Document:

Exhibit

Exhibit 10.17

EXECUTION VERSION

THIS REVOLVING NOTE AMENDS AND RESTATES THAT CERTAIN REVOLVING NOTE DATED AUGUST 7, 2015

REVOLVING NOTE
	
		
	 
	New York, New York

	30,000,00.00
	March 29, 2017

FOR VALUE RECEIVED, Voltari Corporation (together with its successors and assigns, the “Borrower”), HEREBY UNCONDITIONALLY PROMISES TO PAY to, or to the order of, Koala Holding LP (together with its successors and assigns, the “Lender”), on the terms hereinafter set forth, the principal sum of THIRTY MILLION DOLLARS ($30,000,000.00), or such greater or lesser amount as is outstanding from time to time as set forth on Schedule 1 hereto, together with interest thereon for such periods, on such dates and at such rates as set forth in this Revolving Note (this “Note”).
1.Interest.  The principal amount of each borrowing under this Note outstanding from time to time as set forth on Schedule 1 hereto (each, a “Borrowing”) shall bear interest at a rate equal to the LIBOR Rate (defined below) plus 200 basis points, per annum, subject to a maximum rate of interest of 3.75%, which simple interest shall accrue daily and be computed on the basis of the actual number of days elapsed over a 360-day year.  Such interest shall commence to accrue on the date each Borrowing is made and shall be due and paid in arrears on the Maturity Date or the Extended Maturity Date, as the case may be (each as defined below) or such earlier date as principal, interest, and/or other amounts shall become due and payable pursuant to the terms hereof (provided that if any such day is not a Business Day (as hereinafter defined), such payment shall be made on the immediately following Business Day with no additional interest accruing thereon, if so made). To the extent any payment of interest is made prior to 12:00 noon (New York City time) on the date of such payment, no interest shall accrue on such date with respect to such payment. To the extent any payment of interest is made after 12:00 noon (New York City time) on the date of such payment, interest shall accrue and be payable on such date with respect to such payment.
Notwithstanding the foregoing, during any period in which an Event of Default (as defined below in Section 9) exists, the principal amount of each Borrowing outstanding under this Note shall bear interest at a rate equal to the greater of (x) the LIBOR Rate plus 300 basis points, per annum and (y) 4.5%, per annum (such rate, the “Default Rate”), which simple interest shall be computed on the basis of the actual number of days elapsed over a 360-day year. Any amounts payable hereunder that are not paid when due (whether principal, interest, or other amounts) shall, to the fullest extent permitted by applicable law, also bear interest at the Default Rate. Anything contained in this Note or any other related document to the contrary notwithstanding, the Lender does not intend to charge, and the Borrower shall not be required to pay, whether under this Note or any other related document, any amount of interest that would be deemed usurious, or is otherwise in excess of the maximum amount permitted under applicable law, and the Lender shall, at the Lender’s discretion, either return any such excess amount or same shall be credited against the principal or other amounts due hereunder.
As used in this Note, the term “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York City, New York are authorized or required by law to close.
As used in this Note, the term “LIBOR Rate” means, with respect to any Borrowing under this Note, the rate appearing on Bloomberg’s British Banker’s Association rate page (or on any successor or substitute page) at approximately 11:00 a.m., London time, one Business Day prior to the disbursement of funds in respect of such Borrowing, as the rate for U.S. dollar deposits for a period equal to six (6) months. In the event that such rate is not available on such page at such time for any reason, then the “LIBOR Rate” with respect to such Borrowing under this Note shall be determined by reference to any analogous page of another quotation service providing quotations comparable to those currently provided on such page for interest rates applicable to U.S. dollar deposits in the London interbank market, as reasonably determined by the Lender.
2.    Maturity Date.  The outstanding principal amount under this Note, together with all then accrued but unpaid interest thereon, and any other amounts then due and payable hereunder, shall be due and paid by the Borrower on the earliest of (i) December 31, 2020, (ii) the date on which any financing transaction, whether for debt or equity, is consummated by the Borrower with net proceeds in an amount equal to or greater than $30,000,000, and (iii) a date selected by the Borrower that is prior to December 31, 2020, provided such date is contained in a written notice delivered to the Lender at least two Business Days prior to such earlier date (the earliest of such dates, the “Maturity Date”).  Except as provided in Section 3 below, no further Borrowings shall be permitted after the Maturity Date.
3.    Extension of Maturity Date.
(a)The Borrower may, by written notice to the Lender not more than 60 days and not less than 30 days prior to the Maturity Date, request that the Lender extend the Maturity Date until December 31, 2022 (the “Extended Maturity Date”).
(b)    The Lender, in its sole discretion, shall, by written notice to the Borrower given on or before the date that is 20 days prior to the current Maturity Date (the “Consent Date”), advise the Borrower whether the Lender agrees to such Extended Maturity Date.  If the Lender fails to provide written notice of consent by the Consent Date, the current Maturity Date shall remain in effect.
(c)    If the Lender consents to the Extended Maturity Date by the Consent Date, then the Commitment (or Increased Commitment, as such terms are defined below) shall remain effective until, and all Borrowings outstanding hereunder shall be due and payable, along with accrued interest and any fees and expenses on, the Extended Maturity Date.
4.    Commitment; Requests for Borrowing.  From time to time following the date hereof through the Maturity Date, or Extended Maturity Date, as the case may be, the Borrower may make one or more written requests to borrow from the Lender principal amounts under this Note up to a maximum amount not to exceed, together with the principal amount of all Borrowings then outstanding under this Note, THIRTY MILLION DOLLARS ($30,000,000.00) in the aggregate (the “Commitment”).  Such Borrowings shall be in increments of $500,000 each, or whole multiples of $500,000 in excess thereof, (or if the then aggregate amount available for borrowing under this Note is less than $500,000, such aggregate lesser amount). Within two (2) Business Days following the Lender’s receipt of any such borrowing request, the Lender shall arrange to lend and disburse such monies to the Borrower so long as, and to the extent, the aggregate principal amount of all Borrowings outstanding under this Note, after giving effect to such Borrowing, does not exceed the Commitment.
Simultaneously with the making of any Borrowing or the repayment of any Borrowing (as provided below in Section 6) hereunder, the Lender shall update Schedule 1 hereto accurately to reflect any amounts so borrowed or repaid and the aggregate principal amount of all Borrowings outstanding under this Note after giving effect thereto and, upon approval thereof by the Borrower, the Lender and the Borrower shall each affix the initials of their respective authorized representatives to such updated Schedule 1, which shall thereafter constitute prima facie evidence of the aggregate principal amount of all Borrowings outstanding hereunder.
Disbursement of any monies by the Lender in connection with the making of a Borrowing hereunder shall be made to the Borrower by wire transfer of immediately available funds in accordance with the instructions that the Borrower specifies to the Lender in the applicable written request.  The net proceeds from any Borrowings in excess of $10,000,000 shall be used for the acquisition, improvement, development, modification, alteration, repair, maintenance, financing or leasing of real property, including any fees and expenses associated with such activities. 
5.    Increase in Commitment.
(a)    Notwithstanding anything to the contrary contained in Section 4, the Borrower may, by written notice to the Lender at any time and from time to time prior to the Maturity Date or Extended Maturity Date, as the case may be, request that the Commitment be increased by an amount specified in such notice (the “Increased Commitment”); provided that in no event shall the aggregate amount of all Borrowings plus availability of the aggregate Increased Commitment exceed $80,000,000.
(b)    The Increased Commitment shall be available to the Borrower upon the (i) notation by the Lender on Schedule 1 attached hereto of such Increased Commitment and (ii) initialing of such Schedule 1 by the Borrower in the column marked “Current Commitment (including any Increased Commitment”).  The Lender shall have no obligation to provide any such increase and may refuse to provide such increase in its absolute and sole discretion.
6.    Repayments and Reborrowings.  The Borrower may repay all or any portion of the Borrowings outstanding under this Note at any time without premium or penalty; provided that any partial repayment hereunder shall be in increments of $1,000,000 each, or whole multiples of $1,000,000 in excess thereof (or if the then aggregate amount outstanding under this Note is less than $1,000,000, such lesser aggregate amount). All payments made on this Note shall be made to the Lender by wire transfer of immediately available funds in accordance with the instructions that the Lender may specify to the Borrower in writing from time to time. All payments to the Lender received from the Borrower hereunder shall be applied first, to the payment of any Expenses (defined below in Section 12) owed to the Lender that are then due and payable pursuant to the terms of this Note, second, to the payment of any accrued interest that is then due and payable pursuant to the terms of this Note, and third, to reduce the principal balance of all then-outstanding Borrowings hereunder.  Any payments of Expenses, principal or interest shall be made in U.S. dollars and in immediately available funds and without deduction or reduction of any kind (whether for set-off, recoupment or otherwise).
The amounts available under the Commitment (or Increased Commitment, as the case may be), shall increase and decrease directly in proportion to repayments and reborrowings of Borrowings, respectively, from time to time.
