Document:

Preferred Stock Purchase Agreement

 PREFERRED STOCK PURCHASE AGREEMENT 
 Dated November 14, 2007 
 by and between 
 AVANTAIR, INC. 
 and 
 INVESTORS SET FORTH HEREIN 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	
			
	 1.1
	  	Definitions	  	1
			
	 1.2
	  	Knowledge	  	3
			
	 1.3
	  	Interpretation	  	3
		
	 ARTICLE II CLOSING; PURCHASE AND SALE
	  	
			
	 2.1
	  	The Closing	  	4
			
	 2.2
	  	Escrow	  	4
			
	 2.3
	  	Return of Funds	  	4
			
	 2.4
	  	Issuance and Delivery of the Purchase Shares	  	5
			
	 2.5
	  	The Purchase Price	  	5
			
	 2.6
	  	Delivery of Purchase Price	  	5
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	
			
	 3.1
	  	Organization; Good Standing	  	5
			
	 3.2
	  	Subsidiaries	  	5
			
	 3.3
	  	Authority; Execution and Delivery; Enforceability	  	5
			
	 3.4
	  	Non-Contravention	  	6
			
	 3.5
	  	Corporate Documents	  	6
			
	 3.6
	  	Capitalization; Options	  	6
			
	 3.7
	  	Consents and Approvals	  	7
			
	 3.8
	  	SEC Reports and Financial Statements	  	8
			
	 3.9
	  	Litigation and Claims	  	8
			
	 3.10
	  	No Finder	  	8
			
	 3.11
	  	Exempt Offering	  	9
			
	 3.12
	  	Agreements; Action	  	9
			
	 3.13
	  	Related-Party Transactions	  	9
			
	 3.14
	  	Title to Property and Assets	  	9
			
	 3.15
	  	Employee Benefit Plans	  	9
			
	 3.16
	  	Tax Returns, Payments and Elections	  	10
			
	 3.17
	  	Insurance	  	10
			
	 3.18
	  	Disclosure	  	10
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYERS
	  	
			
	 4.1
	  	Organization and Good Standing	  	10
			
	 4.2
	  	Corporate Authority; Execution and Delivery; Enforceability	  	10
			
	 4.3
	  	Non-Contravention	  	11
			
	 4.4
	  	Consents and Approvals	  	11
			
	 4.5
	  	Litigation and Claims	  	11

					
			
	 4.6
	  	No Finder	  	11
			
	 4.7
	  	Investment Representations	  	11
			
	 4.8
	  	Accredited Investor	  	12
		
	 ARTICLE V COVENANTS
	  	
			
	 5.1
	  	Restrictive Legends	  	12
			
	 5.2
	  	Change in Condition	  	12
			
	 5.3
	  	Subordination	  	12
			
	 5.4
	  	Limitation on Affiliate Transactions	  	12
		
	 ARTICLE VI CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PARTIES
	  	
			
	 6.1
	  	Conditions to obligations of the Buyers	  	13
			
	 6.2
	  	Conditions to obligations of the Company.	  	14
		
	 ARTICLE VII MISCELLANEOUS
	  	
			
	 7.1
	  	Survival; Certain Other Matters	  	14
			
	 7.2
	  	Further Assurances	  	15
			
	 7.3
	  	Expenses of the Transaction	  	15
			
	 7.4
	  	Notices	  	15
			
	 7.5
	  	No Modification Except in Writing	  	16
			
	 7.6
	  	Entire Agreement	  	16
			
	 7.7
	  	Severability	  	16
			
	 7.8
	  	Assignment	  	16
			
	 7.9
	  	Governing Law; Jurisdiction	  	17
			
	 7.10
	  	Captions	  	17
			
	 7.11
	  	Counterparts	  	17
			
	 7.12
	  	Delays or Omissions	  	17

			
		
	 Annex I
	 	Company Disclosure Schedule
	 Annex II
	 	Allocation among Buyers
		
	 Exhibit A
	 	Certificate of Designations
	 Exhibit B
	 	Registration Rights Agreement
	 Exhibit C
	 	Form of legal opinion

  

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 PREFERRED STOCK PURCHASE AGREEMENT 
 PREFERRED STOCK PURCHASE AGREEMENT (“Agreement”), made and entered into this 14th day of November, 2007, by and between those
investors set forth on Annex II attached hereto (each, a “Buyer” and collectively, “Buyers”), and Avantair, Inc., a Delaware corporation (the “Company”). 
 WITNESSETH: 
 WHEREAS, the
Buyers desire to purchase and acquire from the Company, and the Company desires to issue and deliver to the Buyers, an aggregate of 112,000 shares (the “Purchase Shares”) of the Company’s Series A Convertible Preferred Stock,
par value $0.0001 (“Series A Preferred Stock”), free and clear of all claims, liens, options, charges and encumbrances of any kind other than restrictions on transfer as provided under applicable securities laws
(“Liens”), on the terms and subject to the conditions hereinafter set forth and as allocated among Buyers as set forth on Annex II to this Agreement; and 
 WHEREAS, unless the context otherwise requires, capitalized terms used in this Agreement shall have the meanings ascribed to such terms in Article I of this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and of the mutual covenants hereinafter contained, the parties hereto hereby agree as
follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Definitions. As used herein, the following terms shall have the respective meanings ascribed to
them below: 
 “Action” has the meaning ascribed to such term in Section 3.9. 
 “Affiliate” means, with respect to any specified Person: (i) any other Person 50% or more of whose outstanding voting securities
are directly or indirectly owned, controlled or held with the power to vote by such specified Person; or (ii) any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified
Person. For purposes of this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person by virtue of ownership of voting securities,
by contract or otherwise. 
 “Agreement” has the meaning ascribed to such term in the Preamble. 
 “Business Day” means any day (other than Saturday or Sunday) on which banking institutions in the State of New York are not authorized
or obligated by law to close. 
 “Buyer” or “Buyers” has the meaning ascribed to such term in the Preamble.

