Document:

EXHIBIT 10.2

 

CONSULTING &
REPRESENTATION AGREEMENT

 

 

THIS AGREEMENT
(the "Agreement") entered into as of this 18th day of November, 2013 between Augusta Advisors Inc. (the "Consultant")
is effective with effect from October 1, 2013 with a contact address at 25682 Rolling Hills Rd., Laguna Hills, CA 92653 and Apollo
Medical Holdings, Inc. (the “Company”), with legal offices at 700 N. Brand Blvd., Suite 220, Glendale, CA 91203.

 

W I T N E
S S E T H :

 

 

WHEREAS, the
Consultant possesses expertise in the areas of executive management, operations, sales and marketing, healthcare operations, financial
management, private equity and private placement, mergers and acquisitions, corporate and business development, business advisory,
and due diligence review, and the Consultant to make available the Consultant’s expertise for the benefit of the Company
by providing services in such areas of expertise; and

 

WHEREAS, the
Company desires to utilize such services during the Term (as defined below) of this Agreement.

 

NOW, THEREFORE,
in view of the foregoing premises, which are hereby incorporated as part of this Agreement, and consideration of the mutual covenants
herein contained, the parties hereto agree as follows:

 

		1.	Services.

 

The
Consultant shall make Gary Augusta available to provide the Services described herein. “Services,” as such term is
defined herein, shall comprise serving as the Executive Chairman of the Company’s Board of Directors (the “Board”),
and the provision of such services as delineated in that certain Board of Directors Agreement, between the Company and Gary Augusta,
dated March 7, 2012 (the “Board Agreement”), the terms of which are incorporated herein by reference, and shall also
include, in addition to such other services as determined by the Board
from time to time, the performance by the Consultant of the following responsibilities:

 

		1.1	The Consultant shall perform customary and reasonable responsibilities and services for a minimum
of 4 days per week, on average, with such responsibilities to include, but not be limited to, operational management, financial
oversight, management controls and procedures, business strategies, capital strategies, cash flow management, sales forecasting,
financial systems and technology utilization. Consultant shall determine where to perform the Services and expects to perform such
Services at the Company’s corporate headquarters and to perform the field work in Orange County, Los Angeles, New York and
other partner, customer, capital, new business and conference locations.

 

    	1

    	 

    

 

EXHIBIT 10.2

 

		1.2	The Consultant shall provide operations leadership, to include management, sales, marketing and
business development, investor relations, public relations, and mergers and acquisitions advice.

 

		1.3	The Consultant shall provide corporate and business development activities and other strategic
corporate advisory and planning services, including but not limited to, sales activities, network introductions, partnerships,
investment presentation and delivery assistance, due diligence reviews, and other services as mutually defined (the “Field
of Interest”). The Consultant shall prepare a business plan for the Company for fiscal year 2014 and shall satisfy and deliver
upon goals and objectives agreed from time to time by the Board with the Consultant. The Consultant will advise the Company’s
ownership, management, employees and agreed upon agents at reasonable times, in matters related to the Field of Interest, as requested
by the Company.

 

		1.4	The Consultant shall serve in the role of Company spokesperson, advisor in corporate financing,
advisor in due diligence review, and as a strategic advisory resource in corporate and business development activities.

 

		1.5	The Consultant shall provide operational management services for ApolloMed Accountable Care Organization,
Inc. (“ACO”) as determined by the Company.

 

		1.6	The Consultant shall provide operational management services in connection with mergers and acquisitions,
joint ventures and partnerships.

 

		2.	The Consultant agrees that during the Term of this Agreement, the Consultant shall perform the
Services to the best of the Consultant’s abilities. The Consultant shall report to the Board and shall provide the Services
in accordance with the Board’s reasonable requests and as instructed by the Board. The Consultant will determine the method,
details and means of performing the Services.

 

		3.	It is the express intention of the parties that the Consultant be an independent contractor and
not an employee, agent, executive officer, officer, or partner of the Company or ACO or any other subsidiary or affiliate of the
Company, notwithstanding the fact that the Consultant will be the Executive Chairman of the Board. Nothing in this Agreement shall
be interpreted or construed as establishing or creating the relationship of employer and employee between Company and the Consultant
or any employee or agent of the Consultant. Both parties acknowledge that the Consultant is not an employee of the Company for
state or federal tax purposes. The Consultant acknowledges and agrees that it shall be the Consultant’s obligation to report
as income all compensation received by the Consultant pursuant to this Agreement.

 

    	2

    	 

    

 

EXHIBIT 10.2

 

		4.	Unless terminated earlier pursuant to Section 12, this Agreement shall remain in effect until December
31st, 2014 (the “Term”).

 

		5.	During the Term and for one (1) year thereafter,
the Consultant will not solicit any employee of the Company to leave the Company for any reason or to devote less than all of any
such employee's efforts to the affairs of the Company. 

 

		6.	In consideration for the Services rendered hereunder, during the Term, Company shall compensate
the Consultant with the following compensation:

 

		(a)	Cash compensation of $15,000 per month from October 1, 2013 through the end of the Term.
This compensation shall be paid on the 10th as compensation for the Services provided for that month during the Term
(i.e. $15,000 due December 10th for the Services provided from December 1st through December 31st).

 

		(b)	In the event that the Company raises additional capital during the Term, any equity compensation
to be paid to Consultant shall be determined by the Board, taking into account the equity options given to senior management at
the Company and Consultant’s individual performance, such determination of equity compensation to be in the Board’s
sole and absolute discretion.

 

		(c)	The Company shall reimburse the Consultant up to $2,000 per month for lodging, healthcare and related
business expenses. Company shall reimburse travel expenses outside of Southern California area. All travel expenses shall be coach
class unless preapproved by the Company in writing.

 

		7.	The Consultant hereby represents that neither the execution of this Agreement, the consulting relationship
with the Company nor the performance of the Services will violate any obligations of the Consultant to any person or entity, including
without limitation, the obligation to keep confidential any proprietary information of such person or entity.

 

		8.	Exclusive Services during the Term.

 

Subject to written waivers that
may be provided by the Company upon request, which shall not be unreasonably withheld, the Consultant agrees that during the Term
of this Agreement the Consultant will not directly or indirectly (i) provide any Services in the Field of Interest to any other
business or commercial entity which directly competes with the Company, or (ii) participate in the formation of any business or
commercial entity which directly competes with Company.

 

    	3

    	 

    

 

EXHIBIT 10.2

 

		9.	The Consultant will not disclose to the Company any information that the Consultant is obligated
to keep confidential pursuant to an existing confidentiality agreement with a third party, and nothing in this Agreement will impose
any obligation on the Consultant to the contrary.

 

		10.	The Services performed hereunder will not be conducted on time that is required to be devoted to
any other third party. The Consultant shall not use the funding, resources and facilities of any other third party to perform the
Services hereunder and shall not perform the Services hereunder in any manner that would give any third party rights to the product
of such Services.

 

		11.	Confidentiality.

 

The Consultant acknowledges that,
during the course of performing Services hereunder, the Company will be disclosing information to the Consultant relating to inventions,
data, projects, products, potential customers, personnel, business plans, and finances, as well as other commercially valuable
information (collectively “Confidential Information”). The Consultant acknowledges that the Company’s business
is extremely competitive, dependent in part upon the maintenance of secrecy, and that any disclosure of the Confidential Information
would result in serious harm to the Company. The Consultant agrees that the Confidential Information will be used by the Consultant
only in connection with consulting activities hereunder, and will not be used in any way that is detrimental to the Company or
in violation of any law. The Consultant agrees not to disclose, directly or indirectly, the Confidential Information to any third
person or entity, other than representatives or agents of the Company who need to know such information. The Consultant will treat
all such information as confidential and proprietary property of the Company. The term “Confidential Information” does
not include information that (i) is or becomes generally available to the public other than by disclosure in violation of this
Agreement, (ii) was within the Consultant’s possession prior to being furnished such information, or (iii) becomes available
to the Consultant from a third party on a non-confidential basis. The Consultant may disclose any Confidential Information that
is required to be disclosed by law, government regulation or court order. If disclosure is required, the Consultant will give the
Company advance notice so that the Company may seek a protective order or take other action reasonable in light of the circumstances.

 

		12.	Termination.

 

		(a)	Either the Company or the Consultant may terminate this
Agreement without Cause (as defined below) upon ninety (90) days written notice.

 

    	4

    	 

    

 

EXHIBIT 10.2

 

		(b)	The Company may terminate this Agreement, upon 30 days
notice, for Cause. Commission of any of the following acts by the Consultant constitutes grounds for the Company to terminate
the Consultant for "Cause" under this Section 12(b): (i) the Consultant is charged with a felony crime; (ii) the
Consultant commits a crime of moral turpitude such as an act of fraud or other crime involving dishonesty; (iii) the Consultant
breaches any term of this Agreement, the Board Agreement, or the Board of Directors Proprietary Information Agreement, dated March
22, 2012, between the Company and Gary Augusta; (iv) the Consultant fails to comply with written Company policies; or (v) the
Consultant commits any act or acts that materially harm the Company’s reputation, standing, or credibility.

 

		(c)	In the case of termination, whether for Cause or without
Cause, the Company shall have no obligation to the Consultant for compensation or any other form of benefit under this Agreement
except for (i) compensation earned prior to the effective date of the termination and (ii) the Company shall reimburse the Consultant
for all appropriately documented expenses incurred by the Consultant before the termination date that are otherwise reimbursable
under this Agreement. For the avoidance of doubt, it is expressly agreed and understood that, to the extent the Consultant shall
be terminated without Cause, the Consultant shall be entitled to any equity earned prior to the effective date of the termination
of this Agreement.

