iv) a zero cost of borrow and (v) a 360 day
annualization factor.

 

(iii)"Bloomberg"
means Bloomberg Financial Markets.

 

(iv)"Business
Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(v)"Closing
Bid Price" and "Closing Sale Price" mean, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security (by trading volume for the prior 365 consecutive calendar days), the last closing bid price or last trade price, respectively,
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in
the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the
Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section
12. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification
or other similar transaction during the applicable calculation period.

 

    	- 54 -

    	 

    

 

(vi)"Common
Stock" means (i) the Company's shares of Common Stock, par value $0.005 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(vii)"Convertible
Securities" means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

 

(viii)"Eligible
Market" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global Select Market or The
New York Stock Exchange, Inc.

 

(ix)"Expiration
Date" means the earlier of (i) the date twenty-four (24) months after the Initial Exercise Date or, if such date falls
on a day other than a Business Day or on which trading does not take place on the Principal Market (a "Holiday"),
the next day that is not a Holiday and (ii) the date the Reverse Merger is terminated in writing by the parties thereto or is deemed
terminated by lapse of time as provided therein.

 

(x)"Fundamental
Transaction" means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation)
another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one
or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that
is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares
of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with
any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares
of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of
at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding
shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock
held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase
agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject
Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding
shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, such that such modified Common Stock no
longer has the residual right to dividends or distributions from the Company or the residual right to vote on matters given to
common stockholders under Delaware law, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates
or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate
to be or become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether
through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common
Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization,
recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented
by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Warrant calculated as if any
shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting
power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow
such Subject Entities to effect a statutory short form merger or other transaction requiring other stockholders of the Company
to surrender their shares of Common Stock without approval of the stockholders of the Company or (C) directly or indirectly, including
through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other
instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case
this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this definition
to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with
the intended treatment of such instrument or transaction.

 

    	- 55 -

    	 

    

 

(xi)"Group" means a "group"
as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(xii)"Initial
Exercise Date" means the Business Day following the date the Holder has issued instructions to the Letter of Credit Bank
(as defined in the Securities Purchase Agreement) pursuant to Section 4(p) of the Securities Purchase Agreement to distribute the
entire Letter of Credit Amount, to the Company, but in no event prior to the day after the record date for holders of Common Stock
to receive the Initial Dividend so long as such record date is not later than ten (10) days prior to the date of the Stockholder
Meeting (as defined in the Securities Purchase Agreement).

 

(xiii)"Non-Reverse Merger Fundamental
Transaction" means any Fundamental Transaction other than the Reverse Merger.

 

(xiv)"Options"
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(xv)"Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(xvi)"Principal
Market" means The NASDAQ Capital Market.

 

    	- 56 -

    	 

    

 

(xvii)"Registration Rights Agreement"
means that certain Registration Rights Agreement dated as of the Subscription Date by and among the Company and the Buyers.

 

(xviii)"Required
Holders" means the holders of the SPA Warrants representing at least sixty percent (60%) of the shares of Common Stock
underlying the SPA Warrants then outstanding.

 

(xix)"Reverse
Merger" means a merger by and among the Company, a Subsidiary of the Company and Inventergy, Inc., a Delaware corporation,
on terms acceptable to the Required Holders.

 

(xx)"Reverse
Split" means a one-for-three reverse split with respect to all of the Company's shares of Common Stock to be effected
by the Company on or before the consummation of the Reverse Merger.

 

(xxi)"Subject
Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(xxii)"Successor
Entity" means one or more Person or Persons which may be the entity formed by, resulting from or surviving any Fundamental
Transaction or one or more Person or Persons with which such Fundamental Transaction shall have been entered into.

 

(xxiii)"Trading
Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that "Trading Day" shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(xxiv)"Weighted
Average Price" means, for any security as of any date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its "Volume at Price" function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time
as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 12 with the term "Weighted Average Price" being
substituted for the term "Exercise Price." All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

    	- 57 -

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 	 
	 	Name:
	 	Title:

 

    	 

    	 

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS 

WARRANT TO PURCHASE COMMON STOCK

 

eOn
communications corporation

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock ("Warrant Shares")
of eOn Communications Corporation, a Delaware corporation (the "Company"),
evidenced by the attached Warrant to Purchase Common Stock (the "Warrant"). Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the Warrant. By affixing its signature hereto, the undersigned
agrees that the information contained herein is accurate and complete to the best of its knowledge on the date hereof. The undersigned
agrees and undertakes to notify the Company until the Share Delivery Date immediately of any
development it become aware of that renders the information contained herein inaccurate or incomplete.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________a
"Cash Exercise" with respect to _________________ Warrant Shares; and/or

 

____________a
"Cashless Exercise" with respect to _______________ Warrant Shares.

 

2. Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

 

4. Confirmation.

a.           The
undersigned represents and warrants that it is not and has not been during the preceding three months, an “affiliate”
of the Company, as such term is defined by Rule 144(a). (Circle one) YES NO

 

b.           The
undersigned represents and warrants that it has beneficially owned the Warrant and it has been paid for in full since ________________.

 

Date: _______________ __, ______

 

	 	 
	Name of Registered Holder	 

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs [NAME OF TRANSFER AGENT] to issue the above indicated number of shares of
Common Stock in accordance with the Transfer Agent Instructions dated December 16, 2013 from the Company and acknowledged and agreed
to by [NAME OF TRANSFER AGENT].

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT C

 

FORM OF 

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of December 17, 2013, by and among eOn Communications Corporation,
a Delaware corporation, with headquarters located at 1703 Sawyer Road, Corinth, MS 38834 (the "Company"), and
the investors listed on the Schedule of Buyers attached hereto (each, a "Buyer" and collectively, the "Buyers").

 

WHEREAS:

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the "Securities
Purchase Agreement"), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to each Buyer (i) shares of the Company's Series B Convertible Preferred Stock, par value $0.001 per
share (the "Preferred Shares"), which will, among other things, be convertible into a certain number of shares
of the Company's common stock, par value $0.005 per share (the "Common Stock as converted, the "Conversion Shares")
in accordance with the terms of the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock
(the "Certificate of Designations") and (ii) warrants (the "Warrants") which will be exercisable
to purchase shares of Common Stock (as exercised, the "Warrant Shares") in accordance with the terms of the Warrants.

 

B.            In
accordance with the terms of the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the "1933 Act"), and applicable state securities laws.

 

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

 

1.            Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

(a)          "Additional
Effective Date" means the date the Additional Registration Statement is declared effective by the SEC.

 

    	 

    	 

    

 

(b)          "Additional
Effectiveness Deadline" means the date which is (i) in the event that the Additional Registration Statement is not subject
to a full review by the SEC, thirty (30) calendar days after the earlier of the Additional Filing Date and the Additional Filing
Deadline or (ii) in the event that the Additional Registration Statement is subject to a full review by the SEC, seventy-five (75)
calendar days after the earlier of the Additional Filing Date and the Additional Filing Deadline.

 

(c)          "Additional
Filing Date" means the date on which the Additional Registration Statement is filed with the SEC.

 

(d)          "Additional
Filing Deadline" means if Cutback Shares are required to be included in any Additional Registration Statement, the later
of (i) the date sixty (60) days after the date substantially all of the Registrable Securities registered under the immediately
preceding Registration Statement are sold and (ii) the date six (6) months from the Initial Effective Date or the most recent Additional
Effective Date, as applicable.

 

(e)          "Additional
Registrable Securities" means, (i) any Cutback Shares not previously included on a Registration Statement and (ii) any
capital stock of the Company issued or issuable with respect to the Preferred Shares, the Conversion Shares, the Warrants, the
Warrant Shares, or the Cutback Shares, as applicable, as a result of any stock split, stock dividend, recapitalization, exchange
or similar event or otherwise, without regard to any limitations on conversion of the Preferred Shares or exercise of the Warrants,
unless any of such Additional Registrable Securities are already deemed registered pursuant to Rule 416 under the 1933 Act.