Simultaneously with any repayment and/or reborrowing hereunder, the Lender shall update Schedule 1 hereto accurately to reflect (i) the Commitment or Increased Commitment; (ii) any amounts to be so repaid and/or reborrowed; and (iii) the aggregate principal amount of Borrowings outstanding under this Note after giving effect thereto and, upon approval thereof by the Borrower, the Lender and the Borrower shall each affix the initials of their respective authorized representatives to such updated Schedule 1, which shall thereafter constitute prima facie evidence of the aggregate principal amount of all Borrowings outstanding hereunder.
7.    Security Interest.  As collateral security for the payment and performance in full of any and all amounts owing from time to time by the Borrower to the Lender under or in connection with this Note (the “Secured Obligations”), the Borrower hereby pledges, assigns and grants to the Lender, a Lien on and security interest in and to all of the right, title and interest of the Borrower in, to and under the following property, wherever located, and whether now existing or hereafter arising or acquired from time to time (collectively, the “Pledged Collateral”): (a) the Borrower’s limited liability company interest (the “Interest”) in Voltari Real Estate Holding LLC (the “LLC”); and (b) all proceeds and products of the foregoing, all books and records at any time evidencing or relating to the foregoing, all supporting obligations related thereto, and all accessions to, substitutions and replacements for, and profits and products of, the foregoing, and any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Borrower from time to time with respect to any of the foregoing. The Borrower hereby irrevocably authorizes the Lender at any time and from time to time to file in any relevant jurisdiction any financing statements and amendments thereto that contain the information required by Article 9 of the Uniform Commercial Code (“UCC”) of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Pledged Collateral without the signature of the Borrower where permitted by law. The Borrower agrees to provide all necessary information related to such filings to the Lender promptly upon request by the Lender. The Borrower shall take such further actions, and execute and/or deliver to the Lender such additional financing statements, amendments, assignments, agreements, supplements, powers and instruments, as the Lender may in its judgment deem necessary or appropriate in order to perfect, preserve and protect the security interest in the Pledged Collateral as provided herein and the rights and interests granted to the Lender hereunder, and enable the Lender to exercise and enforce its rights, powers and remedies hereunder with respect to any Pledged Collateral, including the filing of any financing statements, continuation statements and other documents under the UCC (or other similar laws) in effect in any jurisdiction with respect to the security interest created hereby, all in form satisfactory to the Lender and in such offices wherever required by law to perfect, continue and maintain a valid, enforceable, first priority security interest in the Pledged Collateral as provided herein and to preserve the other rights and interests granted to the Lender hereunder, as against third parties, with respect to the Pledged Collateral. Without limiting the generality of the foregoing, but subject to applicable law, the Borrower shall make, execute, endorse, acknowledge, file or refile and/or deliver to the Lender from time to time upon request by the Lender such lists, schedules, descriptions and designations of the Pledged Collateral, statements, confirmatory assignments, supplements, additional security agreements, conveyances, financing statements, transfer endorsements, powers of attorney, certificates, reports and other assurances or instruments as the Lender shall reasonably request. If an Event of Default has occurred and is continuing, the Lender may institute and maintain, in its own name or in the name of the Borrower, such suits and proceedings as the Lender may deem necessary or expedient to prevent any impairment of the security interest in or the perfection thereof in the Pledged Collateral. All of the foregoing shall be at the sole cost and expense of the Borrower. 
8.    Representations, Warranties and Covenants.  The Borrower hereby represents, warrants and covenants to the Lender that: (a) this Note when executed and delivered by the Borrower shall constitute a valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject only to laws of general application relating to bankruptcy, insolvency and the relief of debtors; (b) the Borrower is not in violation or default of any mortgage, indenture, agreement, instrument or contract to which it is a party or by which it is bound, except where such violation or default would not reasonably be expected to have a material adverse effect on (x) the ability of the Borrower to perform its obligations hereunder or (y) the validity or enforceability of this Note; (c) the execution, delivery and performance by the Borrower of this Note and the consummation of the transactions contemplated hereby, will not result in any such violation or default or an event that results in the creation of any Lien upon any assets of the Borrower (other than the Liens in favor of the Lender created under this Note); (d) there are no issued or outstanding equity interests of the LLC other than the Interest and the Borrower shall not cause or permit the LLC to issue or sell any equity interests other than the Interest; and (e) the Interest is free of all Liens (other than the Liens in favor of the Lender created under this Note) and the Borrower shall not cause or permit the incurrence of any Liens on or with respect to the Interest (other than the Liens in favor the Lender created under this Note). The term “Lien”, as used in this Note, means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).
9.    Events of Default.  This Note shall become immediately due and payable and the availability under the Commitment (or Increased Commitment) shall terminate immediately upon the occurrence of any Event of Default, whereupon the unpaid principal of all Borrowings under this Note and all accrued and unpaid interest, accrued Expenses and any other amounts owed hereunder shall become and be immediately due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower. For purposes of this Note, the occurrence of any of the following shall constitute an “Event of Default” under this Note:
(a)    any failure by the Borrower to pay to the Lender on the Maturity Date or Extended Maturity Date, as the case may be, an amount equal to the then outstanding aggregate principal amount of this Note together with all accrued but unpaid interest thereon (and any other amounts owed hereunder);
(b)    any failure by the Borrower to pay to the Lender on or before the applicable due date thereof (as provided by this Note), any interest payment, Expenses, or any other payment as and when due hereunder, which failure remains uncured for a period of ten (10) Business Days following the applicable due date thereof; or
(c)    any material breach by the Borrower of any other terms or provisions of this Note, which breach remains uncured for a period of ten (10) Business Days following (x) the date on which the Lender apprises the Borrower in writing of the existence of such breach or (y) the date on which the Borrower otherwise becomes aware of the existence of such breach.
10.    Assignment; Transfers; Successors.  This Note may not be transferred, assigned, pledged or encumbered, in whole or in part, by the Borrower and the Borrower may not assign any rights or delegate any of its obligations under this Note, in each case without the prior written consent of the Lender.  This Note, together with all Borrowings, and any other amounts in respect of interest and Expenses may, with reasonable prior written notice to the Borrower, be transferred, assigned, pledged or encumbered, in whole or in part, by the Lender without the prior written consent of the Borrower. Subject to the foregoing, this Note shall inure to the benefit of and be binding upon the successors and permitted assigns of the Borrower and the Lender. There are no third party beneficiaries of this Note.
11.    Amendment; Waiver.  Any amendment hereto or waiver of any provision hereof may be made only with the written consent of each of the Borrower and the Lender. No failure or delay by the Lender to insist upon the strict performance of any term or condition of this Note, or to exercise any right or remedy consequent upon a breach thereof, shall constitute, or be deemed to constitute, a waiver of any such term or condition or of any such breach, or preclude the Lender from exercising any such right or remedy at any later time or times. By accepting payment after the due date of any amount payable under the terms of this Note, the Lender shall not be deemed to have waived the right either to require prompt payment when due of all other amounts payable under the terms of this Note or to declare an Event of Default for the failure to effect such prompt payment of any such other amount. No course of dealing or conduct shall be effective to modify, waive or release any provision of this Note.
12.    Costs and Expenses; Indemnity.  The Borrower hereby agrees to pay all of the Lender’s costs of collection or attempting to collect the same and any other enforcement of this Note, including without limitation, reasonable attorneys’ fees and disbursements and court costs (including those incurred in connection with any appeal) (the foregoing costs and expenses being referred to herein as “Expenses”). The Borrower shall protect, defend, indemnify and save harmless the Lender and any of its affiliates and their respective officers, directors, members, partners, stockholders, controlling persons and employees (each an “Indemnitee”), from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including without limitation reasonable attorneys' fees and expenses), imposed upon or incurred by or asserted against any Indemnitee by reason of or in connection with the extension of credit by the Lender pursuant to this Note or any of the terms thereof. The obligations and liabilities of the Borrower under the foregoing sentence shall survive any termination, satisfaction, or assignment of this Note or the indebtedness covered hereunder.
13.    Certain Waivers.  The Borrower hereby waives presentment, demand, protest, notice of acceptance, notice of dishonor, notice of protest and all other notices of any kind should any indebtedness represented by this Note be collected at law or in equity or in the case of the Lender bankruptcy or other proceedings after demand therefore has been made, or should this Note be placed in the hands of attorneys for collection after default.
14.    WAIVER OF JURY TRIAL. EACH OF THE BORROWER AND THE LENDER, BY ITS ACCEPTANCE OF THIS NOTE, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS NOTE OR ANY CLAIM RELATING THERETO.
15.    Notices.  All notices hereunder shall be given in writing and shall be deemed delivered when received by the party to whom such notice is addressed at the address set forth below such party’s signature or at such other address as may be specified by such party from time to time.