 “Certificate of Designations” shall mean the Certificate of Designations of the
Preferred Stock, attached hereto as Exhibit A. 
 “Closing” has the meaning ascribed to such term in Section 2.1.

 “Closing Date” has the meaning ascribed to such term in Section 2.1. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor statute thereto. 
 “Common Stock” has the meaning ascribed to such term in Section 3.6. 
 “Company” has the meaning ascribed to such term in the Preamble. 
 “Company Disclosure Schedule” shall mean that certain schedule attached hereto as Annex I qualifying the representations and warranties
contained in Article III. 
 “Company Material Adverse Effect” shall mean any event, condition or contingency that has had,
or is reasonably likely to have, a material adverse effect on the business, assets, liabilities, results of operations, prospects or financial condition of the Company and its Subsidiaries, taken as a whole, provided, however, that a
Company Material Adverse Effect shall not include any such effect resulting from or arising in connection with (a) changes or conditions generally affecting the industries or segments in which the Company operates; or (b) changes in
general economic, market or political condition. 
 “Conversion Shares” has the meaning ascribed to such term in
Section 3.6(b). 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, and all
regulations promulgated thereunder. 
 “Financial Statements” has the meaning ascribed to such term in Section 3.8.

 “GAAP” shall mean United States generally accepted accounting principles, consistently applied. 
 “Governmental Authority” shall mean any federal, state, municipal or other governmental authority, department, commission, board, agency
or other instrumentality. 
 “Governmental Rules” shall mean all laws, statutes, rules, regulations, codes, ordinances,
writs, orders or decrees of any Governmental Authority. 
 “Lien” has the meaning ascribed to such term in the Preamble.

 “Person” shall mean any individual, corporation, partnership, limited liability company, 

  

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limited liability partnership, joint venture, estate, trust, cooperative, foundation, union, syndicate, league, consortium, coalition, committee, society,
firm, company or other enterprise, association, organization or other entity or Governmental Authority. 
 “Preferred Stock”
has the meaning ascribed to such term in the Recitals. 
 “Purchase Price” has the meaning ascribed to such term in
Section 2.3. 
 “Purchase Shares” has the meaning ascribed to such term in the Recitals. 
 “Registration Rights Agreement” shall mean the Registration Rights Agreement, by and between the Company and the Buyers, in the form of
Exhibit B hereto. 
 “SEC” shall mean the Securities and Exchange Commission. 
 “SEC Reports” has the meaning ascribed to such term in Section 3.8. 
 “Section 203” has the meaning ascribed to such term in Section 5.14. 
 “Securities Act” shall mean the Securities Act of 1933, as amended from time to time, and all regulations promulgated thereunder.

 “Subsidiary” shall mean, when used with respect to any Person, any other Person, whether incorporated or unincorporated,
of which (i) more than fifty percent of the securities or other ownership interests or (ii) securities or other interests having by their terms ordinary voting power to elect more than fifty percent of the board of directors or others
performing similar functions with respect to such corporation or other organization, is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries. 
 “Survival Period” has the meaning ascribed to such term in Section 7.1. 
 “Transaction Documents” shall mean (i) the Registration Rights Agreement and the Certificate of Designations and (ii) those
other agreements, certificates and documents entered into or delivered between the Buyers and the Company related to, ancillary to, or in connection with this Agreement, the Registration Rights Agreement or the Certificate of Designations.

 1.2 Knowledge As used in the Agreement, “to the Company’s knowledge” or “to the knowledge of the Company”
or words of similar import shall mean the actual knowledge of Steve Santo, the Chief Executive Officer of the Company. 
 1.3
Interpretation When a reference is made in this Agreement to a section, article, paragraph, clause, annex or exhibit, such reference shall be to a reference to this Agreement unless otherwise clearly indicated to the contrary. The descriptive
article and section headings herein are intended for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. Whenever the words “include,”, “includes” or
“including” are used in this Agreement they shall be deemed to be followed by the 

  

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words “without limitation.” The words “hereof,” “herein” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. The meaning assigned to each term used in this Agreement shall be equally applicable to both the singular and the plural
forms of such term, and words denoting either gender shall include both genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 
 The parties have participated jointly in the negotiation and drafting of this Agreement and the Transaction Documents. Consequently, in the event an
ambiguity or question of intent or interpretation arises, this Agreement and each of the Transaction Documents shall be construed as if drafted jointly by the parties thereto, and no presumption or burden of proof shall arise favoring or disfavoring
either party by virtue of the authorship of any provision of this Agreement or of any of the Transaction Documents. 
 ARTICLE II 

CLOSING; PURCHASE AND SALE 
 2.1
The Closing Subject to the terms and conditions of this Agreement, the closing (the “Closing”) of the transactions set forth in this Article II shall take place upon the satisfaction of the closing conditions set forth
herein, or at such other time or such other date as Buyers and the Company may agree, at the offices of DLA Piper US LLP, 1251 Avenue of the Americas, New York, New York (such date upon which the Closing occurs is referred to as the “Closing
Date”). 
 2.2 Escrow. 
 Pending the Closing, all funds paid hereunder shall be deposited by Purchasers in a separate account maintained by Wells Fargo Bank, National Association (the “Escrow Agent”) for the benefit of Purchasers (the
“Escrow Account”). The Escrow Account shall be maintained in accordance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be interest bearing. If the Company
accepts subscriptions for the Shares at or prior to the Closing Date, then all subscription proceeds received for subscriptions accepted by the Company shall be paid over to the Company at the Closing, net of offering fees and expenses, which shall
be paid to the appropriate parties at such Closing. If the Company shall not have received and accepted a Purchaser’s subscription, then that subscription shall be void and all funds paid hereunder by Purchaser, without deduction therefrom or
interest thereon, shall be promptly returned to Purchaser. 
 2.3. Return of Funds. 
 In the event the Escrow Agent is authorized to return any funds from the Escrow Account pursuant to Section 3.2 above, Purchaser hereby authorizes
and directs the Escrow Agent to return or direct the return of any funds from the Escrow Account, without deduction therefrom or interest thereon, to the same account from which the funds were originally drawn. 
  