 

(f)           "Additional
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering any Additional Registrable Securities.

 

(g)          "Additional
Required Registration Amount" means any Cutback Shares not previously included on a Registration Statement, all subject
to adjustment as provided in Section 2(f), without regard to any limitations on conversion of the Preferred Shares or exercise
of the Warrants.

 

(h)          "Business
Day" means any day other than Saturday, Sunday or any other day on which commercial banks in The City of New York are
authorized or required by law to remain closed.

 

(i)           "Closing
Date" shall have the meaning set forth in the Securities Purchase Agreement.

 

(j)           "Cutback
Shares" means any of the Initial Required Registration Amount or the Additional Required Registration Amount of Registrable
Securities not included in all Registration Statements previously declared effective hereunder as a result of a limitation on the
maximum number of shares of Common Stock of the Company permitted to be registered by the staff of the SEC pursuant to Rule 415.
The number of Cutback Shares shall be allocated pro rata among the Investors with each Investor entitled to elect the portion of
its Conversion Shares and/or Warrant Shares that are to be considered Cutback Shares. For the purpose of determining the Cutback
Shares, in order to determine any applicable Required Registration Amount, unless an Investor gives written notice to the Company
to the contrary with respect to the allocation of its Cutback Shares, first the Warrant Shares shall be excluded on a pro rata
basis among the Investors until all of the Warrant Shares have been excluded and second the Conversion Shares shall be excluded
on a pro rata basis among the Investors until all of the Conversion Shares have been excluded.

 

    	2

    	 

    

 

(k)          "Effective
Date" means the Initial Effective Date and the Additional Effective Date, as applicable.

 

(l)           "Effectiveness
Deadline" means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

 

(m)         "Eligible
Market" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global Select Market or The
New York Stock Exchange, Inc.

 

(n)          "Filing
Deadline" means the Initial Filing Deadline and the Additional Filing Deadline, as applicable.

 

(o)          "Initial
Effective Date" means the date that the Initial Registration Statement has been declared effective by the SEC.

 

(p)          "Initial
Effectiveness Deadline" means the date on which the S-4 Registration Statement is declared effective by the SEC.

 

(q)          "Initial
Filing Deadline" means the date which is within one (1) Business Day of the date on which the S-4 Registration Statement
is filed with the SEC.

 

(r)           "Initial
Registrable Securities" means (i) the Conversion Shares issued or issuable upon conversion of the Preferred Shares, (ii)
the Warrant Shares issued or issuable upon exercise of the Warrants and (iii) any capital stock of the Company issued or issuable,
with respect to the Conversion Shares, the Preferred Shares, the Warrant Shares or the Warrants as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitations on conversion of the
Preferred Shares or exercise of the Warrants, unless any of such Initial Registrable Securities are deemed registered pursuant
to Rule 416 under the 1933 Act.

 

(s)          "Initial
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering the Initial Registrable Securities.

 

(t)           "Initial
Required Registration Amount" means a number of shares of Common Stock equal to 20% of the number of shares of Common
Stock issued and outstanding as of the date of this Agreement.

 

(u)          "Investor"
means a Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee
or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 9.

 

    	3

    	 

    

 

(v)          "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

(w)         "Principal
Market" means the NASDAQ Capital Market.

 

(x)           "register,"
"registered," and "registration" refer to a registration effected by preparing and filing one
or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415, and the declaration
or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

(y)          "Registrable
Securities" means the Initial Registrable Securities and the Additional Registrable Securities; provided, that as of
the earlier of (i) the date on which the Investors may sell all of the Registrable Securities covered by such Registration Statement
without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or
any successor thereto) promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement, such otherwise Registrable Securities shall cease to be Registrable Securities.

 

(z)           "Registration
Statement" means the Initial Registration Statement and the Additional Registration Statement, as applicable.

 

(aa)         "Required
Holders" means the holders of at least sixty percent (60%) of the Registrable Securities.

 

(bb)        "Required
Registration Amount" means either the Initial Required Registration Amount or the Additional Required Registration
Amount, as applicable.

 

(cc)        "Reverse
Merger" shall have the meaning ascribed to such term in the Certificate of Designations.

 

(dd)        "Rule
415" means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous
or delayed basis.

 

(ee)        "S-4
Registration Statement" means the registration statement to be filed by the Company in connection with the Reverse Merger.

 

(ff)          "SEC"
means the United States Securities and Exchange Commission.

 

(gg)        "Trading
Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

    	4

    	 

    

 

2.            Registration.

 

(a)           Initial
Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Initial Filing
Deadline, file with the SEC the Initial Registration Statement on Form S-3 covering the resale of the Initial Required Registration
Amount of Initial Registrable Securities, subject to any required reduction by the SEC to the number of Registrable Securities
allowed to be included in such Initial Registration Statement. In the event that Form S-3 is unavailable for such a registration,
the Company shall use Form S-1 or such other form as is available for such a registration on another appropriate form reasonably
acceptable to the Required Holders, subject to the provisions of Section 2(e). The Initial Registration Statement prepared pursuant
hereto shall register for resale at least the number of shares of Common Stock equal to the Initial Required Registration Amount
determined as of the date the Initial Registration Statement is initially filed with the SEC, subject to adjustment as provided
in Section 2(f). The Initial Registration Statement shall contain (except if otherwise directed by the Required Holders) the "Selling
Stockholders" and "Plan of Distribution" sections in substantially the form attached hereto as Exhibit B. The Company
shall use its reasonable best efforts to have the Initial Registration Statement declared effective by the SEC as soon as practicable,
but in no event later than the Initial Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Initial
Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used
in connection with sales pursuant to such Initial Registration Statement.

 

(b)          Additional
Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing
Deadline, file with the SEC an Additional Registration Statement on Form S-3 covering the resale of all of the Additional Registrable
Securities not previously registered on an Additional Registration Statement hereunder. To the extent the staff of the SEC does
not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement, the Company shall
file Additional Registration Statements successively trying to register on each such Additional Registration Statement the maximum
number of remaining Additional Registrable Securities until the Additional Required Registration Amount has been registered with
the SEC. In the event that Form S-3 is unavailable for such a registration, the Company shall use such Form S-1 or other form as
is available for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the
provisions of Section 2(e). Each Additional Registration Statement prepared pursuant hereto shall register for resale at least
that number of shares of Common Stock equal to the Additional Required Registration Amount determined as of the date such Additional
Registration Statement is initially filed with the SEC, subject to adjustment as provided in Section 2(f). Each Additional Registration
Statement shall contain (except if otherwise directed by the Required Holders) the "Selling Stockholders" and "Plan
of Distribution" sections in substantially the form attached hereto as Exhibit B. The Company shall use its reasonable
best efforts to have each Additional Registration Statement declared effective by the SEC as soon as practicable, but in
no event later than the Additional Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Additional
Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used
in connection with sales pursuant to such Additional Registration Statement.

 

    	5

    	 

    

 

(c)          Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the
number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable
Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers
any of such Investor's Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number
of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock included in a
Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered by such
Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of Registrable Securities then
held by such Investors which are covered by such Registration Statement. In no event shall the Company include any securities other
than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.

 

(d)          Legal
Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 ("Legal Counsel"), which shall be Schulte Roth & Zabel LLP or
such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably cooperate with
each other in performing the Company's obligations under this Agreement.