16.    Governing Law; Jurisdiction.  This Note and the legality, validity and performance of the terms hereof is made in accordance with and shall be construed under the laws of the State of New York, without regard to the conflicts of law principles thereof that would result in the application of any law other than the law of the State of New York. Each of the Lender and the Borrower hereby (a) submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York in any action or proceeding arising out of or relating to this Note, (b) irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding, and (c) agrees that venue therein is proper and convenient.
BORROWER: 
 
Voltari Corporation 
 
By:  /s/ Kenneth Goldmann     
    Name:    Kenneth Goldmann 
    Title:    Chief Administrative and             Accounting Officer 
    Address:     767 Fifth Avenue, 47th Floor             New York, New York 10153

ACCEPTED AND AGREED 
AS OF THE DATE FIRST 
WRITTEN ABOVE:
LENDER: 
 
Koala Holding LP
By: Koala Holding GP Corp., its general partner  
 
By:    /s/ Keith Cozza     
    Name:     Keith Cozza 
    Title:    Secretary and Treasurer 
    Address:    767 Fifth Avenue, Suite 4700
New York, New York 10153

REVOLVING NOTE, DATED MARCH 29, 2017, EVIDENCING A REVOLVING LOAN FACILITY OF $30,000,000.00 FROM KOALA HOLDING LP TO VOLTARI CORPORATION DUE DECEMBER 31, 2020

Schedule 1

	
						
	Date of Borrowing/
Repayment
	Amount of Borrowing/ Repayment
	Aggregate Amount of Borrowings Outstanding after Borrowing/ Repayment
	Current Commitment Available (including any Increased Commitment)
	Lender’s Initials
	Borrower’s Initials

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

62732993 v1

1Exhibit 10.53

 

 

 

COMMON STOCK PURCHASE AGREEMENT

 

BY AND AMONG

 

YOU ON DEMAND HOLDINGS, INC.,

 

AND

 

SUN SEVEN STARS HONG KONG CULTURAL DEVELOPMENT
LIMITED

 

AS PURCHASER,

 

DATED AS NOVEMBER 11, 2016

 

     

     

    

 

Table of Contents

 