 

		(d)	Upon termination of this Agreement, the Consultant will
promptly return to the Company all materials containing Confidential Information as well as data, records, reports and other property,
furnished by the Company to the Consultant or produced by the Consultant in connection with the Services rendered hereunder, together
with all copies of any of the foregoing. Notwithstanding such return, the Consultant shall continue to be bound by the terms of
the confidentiality provisions contained in this Agreement for a period of three (3) years after the termination of this Agreement.

 

		13.	Miscellaneous.

 

		(a)	Necessary Acts: All parties to this Agreement shall perform any acts, including executing any documents that may be
reasonably necessary to carry out all provisions and intent of this Agreement.

 

		(b)	Amendments: This Agreement may be amended only by written consent of all parties to this Agreement.

 

		(c)	Notices: All notices, demands, requests or other communications required or permitted by this Agreement shall be in
writing and shall be deemed duly served when personally delivered to the party or to an officer or agent of the party, or when
deposited in the United States mail, first-class postage prepaid, addressed to the party at the address listed in this Agreement
or any updated address provided by either party in writing.

 

    	5

    	 

    

 

EXHIBIT 10.2

 

		(d)	Successors and Assigns: This Agreement shall be binding upon the Company and any successors and assigns of the Company,
including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets
or business. In the event that the Company sells or transfers all or substantially all of the assets of the Company, or in the
event of any merger or consolidation of the Company, the Company shall use reasonable efforts to cause such assignee, transferee,
or successor to assume the liabilities, obligations and duties of the Company hereunder. Neither this Agreement nor any right or
obligation hereunder may be assigned by the Consultant; provided, however, that this provision shall not preclude the Consultant
from designating one or more beneficiaries to receive any amount that may be payable after his death and shall not preclude his
executor or administrator from assigning any right hereunder to the person or persons entitled hereto.

 

		(e)	Severability: If any provision of this Agreement is deemed to be unlawful, unenforceable or invalid by a court of competent
jurisdiction for any reason, the remaining provisions shall remain in full force and effect.

 

		(f)	Governing Law: This Agreement shall be governed by the laws of the State of California without regard to its conflict
of laws principles. The Company and the Consultant mutually agree that any and all claims or controversies arising out of this
Agreement, or any breach thereof, or otherwise arising out of or relating to this Agreement or the termination thereof, shall be
brought exclusively in a court in the city and county of Los Angeles, California or, if federal jurisdiction exists, the United
States District Court for the Central District of California, and both parties submit and consent to jurisdiction of such courts
and waive any objection to venue and/or any claim that the aforementioned forums are inconvenient.

 

		(g)	Sole Agreement: This Agreement constitutes the only agreement of the parties regarding the subject matter hereof and
correctly sets forth the rights, duties and obligations of each to the other. No prior agreement, statement or understanding, whether
written or verbal, shall have any effect and this Agreement supersedes in its entirety any prior agreement, statement or understanding.

 

		(h)	Third Parties, No Interest: Nothing in this Agreement is intended to or shall (i) confer any rights or remedies under
or by reason of this Agreement on any persons other than the parties hereto and their respective successors and assigns, or (ii)
relieve or discharge the obligation of any third person to any party hereto.

  

    	6

    	 

    

 

EXHIBIT 10.2

 

IN WITNESS WHEREOF, the Company
and the Consultant have executed this Agreement as of the date first above written.

 

 

 

	
        Augusta Advisors, Inc.

         

         

        /s/ Gary Augusta

        Signature

         

        Gary Augusta, President

         

         

         
	
        Apollo Medical Holdings, Inc.

         

         

        /s/ Warren Hosseinion

        Signature

         

        Warren Hosseinion, CEO

         

         

         

         

         

 

    	7Execution Version

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of November 19, 2013 by and between Cyalume Technologies Holdings,
Inc., a Delaware corporation (the “Company”), and US VC Partners, L.P., a Delaware limited partnership (the
“Purchaser”).

 

RECITALS

 

A.                
The Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and
Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “Commission”) under the Securities Act.

 

B.                
The Purchaser wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement,
123,077 units of securities, each security comprising, (i) one (1) share of Series A Convertible Preferred Stock par value $0.001
per share (each a “Share” and, collectively, the “Shares”), of the Company, having the rights
and preferences set forth in the Certificate of Designation filed by the Company with the Secretary of State of Delaware as of
November 18, 2013 (the “Certificate of Designation”) and convertible into fifty (50) shares of the Company’s
common stock par value $0.001 per share (the “Common Stock”, the shares of Common Stock issuable upon conversion
of the Shares (including Preferred Stock Warrant Shares, as defined below) collectively are referred to as the “Conversion
Shares”), (ii) one (1) warrant, in substantially the form attached hereto as Exhibit A-1 (each a “Common Stock
Warrant” and, collectively, the “Common Stock Warrants”), to acquire an additional fifty
(50) shares of Common Stock (the shares of Common Stock issuable upon exercise of or otherwise pursuant to the Common Stock Warrants
collectively are referred to herein as the “Common Stock Warrant Shares”) and (iii) one (1) warrant,
in substantially the form attached hereto as Exhibit A-2 (each a “Preferred Stock Warrant” and, collectively,
the “Preferred Stock Warrants” and together with the Common Stock Warrants, the “Warrants”),
to acquire one (1) additional Share (the Shares issuable upon exercise of or otherwise pursuant to the Preferred Stock Warrants
collectively are referred to herein as the “Preferred Stock Warrant Shares” and together with the Common
Stock Warrant Shares, the “Warrant Shares”).

 

C.                
The Shares, the Conversion Shares, the Warrants and the Warrant Shares collectively are referred to herein as the “Securities”.

 

D.                
Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement, substantially in the form attached hereto as Exhibit B (the “Registration Rights Agreement”),
pursuant to which, among other things, the Company will agree to provide certain registration rights with respect to the Conversion
Shares and the Common Stock Warrant Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable
state securities laws.

 

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

 

ARTICLE I.

DEFINITIONS

 

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

 

“Accredited
Investor” has the meaning set forth in Rule 501(a) under the Securities Act.

 

    	 

    	 

    

 

“Acquiring
Person” has the meaning set forth in Section 4.7.

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls,
is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the
Securities Act. With respect to the Purchaser, any investment fund or managed account that is managed on a discretionary basis
by the same investment manager (or an Affiliate thereof) as the Purchaser will be deemed to be an Affiliate of the Purchaser.

 

“Aggregate Purchase
Price” means $4,000,003.00.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Amended and
Restated JFC Note” means that certain Amended and Restated Promissory Note dated as of November 19, 2013 by and among
the Company as Maker and JFC Technologies, LLC as Payee in substantially the form attached hereto as Exhibit C.

 

“Basic
Amount” means that portion of the Offered Securities identified in an Offer Notice which equals the proportion
that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion of the Shares and/or exercise of the
Warrants, as applicable, and any other Common Stock Equivalents then held, by the Purchaser bears to the total Common Stock of
the Company issued and held, or issuable (directly or indirectly) upon conversion of the Shares and/or exercise of the Warrants,
as applicable, and any other Common Stock Equivalents then held, by all holders of such securities (assuming full conversion and/or
exercise, as applicable, of all Shares, Warrants and other Common Stock Equivalents).

 

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

 

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

 

“Buy-In”
has the meaning set forth in Section 4.1(f).

 

“Buy-In Price”
has the meaning set forth in Section 4.1(f).

 

“Certificate
of Designation” has the meaning set forth in the Recitals.

 

“Closing”
means the closing of the purchase and sale of the Shares and the Warrants on the Closing Date pursuant to Section 2.1.

 

“Closing Bid
Price” means, for any security as of any date, (a) the last reported closing bid price per share for such security on
the Principal Trading Market, as reported by Bloomberg Financial Markets, or, (b) if the Principal Trading Market begins to operate
on an extended hours basis and does not designate the closing bid price then the last bid price of such security prior to 4:00
P.M., New York City time, as reported by Bloomberg Financial Markets, or (c) if the foregoing do not apply, the last closing price
of such security on a Trading Market which the Common Stock is listed or quoted for trading on the date in question as reported
by Bloomberg Financial Markets, or (d) if no closing bid price is reported for such security by Bloomberg Financial Markets, the
average of the bid prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group
Inc. (formerly Pink Sheets LLC). If the Closing Bid Price cannot be calculated for a security on a particular date on any of the
foregoing bases, the Closing Bid Price of such security on such date shall be the fair market value as mutually determined by the
Company and the holder of such security. If the Company and such holder are unable to agree upon the fair market value of such
security, then such dispute shall be resolved pursuant to Section 10 of the Warrants. All such determinations shall be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation
period.

 

    	2

    	 

    

 

“Closing Date”
means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all of the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 hereof are satisfied or waived, as the case
may be, or such other date as the parties may agree.

 

“Commission”
has the meaning set forth in the Recitals.

 

“Common Stock”
has the meaning set forth in the Recitals, and also includes any other class of securities into which the Common Stock may hereafter
be reclassified or changed into.

 

“Common Stock
Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or
other securities that entitle the holder to receive, directly or indirectly, Common Stock.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Counsel”
means Greenberg Traurig, LLP with offices located at 200 Park Avenue, New York, NY 10166.

 

“Company Deliverables”
has the meaning set forth in Section 2.2(a).

 

“Company’s
Knowledge” means with respect to any statement made to the Company’s Knowledge, that the statement is based upon
the actual knowledge of the executive officers of the Company having responsibility for the matter or matters that are the subject
of the statement.

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Conversion
Shares” has the meaning set forth in the Recitals.

 

“Deadline Date”
has the meaning set forth in Section 4.1(f).

 

“Disclosure
Materials” has the meaning set forth in Section 3.1(h).