 

(e)          Ineligibility
for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder,
the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form reasonably acceptable
to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

 

(f)           Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to Section
2(a) or Section 2(b) is insufficient to cover all of the Registrable Securities required to be covered by such Registration Statement
or an Investor's allocated portion of the Registrable Securities pursuant to Section 2(c) (other than Cutback Shares), the Company
shall amend the applicable Registration Statement, or file a new Registration Statement (on the short form available therefor,
if applicable), or both, so as to cover at least the Required Registration Amount as of the Trading Day immediately preceding the
date of the filing of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event not
later than fifteen (15) days after the necessity therefor arises. The Company shall use its reasonable best efforts
to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof.
For purposes of the foregoing provision, the number of shares available under a Registration Statement shall be deemed "insufficient
to cover all of the Registrable Securities" if at any time the number of shares of Common Stock available for resale under
the Registration Statement is less than the product determined by multiplying (i) the Required Registration Amount as of such time
by (ii) 0.90. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on conversion
of the Preferred Shares or exercise of the Warrants and such calculation shall assume that the Preferred Shares are then convertible
into shares of Common Stock at the then prevailing Conversion Rate (as defined in the Certificate of Designations and the Warrants
are then exercisable for shares of Common Stock at the then prevailing Exercise Price (as defined in the Warrants).

 

    	6

    	 

    

 

(g)          Effect
of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) the Initial Registration Statement
when declared effective fails to register the Initial Required Registration Amount of Initial Registrable Securities (a "Registration
Failure"), (ii) a Registration Statement covering (A) all of the Registrable Securities required to be covered thereby and
required to be filed by the Company pursuant to this Agreement is not filed with the SEC on or before the applicable Filing Deadline
(a "Filing Failure") or (B) all of the Registrable Securities required to be covered thereby (other than Cutback Shares)
and required to be filed by the Company pursuant to this Agreement is not declared effective by the SEC on or before the applicable
Effectiveness Deadline, (an "Effectiveness Failure") or (iii) on any day after the applicable Effective Date sales of
all of the Registrable Securities required to be included on such Registration Statement cannot be made (other than during an Allowable
Grace Period (as defined in Section 3(r)) pursuant to such Registration Statement or otherwise (including, without limitation,
because of the suspension of trading or any other limitation imposed by an Eligible Market, a failure to keep such Registration
Statement effective, a failure to disclose such information as is necessary for sales to be made pursuant to such Registration
Statement, a failure to register a sufficient number of shares of Common Stock (other than Cutback Shares) or a failure to maintain
the listing of the Common Stock) (a "Maintenance Failure") then, as partial relief for the damages to any holder by reason
of any such delay in or reduction of its ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive
of any other remedies available at law or in equity, including, without limitation, specific performance), the Company shall pay
to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one and one-half percent
(1.5%) of the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of such Investor's Registrable
Securities not included in such Registration Statement (other than Cutback Shares in case the event triggering the provisions of
this Section 2(g) is an Effectiveness Failure) on each of the following dates: (i) the day of a Registration Failure; (ii) the
day of a Filing Failure; (iii) the day of an Effectiveness Failure; (iv) the initial day of a Maintenance Failure; (v) on the thirtieth
day after the date of a Registration Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty
days) until such Registration Failure is cured; (vi) on the thirtieth day after the date of a Filing Failure and every thirtieth
day thereafter (pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (vii) on the thirtieth
day after the date of an Effectiveness Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty
days) until such Effectiveness Failure is cured; and (viii) on the thirtieth day after the initial date of a Maintenance Failure
and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such Maintenance Failure is cured.
The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as "Registration Delay
Payments." Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third Business
Day after the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make
Registration Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate of one and one-half
percent (1.5%) per month (prorated for partial months) until paid in full.

 

    	7

    	 

    

 

3.            Related
Obligations.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its
reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)           The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use
its reasonable best efforts to cause such Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep
each Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors
may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to
Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933
Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement
(the "Registration Period"). The Company shall ensure that each Registration Statement (including any amendments
or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses,
in the light of the circumstances in which they were made) not misleading. The term "reasonable best efforts"
shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days after the later of the date
that (i) the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that
the staff has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Legal Counsel
pursuant to Section 3(c) (which approval is immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than two (2) Business Days after the submission of such request. The Company shall respond
in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than
fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in order for a Registration
Statement to be declared effective; provided, that in connection with the Initial Registration Statement, comments with
respect to the financial statements of Inventergy, Inc. or the pro forma financial statements of the Company giving effect to the
Reverse Merger shall have no specified deadline for filing an amendment.

 

    	8

    	 

    

 

(b)          The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this
Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K
or any analogous report under the Securities Exchange Act of 1934, as amended (the "1934 Act"), the Company shall
have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement
such Registration Statement.

 

(c)           The
Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least five (5) Business Days
prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable
number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto
in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall
not be unreasonably withheld or delayed and no Registration Delay Payments shall accrue in respect of any period in which the Company
is delayed solely because it is waiting for approval of Legal Counsel. The Company shall furnish to Legal Counsel, without charge,
(i) copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration
Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor,
and all exhibits and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration
Statement and all amendments and supplements thereto, to the extent any of such documents are not available on the EDGAR system.
The Company shall reasonably cooperate with Legal Counsel in performing the Company's obligations pursuant to this Section 3.

 

(d)          The
Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
(i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor,
all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the
prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as
such Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus,
as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities
owned by such Investor, to the extent any of such documents are not available on the EDGAR system.

 

    	9

    	 

    

 

(e)          The
Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities
or "blue sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and
each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding
for such purpose.

 

(f)           The
Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after
becoming aware of such event but in any event on the same Trading Day as such event, as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject
to Section 3(r), promptly prepare and file with the SEC a supplement or amendment to such Registration Statement to correct such
untrue statement or omission. The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
or email on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to a Registration
Statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective
amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City time on the date following the date any
post-effective amendment has become effective, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act
the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

(g)          The
Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

    	10

    	 

    

 

(h)          Intentionally
omitted.

 

(i)           If
any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an
Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make available
for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors
(collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents
and properties of the Company (collectively, the "Records"), as shall be reasonably deemed necessary by each Inspector,
and cause the Company's officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree in writing to hold in strict confidence and shall not make any disclosure (except
to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of
which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or
(c) the information in such Records has been made generally available to the public other than by disclosure in violation of this
Agreement. Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.
Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors'
ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations. The Company
shall have no obligation to disclose publicly, in an amendment to the Registration Statement or otherwise, any confidential information
provided to any Inspector unless the Company determines, in its sole discretion, that such information is required to be disclosed
pursuant to the 1933 Act, and the Company shall have no liability to any Investor who may be unable to thereafter sell any of the
Company’s securities due the Investor’s obtaining any material nonpublic information as a result of such due diligence
investigation. Notwithstanding the immediately preceding sentence, the Company shall not provide any Investor with any material,
nonpublic information without the prior written consent of such Investor. For the avoidance of doubt, with respect to any Investor
that has information barriers in place, the Company acknowledges and agrees that disclosure of material, nonpublic information
to an Inspector in accordance with this Section 3(i) shall not automatically restrict portfolio managers or other employees of
such Investor, who do not have access to such material, nonpublic information, from trading in the Company's securities.

 

    	11

    	 

    

 

(j)            The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
such Investor and allow such Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

 

(k)           The
Company shall use its reasonable best efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure the inclusion
for quotation of all of the Registrable Securities on The NASDAQ Capital Market or (iii) if, despite the Company's reasonable best
efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to use reasonable best efforts to secure
the inclusion for quotation on an Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing,
to use its reasonable best efforts to arrange for at least two market makers to register with the Financial Industry Regulatory
Authority, Inc. ("FINRA") as such with respect to such Registrable Securities. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section 3(k).

 

(l)            The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(m)          If
requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration
Statement if reasonably requested by an Investor holding any Registrable Securities.