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 2.4 Issuance and Delivery of the Purchase Shares At the Closing, the Company shall issue and
deliver to each Buyer certificates for the number of Purchase Shares set forth on Annex II hereto and each Buyer shall purchase such Purchase Shares from the Company. 
 2.5 The Purchase Price 
 At the Closing, the Buyers shall purchase the Purchase Shares for a purchase price equal to
One Hundred Dollars ($100) per Purchase Share (the “Purchase Price”), which shall be paid to the Company by each Buyer in the amounts set forth on Annex II hereto. 
 2.6 Delivery of Purchase Price At the Closing, the aggregate Purchase Price shall be paid by the Buyers to the Company by wire transfer pursuant
to the release of the funds held in the Escrow Account to an account designated in writing by the Company prior to the Closing. 
 ARTICLE III

 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 The Company represents and warrants to the Buyers as of the date hereof and as of the Closing Date as follows: 
 3.1 Organization; Good Standing The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company has the corporate power and authority to conduct its business as
now being conducted and is duly licensed or qualified to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of the business conducted by it, and/or the character of the assets owned or leased by it,
makes such qualification or licensure necessary, except for those jurisdictions in which the failure to be so qualified or licensed or to be in good standing would not, individually or in the aggregate, limit the Company’s ability to consummate
the transactions hereby contemplated or have a Company Material Adverse Effect. 
 3.2 Subsidiaries All of the outstanding shares of
the capital stock of each Subsidiary of the Company are owned by the Company free and clear of all Liens. Each of the Company’s Subsidiaries is set forth on Section 3.2 of the Company Disclosure Schedule and is a corporation or other legal
entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. Each of the Company’s Subsidiaries has the power and authority to conduct its business as now being conducted and is duly licensed
or qualified to do business and is in good standing as a foreign corporation or other legal entity in all jurisdictions in which the nature of the business conducted by it, and/or the character of the assets owned or leased by it, makes such
qualification or licensure necessary, except for those jurisdictions in which the failure to be so qualified or licensed or to be in good standing would not, individually or in the aggregate, limit the Company’s ability to consummate the
transactions hereby contemplated or have a Company Material Adverse Effect. 
 3.3 Authority; Execution and Delivery; Enforceability
The Company has the corporate power and authority to execute and deliver this Agreement and the Transaction 

  

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Documents and to consummate the transactions hereby and thereby contemplated. The execution and delivery by the Company of this Agreement and the Transaction
Documents and the consummation by the Company of the transactions hereby and thereby contemplated have been authorized by all necessary corporate action of the Company. The Company has duly executed and delivered this Agreement and the Transaction
Documents, and, assuming the due execution and delivery of this Agreement and the Transaction Documents by each party thereto (other than the Company), this Agreement and the Transaction Documents constitute valid and binding obligations of the
Company and are enforceable against the Company in accordance with its and their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws
relating to or affecting creditors’ rights generally or general equitable principles (whether considered in a proceeding at equity or in law). 
 3.4 Non-Contravention Except as set forth on Schedule 3.4, neither the execution and delivery of this Agreement and the Transaction Documents by the Company, nor the consummation of the transactions hereby and thereby contemplated by
the Company, will: 
 (i) constitute any violation or breach of the certificate of incorporation or the by-laws (or comparable
organizational documents in the case of Subsidiaries) of the Company or any of its Subsidiaries; 
 (ii) constitute a default
under or a violation or breach of, or result in the acceleration of any obligation under, any provision of any Contract to which the Company or any of its Subsidiaries is a party or by which any of the assets of the Company or any of its
Subsidiaries or the Purchase Shares may be affected; 
 (iii) assuming the consents and approvals described in
Section 3.7 have been received, violate any Governmental Rules affecting the Company or any of its Subsidiaries; or 
 (iv) result in the creation of any Lien on any of the assets of the Company or any of its Subsidiaries. 
 other than, in the case of foregoing
clauses (ii), (iii), and (iv), those defaults, violations, breaches, accelerations and Liens which, individually or in the aggregate, would not have a Company Material Adverse Effect. 
 3.5 Corporate Documents The Company has provided true and complete copies of the Certificate of Incorporation, as amended, and By-Laws of the
Company. 
 3.6 Capitalization; Options. (a) The Company is authorized to issue 75,000,000 shares of Common Stock, 15,220,817 of
which are issued and outstanding as of the date hereof, (“Common Stock”) and 1,000,000 shares of Preferred Stock, none of which are issued and outstanding as of the date hereof (prior to giving effect to the transactions contemplated by
this Agreement). 
 (b) All of the Purchase Shares when issued to Buyers in accordance with the terms of 

  