 

“Disclosure Schedules”
has the meaning set forth in Section 3.1.

 

“DTC”
has the meaning set forth in Section 4.1(d).

 

“Effective Date”
means the date by which a Registration Statement filed by the Company pursuant to Section 2(a) of the Registration Rights Agreement
is first declared effective by the Commission.

 

    	3

    	 

    

 

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

 

“Exempt Issuances”
has the meaning set forth in Section 4.12(j).

 

“GMS”
means GMS Acquisition Partners Holdings, LLC.

 

“Indemnified
Liabilities” has the meaning set forth in Section 4.9(a).

 

“Indemnified
Person” has the meaning set forth in Section 4.9(b).

 

“IRA”
means that certain Investor Rights Agreement by and among the Company and the other persons and entities party thereto, dated as
of December 19, 2008.

 

“JFC Asset Purchase
Agreement” means that certain Asset Purchase Agreement, dated as of August 31, 2011, by and between the Company, Cyalume
Specialty Products, Inc., JFC Technologies, LLC and James G. Schleck, as amended by the Amendment Agreement effective as of December
27, 2012.

 

“JFC Conversion
Amount” has the meaning set forth in Section 4.14.

 

“JFC Note Conversion”
has the meaning set forth in Section 4.14.

 

“Legend Removal
Date” has the meaning set forth in Section 4.1(d).

 

“Legend Removal
Event” has the meaning set forth in Section 4.1(d).

 

“Lien”
means any lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or other restrictions of
any kind.

 

“Material Adverse
Effect” means a material adverse effect on the results of operations, assets, business or financial condition of the
Company and the Subsidiaries, taken as a whole, except that any of the following, either alone or in combination, shall not be
deemed a Material Adverse Effect: (i) effects caused by changes or circumstances affecting general market conditions in the
U.S. economy or which are generally applicable to the industry in which the Company operates, provided that such effects are not
borne disproportionately by the Company, (ii) effects resulting from or relating to the announcement or disclosure of the
sale of the Securities or other transactions contemplated by this Agreement, (iii) effects caused by any event, occurrence
or condition resulting from or relating to the taking of any action by the Company as required in accordance with this Agreement,
(iv) any change in applicable laws or the interpretation thereof, (v) any change in United States generally acceptable accounting
principles or other accounting requirements or principles, or (vi) commencement of a war or material armed hostilities or act of
terrorism directly involving the United States of America.

 

“Material Contract”
means any contract of the Company that has been filed or was required to have been filed, in each case, within the two (2) year
period prior to the date hereof, as an exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Maximum Qualified
Offering Amount” has the meaning set forth in Section 4.13.

 

“Mezzanine Agreement”
means that certain Subordinated Loan Agreement dated as of July 29, 2010 by and among the Company, as Guarantor, Cyalume Technologies,
Inc. as Borrower, the Subsidiary Guarantors (as defined therein), and Granite Creek Partners Agent, LLC as Agent, and the Additional
Lenders (as defined therein), as amended.

 

    	4

    	 

    

 

“New York Courts”
means the state and federal courts sitting in the City of New York, Borough of Manhattan.

 

“Notice of Acceptance”
has the meaning set forth in Section 4.12(b).

 

“Offer”
has the meaning set forth in Section 4.12(a).

 

“Offer Notice”
has the meaning set forth in Section 4.12(a).

 

“Offer Period”
has the meaning set forth in Section 4.12(b).

 

“Offered Securities”
has the meaning set forth in Section 4.12(a).

 

“Omniglow Agreement”
means the Omniglow Agreement entered into by the Company, Cyalume Technologies, Inc., Purchaser and Cova Small Cap Holdings, LLC
in the form attached hereto as Exhibit H.

 

“Original JFC
Note” means that certain Promissory Note dated as of December 31, 2012 by and among the Company as Maker and JFC Technologies,
LLC as Payee.

 

“Outside Date”
means the tenth day following the date of this Agreement.

 

“Payee”
means JFC Technologies, LLC.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Principal Trading
Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading, which, as of
the date of this Agreement and the Closing Date, shall be the OTC Bulletin Board.

 

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

 

“Purchase Price”
means $32.50 per unit, with (i) $32.40 attributable to the Share included therein, (ii) $0.05 attributable to the Common Stock
Warrant included therein to purchase fifty (50) Common Stock Warrant Shares and (iii) $0.05 attributable to the Preferred Stock
Warrant included therein to purchase one Preferred Stock Warrant Share.

 

“Purchaser”
has the meaning set forth in the Preamble.

 

“Purchaser Deliverables”
has the meaning set forth in Section 2.2(b).

 

“Purchaser Party”
has the meaning set forth in Section 4.9.

 

    	5

    	 

    

 

“Purchaser Threshold
Date” means the earlier of the date upon which the Purchaser (together with its Affiliates) holds less than (i) 25% of
the Shares purchased at the Closing, or (ii) 5% of the total outstanding shares of Common Stock (on a fully diluted, as-if converted
basis).

 

“Qualified Offering”
has the meaning set forth in Section 4.13.

 

“Recapitalization”
shall mean any stock dividend, stock split, combination of shares, reorganization, recapitalization, reclassification or other
similar event.

 

“Refinancing
Transaction” means a transaction or series of transactions entered into by the Company pursuant to the refinancing transaction
documents dated as of the date hereof in the forms attached hereto as EXHIBIT C and Exhibit D with respect to (i)
the Senior Loan Agreement, (ii) the Mezzanine Agreement and (iii) the Original JFC Note.

 

“Refused Securities”
has the meaning set forth in Section 4.12(c).

 

“Registration
Rights Agreement” has the meaning set forth in the Recitals.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale by the Purchaser of the Registrable Securities.

 

“Registrable
Securities” has the meaning set forth in the Registration Rights Agreement.

 

“Regulation
D” has the meaning set forth in the Recitals.

 

“Required Approvals”
has the meaning set forth in Section 3.1(e).

 

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

 

“SEC Reports”
has the meaning set forth in Section 3.1(h).

 

“Secretary’s
Certificate” has the meaning set forth in Section 2.2(a)(vii).

 

“Securities”
has the meaning set forth in the Recitals.

 

“Securities
Act” has the meaning set forth in the Recitals.

 

“Selway Issuance”
means the issuance to Selway Capital, LLC of up to $157,500 of Common Stock at a price per share of Common Stock at least equal
to $0.65 (as adjusted for any Recapitalizations) and on terms and conditions approved by the Board, relating to monies owed to
Selway Capital, LLC pursuant to the terms of that certain Management Agreement dated October 1, 2009 by the Company and Selway
Capital, LLC, as amended.

 

“Senior Loan
Agreement” means certain Amended and Restated Revolving Credit and Term Loan Agreement dated as of July 29, 2010 by and
among the Company, as Guarantor, Cyalume Technologies, Inc. as Borrower, the Subsidiary Guarantors (as defined therein), and TD
Bank, N.A. as Agent and Lender, and the Additional Lenders (as defined therein), as amended.

 

“Shares”
has the meaning set forth in the Recitals.

 

    	6

    	 

    

 

“Stock Certificate”
has the meaning set forth in Section 2.2(a)(ii).

 

“Subsequent
Placement” has the meaning set forth in Section 4.12.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, include any subsidiary
of the Company formed or acquired after the date hereof.

 

“Trading Day”
means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market, or (ii) if the Common
Stock is not listed on its Principal Trading Market, a day on which the Common Stock is traded on any Trading Market, or (iii)
if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market
as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC), or any similar organization
or agency succeeding to its functions of reporting prices; provided, that in the event that the Common Stock is not listed
or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, the NYSE MKT LLC (formerly the American Stock Exchange), the NASDAQ Global Select
Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTC Bulletin Board on which the Common Stock is listed or quoted
for trading on the date in question.

 

“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, the Warrants, the Registration Rights Agreement,
the Omniglow Agreement and any other documents or agreements explicitly contemplated hereunder.

 

“Transfer Agent”
means American Stock Transfer & Trust Company, LLC, the current transfer agent of the Company, with
a mailing address of 6201 15th Avenue, Brooklyn, NY 11219, and a facsimile number of (718) 236-4588, or any successor transfer
agent for the Company.

 

“Warrants”
has the meaning set forth in the Recitals.

 

“Warrant Shares”
has the meaning set forth in the Recitals.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1          
Closing.

 

(a)   
Amount. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue
and sell to the Purchaser, one hundred and twenty-three thousand, seventy-seven (123,077) units. Each such unit shall be comprised
of one (1) Share, a Common Stock Warrant to purchase fifty (50) Common Stock Warrant Shares and a Preferred Stock Warrant to purchase
one (1) Preferred Stock Warrant Share. Each Share may be converted into fifty (50) Conversion Shares at any time at the option
of the Purchaser at the Conversion Price as provided in the Certificate of Designation. The Common Stock Warrants shall have an
exercise price equal to $0.65 per Common Stock Warrant Share, subject to adjustment as provided in such Common Stock Warrants.
The Preferred Stock Warrants shall have an exercise price equal to $0.05 per Preferred Stock Warrant Share, subject to adjustment
as provided in such Preferred Stock Warrants.

 

(b)  
Closing. The Closing of the purchase and sale of the Shares and Warrants shall take place at the offices of Cadwalader
Wickersham & Taft, LLP, counsel to the Purchaser, One World Financial Center, New York, New York 10281 on the Closing Date
or at such other location or remotely by facsimile transmission or other electronic means as the parties may mutually agree.

 

    	7

    	 

    

 

(c)   
Form of Payment. On the Closing Date, the Purchaser shall wire the Aggregate Purchase
Price, in United States dollars and in immediately available funds, to a bank account designated by the Company.