 

(n)          The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

    	12

    	 

    

 

(o)          The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter
next following the applicable Effective Date of a Registration Statement.

 

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

 

(q)          Within
two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

(r)           Notwithstanding
anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public
information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the Board of Directors
of the Company and its counsel, in the best interest of the Company (a "Grace Period"); provided, that the Company
shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace
Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the
Investors) and the date on which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the
Grace Period ends; and, provided further, that no Grace Period shall exceed five (5) consecutive Trading Days (unless such Grace
Period relates to a material acquisition, in which case the Grace Period shall not exceed twenty (20) consecutive Trading Days)
and during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of twenty (20) Trading
Days (forty-five (45) Trading Days in the case of material acquisitions) and the first day of any Grace Period must be at least
five (5) Trading Days after the last day of any prior Grace Period (each, an "Allowable Grace Period"). For purposes
of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors receive the
notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to
in clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the first sentence
of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable.
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock
to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of
Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the Investor's receipt
of the notice of a Grace Period and for which the Investor has not yet settled.

 

    	13

    	 

    

 

(s)           Neither
the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing
with the SEC, the Principal Market or any Eligible Market without the prior written consent of such Investor and any Investor being
deemed an underwriter by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction
Document (as defined in the Securities Purchase Agreement); provided, however, that the foregoing shall not prohibit
the Company from including the disclosure found in the "Plan of Distribution" section attached hereto as Exhibit B
in the Registration Statement. If the SEC requires that an Investor be identified as an underwriter in the Registration Statement,
the Investor shall either so consent, or such Investor’s Registrable Securities shall be omitted from such Registration Statement
without further obligation hereunder by the Company.

 

(t)           Except
with respect to a Registration Rights Agreement dated May 17, 2013 between Inventergy, Inc. and the investors signatory thereto,
which obligations will be assumed by the Company in the Reverse Merger, neither the Company nor any of its Subsidiaries has entered,
as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities, that would have the effect of impairing the rights granted to the Buyers in this Agreement
or otherwise conflicts with the provisions hereof.

 

4.            Obligations
of the Investors.

 

(a)          At
least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify each
Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such
Investor's Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations
of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities of a particular
Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect and
maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with
such registration as the Company may reasonably request.

 

(b)          Each
Investor, by such Investor's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has
notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities from such
Registration Statement.

 

(c)          Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to
any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of copies of the supplemented
or amended prospectus as contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no supplement or
amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence
of 3(f) and for which the Investor has not yet settled.

 

    	14

    	 

    

 

(d)          Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.            Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company shall not be responsible
for the fees and expenses of Legal Counsel or of any Inspector.

 

6.            Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses,
joint or several (collectively, "Claims"), incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a
party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or
alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction
in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses (i) through
(iv) being, collectively, "Violations"). Subject to Section 6(c), the Company shall reimburse the Indemnified
Persons, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant
to Section 3(d); and (ii) 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 or delayed. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9.

 

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(b)          In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, officers, partners, members, employees, agents, and representatives, and each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against any Claim
or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,
that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse the
Indemnified Party for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with
respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided,
further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	16

    	 

    

 

(c)          Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, as the case
may be, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding
sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the
Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall reasonably cooperate with
the indemnifying party in connection with any settlement negotiation or defense of any such action or Claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party
shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided,
however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party
shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation and such
settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect
to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that
the indemnifying party is prejudiced in its ability to defend such action.

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

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

 

    	17

    	 

    

 

7.            Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved
in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller
of Registrable Securities shall be limited in amount to the amount of net proceeds (sale price less sales commissions) received
by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

 

8.            Reports
Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration ("Rule
144"), the Company agrees to:

 

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

 

(b)          file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

(c)          furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.            Assignment
of Registration Rights.

 

The rights under this
Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor's Registrable
Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b)
the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act
or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained
herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement.

 

    	18

    	 

    

 

10.           Amendment
of Registration Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver
that complies with the foregoing but that disproportionately, materially and adversely affects the rights and obligations of any
Investor relative to the comparable rights and obligations of the other Investors shall require the prior written consent of such
adversely affected Investor. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor
and the Company. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

11.           Miscellaneous.

 

(a)          A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or by electronic mail; 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, facsimile numbers and e-mail addresses for such
communications shall be:

 

If to the Company:

 

eOn Communications Corporation

1703 Sawyer Road

Corinth, MS 38834

	Telephone:	408-694-3339
	Facsimile:	408-996-9722
	Attention:	David Lee, Chairman
	E-mail:	mking@sparktech.com

 

With a copy (for informational
purposes only) to:

 

Baker, Donelson, Bearman, Caldwell & Berkowitz,
PC

First Tennessee Building

165 Madison Avenue

 

    	19

    	 

    

 

Suite 2000

Memphis, Tennessee 38103

	Telephone:	(901) 577-8114
	Facsimile:	(901) 577-0762
	Attention:	Jackie Prester, Esq.
	E-mail:	jprester@bakerdonelson.com

 

If to the Transfer Agent:

 

Computershare Trust Company, N.A.

350 Indiana St. Suite 750

Golden, CO 80401

	Telephone:	(303) 262-0765
	Facsimile:	(303) 262-0610
	Attention:	Adam Burnham

 

If to Legal Counsel:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

	Telephone:	(212) 756-2000
	Facsimile:	(212) 593-5955
	Attention:	Eleazer Klein, Esq.
	Email:	eleazer.klein@srz.com

 

If to a Buyer, to its address, facsimile
number and/or email address set forth on the Schedule of Buyers attached hereto, with copies to such Buyer's representatives as
set forth on the Schedule of Buyers, or to such other address, facsimile number and/or email address to the attention of such other
Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender's facsimile machine or email containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

    	20

    	 

    

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, 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.

 

(e)           If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)           This
Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement,
the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

(g)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

(h)          The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

    	21

    	 

    

 

(i)           This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

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

 

(k)          All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the Preferred Shares and Warrants held by Investors
then outstanding have been exercised for Registrable Securities without regard to any limitations on conversion of the Preferred
Shares or exercise of the Warrants.

 

(l)           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)         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.

 

(n)          The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of
this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated herein.

 

* * * * * *

 

[Signature Page Follows]

 

    	22

    	 

    

 

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

 

	 	COMPANY:
	 	 
	 	EON COMMUNICATIONS CORPORATION
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

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

 

	 	BUYERS:
	 	 
	 	HUDSON BAY IP OPPORTUNITIES MASTER FUND LP
	 	 
	 	By: Hudson Bay Capital Management LP, Investment Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

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

 

	 	 	 

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

	27. Buyer	 	Buyer Address

and Facsimile Number	 	Buyer's Representative's Address 

and Facsimile Number
	 	 	 	 	 
	
        Hudson Bay IP Opportunities 

        Master Fund LP
	 	
        c/o Hudson Bay Capital Management LP

        777 Third Ave., 30th Floor

        New York, NY 10017

        Attention: Yoav Roth

        Facsimile:  (646) 214-7946

        Telephone: (212) 571-1244

        E-mail: investments@hudsonbaycapital.com

            operations@hudsonbaycapital.com
	 	
        Schulte Roth & Zabel LLP

        919 Third Avenue

        New York, NY 10022

        Attn:  Eleazer Klein, Esq. 

        Facsimile:  (212) 593-5955

        Telephone:  (212) 756-2000

        Email: Eleazer.Klein@srz.com

	 	 	 	 	 
	Barry C. Honig	 	
        215 SE Spanish Trail

        Boca Raton, FL 33432

        Telephone: 561-235-5379

             561-302-2287

        E-mail: brhonig@aol.com
	 	 

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Computershare Trust Company, N.A.