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this Agreement shall be legally and validly issued, fully paid and non-assessable, free and clear of all Liens. The shares of Common Stock issuable upon
conversion of the Purchase Shares (the “Conversion Shares”) have been duly and validly reserved on the books and records of the Company and, when issued upon conversion of the Purchase Shares in accordance with the terms of the
Certificate of Designations and applicable Governmental Rules, shall be legally and validly issued, fully paid and nonassessable, free and clear of all Liens. 
 (c) Other than the Common Stock and the Preferred Stock, there are no other series or classes of capital stock of the Company authorized or issued and outstanding. Except as set forth on Section 3.6(c) of the
Company Disclosure Schedule, there are no outstanding warrants, options, contracts, rights (preemptive or otherwise), calls, commitments or other instruments convertible into or exchangeable for shares of capital stock of the Company or any of the
Company’s Subsidiaries, in each such case, to which the Company or any of Company’s Subsidiaries is a party and which relates to the sale or issuance of shares of capital stock of the Company or of any of Company’s Subsidiaries
(collectively, the “Company Instruments”) As of the date hereof, there are (i) 14,146,000 shares of Common Stock reserved on the Company’s books and records for issuance upon exercise of redeemable warrants and an option
held by the underwriter of the Company’s initial public offering, (ii) 150,000 shares of Common Stock reserved on the Company’s books and records for issuance upon the exercise of stock options issued to members of the Company’s
board of directors and (iii) there are 214,000 shares of restricted common stock, issued pursuant to the Company’s 2006 Long-Term Incentive Plan, issued and outstanding in the name of Company officers and employees. Except as set forth on
Section 3.6(c) of the Company Disclosure Schedule or as contemplated by this Agreement and the Transaction Documents: (i) the Company has not agreed to register any shares of its capital stock under the Securities Act or granted
registration rights with respect to shares of its capital stock to any Person and (ii) there are no voting trusts, stockholders agreements, proxies or other agreements or understandings in effect to which the Company is a party with respect to
the voting or transfer of any shares of Common Stock. Except as disclosed in the SEC Reports or any exhibit thereto, to the extent any such Company Instruments are outstanding as of the date hereof, neither the issuance and sale of the Purchase
Shares nor the issuance of the Conversion Shares in accordance with its terms will result in an adjustment of the exercise or conversion price of, or number of shares issuable upon the exercise or conversion of any such, Company Instruments.

 (d) The outstanding shares of Common Stock are all duly and validly authorized and issued, fully paid and nonassessable. All outstanding
Common Stock, options and other securities of the Company were issued in accordance with the registration or qualification provisions of the Securities Act and any relevant state securities laws (including, without limitation, anti-fraud provisions)
or, subject in part to the truth and accuracy of each purchaser’s representations to the Company at the time of the purchase thereof, pursuant to valid exemptions therefrom. 
 3.7 Consents and Approvals Except as set forth in Section 3.7 of the Company Disclosure Schedule, no consent, approval or authorization of,
or declaration, filing or registration with, any Governmental Authority or any other Person is required on behalf of the Company or any of its Subsidiaries in connection with the execution, delivery or performance of this Agreement and the
Transaction Documents or the consummation of the transactions 

  

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contemplated hereby and thereby, other than such consents, approvals and authorizations of, and declarations, filings and registrations the failure of which
to obtain, make or otherwise effect which would not, individually or in the aggregate, result in a Company Material Adverse Effect. 
 3.8
SEC Reports and Financial Statements. 
 (a) The Company has filed all forms, reports and documents required to be filed by it with the
SEC since March 2, 2005 (collectively, the “SEC Reports”). The SEC Reports (i) were prepared in all material respects in accordance with the requirements of the Securities Act or the Exchange Act, as the case may be; and
(ii) did not at the time they were filed contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading. None of the Company’s Subsidiaries is required to file any form, report or other document with the SEC. 
 (b) Each of the financial statements (including, in each case, any notes thereto) contained in the SEC Reports (the “Financial Statements”) (i) was prepared from the books of account and other
financial records of the Company, (ii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto) and (iii) presented fairly in all material
respects the financial position of the Company as at the respective dates thereof and the results of its operations and its cash flows for the respective periods indicated therein except as otherwise noted therein (subject, in the case of unaudited
statements, to the omission of footnotes and normal and recurring year-end adjustments which were not and are not expected, individually or in the aggregate, to have a Company Material Adverse Effect). 
 (c) Except for liabilities and obligations reflected on the June 30, 2007 balance sheet of the Company included in the SEC Reports (including the
notes thereto), liabilities and obligations disclosed in the SEC Reports (including exhibits thereto) filed prior to the date of this Agreement and other liabilities and obligations incurred in the ordinary course of business since June 30,
2007, neither the Company nor any of the Company’s Subsidiaries has any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) of a nature required to be disclosed on a balance sheet prepared in accordance
with GAAP which, individually or in the aggregate, would cause a Company Material Adverse Effect. 
 3.9 Litigation and Claims There
is no action, suit, claim, proceeding, arbitration or investigation (each, an “Action”) pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries or, to the best of the
Company’s knowledge, against any officer, director or employee of the Company in connection with such officer’s, director’s or employee’s relationship with, or actions taken on behalf of, the Company or that questions the
validity of this Agreement, or the right of the Company to enter into such agreements, or to consummate the transactions contemplated hereby or thereby. Neither the Company nor any of its Subsidiaries is subject to or in default under any judgment,
order, writ, agreement, injunction or decree of any court or Governmental Authority. 
 3.10 No Finder Except as set forth in
Section 3.10 of the Company Disclosure Schedule, neither the Company, nor any of its Subsidiaries, nor any party acting on their behalf, has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on
account of the transactions contemplated hereby. 
  