 

2.2          
Closing Deliveries.   

 

(a)               
On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to the Purchaser the following (the
“Company Deliverables”):

 

(i)                
this Agreement, duly executed by the Company;

 

(ii)              
One or more original stock certificates, free and clear of all restrictive and other legends
(except as provided in Section 4.1(c) hereof), evidencing the Shares purchased by the Purchaser hereunder, registered in
the name of the Purchaser (the “Stock Certificate”);

 

(iii)            
One or more original (A) Common Stock Warrants, executed by the Company and registered in
the name of the Purchaser, pursuant to which the Purchaser shall have the right to acquire six million, one hundred and fifty-three
thousand, eight hundred and forty-six (6,153,850) Common Stock Warrant Shares issuable to the Purchaser, on the terms set forth
therein and (B) Preferred Stock Warrants, executed by the Company and registered in the name of the Purchaser, pursuant to which
the Purchaser shall have the right to acquire one hundred and twenty-three thousand, seventy-seven (123,077) Preferred Stock Warrant
Shares issuable to the Purchaser, on the terms set forth therein;

 

(iv)            
a legal opinion of Company Counsel, dated as of the Closing Date and in substantially the
form attached hereto as Exhibit E, executed by such counsel and addressed to the Purchaser; 

 

(v)              
the Registration Rights Agreement, duly executed by the Company; 

 

(vi)            
a certificate of the Secretary of the Company (the “Secretary’s Certificate”),
dated as of the Closing Date, (a) certifying the resolutions adopted by the Board of Directors of the Company and the duly authorized
special committee thereof formed for the purposes of assessing the transactions contemplated by this Agreement and the other Transaction
Documents approving such transactions, (b) certifying the current versions of the certificate of incorporation, as amended, and
by-laws of the Company and (c) certifying as to the signatures and authority of persons signing the Transaction Documents and related
documents on behalf of the Company, in the form attached hereto as Exhibit F; 

 

(vii)          
the Compliance Certificate referred to in Section 5.1(i); 

 

(viii)        
a certificate evidencing the good standing of the Company issued by the Secretary of State
of Delaware, as of a date within seven (7) Business Days of the Closing Date; 

 

(ix)            
a certified copy of the certificate of incorporation including the Certificate of Designation,
as certified by the Secretary of State of Delaware, as of a date within seven (7) Business Days of the Closing Date; 

 

(x)              
executed documentation substantially in the form of Exhibit D hereto evidencing the
Refinancing Transaction; and

 

    	8

    	 

    

 

(xi)            
the Omniglow Agreement, duly executed by the Company and Cyalume Technologies, Inc.

 

(b)              
On or prior to the Closing, the Purchaser shall deliver or cause to be delivered to the Company the following (the “Purchaser
Deliverables”):

 

(i)                
this Agreement, duly executed by the Purchaser;

 

(ii)              
the Aggregate Purchase Price, in United States dollars and in immediately available funds,
by wire transfer to an account designated by the Company; 

 

(iii)            
the Registration Rights Agreement, duly executed by the Purchaser; and

 

(iv)            
the Omniglow Agreement, duly executed by Purchaser and Cova Small Cap Holdings, LLC.

 

 ARTICLE III.
 REPRESENTATIONS AND WARRANTIES

 

3.1          
Representations and Warranties of the Company. Except as set forth in the schedules delivered herewith (the “Disclosure
Schedules”), which Disclosure Schedules shall be deemed a part hereof and shall qualify the representations made herein
on the corresponding Section of the Agreement and each other Section or subsection of this Article III, but only to the
extent that it is reasonably and readily apparent that such disclosure is applicable to such other Section or subsection of this
Article III, the Company hereby represents and warrants as of the date hereof and the Closing Date (except for the representations
and warranties that speak as of a specific date, which shall be made as of such date), to the Purchaser:

 

(a)               
Subsidiaries. The Company has no direct or indirect subsidiaries other than those listed in Schedule 3.1(a)
hereto. Except as disclosed in Schedule 3.1(a) hereto, the Company (i) owns, directly or indirectly, all of the capital
stock or comparable equity interests of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding
shares of capital stock or comparable equity interest of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities, and (ii) does not own, directly or indirectly,
any long-term debt of or equity interest in any other Person.

 

(b)              
Organization and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable),
with the requisite corporate power and authority to own or lease and use its properties and assets and to carry on its business
as currently conducted in all material respects. Neither the Company nor any Subsidiary is in violation or default of any of the
provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The
Company and each of its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or
other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be
expected to result in a Material Adverse Effect, and no Proceeding has been instituted, is pending, or, to the Company’s
Knowledge, has been threatened in writing in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit
or curtail such power and authority or qualification.

 

    	9

    	 

    

 

(c)               
Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and
to consummate the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry
out its obligations hereunder and thereunder. The Company’s execution and delivery of each of the Transaction Documents to
which it is a party and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited
to, the sale and delivery of the Shares and the Warrants and the reservation for issuance and the subsequent issuance of the Conversion
Shares upon conversion of the Shares and the Warrant Shares upon exercise of the Warrants) have been duly authorized by all necessary
corporate action on the part of the Company, and no further corporate action is required by the Company, its Board of Directors
or its stockholders in connection therewith other than in connection with the Required Approvals. Each of the Transaction Documents
to which it is a party has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance
with the terms hereof, will constitute the legal, valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

(d)              
No Conflicts. The execution, delivery and performance by the Company of the Transaction Documents to which it is
a party and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation,
the issuance of the Shares and Warrants, the reservation for issuance and issuance of the Conversion Shares and the Warrant Shares
and assuming the filing of the Certificate of Designation with the Delaware Secretary of State) do not and will not (i) conflict
with or violate any provisions of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws
or otherwise result in a violation of the organizational documents of the Company or any Subsidiary, (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would result in a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract, or (iii) subject to the
Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations and the rules and regulations, assuming the correctness of the representations and warranties
made by the Purchaser herein, of any self-regulatory organization to which the Company or its securities are subject, including
all applicable Trading Markets), or by which any property or asset of the Company or a Subsidiary is bound or affected, except
in the case of clauses (ii) and (iii) such as would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect or a material adverse effect on the legality, validity or enforceability of any Transaction Document
or on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document.

 

(e)               
Filings, Consents and Approvals. Except as set forth in Schedule 3.1(e) hereto, neither the Company nor any
of its Subsidiaries is required to obtain any consent, waiver, approval, authorization or order of, give any notice to, or make
any filing or registration with, any court or other federal, state, local or other governmental authority, holder of outstanding
securities of the Company or any Subsidiary or other Person in connection with the execution, delivery and performance by the Company
of the Transaction Documents (including the issuance of the Securities) (collectively, the “Required Approvals”).

 

    	10

    	 

    

 

(f)   
Issuance of the Securities. The Shares have been duly authorized and, when issued and paid for in accordance
with the terms of the Transaction Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of
all Liens, other than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws,
and shall not be subject to preemptive or similar rights. The Warrants have been duly authorized and, when issued and paid for
in accordance with the terms of the Transaction Documents, will be duly and validly issued, free and clear of all Liens, other
than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not
be subject to preemptive or similar rights of stockholders. The Conversion Shares issuable upon conversion of the Shares and the
Warrant Shares issuable upon exercise of the Warrants have been duly authorized and, when issued and paid for in accordance with
the terms of the Transaction Documents and the Warrants, will be duly and validly issued, fully paid and nonassessable, free and
clear of all Liens, other than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities
laws, and shall not be subject to preemptive or similar rights of stockholders. Assuming the accuracy of the representations and
warranties of the Purchaser in this Agreement, the Securities will be issued in compliance with all applicable federal and state
securities laws. As of the Closing Date, the Company shall have reserved from its duly authorized capital stock the number of shares
of Common Stock issuable upon conversion of the Shares and the exercise of the Warrants. The Company shall, so long as any of the
Shares and Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued
capital stock, solely for the purpose of effecting the conversion of the Shares and the exercise of the Warrants, the number of
shares of Common Stock issuable upon conversion of the Shares and exercise of the Warrants.

 

(g)                Capitalization. The
number of shares and type of all authorized, issued and outstanding capital stock, options and other securities of the
Company (whether or not presently convertible into or exercisable or exchangeable for shares of capital stock of the
Company) is set forth in Schedule
3.1(g) hereto. The Company has not issued any capital stock since the date of its most recently filed SEC Report
other than to reflect stock option and warrant exercises or vesting of restricted stock units that do not, individually or in
the aggregate, have a material adverse affect on the issued and outstanding capital stock, options and other securities.  
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents that have not been effectively waived as of the Closing Date.
Except as set forth on Schedule 3.1(g) or a result of the purchase and sale of the Shares and Warrants, there are
no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right
to subscribe for or acquire any shares of Common Stock or Common Stock Equivalents, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or
Common Stock Equivalents. The issuance and sale of the Shares and Warrants will not obligate the Company to issue shares of
Common Stock, Common Stock Equivalents or other securities to any Person (other than the Purchaser) and will not result in a
right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such
securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable,
have been issued in compliance with all applicable federal and state securities laws, and none of such outstanding shares was
issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval
or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the
Securities. Other than the IRA, there are no stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to the Company’s Knowledge, between or
among any of the Company’s stockholders.

 

(h)              
SEC Reports; Disclosure Materials. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”, and the SEC Reports, together with the Disclosure Schedules, being collectively referred
to as the “Disclosure Materials”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension, except where the failure
to file on a timely basis would not have or reasonably be expected to result in a Material Adverse Effect and would not have or
reasonably be expected to result in any limitation or prohibition on the Company’s ability to register the Conversion Shares
and Common Stock Warrant Shares for resale on Form S-1 or on the Purchaser from using Rule 144 to resell any Securities.
As of their respective filing dates, or to the extent corrected by a subsequent amendment, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the
Securities Act. Each of the Material Contracts to which the Company or any Subsidiary is a party or to which the property
or assets of the Company or any of its Subsidiaries are subject has been filed (or incorporated by reference) as an exhibit to
the SEC Reports.