350 Indiana St. Suite 750

Golden, CO 80401

	Telephone:	(303) 262-0765
	Facsimile:	(303) 262-0610
	Attention:	Adam Burnham

 

		Re:	eOn Communications Corporation

 

Ladies and Gentlemen:

 

We
are counsel to eOn Communications Corporation, a Delaware corporation (the "Company"), and have represented the
Company in connection with that certain Securities Purchase Agreement, dated as of December 17,
2013 (the "Securities Purchase Agreement"), entered into by and among the Company and the buyers named
therein (collectively, the "Holders") pursuant to which the Company issued to the Holders shares of the Company's
Series B Convertible Preferred Stock shares, par value $0.001 per share (the "Preferred Shares") convertible into
the Company's common stock, par value $0.005 per share (the "Common Stock") and warrants exercisable for shares
of Common Stock (the "Warrants"). Pursuant to the Securities Purchase Agreement, the Company also has entered
into a Registration Rights Agreement with the Holders (the "Registration Rights Agreement") pursuant to which
the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon conversion of the Preferred Shares and the shares of Common Stock
issuable upon exercise of the Warrants under the Securities Act of 1933, as amended (the "1933 Act"). In connection
with the Company's obligations under the Registration Rights Agreement, on ____________ ___, 2013, the Company filed a Registration
Statement on Form S-3 (File No. 333-_____________) (the "Registration Statement") with the Securities and Exchange
Commission (the "SEC") relating to the Registrable Securities which names each of the Holders as a selling stockholder
thereunder.

 

In connection with the
foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF
EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending
its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the
Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

 

Based
on the foregoing, we are of the opinion that the shares of Common Stock are freely transferable by the Holders without legend or
other restrictions pursuant to the Registration Statement. You need not require further letters from us or any confirmation of
sale letters from Holder to effect any future legend-free issuance or reissuance of shares of Common Stock to the Holders as contemplated
by the Company's Irrevocable Transfer Agent Instructions dated December 17, 2013. 

 

	 	Very truly yours,
	 	 
	 	[ISSUER'S COUNSEL]
	 	 
	 	By:	 
	CC:   [LIST NAMES OF HOLDERS]	 

 

    	A-1

    	 

    

 

EXHIBIT B

SELLING STOCKHOLDERS

 

The shares of common
stock being offered by the selling stockholders are those issuable upon conversion of the convertible preferred shares and upon
exercise of the warrants. For additional information regarding the issuances of the convertible preferred shares and the warrants,
see "Private Placement of the Convertible Preferred Shares and Warrants" above. We are registering the shares of common
stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except for the ownership of
the convertible preferred shares and the warrants, the selling stockholders have not had any material relationship with us within
the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each of the
selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling stockholder,
based on its ownership of the shares of the convertible preferred shares and the warrants, as of ________, 2013, assuming conversion
of all convertible preferred shares and exercise of the warrants held by the selling stockholders on that date, without regard
to any limitations on conversions and/or redemptions of the convertible preferred shares or exercises of the warrants.

 

The third column lists
the shares of common stock being offered by this prospectus by the selling stockholders.

 

In accordance with
the terms of a registration rights agreement with the holders of the convertible preferred shares and the warrants, this prospectus
generally covers the resale of at least a number of shares of Common Stock equal to 20% of the number of shares of Common Stock
issued and outstanding as of December 16, 2013. The fourth column assumes the sale of all of the shares offered by the selling
stockholders pursuant to this prospectus.

 

Under the terms of
the convertible preferred shares and the warrants, a selling stockholder may not convert the convertible preferred shares or exercise
the warrants, to the extent such conversion or exercise would cause such selling stockholder, together with its affiliates, to
beneficially own a number of shares of common stock which would exceed 4.99% of our then outstanding shares of common stock following
such conversion or exercise, excluding for purposes of such determination shares of common stock issuable upon conversion of the
convertible preferred shares which have not been converted and upon exercise of the warrants which have not been exercised. The
number of shares in the second column does not reflect this limitation. The selling stockholders may sell all, some or none of
their shares in this offering. See "Plan of Distribution."

 

    	Annex I-1

    	 

    

 

	

 Name of Selling stockholder	 	
        Number of Shares of 

        Common Stock Owned 

        Prior to Offering
	 	
        Maximum Number of Shares 

        of Common Stock to be Sold 

        Pursuant to this Prospectus
	 	
        Number of Shares of 

        Common Stock Owned 

        After Offering

	 	 	 	 	 	 	 
	Hudson Bay IP Opportunities Master Fund LP (1)	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Barry Honig	 	 	 	 	 	 

 

(1)           Hudson
Bay Capital Management LP, the investment manager of Hudson Bay IP Opportunities Master Fund LP, has voting and investment power
over these securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson
Bay Capital Management LP. Each of Hudson Bay IP Opportunities Master Fund LP and Sander Gerber disclaims beneficial ownership
over these securities.

 

    	Annex I-2

    	 

    

 

PLAN OF DISTRIBUTION

 

We are registering
the shares of common stock issuable upon conversion of the convertible preferred shares and the shares of common stock issuable
upon exercise of the warrants to permit the resale of these shares of common stock by the holders of the convertible preferred
shares and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale
by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident to our obligation to register
the shares of common stock.

 

The selling stockholders
may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent's commissions. The shares of common
stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying
prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions,

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing of options, whether such options are listed on an options exchange or otherwise;

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	short sales;

 

		·	sales pursuant to Rule 144;

 

    	Annex I-3

    	 

    

 

		·	broker-dealers may agree with the selling securityholders to sell a specified number of such shares
at a stipulated price per share;

 

		·	a combination of any such methods of sale; and

 

		·	any other method permitted pursuant to applicable law.

 

If the selling stockholders
effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders
or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of
common stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short
and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may
sell such shares.

 

The selling stockholders
may pledge or grant a security interest in some or all of the convertible preferred shares or warrants or shares of common stock
owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and
sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders
also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees
or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling stockholders
and any broker-dealer participating in the distribution of the shares of common stock may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of
shares of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents,
any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions
or concessions allowed or reallowed or paid to broker-dealers.

 

Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

    	Annex I-4

    	 

    

 

There can be no assurance
that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other
participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.

 

We will pay all expenses
of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or "blue sky" laws; provided, however, that a selling stockholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act, in
accordance with the registration rights agreements, or the selling stockholders will be entitled to contribution. We may be indemnified
by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any
written information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands
of persons other than our affiliates.

 

    	Annex I-5

    	 

    

 

EXHIBIT D

 

FORM OF 

 

VOTING AGREEMENT

 

VOTING AGREEMENT, dated
as of December __, 2013 (this "Agreement"), by and among eOn Communications Corporation, a Delaware corporation (the
"Company"), and [INSERT] (the "Stockholder").

 

WHEREAS, the Company
and certain investors (each, an "Investor", and collectively, the "Investors") have entered into a Securities
Purchase Agreement, dated as December __, 2013 (the "Securities Purchase Agreement"), pursuant to which, among other
things, the Company has agreed to issue and sell to the Investors and the Investors have agreed to purchase (i) shares of Series
B Convertible Preferred Stock of the Company, par value $0.001 per share (the "Preferred Shares"), which are convertible
into shares of the common stock of the Company, par value $0.005 per share (the "Common Stock") and (ii) warrants (the
"Warrants"), which are exercisable to purchase shares of Common Stock.

 

WHEREAS, as of the
date hereof, the Stockholder owns [ ] shares of Common Stock; and

 

WHEREAS, as a condition
to the willingness of the Investors to enter into the Securities Purchase Agreement and to consummate the transactions contemplated
thereby (collectively, the "Transaction"), the Investors have required that the Stockholder agree, and in order to induce
the Investors to enter into the Securities Purchase Agreement, the Stockholder has agreed, to enter into this Agreement with respect
to all the Common Stock now owned and which may hereafter be acquired by the Stockholder and any other securities, if any, which
the Stockholder is currently entitled to vote, or after the date hererof, becomes entitled to vote, at any meeting of stockholders
of the Company (the "Other Securities").