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 3.11 Exempt Offering Subject in part to the truth and accuracy of each Buyer’s
representations set forth in Article IV of this Agreement, the offer, sale and issuance of the Purchase Shares and the Conversion Shares, as contemplated by and in conformity with this Agreement are exempt from the registration requirements of
Section 5 of the Securities Act by virtue of Regulation D thereunder, and from the registration or qualification requirements of any other applicable federal or state securities laws, and the issuance of the Conversion Shares in accordance with
the Company’s Certificate of Incorporation and the Certificate of Designations will be exempt from such registration and qualification requirements, and neither the Company nor any authorized agent acting on its behalf will take any action
hereafter that would cause the loss of such exemption. 
 3.12 Agreements; Action Other than as attached as an exhibit to the
Company’s public filings with the Securities and Exchange Commission, the Company is not a party to, and none of its properties, rights or assets are bound by, any material contract, agreement, lease, power of attorney, guaranty, surety
arrangement, or other commitment, whether written or oral. 
 3.13 Related-Party Transactions No employee, officer or director of the
Company or member of his or her immediate family is indebted to the Company, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to any of them. Except as set forth in the Company’s SEC filings, none of such
persons and no “affiliate” or “associate” (as those terms are defined in Rule 405 promulgated under the 1933 Act) of any such person has had any direct or indirect ownership interest in, or other material interest in the Company,
or any firm or corporation (i) with which the Company is affiliated, (ii) with which the Company has a business relationship, (iii) that competes with the Company, (iv) which purchases from or sells, licenses or furnishes to the
Company any goods, property or services; or (v) which is a party to any contract or agreement to which the Company is a party or by which it may be bound or affected; provided, however that no representation or warranty is made with respect to
stock in publicly traded companies that may compete with the Company owned by employees, officers or directors of the Company and members of their immediate families. 
 3.14 Title to Property and Assets Company has good and marketable title to all of its properties and assets, in each case, except as set forth in the SEC filings and except for liens arising from current taxes
not yet due and payable, free and clear of any mortgages, pledges, liens, encumbrances, security interests or charges of any kind (collectively, “Encumbrances”). 
 3.15 Employee Benefit Plans Except as set forth on Schedule 3.15 attached hereto, neither the Company, nor any member of a controlled group
(within the meaning of Sections 414(b), (c), (m) and (o) of the Code)) of employers that include the Company (collectively, the “Company Group”), maintains any “employee benefit plan” within the meaning of
section 3(1) of the Employee Retirement Income Security Act of 1974, as amended) nor any other severance, bonus, incentive stock option, stock appreciation, stock purchase, retirement, insurance, profit sharing, deferred compensation welfare or
fringe benefit plan, agreement or arrangement, whether written or unwritten, providing benefits for employees or former employees of the Company or members of the Company Group (including such arrangements contained within the provisions of an
individual employment or consulting agreement). 
  

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 3.16 Tax Returns, Payments and Elections The Company has filed all tax returns and reports
(including information returns and reports) as required by law. These returns and reports are true and correct in all material respects. The Company has paid all taxes and other assessments due, except those contested by it in good faith that are
listed in Section 3.16 of the Company Disclosure Schedule. The provision for taxes of the Company as shown in the Financial Statements is adequate for taxes due or accrued as of the date thereof. The Company has not elected to be treated as a
Subchapter S corporation pursuant to Section 1362(a) of the Code, nor has it made any other elections pursuant to the Code (other than elections that relate solely to methods of accounting, depreciation or amortization) that would have a
material effect on the Company, its financial condition, its business as presently conducted or proposed to be conducted or any of its properties or material assets. The Company has never had any tax deficiency proposed or assessed against it and
has not executed any waiver of any statute of limitations on the assessment or collection of any tax or governmental charge. None of the Company’s federal income tax returns and none of its state income or franchise tax or sales or use tax
returns has ever been audited by governmental authorities, and no such audits are pending or, to the Company’s knowledge, threatened. Since the date of the Financial Statements, the Company has not incurred any taxes, assessments or
governmental charges other than in the ordinary course of business. The Company has withheld or collected from each payment made to each of its employees, the amount of all taxes (including, but not limited to, federal income taxes, Federal
Insurance Contribution Act taxes and Federal Unemployment Tax Act taxes) required to be withheld or collected therefrom, and has paid the same to the proper tax receiving officers or authorized depositories. 
 3.17 Insurance All insurance policies maintained by the Company are in full force and effect and the Company is not in default of any provision
thereof. The Company has not received notice from any issuer of any such insurance policies of its intention to cancel or refusal to renew any policy issued by it. 
 3.18 Disclosure None of this Agreement or any other statements or certificates made or delivered in connection herewith or therewith contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact required to be stated therein or necessary to make the statements herein or therein, in light of the circumstances in which they are made, not misleading. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE BUYERS 
 Each Buyer, severally and not jointly, represents and warrants to the Company as of the date hereof and the Closing Date as follows: 
 4.1 Organization and Good Standing Such Buyer (if not an individual) is duly organized, validly existing and in good standing under the laws of its
jurisdiction of formation. 
 4.2 Corporate Authority; Execution and Delivery; Enforceability Such Buyer has the 

  