	 	Page
	ARTICLE 1 DEFINITIONS 	1
	1.1	Definitions 	1
	ARTICLE 2 PURCHASE AND SALE OF COMMON STOCK 	5
	2.1	Purchase and Sale of Common Stock 	5
	2.2	Closing 	5
	2.3	Use of Proceeds 	5
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	5
	3.1	Existence and Power 	5
	3.2	Authorization; No Contravention 	5
	3.3	Governmental Authorization; Third Party Consents 	6
	3.4	Binding Effect 	6
	3.5	Investment Representations 	6
	3.6	Receipt of Information 	7
	3.7	No Brokers or Finders 	7
	3.8	Sufficient Funds 	7
	3.9	Litigation 	7
	3.10	No General Solicitation 	7
	3.11	Prohibited Transactions 	7
	3.12	Reliance on Exemptions 	7
	3.13	Affiliates 	8
	ARTICLE 4 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO CLOSE	8
	4.1	Conditions to Closing 	8
	ARTICLE 5 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO CLOSE	9
	5.1	Conditions to Closing 	9
	ARTICLE 6 INDEMNIFICATION	10
	6.1	Indemnification 	10
	6.2	Terms of Indemnification 	10
	ARTICLE 7 TERMINATION	10
	7.1	Termination of Agreement 	10
	7.2	Effect of Termination 	11
	ARTICLE 8 MISCELLANEOUS	11
	8.1	Survival 	11 
	8.2	Fees and Expenses 	11
	8.3	Notices 	11
	8.4	Successors and Assigns 	12
	8.5	Amendment and Waiver 	12
	8.6	Counterparts 	13
	8.7	Headings 	13
	8.8	Governing Law; Consent to Jurisdiction; Waiver of Jury Trial 	13
	8.9	Severability 	13
	8.10	Entire Agreement 	13

 

    	i

     

    

 

	8.11	Further Assurances 	14
	8.12	Public Announcements 	14
	8.13	Subsidiaries 	14
	8.14	Specific Performance 	14
	8.15	Legends	14

 

    	ii

     

    

 

COMMON STOCK PURCHASE AGREEMENT 

 

COMMON STOCK PURCHASE AGREEMENT, dated as of
November 11, 2016 (this “Agreement”), by and among YOU On Demand Holdings, Inc., a Nevada Corporation (the Company”)
Sun Seven Stars Hong Kong Cultural Development Limited, a Hong Kong incorporated entity (“Purchaser”).

 

WHEREAS, the Company proposes to issue and
sell to the Purchaser, and the Purchaser propose to buy, for an aggregate purchase price of $2,000,000, an aggregate of 1,136,365
shares of Common Stock, par value $0.001 per share (the “Common Stock”); and

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE 1 

DEFINITIONS 

 

1.1 Definitions. As used in this Agreement, and unless the
context requires a different meaning, the following terms shall have the meanings set forth below:

 

“Accredited Investor” has the meaning assigned to such
term in Section 3.5(b).

 

“Actions” means actions, causes of action, suits, claims,
complaints, demands, litigations or legal, administrative or arbitral proceedings.

 

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person
and with respect to any individual, the spouse, parent, sibling, child, step-child, grandchild, niece or nephew of such individual
or the spouse thereof and any trust for the benefit of such Stockholder or any of the foregoing. For the purposes of this definition,
“control” when used with respect to any specified Person means the power to direct the management and policies of such
Person, whether through the ownership of Voting Securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

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

 

“Articles of Incorporation” means the articles of incorporation
of the Company, as the same may have been amended and in effect as of the Closing Date.

 

“associate” has the meaning assigned in Rule 12b-2 promulgated
by the Commission under the Exchange Act.

 

“beneficially own” with respect to any securities means
having “beneficial ownership” of such securities as determined pursuant to Rule 13d-3 under the Exchange Act, as in
effect on the date hereof.

 

    	 	1	 

     

    

 

“Board of Directors” means either the board of directors
of the Company or any duly authorized committee thereof.

 

“Business Day” means any day other than (i) a Saturday
or Sunday or (ii) a day on which banking institutions in New York City are authorized or obligated by Law or executive order to
remain closed.

 

“Bylaws” means the bylaws of the Company, as the same
may have been amended and in effect as of the Closing Date.

 

“Claims” means losses, claims, damages or liabilities,
joint or several, Actions or proceedings (whether commenced or threatened).

 

“Closing” has the meaning assigned to such term in Section
2.2.

 

“Closing Date” has the meaning assigned to such term
in Section 2.2.

 

“Commission” means the Securities and Exchange Commission
or any similar agency then having jurisdiction to enforce the Securities Act.

 

“Common Stock” means the Common Stock, par value $0.001
per share, of the Company.

 

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

 

“Contemplated Transactions” means the transactions contemplated
by this Agreement and the exhibits hereto, including, without limitation, the issuance, purchase and sale of the Common Stock;

 

“Contractual Obligation” means, as to any Person, any
agreement, undertaking, contract, indenture, mortgage, deed of trust, credit agreement, note, evidence of indebtedness or other
instrument, written or otherwise, to which such Person is a party or by which it or any of its property is bound.

 

“Environmental Laws” means all Federal, state, local,
and foreign statute, Law, regulation, ordinance, rule, common Law, judgment, order, decree or other governmental requirement or
restriction relating to pollution or protection of human health or the environment (including, without limitation, ambient air,
surface water, ground water, land surface or subsurface strata and natural resources), including, without limitation, Laws relating
to emissions, discharges, releases or threatened releases of Materials of Environmental Concern, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern; provided
that Environmental Laws does not include the Occupational Safety and Health Act or any other similar Requirement of Law governing
worker safety or workplace conditions.

 

“Equitable Principles” means applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and other similar Laws affecting creditors’ rights generally
from time to time in effect and to general principles of equity, regardless of whether in a proceeding at equity or at Law.

 

    	 	2	 

     

    

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder by the Commission from time to time.

 

“Governmental Authority” means the government of any
nation, state, city, locality or other political subdivision of any thereof, and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government or any international regulatory body or self-regulatory
organization having or asserting jurisdiction over a Person, its business or its properties.

 

“Law” means all Federal, state, local, and foreign statute,
law, regulation, ordinance, rule, common law, judgment, order, decree or other governmental requirement or restriction of all applicable
jurisdictions.

 

“Lien” means any mortgage, deed of trust, pledge, hypothecation,
assignment, encumbrance, lien (statutory or other), voting or other restriction, preemptive right or other security interest of
any kind or nature whatsoever.

 

“Material Adverse Effect” means any material adverse
change in or affecting (i) the business, properties, assets, liabilities, operations, results of operations (financial or otherwise),
condition, or prospects of the Company and its Subsidiaries taken as a whole or (ii) the ability of the Company or any of the Company’s
Subsidiaries to consummate the Contemplated Transactions; provided, however, that none of the following shall be deemed in themselves,
either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there
has been, a Material Adverse Effect: (A) any change in the market price or trading volume of the capital stock of the Company after
the date hereof (B) any changes, events or occurrences in the United States securities markets which are not specific to the Company,
(C) any changes, events, developments or effects resulting from general economic conditions, which are not specific to the Company
or its Subsidiaries and which do not affect the Company or its Subsidiaries in a materially disproportionate manner and (D) any
changes resulting from the execution or announcement of this Agreement and the Contemplated Transactions.