 

    	11

    	 

    

 

(i)                
Certain Fees. No person or entity will have, as a result of the transactions contemplated
by this Agreement, any valid right, interest or claim against or upon the Company or the Purchaser for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. The Purchaser
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this paragraph (i) that may be due in connection with the transactions contemplated by the Transaction
Documents. The Company shall indemnify, pay, and hold the Purchaser harmless against, any liability, loss or expense (including,
without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection with any such right, interest or claim.

 

(j)                
Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2 of this Agreement, no registration under the Securities Act is required for the offer and sale of the Securities by the
Company to the Purchaser under the Transaction Documents. The issuance and sale of the Securities hereunder
does not contravene the rules and regulations of the Principal Trading Market. 

 

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

 

(l)                
Registration Rights. Other than the Purchaser or as set forth in Schedule 3.1(l) hereto, no Person has any
right to cause the Company to effect the registration under the Securities Act of any securities of the Company.

 

(m)            
No Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in
Section 3.2, none of the Company, its Subsidiaries nor, to the Company’s Knowledge, any of its Affiliates or any Person
acting on its behalf has, directly or indirectly, at any time within the past six (6) months, made any offers or sales of any Company
security or solicited any offers to buy any security under circumstances that would (i) eliminate the availability of the exemption
from registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Securities
as contemplated hereby or (ii) cause the offering of the Securities pursuant to the Transaction Documents to be integrated with
prior offerings by the Company for purposes of any applicable law, regulation or stockholder approval provisions, including, without
limitation, under the rules and regulations of any Trading Market on which any of the securities of the Company are listed or designated.

 

    	12

    	 

    

 

(n)              
No General Solicitation. Neither the Company nor, to the Company’s Knowledge, any
person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general
advertising. 

 

(o)              
Acknowledgment Regarding Purchaser’s Purchase of Securities.  The Company acknowledges and agrees that
the Purchaser 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.  The Company further acknowledges that the Purchaser is not acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions
contemplated thereby and any advice given by the Purchaser or any of its respective representatives or agents in connection with
the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the
Securities. The Company further represents to the Purchaser that the Company’s decision to
enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

 

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

 

3.2          
Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof
and as of the Closing Date to the Company as follows:

 

(a)               
Organization; Authority. The Purchaser is an entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and
to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement by the Purchaser and performance by the Purchaser of the
transactions contemplated by this Agreement have been duly authorized by all necessary corporate or, if the Purchaser is not a
corporation, such partnership, limited liability company or other applicable like action, on the part of the Purchaser. Each Transaction
Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance
with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

(b)              
No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the Registration Rights
Agreement and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (i) conflict with
or violate any provisions of the organizational documents of the Purchaser, (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 (with or without notice, lapse of time or both) of, any agreement, indenture or instrument to which
the Purchaser is a party, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, litigation,
decree or other restriction of any court or governmental authority to which the Purchaser is subject (including federal and state
securities laws and regulations) applicable to the Purchaser, 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 the Purchaser to perform on a timely basis its obligations hereunder.

 

    	13

    	 

    

 

(c)               
Investment Intent. The Purchaser understands that the Securities are “restricted securities” and have
not been registered under the Securities Act or any applicable state securities law and is acquiring the Shares and Warrants and,
upon conversion of the Shares and exercise of the Warrants, will acquire the Conversion Shares and the Warrant Shares issuable
upon exercise thereof as principal for its own account and not with a view to, or for distributing or reselling such Securities
or any part thereof in violation of the Securities Act or any applicable state securities laws, provided, however, that
by making the representations herein, the Purchaser does not agree to hold any of the Securities for any minimum period of time
and reserves the right, subject to the provisions of this Agreement and the Registration Rights Agreement, at all times to sell
or otherwise dispose of all or any part of such Securities pursuant to an effective registration statement under the Securities
Act or under an exemption from such registration and in compliance with applicable federal and state securities laws. The Purchaser
is acquiring the Securities hereunder in the ordinary course of its business. The Purchaser does not presently have any agreement,
plan or understanding, directly or indirectly, with any Person to distribute or effect any distribution of any of the Securities
(or any securities which are derivatives thereof) to or through any person or entity; the Purchaser is not a registered broker-dealer
under Section 15 of the Exchange Act or an entity engaged in a business that would require it to be so registered as a broker-dealer.

 

(d)              
Purchaser Status. At the time the Purchaser was offered the Shares and Warrants, it was, and at the date hereof it
is, and on each date on which it elects to convert the Shares and exercises the Warrants it will be, an Accredited Investor. The
Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in financial and
business matters so that such Purchaser is capable of evaluating the merits and risks of the investment in the Shares that it is
purchasing pursuant to this Agreement, is making an informed investment decision with respect thereto and has the capacity to protect
its own interests with respect thereto.

 

(e)               
General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or
other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general advertisement.

 

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

 

(g)               
Residency. The Purchaser’s offices in which its investment decision with respect to the Securities was made are located
at the address immediately below the Purchaser’s name in Section 6.3.

 

The Company and the Purchaser acknowledge
and agree that no party to this Agreement has made or makes any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Article III and the Transaction Documents.

  

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1          
Transfer Restrictions.

 

    	14

    	 

    

 

(a)               
Compliance with Laws. Notwithstanding any other provision of this Article IV, the Purchaser acknowledges that the
Securities may be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements
of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act, and in compliance with any applicable state and federal securities laws. In connection with any transfer
of the Securities other than (i) pursuant to an effective registration statement, (ii) to the Company, (iii) pursuant to Rule 144
(provided that the Purchaser provides the Company with reasonable assurances (in the form of seller and, if applicable,
broker representation letters) that the securities may be sold pursuant to such rule) or (iv) in connection with a bona fide pledge
as contemplated in Section 4.1(c), the Company may require the transferor thereof to provide to the Company, as a condition
to its registration of such Securities in the name of the applicable transferee(s), an opinion of counsel selected by the transferor
and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such transferred Securities under the Securities Act; provided,
that no such opinion shall be required with respect to a transfer of Securities to an Affiliate of Purchaser made in accordance
with Section 4(2) of the Securities Act and/or Rule 506 of Regulation D, and who agrees to be bound by the terms and conditions
of this Agreement.

 

(b)              
Lock-Up. The Purchaser hereby agrees that it will not, without the prior written consent of the Company (such consent not
to be unreasonably withheld, delayed or conditioned), during the period commencing on the Closing Date and ending on the date one
hundred eighty (180) days after the Closing Date lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly
or indirectly, any Securities purchased by the Purchaser pursuant to this Agreement to any party other than an Affiliate of Purchaser
(so long as such Affiliate agrees to abide by the terms of this Section 4.1(b).

 

(c)               
Legends. Certificates evidencing the Securities shall bear any legend as required by the “blue sky” laws of
any state and a restrictive legend in substantially the following form, until such time as they are not required under Section
4.1(d):

 

NEITHER THESE SECURITIES NOR
THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), 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 OR (B) AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES 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.

 

    	15

    	 

    

 

The Company acknowledges
and agrees that the Purchaser may from time to time pledge, and/or grant a security interest in, some or all of the legended Securities
in connection with applicable securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin loan.
Such a pledge would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee,
secured party or pledgor shall be required in connection with the pledge, but such legal opinion shall be required in connection
with a subsequent transfer or foreclosure following default by the Purchaser transferee of the pledge. No notice shall be required
of such pledge, but Purchaser’s transferee shall promptly notify the Company of any such subsequent transfer or foreclosure
of such legended Securities. The Purchaser acknowledges that the Company shall not be responsible for any pledges relating to,
or the grant of any security interest in, any of the Securities or for any agreement, understanding or arrangement between the
Purchaser and its pledgee or secured party. At the Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the
Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act
or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. The Purchaser
acknowledges and agrees that, except as otherwise provided in Section 4.1(d), any Securities subject to a pledge or security
interest as contemplated by this Section 4.1(c) shall continue to bear the legend set forth in this Section 4.1(c)
and be subject to the restrictions on transfer set forth in Section 4.1(a).

 

(d)  
Removal of Legends. The legend set forth in Section 4.1(c) above shall be removed and the Company shall
issue a certificate without such legend or any other legend to the holder of the applicable 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 Securities Act (provided that, if the Purchaser
is selling pursuant to the effective registration statement registering the Securities for resale, such Securities
are sold only during such time that such registration statement is effective and not withdrawn or suspended,
and only as permitted by such registration statement), or (ii) such Securities are sold or transferred pursuant to Rule
144 (if the transferor is not an Affiliate of the Company). Following the Effective Date, if required by the Transfer Agent, the
Company shall cause Company Counsel to issue to the Transfer Agent a legal opinion confirming the occurrence of the registration
of such Securities for resale under the Securities Act. Any fees (with respect to the Transfer Agent, Company Counsel or otherwise)
associated with the issuance of such opinion or the removal of such legend shall be borne by the Company. Following the Effective
Date, or at such earlier time as a legend is no longer required for certain Securities, the Company will no later than three (3)
Trading Days following the delivery by the Purchaser to the Company (with notice to the Company) of (i) a legended certificate
representing Shares, Conversion Shares or Warrant Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise
in form necessary to affect the reissuance and/or transfer) or (ii) an Exercise Notice in the manner stated in the Warrants to
effect the exercise of such Warrant in accordance with its terms, and an opinion of counsel to the extent required by Section
4.1(a) (such third (3rd) Trading Day, the “Legend Removal Date”), deliver or cause to be delivered
to the transferee of the Purchaser or the Purchaser, as applicable, a certificate representing such Securities that is free from
all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent
that enlarge the restrictions on transfer set forth in this Section 4.1(d). Certificates for Shares, Conversion Shares
or Warrant Shares subject to legend removal hereunder may be transmitted by the Transfer Agent to the Purchaser by crediting the
account of the Purchaser’s prime broker with DTC as directed by the Purchaser.