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requisite power and authority to execute and deliver this Agreement and the Transaction Documents to which it is a party and to consummate the transactions
hereby and thereby contemplated. The execution and delivery by such Buyer of this Agreement and the Transaction Documents to which it is a party and the consummation by such Buyer of the transactions hereby and thereby contemplated have been
authorized by all necessary action (corporate or otherwise). Such Buyer has duly executed and delivered this Agreement and the Transaction Documents to which it is a party, and, assuming the due execution and delivery of this Agreement and the
Transaction Documents by each party thereto (other than such Buyer), this Agreement and the Transaction Documents to which it is a party constitute valid and binding obligations of such Buyer and are enforceable against such Buyer in accordance with
its and their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or general
equitable principles (whether considered in a proceeding at equity or in law). 
 4.3 Non-Contravention Neither the execution and
delivery of this Agreement or the Transaction Documents to which it is a party by such Buyer, nor the consummation of the transactions hereby or thereby contemplated by such Buyer, will: 
 (i) constitute any violation or breach of the organizational documents of such Buyer (if not an individual); or 
 (ii) violate any Government Rule affecting such Buyer, other than any such violations which, individually or in the aggregate, would not
prevent such Buyer from consummating the transactions contemplated by this Agreement and the Transaction Documents. 
 4.4 Consents and
Approvals No consent, approval or authorization of, or declaration, filing or registration with, any Governmental Authority or third party is required on behalf of such Buyer in connection with the execution, delivery or performance of this
Agreement or the Transaction Documents to which it is a party and all documents contemplated hereby or thereby or the transactions contemplated hereby and thereby, other than such consents, approvals and authorizations of, and declarations, filings
and registrations with, third parties the failure of which to obtain, make or otherwise effect which would not, individually or in the aggregate, prevent such Buyer from consummating the transactions contemplated by this Agreement and the
Transaction Documents. 
 4.5 Litigation and Claims There is no action, suit, claim, proceeding, arbitration or investigation pending
or, to the knowledge of such Buyer, threatened against or affecting such Buyer with respect to the propriety or validity of the transactions contemplated hereby. 
 4.6 No Finder Neither such Buyer nor any party acting on such Buyer’s behalf has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the
transactions contemplated hereby. 
 4.7 Investment Representations Such Buyer hereby acknowledges and agrees that the Purchase
Shares, and, if and when issued, the Conversion Shares, will not be registered under 

  

 11 

 
the Securities Act or any state securities laws and may not be offered or sold except pursuant to registration or an exemption from the registration
requirements of the Securities Act and all applicable state securities laws. In this connection, such Buyer understands Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and
by the Securities Act. 
 4.8 Accredited Investor Such Buyer represents that: (i) such Buyer is an “accredited
investor” (as such term is defined in Regulation D under the Securities Act) and is acquiring the Purchase Shares for its own account, for investment purposes only, and not with a view to the resale or offer for sale thereof or with any present
intention of distributing or selling or offering for sale any of such securities; and (ii) such Buyer is capable of bearing the economic risk of such investment, including a complete loss of the investment in the Purchase Shares. 
 ARTICLE V 
 COVENANTS 
 5.1 Restrictive Legends. None of the Purchase Shares or the Conversion Shares may be transferred without registration under the Securities Act and
applicable state securities laws unless counsel to each transferring Buyer shall advise the Company in writing that such transfer may be effected without such registration. Each certificate representing any of the foregoing shall bear legends in
substantially the following form: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES UNDER THE ACT, OR (II) UPON RECEIPT BY ISSUER
OF AN OPINION OF LEGAL COUNSEL REASONABLY SATISFACTORY TO ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
 The Company shall remove or cause
its registrar and transfer agent to remove such legend at the time such Purchase Shares or Conversion Shares are transferred pursuant to an effective registration statement under the Securities Act or pursuant to Rule 144 under the Securities Act.

 5.2 Change in Condition Prior to the Closing, the Company shall promptly advise each Buyer in writing of any material change in the
condition (financial or otherwise), operations or properties or businesses of the Company or any of its respective Subsidiaries. 
 5.3
Subordination The Company and each Buyer hereby agree that the form of subordinated promissory note attached as Exhibit A to the Certificate of Designations shall be amended to expressly subordinate the indebtedness represented thereby, and
the rights of the holder thereunder, to the senior indebtedness of the Company on the Closing Date, all to the reasonable satisfaction of the holders of such senior indebtedness. 
 5.4 Limitation on Affiliate Transactions Notwithstanding the inapplicability of 

  

 12 

 
Section 203 of the Delaware General Corporation Law (“Section 203”) to the Company, the Buyers and the transactions contemplated
hereby, each Buyer hereby agrees that, from and after the Closing and until the eighteen month anniversary thereof, the Company shall be prohibited from engaging in any “business combination” (as defined in
Section 203) with such Buyer unless such business combination is approved by the holders of a majority of Common Stock of the Company, other than Buyers, entitled to vote at a meeting in respect thereof. 
 ARTICLE VI 
 CONDITIONS PRECEDENT TO
OBLIGATIONS OF THE PARTIES 
 The obligation of the parties to consummate the transactions contemplated under this Agreement are subject
to the fulfillment of each of the following conditions, any or all of which may be waived in whole or in part by the party whose obligation is subject to such conditions, in their sole discretion; provided, however, that a waiver by a
Buyer of a condition to the obligations of any such Buyer will not be effective unless such condition is also waived by each other Buyer with respect to each such other Buyer’s obligations. 
 6.1 Conditions to obligations of the Buyers. 
 (a) There shall not be in effect any injunction or restraining order issued by a court of competent jurisdiction in an Action against the consummation of the transactions contemplated hereby or by any Transaction Document. 
 (b) The Company shall have executed and delivered the Registration Rights Agreement, dated as of the Closing Date. 
 (c) The Company shall have filed the Certificate of Designations with the Secretary of State of the State of Delaware. 
 (d) The Buyers shall have received a short-form good standing certificate relating to the Company, dated within ten Business Days of the Closing Date
(with a bring down certificate dated as of the Closing), issued by the Secretary of State of the State of Delaware. 
 (e) The
representations and warranties of the Company contained in Article III that are qualified as to materiality shall be true and correct and those not so qualified shall be true and correct in all material respects on and as of the Closing with the
same effect as though such representations and warranties had been made on and as of the date of such Closing. 
 (f) The Company shall have
performed and complied in all material respects with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing. 
 (g) The Chief Executive Officer of the Company shall deliver to each Buyer at the Closing a certificate stating that the conditions specified in Sections
6.1(e), 6.1(f), and 6.1(g) have been fulfilled and stating that there shall have been no event which has resulted in a Company Material Adverse Effect since the date of the Financial Statements. 
  