 

“Materials of Environmental Concern” means chemicals,
pollutants, contaminants, industrial, toxic or hazardous wastes, substances or constituents, petroleum and petroleum products (or
any by-product or constituent thereof), asbestos or asbestos-containing materials, lead or lead-based paints or materials, PCBs,
or radon, or any other materials that are regulated by, or may form the basis of liability under, any Environmental Law.

 

“NASDAQ” means The Nasdaq Stock Market Inc.’s
National Market System.

 

“NYSE” means the New York Stock Exchange.

 

“Person” means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint-stock company, company, limited liability company, trust, unincorporated
association, Governmental Authority, or any other entity of whatever nature.

 

“Purchase Price” has the meaning assigned to such term
in Section 2.1.

 

“Purchaser” has the meaning assigned to such term in
the Preamble.

 

    	 	3	 

     

    

 

“Purchaser Indemnitee” has the meaning assigned to such
term in Section 6.1.

 

“Requirement of Law” means, as to any Person, the certificate
of incorporation and bylaws or other organizational or governing documents of such Person, and any Law (including, without limitation,
Laws related to Taxes and Environmental Laws), treaty, rule, regulation, ordinance, qualification, standard, license or franchise
or determination of an arbitrator or a court or other Governmental Authority, including the NYSE or NASDAQ or any national securities
exchange or automated quotation system on which the Common Stock is listed or admitted to trading, in each case applicable to,
or binding upon, such Person or any of its property or to which such Person or any of its property is subject or pertaining to
any or all of the transactions contemplated hereby.

 

“Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder by the Commission from time to time.

 

“Shares” mean the shares of Common Stock.

 

“Subsidiary” of any specified Person means any other
Person more than 50% of the outstanding voting securities of which is owned or controlled, directly or indirectly, by such specified
Person or by one or more other Subsidiaries of such specified Person, or by such specified Person and one or more other Subsidiaries
of such specified Person. For the purposes of this definition, “voting securities” means securities which ordinarily
have voting power for the election of directors (or other Persons having similar functions), whether at all times or only so long
as no senior class of securities has such voting power by reason of any contingency, or other ownership interests ordinarily constituting
a majority voting interest.

 

“Tax” or “Taxes” means any taxes, assessment,
duties, fees, levies, imposts, deductions, or withholdings, including income, gross receipts, ad valorem, value added, excise,
real or personal property, asset, sales, use, license, payroll, transaction, capital, net worth and franchise taxes, estimated
taxes, withholding, employment, social security, workers’ compensation, utility, severance, production, unemployment compensation,
occupation, premium, windfall profits, transfer and gains taxes, or other governmental charges of any nature whatsoever, imposed
by any taxing authority of any government or country or political subdivision of any country, and any liabilities with respect
thereto, including any penalties, additions to tax, fines or interest thereon and includes any liability for Taxes of another Person
by Contract, as a transferee or successor, under Treasury Regulation 1.1502 -6 or analogous state, local or foreign Requirement
of Law provision or otherwise.

 

“Trading Affiliates” has the meaning assigned to such
term in Section 3.11.

 

“Voting Securities” means any class or classes of stock
of the Company pursuant to which the holders thereof have the general power under ordinary circumstances to vote with respect to
the election of the Board of Directors, irrespective of whether or not, at the time, stock of any other class or classes shall
have, or might have, voting power by reason of the happening of any contingency.

 

    	 	4	 

     

    

 

ARTICLE 2 

PURCHASE AND SALE OF COMMONCOMMON STOCK 

 

2.1 Purchase and Sale of Common Stock. Subject to the terms
set forth herein and in reliance upon the representations set forth below, the Company shall issue to the Purchaser an aggregate
of 1,136,365 shares of Common Stock which shall be sold by the Company to the Purchaser for an aggregate purchase price
of $2,000,000 ([$1.76] per share of Common Stock) (the “Purchase Price”).

 

2.2 Closing. Subject to the last sentence of this Section
2.2, the issuance, sale and purchase of the Common Stock shall take place at a closing (the “Closing”) to be held at
the offices of Cooley LLP, 1114 Avenue of the Americas, New York, New York (except that the Closing may be conducted as a “virtual
closing”, with the parties providing signature pages to each other electronically or via facsimile), at 10:00 A.M., local
time, on the Closing Date. On the first Business Day after the conditions set forth in Sections 4.1 and 5.1 (other than those to
be satisfied on the Closing Date, which shall be satisfied or waived on such date) have been satisfied or waived by the party entitled
to waive such conditions or such later date and time as the parties may agree in writing (the “Closing Date”), the
Purchaser shall (a)(i) deliver to the Company by wire transfer in immediately available funds to an account or accounts designated
in writing by the Company to the Purchaser on the Closing Date, funds in an amount equal to the Purchase Price (which funds will
be used by the Company in accordance with Section 2.3), (ii) make or cause to be made the deliveries applicable to the Purchaser
set forth in Section 5.1 and (b) the Company shall (i) issue and deliver to the Purchaser all of the shares of the Common Stock,
, registered as directed in writing by the Purchaser and (ii) make or cause to be made the deliveries set forth in Section 4.1.
In no event shall the Company, by reason of this Section 2.3, any of the other terms of this Agreement or otherwise, be obligated
to deliver to the Purchaser any shares of Common Stock unless and until the Company has received payment from the Purchaser of
the full amount of the Purchase Price.

 

2.3 Use of Proceeds. The Purchase Price shall be used by
the Company for general working capital purposes as approved by the Board.

 

ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

 

The Purchaser hereby represents and warrants to the Company as follows
with respect that Purchaser:

 

3.1 Existence and Power. The Purchaser (a) is duly organized
and validly existing under the Laws of the jurisdiction of its formation and (b) has all requisite power and authority to execute,
deliver and perform its obligations under this Agreement.

 

3.2 Authorization; No Contravention. The execution, delivery
and performance by the Purchaser of each Company Agreement to which it is a party and the Contemplated Transactions (a) have been
duly authorized by all necessary corporate or other action, (b) do not contravene the terms

 

    	 	5	 

     

    

 

of the Purchaser’s organizational
documents, and (c) do not violate, conflict with or result in any breach or contravention of, or the creation of any Lien under,
any Contractual Obligation of the Purchaser or any Requirement of Law applicable to the Purchaser, except for such violations,
conflicts, breaches or Liens which, individually or in the aggregate, have not had and would not reasonably be expected to have
a material adverse effect on the Purchaser’s ability to consummate the Contemplated Transactions.

 

3.3 Governmental Authorization; Third Party Consents. Except
as listed in Schedule 4.3 or, individually or in the aggregate, as has not had and would not reasonably be expected to have a material
adverse effect on the Purchaser’s legal power or ability to purchase or own the Common Stock and exercise the rights incident
thereto, no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority
or any other Person in respect of any Requirement of Law, and no lapse of a waiting period under a Requirement of Law, is necessary
or required in connection with the execution, delivery or performance by the Purchaser, or enforcement against the Purchaser, of
this Agreement or the consummation of the Contemplated Transactions.