 

(e)   
Acknowledgement. The Purchaser acknowledges its primary responsibilities under the Securities Act and accordingly
will not sell or otherwise transfer the Securities or any interest therein without complying with the requirements of the Securities
Act. While a Registration Statement remains effective, the Purchaser may sell Registrable Securities in accordance with the plan
of distribution contained in such Registration Statement and if it does so it will comply therewith and with the related prospectus
delivery requirements unless an exemption therefrom is available. The Purchaser agrees that if it is notified by the Company in
writing at any time that any Registration Statement registering the resale of Registrable Securities is not effective or that the
prospectus included in such Registration Statement no longer complies with the requirements of Section 10 of the Securities Act,
the Purchaser will refrain from selling such Registrable Securities without the prior written consent of the Company (such consent
not to be unreasonably withheld, delayed or conditioned) until such time as the Purchaser is notified by the Company that such
Registration Statement is effective or such prospectus is compliant with Section 10 of the Securities Act, unless the Purchaser
is able to, and does, sell such Registrable Securities pursuant to an available exemption from the registration requirements of
Section 5 of the Securities Act. Both the Company and its Transfer Agent, and their respective directors, officers, employees and
agents, may rely on this Section 4.1(e) and the Purchaser will indemnify and hold harmless each of such persons from any
breaches or violations of this Section 4.1(e).

 

    	16

    	 

    

 

(f)   
Buy-In. If the Company shall fail for any reason or for no reason to issue to the Purchaser unlegended certificates
within three (3) Trading Days after receipt of all documents necessary for the removal of the legend set forth above (the “Deadline
Date”), then, in addition to all other remedies available to the Purchaser, if on or after the Trading Day immediately
following such three (3) Trading Day period, the Purchaser 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 that the Purchaser anticipated receiving from
the Company without any restrictive legend (a “Buy-In”), then the Company shall, within three (3) Trading Days
after the Purchaser’s request and in the Purchaser’s sole discretion, either (i) pay cash to the Purchaser in an amount
equal to the Purchaser’s total purchase price (including brokerage commissions, 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) shall terminate, or (ii) promptly honor its obligation to deliver to the Purchaser a certificate
or certificates representing such shares of Common Stock and pay cash to the Purchaser 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 Deadline
Date. 

 

4.2          
Reservation of Common Stock. The Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance from and after the Closing Date, the number of shares of Common Stock issuable upon conversion
of the Shares and exercise of the Warrants issued at the Closing.

 

4.3          
Furnishing of Information. In order to enable the Purchaser to sell the Securities under Rule 144, until the date that
the Conversion Shares and Common Stock Warrant Shares cease to be Registrable Securities (as defined in the Registration Rights
Agreement), the Company shall use its reasonable best efforts to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange
Act. During such period, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish
to the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to
sell the Securities under Rule 144.

 

4.4          
Warrant Exercise Procedures. The totality of the procedures required of the Purchaser in order to exercise its Warrants
are as set forth in the Warrants. Subject to compliance with the terms of the Transaction Documents, no additional legal opinion
or other information or instruction not otherwise specified therein shall be required of the Purchaser to exercise the Warrants.
The Company shall honor exercises of the Warrants, and shall deliver Warrant Shares, in each case, in accordance with the terms,
conditions and time periods set forth in the Transaction Documents.

  

    	17

    	 

    

 

4.5          
Share Conversion Procedures. The totality of the procedures required of the Purchaser in order to convert its Shares
are as set forth in the Certificate of Designation. Subject to compliance with the terms of the Transaction Documents, no additional
legal opinion or other information or instruction not otherwise specified therein shall be required of the Purchaser to convert
the Shares. The Company shall honor conversions of the Shares, and shall deliver Conversion Shares, in each case, in accordance
with the terms, conditions and time periods set forth in the Transaction Documents and the Certificate of Designation.

 

4.6          
Integration. The Company shall not, and shall use its reasonable best efforts to ensure that no Affiliate of the
Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section
2 of the Securities Act) that will be integrated with the offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities to the Purchaser, or that will be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior
to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

4.7          
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any
other Person, that the Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, in either
case solely by virtue of receiving Securities under the Transaction Documents or under any other written agreement between the
Company and the Purchaser.

 

4.8          
Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares and Warrants in accordance with
the terms of the Refinancing Transaction (and, in the case of any proceeds remaining after the Refinancing Transaction, for working
capital and other general corporate purposes) and shall not use such proceeds for: (a) the redemption of any Common Stock
or Common Stock Equivalents or (b) the payment of dividends or distributions to the holders of the Company’s Common Stock.

 

4.9          
Indemnification of Purchaser.

 

(a)   
Indemnification of Purchaser. In consideration of the Purchaser’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, subject to the provisions of this Section 4.9, the Company will defend, protect, indemnify and hold the
Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners, employees (and any other Persons with a functionally equivalent role of a Person
holding such titles notwithstanding a lack of such title or any other title) of such controlling persons and direct or indirect
investors and any of the foregoing Persons’ agents or other representatives (each, a “Purchaser Party”)
harmless from and against any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including
all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (“Indemnified
Liabilities”) that any such Purchaser Party may suffer or incur as a result of or relating to (i) any breach of
any of the representations or warranties made by the Company in this Agreement or in any of the other Transaction Documents, (ii)
any breach of any covenants or agreements made by the Company in this Agreement or in any of the other Transaction Documents, or
(iii) any cause of action, suit, proceeding or claim (including for these purposes a derivative action brought on behalf of
the Company) instituted against the Company, any Purchaser Party, or the Purchaser in any capacity, or any of them or their respective
Affiliates, by any Person who is not an Affiliate of the Purchaser seeking indemnification, with respect to or arising out of the
negotiation, authorization, approval, execution, delivery, performance or enforcement of any of the transactions contemplated by
the Transaction Documents (unless such action is based upon a breach of the Purchaser’s representations, warranties or covenants
under the Transaction Documents or any agreements or understandings the Purchaser may have with any such stockholder or any violations
by the Purchaser of state or federal securities laws or any conduct by the Purchaser which constitutes fraud or willful misconduct).
To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

    	18

    	 

    

 

(b)  
Indemnification Procedures. Promptly after receipt by any such Person (the “Indemnified Person”)
of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding
or investigation in respect of which indemnity may be sought pursuant to this Section 4.9, such Indemnified Person shall
promptly notify the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably
satisfactory to such Indemnified Person, and shall assume the payment of all such Indemnified Liabilities and any and all other
fees and expenses relating to such proceeding; provided, however, that the failure of any Indemnified Person so to notify
the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually prejudiced
by such failure to notify. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company and the Indemnified
Person have mutually agreed to the retention of such counsel; (ii) the Company shall have failed promptly to assume the defense
of such proceeding and to employ counsel reasonably satisfactory to such Indemnified Person in such proceeding; or (iii) in the
reasonable judgment of counsel to such Indemnified Person, representation of both parties by the same counsel may be inappropriate
due to actual or potential differing interests between them. The Company shall keep such Indemnified Persons reasonably apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable
for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed
or conditioned. Without the prior written consent of the Indemnified Person, in its sole discretion, the Company shall not effect
any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party
and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release
of such Indemnified Person from all liability arising out of such proceeding and in no event shall such settlement include any
non-monetary limitation on the actions of any Indemnified Person or any of its Affiliates or any admission of fault or liability
on behalf of any such Indemnified Person.

 

(c)   
Survival of Representations and Warranties; Limitations on Indemnification. All representations and warranties of
the Company contained in this Agreement or any of the other Transaction Documents, shall survive the Closing hereunder for a period
of eighteen (18) months after the Closing Date. The aggregate amount required to be paid by the Company pursuant to Section 4.9(a)(i)
shall not exceed in the aggregate the Aggregate Purchase Price.

 

4.10          
Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the Securities as required
under Regulation D and to provide a copy thereof, promptly upon the written request of the Purchaser. The Company shall take
such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities
for sale to the Purchaser 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 such actions promptly upon the written request of the
Purchaser.

 

    	19

    	 

    

 

4.11          
Delivery of Shares and Warrants At Closing. On the Closing Date, the Company shall deliver, or cause to be delivered,
the Shares and Warrants purchased by the Purchaser to the Purchaser.

 

4.12         
Participation Rights. Except for Exempt Issuances, from the Closing Date until the Purchaser Threshold Date, the
Company shall not, directly or indirectly, issue, offer, sell, grant any option or right to purchase or otherwise dispose of (or
announce any offer, sale, grant of any option or right to purchase or other disposition of) any Common Stock, Common Stock Equivalents
or other equity security of the Company (any such issuance, offer, sale, grant, disposition or announcement being referred to as
a “Subsequent Placement”) unless the Company shall have first complied with this Section 4.12. The Company
acknowledges and agrees that the right set forth in this Section 4.12 is a right granted by the Company to the Purchaser;
provided that in accordance with Section 6.6, Purchaser may assign such rights, in whole or in part, to any (i) Affiliate
of the Purchaser or (ii) any venture capital, private equity or other investment fund now or hereafter existing which is controlled
by one or more general partners or managing members of, or shares the same management company with, Purchaser or its Affiliates.