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby,
the parties hereto hereby agree as follows:

 

ARTICLE I

 

VOTING AGREEMENT OF THE STOCKHOLDER

 

SECTION 1.01.         Voting
Agreement. Subject to the last sentence of this Section 1.01, the Stockholder hereby agrees that at any meeting of the stockholders
of the Company, however called, and in any action by written consent of the Company's stockholders, the Stockholder shall vote
the Common Stock and the Other Securities owned by the Stockholder: (a) in favor of the Stockholder Approval (as defined in the
Securities Purchase Agreement) as described in Section 4(s) of the Securities Purchase Agreement; and (b) against any proposal
or any other corporate action or agreement that would result in a breach of any covenant, representation or warranty or any other
obligation or agreement of the Company under the Securities Purchase Agreement or which could result in any of the conditions to
the Company's obligations under the Securities Purchase Agreement not being fulfilled. The Stockholder acknowledges receipt and
review of a copy of the Securities Purchase Agreement and the other Transaction Documents (as defined in the Securities Purchase
Agreement). The obligations of the Stockholder under this Section 1.01 shall terminate immediately following the occurrence of
the Stockholder Approval.

 

    	 

    	 

    

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDER

 

The Stockholder hereby represents and warrants,
severally but not jointly, to each of the Investors as follows:

 

SECTION 2.01.         Authority
Relative to This Agreement. The Stockholder has all necessary legal capacity, power and authority to execute and deliver this Agreement,
to perform his obligations hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly executed
and delivered by the Stockholder and constitutes a legal, valid and binding obligation of the Stockholder, enforceable against
the Stockholder in accordance with its terms, except (a) as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter in effect relating to, or affecting generally
the enforcement of creditors' and other obligees' rights, (b) where the remedy of specific performance or other forms of equitable
relief may be subject to certain equitable defenses and principles and to the discretion of the court before which the proceeding
may be brought, and (c) where rights to indemnity and contribution thereunder may be limited by applicable law and public policy.

 

SECTION 2.02.         No
Conflict. (a) The execution and delivery of this Agreement by the Stockholder does not, and the performance of this Agreement by
the Stockholder shall not, (i) conflict with or violate any federal, state or local law, statute, ordinance, rule, regulation,
order, judgment or decree applicable to the Stockholder or by which the Common Stock or the Other Securities owned by the Stockholder
are bound or affected or (ii) result in any breach of or constitute a default (or an event that 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, or
result in the creation of a lien or encumbrance on any of the Common Stock or the Other Securities owned by the Stockholder pursuant
to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation
to which the Stockholder is a party or by which the Stockholder or the Common Stock or Other Securities owned by the Stockholder
are bound.

 

(b)          The
execution and delivery of this Agreement by the Stockholder does not, and the performance of this Agreement by the Stockholder
shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental entity
by the Stockholder.

 

SECTION 2.03.         Title
to the Stock. As of the date hereof, the Stockholder is the owner of the number of shares of Common Stock set forth opposite its
name on Appendix A attached hereto, entitled to vote, without restriction, on all matters brought before holders of capital stock
of the Company, which Common Stock represent on the date hereof the percentage of the outstanding stock and voting power of the
Company set forth on such Appendix. Such Common Stock are all the securities of the Company owned, either of record or beneficially,
by the Stockholder. Such Common Stock are owned free and clear of all security interests, liens, claims, pledges, options, rights
of first refusal, agreements, limitations on the Stockholder's voting rights, charges and other encumbrances of any nature whatsoever.
The Stockholder has not appointed or granted any proxy, which appointment or grant is still effective, with respect to the Common
Stock or Other Securities owned by the Stockholder.

 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

ARTICLE III

 

COVENANTS

 

SECTION 3.01.         No
Disposition or Encumbrance of Stock. The Stockholder hereby covenants and agrees that, until the Stockholder Approval has been
obtained, except as contemplated by this Agreement, the Stockholder shall not offer or agree to sell, transfer, tender, assign,
hypothecate or otherwise dispose of, grant a proxy or power of attorney with respect to, or create or permit to exist any security
interest, lien, claim, pledge, option, right of first refusal, agreement, limitation on the Stockholder's voting rights, charge
or other encumbrance of any nature whatsoever ("Encumbrance") with respect to the Common Stock or Other Securities, directly
or indirectly, initiate, solicit or encourage any person to take actions which could reasonably be expected to lead to the occurrence
of any of the foregoing; provided, however, that the Stockholder may assign, sell or transfer any Common Stock or Other Securities
provided that any such recipient of the Common Stock or Other Securities has delivered to the Company and each Investor a written
agreement in a form reasonably satisfactory to the Investors that the recipient shall be bound by, and the Common Stock and/or
Other Securities so transferred, assigned or sold shall remain subject to this Agreement.

 

SECTION 3.02.         Company
Cooperation. The Company hereby covenants and agrees that it will not, and the Stockholder irrevocably and unconditionally acknowledges
and agrees that the Company will not (and waives any rights against the Company in relation thereto), recognize any Encumbrance
or agreement on any of the Common Stock or Other Securities subject to this Agreement unless the provisions of Section 3.01 have
been complied with. The Company agrees to use its reasonable best efforts to ensure that at any time in which any Stockholder Approval
is required pursuant to Section 4(s) of the Securities Purchase Agreement, it will cause holders of Common Stock or Other Securities
representing the percentage of outstanding capital stock required to vote in favor of the Transaction in order for the Company
to comply with its obligations under Section 4(s) of the Securities Purchase Agreement to become party to and bound by the terms
and conditions of this Agreement and the Common Stock and Other Securities held by such holders to be subject to the terms and
conditions of this Agreement.

 

ARTICLE IV

 

MISCELLANEOUS

 

SECTION 4.01.         Further
Assurances. The Stockholder will execute and deliver such further documents and instruments and take all further action as may
be reasonably necessary in order to consummate the transactions contemplated hereby.

 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

SECTION 4.02.         Specific
Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not
performed in accordance with the terms hereof and that any Investor (without being joined by any other Investor) shall be entitled
to specific performance of the terms hereof, in addition to any other remedy at law or in equity. Any Investor shall be entitled
to its reasonable attorneys' fees in any action brought to enforce this Agreement in which it is the prevailing party.

 

SECTION 4.03.         Entire
Agreement. This Agreement constitutes the entire agreement among the Company and the Stockholder with respect to the subject matter
hereof and supersedes all prior agreements and understandings, both written and oral, between the Company and the Stockholder with
respect to the subject matter hereof.

 

SECTION 4.04.         Amendment.
The provisions of this Agreement may not be amended or waived, nor may this Agreement be terminated by the Company other than pursuant
to the provisions of Section 4.07.

 

SECTION 4.05.         Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

SECTION 4.06.         Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of New York. The parties hereby agree that all actions or proceedings arising directly or indirectly from or in connection
with this Agreement shall be litigated only in the Supreme Court of the State of New York or the United States District Court for
the Southern District of New York located in New York County, New York. The parties consent to the jurisdiction and venue of the
foregoing courts and consent that any process or notice of motion or other application to any of said courts or a judge thereof
may be served inside or outside the State of New York or the Southern District of New York by registered mail, return receipt requested,
directed to the party being served at its address set forth on the signature ages to this Agreement (and service so made shall
be deemed complete three (3) days after the same has been posted as aforesaid) or by personal service or in such other manner as
may be permissible under the rules of said courts. Each of the Company and the Stockholder irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding
brought in such a court and any claim that suit, action, or proceeding has been brought in an inconvenient forum. 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 WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

SECTION 4.07.         Termination.
This Agreement shall terminate immediately following the occurrence of the Stockholder Approval.