 

3.4 Binding Effect. This Agreement has been duly executed
and delivered by the Purchaser and, subject to Equitable Principles, constitutes the legal, valid and binding obligation of the
Purchaser, enforceable against it in accordance with its terms.

 

3.5 Investment Representations.

 

(a) Purchase for Own Account. The shares of Common Stock
are being acquired by the Purchaser for its own account and with no current intention of distributing or reselling such shares
of Common Stock or any part thereof in any transaction that would be in violation of the securities Laws of the United States of
America or any state, without prejudice, however, to the rights of the Purchaser at all times to sell or otherwise dispose of all
or any part of the Common Stock under an effective registration statement under the Securities Act or under an exemption from said
registration available under the Securities Act. The Purchaser understands and agrees that if the Purchaser should in the future
decide to dispose of any Common Stock, it may do so only in compliance with the Securities Act and applicable state securities
Laws, as then in effect. The Purchaser agrees to the imprinting, so long as required by Law, of a legend on all certificates representing
shares of Common Stock.

 

(b) Purchaser Status. The Purchaser is an “Accredited
Investor” (as defined in Rule 501(a)) under the Securities Act.

 

(c) Restricted Shares. The Purchaser understands (i) that
the shares of the Common Stock have not been, and the shares of Common Stock will not be registered under the Securities Act or
any state securities Laws, by reason of their issuance by the Company in a transaction exempt from the registration requirements
thereof and (ii) the shares of the Common Stock may not be sold unless such disposition is registered under the Securities Act
and applicable state securities Laws or is exempt from registration thereunder.

 

(d) Investment Experience. The Purchaser acknowledges that
the purchase of the Common Stock is a highly speculative investment and that it can bear the economic risk and complete loss of
its

 

    	 	6	 

     

    

 

investment and has such knowledge and experience in financial and/or business matters that it is capable of evaluating the
merits and risks of the investment contemplated hereby.

 

3.6 Receipt of Information. The Purchaser represents that
it has had an opportunity to ask questions and receive answers and documents from the Company regarding the business, properties,
prospects and financial condition of the Company and concerning the terms and conditions of the offering of the Common Stock.

 

3.7 No Brokers or Finders. Except as contemplated by this
Agreement, no agent, broker, finder, or investment or commercial banker or other Person (if any) engaged by or acting on behalf
of the Purchaser or any of its Affiliates is or will be entitled to any brokerage or finder’s or similar fee or other commission
as a result of this Agreement or the Contemplated Transactions.

 

3.8 Sufficient Funds. The Purchaser will have at the Closing
funds sufficient to perform its obligations under this Agreement and to consummate the Contemplated Transactions.

 

3.9 Litigation. There is no legal action, suit, arbitration
or other legal, administrative or other governmental investigation, inquiry, proceeding or other Actions pending or, to the knowledge
of the Purchaser, threatened against or affecting the Purchaser or relating the Contemplated Transactions which, if determined
adversely to the Purchaser, individually or in the aggregate, has had or would reasonably be expected to have a material adverse
effect on the Purchaser’s ability to consummate the Contemplated Transactions. The Purchaser is not subject to any Decree
that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on the Purchaser’s
ability to consummate the Contemplated Transactions.

 

3.10 No General Solicitation. The Purchaser did not learn
of the investment in the Common Stock as a result of any public advertising, and is not aware of any public advertisement or general
solicitation in respect of the Company or its securities.

 

3.11 Prohibited Transactions. Other than with respect to
the transactions contemplated herein, since the earlier to occur of: (a) the time that the Purchaser was first contacted by the
Company, or any other Person regarding an investment in the Company and (b) the thirtieth (30th)
day prior to the date hereof, neither the Purchaser nor any Affiliate of the Purchaser which (i) had knowledge of the transactions
contemplated hereby, (ii) has or shares discretion relating to the Purchaser’s investments or trading or information concerning
the Purchaser’s investments, or (iii) is subject to the Purchaser’s review or input concerning such Affiliate’s
investments or trading decisions (collectively, “Trading Affiliates”) has, directly or indirectly, nor has any Person
acting on behalf of, or pursuant to, any understanding with the Purchaser or Trading Affiliate effected or agreed to effect any
transactions in the securities of the Company or involving the Company’s securities.

 

3.12 Reliance on Exemptions. The Purchaser understands that
the Common Stock is being offered and sold to it in reliance upon specific exemptions from the registration requirements of United
States federal and state securities Laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein
in order to

 

    	 	7	 

     

    

 

determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Common Stock.

 

3.13 Affiliates. The Purchaser is not, has not within the
thirty (30) days prior to the date of this Agreement been, and, at the Closing Date will not be, Affiliated with, or an Affiliate
of, any other Purchaser.

 

ARTICLE 4

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO CLOSE

 

4.1 Conditions to Closing. The obligation of the Purchaser
to enter into and complete the Closing are subject to the fulfillment on or prior to the Closing Date of the following conditions,
any one or more of which may be waived by the Purchaser:

 

(a) Secretary’s Certificate. The Purchaser shall have
received a certificate of the Secretary or an Assistant Secretary certifying that attached thereto are true and complete copies
of (i) the Articles of Incorporation and the Company’s Amended and Restated Bylaws, and (ii) all resolutions adopted by the
Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the consummation of
the Contemplated Transactions, and that all such resolutions are in full force and effect and are all the resolutions adopted in
connection with the transactions contemplated hereby and thereby, and certifying the names and signatures of the officers of the
Company authorized to sign this Agreement, and the other documents to be delivered hereunder and thereunder.

 

(b) Good Standing. The Company shall have delivered to Purchaser
a good standing certificate (or its equivalent) for the Company from the secretary of state of Nevada.

 

(c) No Actions. (i) No Action shall be pending or overtly
threatened by any Governmental Authority or any other party against the Company or any of its directors or against that Purchaser,
which Action is reasonably likely to (A) restrain or prohibit the consummation of any of the Contemplated Transactions, or (B)
result in damages that alone or together with the costs and expenses of defending such Action are material in relation to the Company
and its Subsidiaries, taken as a whole, and (ii) no Law, order, decree, rule or injunction shall have been enacted, entered, promulgated
or enforced by any Governmental Authority that prohibits or makes illegal the consummation of any of the Contemplated Transactions.

 

(d) No Material Adverse Effect. No event or development shall
have occurred (or failed to occur) and there shall be no circumstance (and that Purchaser shall not have become aware of any previously
existing circumstance) that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse
Effect.

 

(e) Consents and Amendments. Any and all consents, approvals,
orders, licenses and other actions (i) necessary to be obtained from Governmental Authorities in order to consummate the Contemplated
Transactions and for the Company to operate its business as currently conducted and as currently contemplated to be conducted following
the Closing shall have been obtained

 

    	 	8	 

     

    

 

and delivered to the Purchaser without any limitation, restriction or requirement that would
adversely affect the ability of that Purchaser to obtain the benefits (financial or otherwise) from the Contemplated Transactions,
and any applicable waiting periods (and any extensions thereof) shall have been terminated or shall have expired.