 

(a)   
Subject to Section 4.12(d), the Company shall deliver, at least ten (10) Business Days prior to the closing of a
Subsequent Placement, to the Purchaser, a written notice (the “Offer Notice”) of such proposed sale (the “Offer”)
of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall
(i) identify and describe the Offered Securities, (ii) describe the price and other terms upon which they are to be sold, and the
number or amount of the Offered Securities to be sold and (iii) offer to sell to the Purchaser the Basic Amount.

 

(b)  
To accept an Offer, in whole or in part, the Purchaser must deliver a written notice to the Company prior to the end of
the tenth (10th) Business Day after the Purchaser’s receipt of the Offer Notice (the “Offer Period”),
setting forth all or less than all of the portion of the Basic Amount that the Purchaser elects to purchase (the “Notice
of Acceptance”).

 

(c)   
The Company shall have 60 days from the expiration of the Offer Period above to offer or sell all or any part of such Offered
Securities as to which a Notice of Acceptance has not been given by the Purchaser (the “Refused Securities”)
in such Subsequent Placement, but only upon terms and conditions (including, without limitation, the total amount of the shares,
financing, unit prices and interest rates) that are not more favorable to the acquiring person or persons or less favorable to
the Company than those set forth in the Offer Notice.

 

(d)  
Notwithstanding the foregoing, the Company may, at its election, choose to comply with this Section 4.12 after the
closing of a Subsequent Placement by offering to the Purchaser, within five (5) Business Days after the closing of such Subsequent
Placement, its Basic Amount of the Offered Securities and shall provide the Purchaser with the opportunity to purchase such Offered
Securities in accordance with the timing provisions set forth herein.

 

(e)   
In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and
on the terms specified in Section 4.12(c) above), then the Purchaser may, at its sole option and in its sole discretion,
reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less
than the number or amount of the Offered Securities that the Purchaser elected to purchase pursuant to Section 4.12(b) above
multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes
to issue, sell or exchange (including Offered Securities to be issued or sold to Purchaser pursuant to this Section 4.12
prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities. In the event
that the Purchaser so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company
may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities
have again been offered to the Purchaser in accordance with Section 4.12(a) above.

 

    	20

    	 

    

 

(f)   
Upon the closing of the sale of all or less than all of the Refused Securities, the Purchaser shall acquire from the Company,
and the Company shall issue to the Purchaser, the number or amount of Offered Securities specified in its Notices of Acceptance,
as reduced pursuant to Section 4.12(e) above if the Purchaser have so elected, upon the terms and conditions specified in
the Offer.

 

(g)   
Any Offered Securities not acquired by the Purchaser or other persons in accordance with Section 4.12(b) above may
not be sold until they are again offered to the Purchaser under the procedures specified in this Section 4.12.

 

(h)  
The Company and the Purchaser agree that if the Purchaser elects to participate in the Offer, neither the securities purchase
agreement, placement agreement or any other definitive agreement with respect to such Offer shall include any term or provision
whereby the Purchaser shall be required to consent to any amendment to or termination of, or grant any waiver, release or the like
under or in connection with, any agreement previously entered into with the Company or any instrument received from the Company.

 

(i)    
Notwithstanding anything to the contrary in this Section 4.12 and unless otherwise agreed to by the Purchaser, the
Company shall either (A) promptly confirm in writing to the Purchaser that the transaction with respect to the Subsequent Placement
has been abandoned or (B) within four (4) business days following the consummation of the issuance of the Offered Securities, publicly
disclose such issuance of the Offered Securities. Following the delivery of any confirmation by the Company to the Purchaser pursuant
to clause (A) above, the Company shall, upon the Purchaser’s request, publicly disclose such information as may be required
to be disclosed in order for the Purchaser not to be in possession of any material, non-public information regarding the Company.

 

(j)    
The restrictions contained in this Section 4.12 shall not apply to the issuance of any Common Stock or Common Stock
Equivalents issued or issuable by the Company: (i) to employees, officers, consultants or directors for services provided to the
Company that are approved by the Company’s Board of Directors; (ii) upon the exercise or exchange of or conversion of any
Securities (including the Preferred Stock Warrant and the Preferred Stock Warrant Shares) issued hereunder or any Common Stock
or Common Stock Equivalents outstanding as of the date hereof; (iii) pursuant to the Qualified Offering, the Mezzanine Agreement
as amended by that certain amendment dated of the date hereof in the form attached hereto as Exhibit D, the JFC Asset Purchase
Agreement or, the Amended and Restated JFC Note, in each case, as in effect as of the date hereof, or pursuant to the Selway Issuance,
or the exercise of Common Stock Equivalents issued in respect of such transactions in accordance with clause (iii); provided that
such securities are not amended after the date hereof to increase the number of shares of Common Stock issuable thereunder or to
lower the exercise or conversion price thereof; (iv) for consideration other than cash pursuant to a bona fide, arm’s length
merger, consolidation acquisition or similar business combination approved by the Board of Directors, (v) in connection with the
payment of dividends on the outstanding Shares in the form of additional Shares, or (vi) in connection with any stock split, stock
dividend or recapitalization of the Company (collectively, the “Exempt Issuances”).

 

4.13         
Qualified Offering. The Company shall, as soon as practicable following the Closing, offer to Accredited Investors
that are existing shareholders of the Company (other than the Purchaser), up to 76,923 units of securities of the Company, with
each such unit comprised of (i) one (1) Share, (ii) a Common Stock Warrant to purchase fifty (50) Common Stock Warrant Shares and
(iii) a Preferred Stock Warrant to purchase one (1) Preferred Stock Warrant Share (the “Maximum Qualified Offering Amount”)
at an aggregate purchase price of $32.50 for each unit. To the extent such existing shareholders of the Company do not acquire
the entire Maximum Qualified Offering Amount, the Company shall offer any such portion of the Maximum Qualified Offering Amount
not so purchased by existing shareholders to other Accredited Investors reasonably acceptable to the Purchaser. The transactions
described in the first two sentences of this Section 4.13 shall be collectively referred to herein as the “Qualified
Offering”. Closing of the Qualified Offering shall occur on or before the date that is one hundred and twenty (120) days
following the Closing Date. For the avoidance of doubt, securities issued pursuant to the Qualified Offering will not be subject
to the participation rights granted by the Company to the Purchaser pursuant to Section 4.12.

 

    	21

    	 

    

 

4.14         
JFC Note Conversion. Concurrent with the Closing, the Company may offer the Payee an option to convert up to $1,000,000
of the Company’s indebtedness to the Payee pursuant to the Amended and Restated JFC Note (the “JFC Conversion Amount”)
into equity of the Company (“the JFC Note Conversion”), such that prior to the payment of all outstanding amounts
due and payable under the Amended and Restated JFC Note, Payee shall be entitled to convert (i) up to $499,980 of the outstanding
balance of the Amended and Restated JFC Note into 15,384 units of securities of the Company, with each such unit comprised of (x)
one (1) Share, (y) a Common Stock Warrant to purchase fifty (50) Common Stock Warrant Shares and (z) a Preferred Stock Warrant
to purchase one (1) Preferred Stock Warrant Share and (ii) a portion of the outstanding balance of the balance of the Amended and
Restated JFC Note up to the JFC Conversion Amount into Shares at a conversion price of $32.50 per Share; provided, that to the
extent Payee elects to convert in excess of $499,980 of the JFC Conversion Amount into Shares, the Company shall not permit or
give effect to such conversion unless and until Payee grants to the Purchaser a proxy, in form and substance acceptable to Purchaser,
to vote (whether at a meeting or by written consent) all of the Shares issued to Payee (including upon exercise of the Warrant)
in excess of the 15,384 Shares issuable upon the conversion of the first $499,980 of the JFC Conversion Amount. For the avoidance
of doubt, securities issued pursuant to this Section 4.14 shall not be included in calculating the Maximum Qualified Offering
Amount and will not be subject to the participation rights granted by the Company to the Purchaser pursuant to Section 4.12.

 

4.15         
Securities Law Disclosure; Publicity. No public release or announcement concerning the transactions contemplated
hereby or by any other Transaction Document shall be issued by the Company or Purchaser without the prior written consent of the
Company (in the case of a release or announcement by Purchaser) or Purchaser (in the case of a release or announcement by the Company)
(which consents shall not be unreasonably withheld, conditioned or delayed), except for any such release or announcement as may
be required by law or the applicable rules or regulations of any securities exchange or securities market, in which case the Company
or Purchaser, as the case may be, shall allow Purchaser or the Company, as applicable, to the extent reasonably practicable in
the circumstances, reasonable time to comment on such release or announcement in advance of such issuance. The provisions of this
Section 4.15 shall not restrict the ability of the Company to summarize or describe the transactions contemplated by this
Agreement in any prospectus or similar offering document so long as Purchaser is provided a reasonable opportunity to review and
comment on such disclosure in advance of the filing or other public dissemination of any such document. Notwithstanding anything
herein to the contrary, from and after the Closing, the parties acknowledge and agree that Purchaser and its Affiliates may provide
general information about the subject matter of this Agreement in connection with Purchaser’s or its Affiliates’ and
affiliated investment funds’ normal fund raising, marketing, informational or reporting and communication activities; provided
that Purchaser shall not provide any material non-public information regarding the Company pursuant to this sentence.

 

    	22

    	 

    

 

ARTICLE
V. 

CONDITIONS PRECEDENT TO
CLOSING

5.1          
Conditions Precedent to the Obligations of the Purchaser to Purchase Securities. The obligation of the Purchaser
to acquire Shares and Warrants at the Closing is subject to the fulfillment to the Purchaser’s satisfaction, on or prior
to the Closing Date, of each of the following conditions, any of which may be waived by the Purchaser:

 

(a)          
Representations and Warranties. The representations and warranties made by the Company contained herein shall be true and
correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which
case such representations and warranties shall be true and correct in all respects) as of the date when made and as of the Closing
Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date.