 

[Signature Page Follows]

 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, the Stockholder and the Company has duly executed this Agreement.

 

	 	THE COMPANY:
	 	 
	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 
	 	 	Name:  Stephen Swartz
	 	 	Title:  Principal Executive Officer
	Dated: December ___, 2013	 	 

	 	Address:	eOn Communications Corporation
	 	 	1703 Sawyer Road
	 	 	Corinth, MS 38834

 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

	 	 	STOCKHOLDER:
	 	 	 
	 	 	 
	Dated: December ___, 2013	 	 
	 	 	Address:
	 	 	 

Signature Page to Voting Agreement

 

    	 

    	 

    

 

APPENDIX A

 

	Stockholder	 	Common Stock 

Owned	 	
        Percentage of Stock

        Outstanding
	 	Voting Percentage 

of Stock

Outstanding	 
	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT I

 

FORM OF LOCK UP AGREEMENT

 

EON COMMUNICATIONS CORPORATION

 

December __, 2013

 

eOn Communications Corporation

1703 Sawyer Road

Corinth, MS 38834

 

			Re: eOn Communications Corporation– Lock-Up Agreement

 

Dear Sir:

 

This Lock-Up Agreement
is being delivered to you in connection with the Securities Purchase Agreement (the "Purchase Agreement"), dated
as of December __, 2013 by and among eOn Communications Corporation (the "Company") and the investors party thereto
(the "Buyers"), with respect to the issuance of (i) Series B Convertible Preferred Shares, par value $0.001 per
share (the "Preferred Shares") which will be convertible into the Company's common stock, par value $0.005 per
share (the "Common Stock") pursuant to the terms of the Certificate of Designations, Preferences and Rights of
Series B Convertible Preferred Stock (the "Certificate of Designations") and (ii) warrants (the "Warrants")
which Warrants will be exercisable to purchase Common Stock. Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Purchase Agreement.

 

In order to induce
the Buyers to enter into the Purchase Agreement, the undersigned agrees that, commencing on the date hereof and ending on the earliest
of (i) date the Reverse Merger (as defined in the Certificate of Designations) has been consummated , (ii) the date no Preferred
Shares are outstanding and (iii) seven (7) months from the Closing Date (as defined in the Purchase Agreement) (the "Lock-Up
Period"), the undersigned will not, and will cause all affiliates (as defined in Rule 144) of the undersigned or any person
in privity with the undersigned or any affiliate of the undersigned not to, (1) sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly
or indirectly, any shares of Common Stock or Common Stock Equivalents, or establish or increase a put equivalent position or liquidate
or decrease a call equivalent position within the meaning of Section 16 of the Securities and Exchange Act of 1934, as amended
and the rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect to any shares of Common
Stock or Common Stock Equivalents owned directly by the undersigned (including holding as a custodian) or with respect to which
the undersigned has beneficial ownership within the rules and regulations of the Securities and Exchange Commission (collectively,
the "Undersigned's Shares"), or (2) enter into any swap or other arrangement that transfers to another, in whole
or in part, any of the economic consequences of ownership of any of the Undersigned's Shares, whether any such transaction described
in clause (1) or (2) above is to be settled by delivery of shares of Common Stock or other securities, in cash or otherwise, (3)
make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with
respect to the registration of any shares of Common Stock or Common Stock Equivalents or (4) publicly disclose the intention to
do any of the foregoing. Notwithstanding the foregoing, the undersigned, the undersigned’s affiliates and any person in privity
with the undersigned or any affiliate of the undersigned may, at any time from and after the date hereof, exercise any derivative
security of the Company owned by the undersigned, the undersigned’s affiliates or any person in privity with the undersigned
or any affiliate of the undersigned, whether such derivative security is exercised on a cashless basis or otherwise; provided,
however, that any shares of Common Stock or other securities of the Company underlying such derivative security of the Company
issued upon such exercise shall be subject to the restrictions set forth herein.

 

    	 

    	 

    

 

The foregoing restriction
is expressly agreed to preclude the undersigned, and any affiliate of the undersigned and any person in privity with the undersigned
or any affiliate of the undersigned, from engaging in any hedging or other transaction which is designed to or which reasonably
could be expected to lead to or result in a sale or disposition of the Undersigned's Shares even if the Undersigned's Shares would
be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include, without limitation,
any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect
to any of the Undersigned's Shares or with respect to any security that includes, relates to, or derives any significant part of
its value from the Undersigned's Shares.

 

Notwithstanding the
foregoing, the undersigned may transfer the Undersigned's Shares (i) as a bona fide gift or gifts, provided that the donee
or donees thereof agree to be bound in writing by the restrictions set forth herein and (ii) to any trust for the direct or indirect
benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust agrees to be bound
in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for
value. For purposes of this Lock-Up Agreement, "immediate family" shall mean any relationship by blood, marriage or adoption,
not more remote than first cousin. The undersigned now has, and, except as contemplated by the immediately preceding sentence,
for the duration of this Lock-Up Agreement will have, good and marketable title to the Undersigned's Shares, free and clear of
all liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions
with the Company's transfer agent and registrar (the "Transfer Agent") against the transfer of the Undersigned's
Shares except in compliance with the foregoing restrictions.

 

In order to enforce
this covenant, the Company shall impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any
actions in violation of this Lock-Up Agreement.

 

The undersigned acknowledges
that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to each Buyer to complete the transactions
contemplated by the Purchase Agreement and that the Company shall be entitled to specific performance of the undersigned's obligations
hereunder. The undersigned hereby represents that the undersigned has the power and authority to execute, deliver and perform this
Lock-Up Agreement, that the undersigned has received adequate consideration therefor and that the undersigned will indirectly benefit
from the closing of the transactions contemplated by the Purchase Agreement.

 

    	 

    	 

    

 

The undersigned understands
and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives,
successors, and assigns.

 

This Lock-Up Agreement
may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered one and the
same instrument.

 

This Lock-Up Agreement
will be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of
law or conflicting provision or rule (whether of the State of New York, or any other jurisdiction) that would cause the laws of
any jurisdiction other than the State of New York to be applied. In furtherance of the foregoing, the internal laws of the State
of New York will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction's choice
of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

[Remainder of page intentionally left
blank]

 

    	 

    	 

    

 

	 	Very truly yours,
	 	 
	 	 
	 	Exact Name of Stockholder
	 	 
	 	 
	 	Authorized Signature
	 	 
	 	 
	 	Title

 

	Agreed to and Acknowledged:
	 
	EON COMMUNICATIONS CORPORATION
	 	 
	By: 	 	 
	 	Name:	 
	 	Title:Form
    of Application for Irrevocable Standby Letter of Credit	 	

 

	To: Wells
    Fargo Bank, National Association	Requested
    Issuing Location:  	 ̈ 	North Carolina	x	 California

 

Please type clear information in the boxes below. Applications
that are illegible may be returned.