 

(f) NASDAQ Listing. The shares of Common Stock issuable have
been approved for listing on NASDAQ, subject only to official notice of issuance.

 

(g) Approvals and Permits. All of the Company’s regulatory
approvals and permits necessary for the conduct of the Company’s business must be effective, except where the non-effectiveness
such regulatory approvals or permits would not have or reasonably be expected to result in a Material Adverse Effect.

 

ARTICLE 5

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO CLOSE

 

5.1 Conditions to Closing. The obligation of the Company
to enter into and complete the Closing are subject to the fulfillment on or prior to the Closing Date of the following conditions,
any one or more of which may be waived by the Company:

 

(a) Representations and Covenants. The representations and
warranties of the Purchaser contained in this Agreement shall be true and correct in all material respects (other than those which
are qualified as to materiality, which shall be true and correct in all respects) on and as of the Closing Date with the same force
and effect as though made on and as of the Closing Date (except that representations and warranties made as of a specific date
shall be true and correct in all material respects (except as aforesaid) on such date); the Purchaser shall have in all material
respects performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by
it on or prior to the Closing Date; and the Purchaser shall have delivered to the Company a certificate, dated the date of the
Closing Date and signed by the applicable Purchaser, to the foregoing effect.

 

(b) No Actions. (i) No Action shall be pending or overtly
threatened by any Governmental Authority or any other party against the Company or any of its directors or the Purchaser, which
Action is reasonably likely to (A) restrain or prohibit the consummation of any of the Contemplated Transactions, or (B) result
in damages that alone or together with the costs and expenses of defending such Action are material in relation to the Company
and its Subsidiaries, taken as a whole, and (ii) no Law, order, decree, rule or injunction shall have been enacted, entered, promulgated
or enforced by any Governmental Authority that prohibits or makes illegal the consummation of any of the Contemplated Transactions.

 

(c) Consents and Amendments. Any and all consents, approvals,
orders, licenses and other actions necessary to be obtained (i) from Governmental Authorities in order to consummate the Contemplated
Transactions and for the Company to operate its business as currently conducted and as currently contemplated to be conducted following
the Closing.

 

    	 	9	 

     

    

 

ARTICLE 6 

INDEMNIFICATION

 

6.1 Indemnification. The Company hereby agrees to indemnify,
defend and hold harmless the Purchaser, its Affiliates and its directors, managers, officers, agents, advisors, representatives,
employees, successors and assigns (each, a “Purchaser Indemnitee”) from and against all Claims, including without limitation,
interest, penalties and attorneys’ fees and expenses, asserted against, resulting to, or imposed upon or incurred by such
Purchaser Indemnitee by a third party and arising out of or resulting from any allegation or Claim in respect of any wrongful action
or inaction by the Company in connection with the authorization, execution, delivery and performance of this Agreement, except
to the extent that the Purchaser Indemnitee has committed a material breach of its representations, warranties or obligations under
this Agreement, which breach is the cause of the Company’s wrongful action or inaction.

 

6.2 Terms of Indemnification. The obligations and liabilities
of the Company with respect to Claims by third parties will be subject to the following terms and conditions: (a) a Purchaser Indemnitee
will give the Company prompt notice of any Claims asserted against, resulting to, imposed upon or incurred by such Purchaser Indemnitee,
directly or indirectly, and the Company will undertake the defense thereof by representatives of their own choosing which are reasonably
satisfactory to such Purchaser Indemnitee; provided that the failure of any Purchaser Indemnitee to give notice as provided in
Section 8.3 shall not relieve the Company of its obligations under this Article 9; (b) if within a reasonable time after notice
of any Claim, the Company fails to defend, such Purchaser Indemnitee will have the right to undertake the defense, compromise or
settlement of such Claims on behalf of and for the account and at the risk of the Company, subject to the right of the Company
to assume the defense of such Claim at any time prior to settlement, compromise or final determination thereof; (c) if there is
a reasonable probability that a Claim may materially and adversely affect a Purchaser Indemnitee other than as a result of money
damages or other money payments, such Purchaser Indemnitee will have the right at its own expense to defend, or co-defend, such
Claim; (d) neither the Company nor the Purchaser Indemnitee will, without the prior written consent of the other, settle or compromise
any Claim or consent to entry of any judgment relating to any such Claim; (e) with respect to any Claims asserted against a Purchaser
Indemnitee, such Purchaser Indemnitee will have the right to employ one counsel of its choice in each applicable jurisdiction (if
more than one jurisdiction is involved) to represent such Purchaser Indemnitee if, in such Purchaser Indemnitee’s reasonable
judgment, a conflict of interest between such Purchaser Indemnitee and the Company exists in respect of such Claims, and in that
event the fees and expenses of such separate counsel shall be paid by the Company; and (f) the Company will provide each Purchaser
Indemnitee reasonable access to all records and documents of the Company relating to any Claim.

 

ARTICLE 7

TERMINATION

 

7.1 Termination of Agreement. The Parties may terminate this
Agreement as provided below:

 

(a) the Purchaser and the Company may terminate this Agreement by
mutual written consent at any time prior to the Closing;

 

    	 	10	 

     

    

 

(b) the Purchaser may terminate this Agreement by giving written
notice to the Company at any time prior to the Closing (i) in the event the Company has breached any material covenant contained
in this Agreement in any material respect (or breached in any respect, if such covenant is qualified by materiality or material
adverse effect), and the Purchaser has notified the Company of the breach or (ii) if the Closing shall not have occurred on or
before Dec 31, 2016 by reason of the failure of any condition precedent under Section 4.1 hereof (unless the failure results primarily
from one or more Purchaser breaching any representation, warranty, or covenant contained in this Agreement); and

 

(c) the Company may terminate this Agreement by giving written notice
to the Purchaser Representative at any time prior to the Closing (i) in the event Purchaser has breached any material representation,
warranty, or covenant contained in this Agreement in any material respect (or breached in any respect, if such representation,
warranty or covenant is qualified by materiality or material adverse effect), and the Company has notified the Purchaser of the
breach or (ii) if the Closing shall not have occurred on or before Dec 31, 2016 by reason of the failure of any condition precedent
under Section 5.1 hereof (unless the failure results primarily from the Company itself breaching any representation, warranty,
or covenant contained in this Agreement).

 

7.2 Effect of Termination. Upon termination of this Agreement
pursuant to Section 7.1 above, all rights and obligations of the Parties hereunder shall terminate without any liability of either
Party to the other Party (except for any liability of the Party then in breach).

 

ARTICLE 8 

MISCELLANEOUS

 

8.1 Survival. All representations and warranties, covenants
and agreements of the Purchaser contained in this Agreement shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of the Company, any of its officers and directors or any controlling Person thereof, and such
representations and warranties shall survive for a period of 24 months from the Closing Date. The covenants and agreements contained
herein shall survive in accordance with their terms.