 13 

 (h) All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of
the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing. 
 (i) All corporate and other proceedings in connection with the transactions contemplated hereby at the Closing and all documents incident thereto shall
be reasonably satisfactory in form and substance to Buyers’ counsel, and they shall have received all such counterpart original and certified or other copies of such documents as they may reasonably request. This may include, without
limitation, good standing certificates and certification by the Company’s Secretary regarding the Company’s Certificate of Incorporation, the Certificate of Designations and By-laws and Board of Director and stockholder resolutions, if
any, relating to this Agreement and the transactions contemplated hereby. 
 (j) The Buyers shall have received from DLA Piper US LLP,
counsel for the Company, an opinion, dated as of the Closing, in the form attached hereto as Exhibit C. 
 6.2 Conditions to obligations
of the Company. 
 (a) There shall not be in effect any injunction or restraining order issued by a court of competent jurisdiction in an
Action against the consummation of the transactions contemplated hereby or by any Transaction Document. 
 (b) The Buyers shall have provided
evidence reasonably satisfactory to the Company that issuance of the Purchase Shares to the Buyers will not result in the failure of the Company to be in continuous compliance with the U.S. citizenship requirements of any applicable laws and any
provisions of the certificate of incorporation or by-laws of the Company adopted from time to time to ensure such compliance. 
 ARTICLE VII

 MISCELLANEOUS 
 7.1
Survival; Certain Other Matters. 
 (a) The representations and warranties of the parties contained in this Agreement shall survive the
Closing and shall continue in full force and effect until the second anniversary of the date hereof, after which time such representations and warranties shall terminate and have no further force or effect. The period during which any such
representation or warranty survives is the “Survival Period” for such representation or warranty. Notwithstanding the foregoing, any representation or warranty that would otherwise terminate shall survive with respect to, and only
with respect to, any matter of which notice is given to Company or Buyers, as the case may be, in writing pursuant to this Agreement prior to the end of the applicable Survival Period until such matter is resolved, after which time such
representation and warranty shall terminate and have no further force or effect. The representations, warranties and covenants of the Company contained in or made pursuant to this Agreement shall in no way be affected by any investigation of the
subject matter thereof made by or on behalf of any Buyer or the Company. 
  

 14 

 (b) The covenants and agreements of the parties contained in this Agreement shall survive the Closing as
to each Buyer until such Buyer no longer owns any Purchase Shares or Conversion Shares. 
 (c) Each party hereto may assert a claim or cause
of action under this Agreement with respect to (i) any breach of one or more of the representations and warranties contained in Articles III and IV hereof, as the case may be, provided that such claim or cause of action is asserted within the
applicable time period specified in Section 7.1(a) hereof and (ii) subject to Section 7.1(b) hereof, a breach of any one or more of the covenants or agreements contained in this Agreement. Except as provided for in the immediately
preceding sentence, the parties to this Agreement agree that no claims or causes of action on any basis (including in contract or tort, under federal or state securities laws or otherwise), other than for fraud, may be brought against the Company or
any Buyer or any of their respective directors, officers, employees, Affiliates, shareholders, successors, permitted assigns, agents, or representatives based upon, directly or indirectly, any of the representations or warranties contained in
Articles III and IV of this Agreement or any misstatement or failure to state any fact made by Company in connection with such Buyer’s purchase of the Purchase Shares or the Conversion Shares. 
 7.2 Further Assurances From and after the Closing Date, each party shall, at any time and from time to time, make, execute and deliver, or cause
to be made, executed and delivered, such instruments and agreements, and take or cause to be taken all such actions as counsel for the other party may reasonably request for the effectual consummation of this Agreement and the transactions hereby
contemplated. 
 7.3 Expenses of the Transaction The Company shall pay its own fees and expenses in connection with this Agreement and
the transactions hereby contemplated and the reasonable fees and expenses of the Buyers incurred in connection with this Agreement and the transactions hereby contemplated, including, without limitation, reasonable legal and accounting fees and
expenses, in each case of one such professional services firm; provided, however, that the Company’s obligations under this Section 7.3 to pay Buyers’ reasonable fees and expenses shall not exceed $25,000 in the
aggregate unless the Closing shall have occurred. 
 7.4 Notices All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed given or delivered (i) when delivered personally or by private courier, (ii) when actually delivered by registered or certified United States mail, return receipt requested, or (iii) when sent
by telecopy (provided that it is confirmed by a means specified in clause (i) or (ii)), addressed as follows: 
 If to the Buyers, to the
addresses set forth on Annex II hereto. 
 With a copy to: 
 Earlybird Capital, Inc. 
 275 Madison Ave., 27th Floor 
 New York, NY 10016 
 Attention: Steven Levine,
Chief Executive Officer 
 Telecopy: (212)661-4936 
 Telephone: (212)661-0200 
  

 15 

 If to the Company to: 
 Avantair, Inc. 
 4311 General Howard Drive 
 Clearwater, FL 33762 
 Telecopy: 

Telephone: (727)539-0071 
 With a copy to:

 DLA Piper US LLP 
 1251 Avenue
of the Americas 
 New York, New York 10019 
 Attention: William N. Haddad, Esq. 
 Telecopy: (212) 835-6001 and (212)884-8498 
 Telephone: (212) 335-4998 
 or to such other address as
such party may indicate by a notice delivered to the other parties hereto. 
 7.5 No Modification Except in Writing This Agreement
shall not be changed, modified, or amended except by a writing signed by the party to be affected by such change, modification or amendment, and this Agreement may not be discharged except by performance in accordance with its terms or by a writing
signed by the party to which performance is to be rendered. 
 7.6 Entire Agreement This Agreement, together with any Schedules and
Exhibits hereto, sets forth the entire agreement and understanding among the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of every kind and nature among them. 
 7.7 Severability If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, the
remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected unless the provision held invalid shall substantially impair the benefits of the remaining portions of this Agreement.