 

	Date:
    (MM/DD/YY)	 	For Wells Fargo Bank Use Only
	 	 	Letter of Credit No.	Activity Reference No.
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

The Applicant(s) signing below hereby
request that Wells Fargo Bank, National Association (“Wells Fargo”) issue in Wells Fargo’s name an Irrevocable
Standby Letter of Credit (“Credit”) on substantially the terms below:

 

	Beneficiary:  (Name and Address)	Advising Bank:  (If left blank, Wells Fargo may select)
	 	 
	 	 
	 	 
	Applicant/Obligor:   (Name and Address)	Account Party: (Name and Address of entity to be named in Credit if different from Applicant/Obligor)
	eOn Communications Corporation	 
	1703 Sawyer Road	 
	Corinth, MS 38834	 
	 	 
	 	 
	 	 

	Amount (in figures):            (in words):
	 
	Currency (in USD unless otherwise specified):
	 
	Availability:  Unless otherwise specified herein, the Credit is to be available for presentation on or before the Expiration Date (1) with Wells Fargo's issuing office by payment of draft(s) drawn at sight on Wells Fargo or (2) at Wells Fargo's option, with any bank(s) or with a bank nominated by Wells Fargo by negotiation of draft(s) drawn at sight on Wells Fargo or (3) at Wells Fargo’s option, with a bank nominated by Wells Fargo by payment of draft(s) drawn at sight on the nominated bank.
	 
	Expiration Date: 12/01/14  (MM/DD/YY
    format, initial expiration date if automatically extending), or  ̈ Expire one year from Issue Date
	x  
       Expiration Date to be automatically extended (Check one box below)
	x    Annually
on the day and month anniversary of the Expiration Date      ̈ Annually
on ____(MM/DD)
	 ̈     Every
___calendar days         ̈ Every
____ months
	With 45
    days notification of non-extension and a Final Expiration Date of  ____(MM/DD/YY)
	 
	Available By: (check and complete only one of the following)
	 
	   ̈      A
statement worded as follows indicating it is signed by the Beneficiary (if a person) or its authorized officer:

(Please
quote below the exact wording of the drawing statement.)  (Attach additional signed sheet(s), if necessary, and label
as attachments to this specific Application.)
	 
	  x     Issue
    the Credit substantially in the form and with the wording attached to this Application.  The attached specimen is
    approved by each applicant. (Label the attached specimen as an attachment to this specific Application.)
	 
	Additional Requirements:      ̈     Partial
    drawings are prohibited (if blank, partial drawings are permitted)
	 
	 ̈     Multiple drawings prohibited (if blank, partial drawings are permitted)
	x    Credit is transferable in its entirety.  Transfer charges for account of     x  Applicant      ̈  Beneficiary
	 
	The Credit will be subject to the International Standby Practices of the International Chamber of Commerce ("ICC"), Publication 590 ("ISP98") or the ICC, Publication 600 ("UCP") or any subsequent version of either publication in effect and in use by Wells Fargo on the date the Credit is issued, as Wells Fargo shall determine in its sole discretion.
	 
	Description of Standby Purpose including goods description, country of origin, pricing as applicable:
	 
	 
	 

 

    	Page 1 of 2	 

    	 

    

 

	Patriot Act Notice:   U.S. Federal laws require all financial institutions to obtain, verify, and record information that identifies each person who opens an account.  Issuing the Credit is considered to be opening an account and will require compliance with these Federal laws.
	   
	Credit
    Requesting Issuance of Guarantee or Other Undertaking: (To be completed only if the Beneficiary is a bank or another
    financial institution and the Beneficiary is to issue its guarantee or other undertaking supported by the Credit.)
	   
	Please request the Beneficiary to issue and deliver its ____ [specify type of guarantee or other undertaking] in favor of ____ for an amount not exceeding the amount specified above, effective immediately and related to ____ [specify contract number or other pertinent reference] to expire ____ [specify an expiry date at least 15 days prior to the Credit expiry date indicated above].  Applicant attaches the wording to be used for such guarantee or other undertaking, if available.  If the wording is not available, the wording should be the Beneficiary’s customary wording for such guarantee or undertaking, with the wording specifying a maximum amount and an expiration date.  If the Credit is issued as support for a guarantee or other undertaking which the Credit’s Beneficiary has issued or is to issue on behalf of Applicant, Applicant agrees that until Wells Fargo is released from its obligations under or in connection with the Credit by such Beneficiary, Applicant will remain liable, with respect to the Credit, to Wells Fargo under this Application and the Standby Letter of Credit Agreement Applicant has signed relating to the Credit, even though such liability may exceed the amount of the Credit or continue beyond the expiration date of the Credit.  
	   
	Transmission of Credit::  Please transmit the original of the Credit yourself or through a bank selected by you to the following:
	 ̈   Beneficiary                      ̈   Applicant                      ̈   Other: ____
	By selecting a party other than the beneficiary, I acknowledge and understand the rights of the beneficiary under an issued Standby Letter of Credit are unchanged regardless of where the original has been delivered.  
	   
	Applicant’s Agreement and Signature:  (Each party obligated either alone or jointly and severally with others to reimburse Wells Fargo with respect to the Credit must sign this Application below.)  EACH APPLICANT’S SIGNATURE BELOW AFFIRMS THAT (1) IT HAS FULLY READ AND AGREED TO, (2) IT WILL BE BOUND BY, AND (3) THE CREDIT WILL BE GOVERNED BY, THE TERMS OF THIS APPLICATION AND THE TERMS OF THE STANDBY LETTER OF CREDIT AGREEMENT SIGNED BY EACH APPLICANT IN FAVOR OF WELLS FARGO OR ANY OTHER AGREEMENT SIGNED BY EACH APPLICANT PURSUANT TO WHICH THE CREDIT IS ISSUED.  THIS APPLICATION IS SIGNED BY EACH APPLICANT'S DULY AUTHORIZED REPRESENTATIVE(S) ON THE DATE SPECIFIED ABOVE.

	 	 
	Print or Type Name of Applicant:	Print or Type Name of Co-Applicant:
	eOn Communications Corporation	 
	Address:  1703 Sawyer Road, Corinth, MS 38834	Address:
	   	   
	   	   
	Authorized Signature (and Title, if applicable):	Authorized Signature (and Title, if applicable):
	 	   
	 	   
	Authorized Signature (and Title, if applicable):	Authorized Signature (and Title, if applicable):
	   	   
	   	   
	Email Address (MANDATORY):	Email Address (MANDATORY):
	   	   
	   	   

	DDA for Fees:	Phone Number:	Applicant Contact:	Phone Number:

 

	For
    Wells Fargo Bank Use Only
	Credit Issuance
    Has Been Approved in Accordance With Wells Fargo’s Credit Policies and Procedures

	Approving
    Officer’s Signature	Approving
    Officer’s Name (Print)	Approving
    Officer’s Office (Print)	AU	MAC

	Approving
    Officer’s Telephone:	Approving
    Officer’s Email:	Date

	 ̈	The Credit appears
    to support an obligation to make a monetary payment and should most likely be classified as a “financial
    obligation”.
	 ̈	The Credit appears
    not to support an obligation to make a monetary payment and should most likely be classified as a “performance
    obligation”.
	 ̈	The Standby Letter of Credit requested above is a syndicated
    transaction.  I confirm that I have communicated the information regarding this transaction to the Wells Fargo
    Syndications Group as required by Wells Fargo policy.

	For any questions
    regarding this transaction, please contact      ̈ Approver          ̈ Applicant
    directly           ̈ Other:___

	AFS
    BOOKING:	Standalone:	Obligor
    #:	Commitment
    #:	Collateral	BQR	CQR	Purpose
    Code	   NAIC
	INTERFACE:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	YES  ̈   NO  ̈	YES  ̈   NO  ̈	 	 	 	 	 	 	 
	CLAS
    BOOKING: 	Standalone:	Obligor #:	Deal #:	BDG	 	Loan IQ 

Booking:	Facility
    ID:	 
	 	 	 	 	 	 	 	 	 
	 	YES  ̈   NO  ̈	 	 	 	 	 	 	 

	Exception
    Pricing:       ̈ Commission
    P.A. ____                         ̈ Servicing
    Fees _____

	SPECIAL INSTRUCTIONS:
    (Indicate provisions applicable to the Credit different from those on Applicant's Relationship Management Instructions
    Form)

 

    	Page 2 of 2

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