 

8.2 Fees and Expenses. On the Closing Date, the Company shall
pay its own expenses incurred in connection with the negotiation, execution, delivery, performance and consummation of this Agreement
and the Contemplated Transactions.

 

8.3 Notices. All notices or other communications required
or permitted hereunder shall be in writing and shall be delivered personally, telecopied or sent by certified, registered or express
mail, postage prepaid. Any such notice shall be deemed given if delivered personally or telecopied, on the date of such delivery,
or if sent by reputable overnight courier, on the first Business Day following the date of such mailing, as follows:

 

		(a)	if to the Company:

 

YOU On Demand Holdings, Inc.

375 Greenwich Street, Suite 516 

New York, New York 10003

 

    	 	11	 

     

    

 

Attn: Mei Chen

Telecopy: (212) 206-9112

 

with a copy to:

 

Cooley LLP

1114 Avenue of the Americas

New York, NY 10036-7798

Attention: William N. Haddad

Telecopy: (212) 479-6275

 

		(b)	if to the Purchaser:

 

Sun Seven Stars Hong Kong Cultural Development Limited

16th Floor Wing On Centre

111 Connaught Road Central,

Hong Kong

Attn: Qiong Zhou

 

with a copy to:

 

Sun Seven Stars Headquarters

No 4. Feng Hua Yuan Qi Che Dian Ying Yuan,

No. 21 Liang Ma Qiao Road, Chaoyang District

Beijing, China

Attn: Zhang Jie

 

Any party may by notice given in accordance with this Section 8.3
designate another address or Person for receipt of notices hereunder.

 

8.4 Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the successors and permitted assigns of the parties hereto. Other than the parties hereto and
their successors and permitted assigns, and except as set forth in Section 6.1, no Person is intended to be a beneficiary of this
Agreement. No party hereto may assign its rights under this Agreement without the prior written consent of the other party hereto;
provided, however, that, without the prior written consent of the Company, after the Closing the Purchaser may assign all or any
portion of its rights hereunder (along with the corresponding obligations) to any purchaser or transferee of shares of the Common
Stock. Any assignee of the Purchaser pursuant to the proviso of the foregoing sentence shall be deemed to be a “Purchaser”
for all purposes of this Agreement.

 

8.5 Amendment and Waiver.

 

(a) No failure or delay on the part of the Company or the Purchaser
in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such right, power or remedy preclude any other or further exercise thereof or the

 

    	 	12	 

     

    

 

exercise of any other right, power or
remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Company
or the Purchaser at Law, in equity or otherwise.

 

(b) Any amendment, supplement or modification of or to any provision
of this Agreement and any waiver of any provision of this Agreement shall be effective only if it is made or given in writing and
signed by the Company and the Purchaser.

 

8.6 Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, all of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

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

 

8.8 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.
This Agreement shall be governed by and construed in accordance with the Requirements of Law of the State of New York without giving
effect to the principles of conflict of Laws. Each of the parties hereto hereby irrevocably and unconditionally consents to submit
to the exclusive jurisdiction of the courts of the State of New York and of the United States of America, in each case located
in the County of New York, for any Action arising out of or relating to this Agreement and the Contemplated Transactions (and agrees
not to commence any Action relating thereto except in such courts), and further agrees that service of any process, summons, notice
or document by U.S. registered mail to its respective address set forth in this Agreement, or such other address as may be given
by one or more parties to the other parties in accordance with the notice provisions of Section 8.3, shall be effective service
of process for any action, suit or proceeding brought against it in any such court. Each of the parties hereto hereby irrevocably
and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement
or the transactions contemplated hereby in the courts of the State of New York or the United States of America, in each case located
in the County of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such
court that any such Action brought in any such court has been brought in an inconvenient forum. Each of the parties irrevocably
and unconditionally waives, to the fullest extent permitted by applicable Requirements of Law, any and all rights to trial by jury
in connection with any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby.

 

8.9 Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason,
the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall
not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits
of the remaining provisions hereof.

 

8.10 Entire Agreement. This Agreement, together with the
schedules and exhibits hereto, or delivered pursuant hereto, are intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and therein. There are no

 

    	 	13	 

     

    

 

restrictions, promises, warranties or undertakings, other than those
set forth or referred to herein or therein. This Agreement, together with the schedules and exhibits hereto, or delivered pursuant
hereto, supersede all prior agreements and understandings between the parties with respect to such subject matter.

 

8.11 Further Assurances. Subject to the terms and conditions
of this Agreement, from time to time after the Closing, the Company and the Purchaser agree to cooperate with one another, and
at the request of the Company or the Purchaser, as applicable, to execute and deliver any further instruments or documents and
take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the
Contemplated Transactions and to otherwise carry out the intent of the parties hereunder. In furtherance and not in limitation
of the foregoing, the Company agrees to all actions necessary to give effect to the voting rights of the Common Stock in accordance
with the terms thereof.

 

8.12 Public Announcements. Except as required by any Requirement
of Law, none of the parties hereto will issue or make any reports, statements or releases to the public with respect to this Agreement
or the Contemplated Transactions without consulting the Company or the Purchaser, as applicable, AND without the approval of the
Company and the Purchaser, as applicable (such approval not to be unreasonably withheld or delayed).

 

8.13 Subsidiaries. Whenever this Agreement provides that
a Subsidiary of the Company is obligated to take or refrain from taking any action, the Company shall cause such Subsidiary to
take or refrain from taking such action.

 

8.14 Specific Performance. The parties acknowledge that money
damages are not an adequate remedy for violations of this Agreement and that any party may, in its sole discretion, apply to a
court of competent jurisdiction for specific performance or injunctive or such other relief as such court may deem just and proper
in order to enforce this Agreement or prevent any violation hereof and, to the extent permitted by applicable Law, each party waives
any objection to the imposition of such relief or any requirement for a bond.

 

8.15 Legends. Any legends placed on the Common Stock issuable,
if any, pursuant to the Contemplated Transactions shall be removed by the Company upon delivery of an opinion of counsel reasonably
acceptable to the Company stating that such legend is no longer necessary.

 

[Signature pages follow]

 

    	 	14	 

     

    

 

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

 

	YOU ON DEMAND HOLDINGS, INC.	 
	 	 
	By:	/s/ Mingcheng Tao	 
	 	Name: Mingcheng Tao	 
	 	Title: CEO	 

 

[Signature Page to Common Stock Purchase Agreement]

 

     

     

    

 

PURCHASER:

 

SUN SEVEN STARS HONG KONG CULTURAL DEVELOPMENT LIMITED

 

	By:	/s/ Qiong Zhou	 
	 	Name: Qiong Zhou	 
	 	Title: CFO	 

 

[Signature Page to Common Stock Purchase Agreement]

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