 

(b)          
Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

 

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

 

(d)          
Consents. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and
waivers necessary for consummation of the purchase and sale of the Securities (including all Required Approvals), all of which
shall be and remain so long as necessary in full force and effect.

 

(e)          
Adverse Changes. No event or series of events shall have occurred that has had or would reasonably be expected to have a
Material Adverse Effect.

 

(f)          
No Suspensions of Trading in Common Stock. The Common Stock shall not have been suspended, as of the Closing Date, by the
Commission or the Principal Trading Market from trading on the Principal Trading Market nor shall suspension by the Commission
or the Principal Trading Market have been threatened, as of the Closing Date, either (A) in writing by the Commission or the Principal
Trading Market or (B) by falling below the minimum listing maintenance requirements of the Principal Trading Market.

 

(g)          
Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

 

(h)          
Compliance Certificate. The Company shall have delivered to the Purchaser a certificate, dated as of the Closing Date and
signed by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment
of the conditions specified in Sections 5.1(a) and (b) in the form attached hereto as Exhibit G.

 

(i)          
Refinancing. The Company shall, concurrent with the Closing, have consummated the Refinancing Transaction in accordance
with the terms thereof.

 

(j)          
Approvals. The Purchaser shall have obtained the requisite approvals to enter into the transactions contemplated by this
Agreement and the other Transaction Documents.

 

 

    	23

    	 

    

 

(k)          
Omniglow Agreement. The Company, Cyalume Technologies, Inc., Purchaser and Cova
Small Cap Holdings, LLC shall have executed and delivered the Omniglow Agreement.

 

5.2          
Conditions Precedent to the Obligations of the Company to sell Securities. The Company's obligation to sell and issue
the Shares and Warrants at the Closing to the Purchaser is subject to the fulfillment to the satisfaction of the Company, on or
prior to the Closing Date, of each of the following conditions, any of which may be waived by the Company:

 

(a)          
Representations and Warranties. The representations and warranties made by the Purchaser contained herein shall be true
and correct in all material respects (except for those representations and warranties which are qualified as to materiality, in
which case such representations and warranties shall be true and correct in all respects) as of the date when made, and as of the
Closing Date as though made on and as of such date, except for representations and warranties that speak as of a specific date.

 

(b)          
Performance. The Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Purchaser at or prior to
the Closing Date.

 

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

 

(d)          
Purchaser Deliverables. The Purchaser shall have delivered the Purchaser Deliverables in accordance with Section 2.2(b).

 

(e)          
Termination.This Agreement shall not have been terminated as to the Purchaser in accordance with Section 6.17.

 

ARTICLE VI.

MISCELLANEOUS

 

6.1          
Fees and Expenses. Except (i) as otherwise provided in this Agreement, and (ii) for certain expenses of the Purchaser
paid by the Company prior to the date hereof, each of the Company and the Purchaser shall bear and pay for all of its own fees
and expenses of such party and their respective advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party, in connection with the due diligence with respect to, and negotiation, preparation, execution, delivery
and performance of, this Agreement and the other Transaction Documents; provided, however, that in the event that the Closing shall
take place, then all such fees and expenses of the Company and the Purchaser shall be paid by the Company. The Company shall pay
all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Securities
to the Purchaser.

 

6.2          
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions
and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchaser will execute
and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention
of the parties under the Transaction Documents.

 

    	24

    	 

    

 

6.3          
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via email or facsimile (provided the facsimile sender receives a machine-generated confirmation of successful
transmission) at the email address or facsimile number specified in this Section 6.3 prior to 5:00 P.M., New York City time,
on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via email
or facsimile (provided the facsimile sender receives a machine-generated confirmation of successful transmission) at the email
address or facsimile number specified in this Section 6.3 on a day that is not a Trading Day or later than 5:00 P.M., New
York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service specifying with business next day delivery, or (d) upon actual receipt by the party to whom such notice is required
to be given, if by hand delivery. The address for such notices and communications shall be as follows:

 

If to the Company:

 

Cyalume Technologies
Holdings, Inc.

96 Windsor Street

West Springfield, Massachusetts 01089

Attention: Zivi Nedivi

Telephone No.:
(413) 858-2500

Facsimile No.: (413) 736-5737

E-mail: znedivi@cyalume.com

 

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

 

Greenberg Traurig,
P.A.

401 East Las Olas Boulevard, Suite 2000

Fort Lauderdale, Florida 33301

Telephone No.: (954) 765-0500

Facsimile No.: (954) 765-1477

Attention: Bruce I. March, Esq.

E-mail: marchb@gtlaw.com

 

If to the Purchaser:

 

US VC Partners,
L.P.

c/o Columbus Nova

900 Third Avenue, 19th Floor

New York, New York 10022

Attention: Andrew Intrater

Telephone No.: (413) 858-2500

Facsimile No.:(413) 736-5737

E-mail: aintrater@columbusnova.com

 

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

 

Cadwalader Wickersham
& Taft LLP

1 World Financial Center

New York, New York 10281

Telephone No.: (212) 504-6000

Facsimile No.: (212) 504-6666

Attention: Geoffrey Levin, Esq.

E-mail: Geoffrey.levin@cwt.com

 

or such other address as
may be designated in writing hereafter, in the same manner, by such Person.

 

    	25

    	 

    

 

6.4          
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed, in the case of an amendment, by the Company and the Purchaser. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission
of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

6.5          
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall
not be deemed to limit or affect any of the provisions hereof. 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. This
Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the other Transaction Documents.

 

6.6          
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties
and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by either
party without the prior written consent of the other party, provided, that the Purchaser may assign its rights hereunder
in whole or in part to (i) any Affiliate of the Purchaser or (ii) any venture capital, private equity or other investment fund
now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management
company with, Purchaser or its Affiliates, to whom the Purchaser assigns or transfers any Securities in compliance with the Transaction
Documents and applicable law, provided such transferee shall agree in writing to be bound, with respect to the transferred Securities,
by the terms and conditions of this Agreement and any Transaction Documents that apply to the Purchaser.

 

6.7          
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person,
except each Purchaser Party is
an intended third party beneficiary of Section 4.9.

 

6.8          
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to
the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that
it is not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper
or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served
in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
OTHER TRANSACTIONS CONTEMPLATED HEREBY.

 

    	26

    	 

    

 

6.9          
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect
as if such facsimile signature page were an original thereof.

 

6.10       
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby
and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

 

6.11       
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) the Transaction Documents, whenever the Purchaser exercises a material 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 the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

6.12       
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company and the Transfer Agent of such loss, theft or destruction and the execution by the holder thereof of a customary
lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for
any losses in connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is required by the
Transfer Agent. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party
costs associated with the issuance of such replacement Securities. If a replacement certificate or instrument evidencing any Securities
is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition
precedent to any issuance of a replacement.

 

6.13       
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, the Purchaser will be entitled to specific performance under the Transaction Documents. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations by the Company as described
in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in
connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

6.14       
Payment Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any Transaction
Document or the Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    	27

    	 

    

 

6.15       
Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable
in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly
or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and
prior to the Closing, each reference in any Transaction Document to a number of shares or a price per share shall be deemed to
be amended to appropriately account for such event.

 

6.16      
 Purchase Price Adjustment. Any indemnification payment made under this Agreement shall be treated as an adjustment
to the Aggregate Purchase Price for all tax purposes, except as otherwise required by applicable law.

 

6.17       
Termination. This Agreement may be terminated and the sale and purchase of the Shares and the Warrants abandoned
at any time prior to the Closing by either the Company or the Purchaser upon written notice to the other, if the Closing has not
been consummated on or prior to 5:00 P.M., New York City time, on the Outside Date; provided, however, that the right to
terminate this Agreement under this Section 6.17 shall not be available to any Person whose failure to comply with its obligations
under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time. Nothing in
this Section 6.17 shall be deemed to release any party from any liability for any breach by such party of the terms and
provisions of this Agreement or the other Transaction Documents or to impair the right of Purchaser to compel specific performance
by the Company of its obligations under this Agreement or the other Transaction Documents. Upon a termination in accordance with
this Section 6.17, the Company and the Purchaser shall not have any further obligation or liability (including arising from
such termination) to the other. The Company and the Purchaser may extend the term of this Agreement in accordance with the amendment
provisions of Section 6.4 herein.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	28

    	 

    

 

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

 

	 	CYALUME TECHNOLOGIES HOLDINGS, INC.
	 	 	 
	 	 	 
	 	By:	 /s/ Zivi Nedivi
	 	 	Name: Zivi Nedivi
	 	 	Title: Chief Executive Officer
	 	 	 
	 	 	 
	 	US VC PARTNERS, L.P.
	 	 	 
	 	 	 
	 	By:	 /s/ Andrew Intrater
	 	 	Name: Andrew Intrater
	 	 	Title: Chief Executive Officer

 

    	 

    	 

    

 

EXHIBITS:

 

		A-1:	Form of Common Stock Warrant

		A-2:	Form of Preferred Stock Warrant

		B:	Form of Registration Rights Agreement

		C:	Amended and Restated JFC Note

		D:	Loan Agreement and Mezzanine Agreement Amendment Evidencing
Refinancing

		E:	Form of Opinion of Company
Counsel

		F:	Form of Secretary’s Certificate

		G:	Form of Officer’s Certificate

		H:	Omniglow Agreement

 

 

SCHEDULES:

 

		3.1(a)	Subsidiaries

		3.1(g)	Capitalization

		3.1(l)	Registration Rights

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]