 7.8 Assignment This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and permitted assigns. This Agreement may not be assigned by the Company or a Buyer without the prior written consent of the other party; provided, however, that, prior to Closing, each Buyer may
assign its rights under this Agreement to any Affiliate of such Buyer that agrees in favor of the Company in writing to the assumption of the assigning Buyer’s obligations under this Agreement. No such assignment and assumption shall relieve
the assigning Buyer of its obligations under this Agreement. 
  

 16 

 7.9 Governing Law; Jurisdiction. 
 (a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be
performed wholly within said State, without giving effect to the conflict of laws principles thereof. 
 (b) Each of the parties hereto
irrevocably and unconditionally submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York or, if such court will not accept jurisdiction, the Supreme Court of the State of New York, New York
County or any court of competent civil jurisdiction sitting in New York County, New York. In any action, suit or other proceeding, each of the parties hereto irrevocably and unconditionally waives and agrees not to assert by way of motion, as a
defense or otherwise any claims that it is not subject to the jurisdiction of the above courts, that such action or suit is brought in an inconvenient forum or that the venue of such action, suit or other proceeding is improper. Each of the parties
hereto also agrees that any final and unappealable judgment against a party hereto in connection with any action, suit or other proceeding shall be conclusive and binding on such party and that such award or judgment may be enforced in any court of
competent jurisdiction, either within or outside of the United States. A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment. 
 (c) EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE
ENFORCEMENT OF ANY PROVISION OF THIS AGREEMENT. 
 7.10 Captions The captions appearing in this Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit or describe the scope and intent of this Agreement or any of the provisions hereof. 
 7.11 Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute a single agreement. 
 7.12 Delays or Omissions No delay or omission to exercise any right, power or remedy accruing to the Company or to any Buyer, upon any breach or
default of any party hereto under this Agreement, shall impair any such right, power or remedy of the Company or any Buyer nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach
of default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of the Company or any Buyer of any breach of
default under this Agreement, or any waiver on the part of the Company or any Buyer of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement, or by law or otherwise afforded to the Company or any Buyer, shall be cumulative and not alternative. 
  

 17 

 [Signature page follows] 
  

 18 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Preferred Stock Purchase
Agreement on the day and year first above written. 
  

			
	AVANTAIR, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	INVESTOR:
	
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Investor Address:
	  

	  

	  

	
	Number of Shares to be purchased by Investor:
	  

		
	Amount of investment:	 	  

			
		
	Investor Tax ID:	 	  

 ANNEX I 
 SCHEDULES 

 ANNEX II 
 ALLOCATION AMONG BUYERS 
  

							
	 Buyer
	  	 Address
	  	 Investment Amount
	  	 Number of Series
 A Shares Purchased

		  		  	$	  	
		  		  	$	  	
		  		  	$	  	
		  		  	$Registration Rights Agreement

 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into as of November 14, 2007, by Avantair, Inc., a
Delaware corporation (the “Company”), in favor of each of the investors listed on Exhibit A (each, an “Investor”). 
 A. Pursuant to that certain Preferred Stock Purchase Agreement (the “Purchase Agreement”) dated as of November 9, 2007, by
and between the Company and Investor, the Investor has purchased shares (the “Purchase”) of the Company’s Series A Convertible Preferred Stock (the “Series A Preferred)”.

 B. Pursuant to the Purchase Agreement, the Company is required to provide the Investor certain registration rights with respect to the
shares of the Company’s Common Stock issuable upon conversion of the Series A Preferred. 
  

	 	1.	REGISTRATION RIGHTS. 

 1.1
Definitions. For purposes of this Section 1: 
 (a) Common Stock. The term “Common Stock”
means the Company’s common stock, $0.0001 par value per share. 
 (b) Registration. The terms
“register,” “registration” and “registered” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement. 
 (c) Registrable Securities. The term
“Registrable Securities” means (i) the Common Stock issuable upon conversion of the Series A Preferred and (ii) any shares of Common Stock of the Company issued as a dividend or other distribution with respect to,
or in exchange for or in replacement of, any shares of Common Stock described in clause (i). 
 (d) Registrable Securities Then
Outstanding. The number of shares of “Registrable Securities then outstanding” shall mean the number of shares of Common Stock which are Registrable Securities that are then (1) issued and outstanding or
(2) issuable pursuant to the conversion of the Series A Preferred or other convertible securities. 
 (e) Holder. The term
“Holder” means any person owning of record Registrable Securities or any assignee of record of such Registrable Securities to whom rights set forth herein have been duly assigned in accordance with this Agreement;
provided, however, that for purposes of this Agreement, a record holder of the Series A Preferred convertible into such Registrable Securities shall be deemed to be the Holder of such Registrable Securities; provided,
further, that Holders of Registrable Securities will not be required to convert their Series A Preferred into shares of Common Stock in order to exercise the registration rights granted hereunder. 
 (f) SEC. The term “SEC” or “Commission” means the U.S. Securities and Exchange Commission.

 1.2 Demand Registrations. 
 (a) Request by Holders. If the Company shall receive at any time after the three month anniversary of the date hereof, a written request from the
Holders of at least fifty percent (50%) of the then outstanding Registrable Securities (the “Initiating Holders”) that the Company file a registration statement under the Securities Act of 1933, as amended, (the
“Securities Act”) and, if by means of an underwriting, covering the registration of Registrable Securities pursuant to this Section 1.2, with an anticipated aggregate offering price of at least $7,500,000 (net of
underwriting discounts and commissions), then the Company shall, within twenty (20) days after the receipt of such written request, give written notice of such request (the “Request Notice”) to all Holders, and use all
reasonable efforts to effect, as soon as practicable, the registration under the Securities Act of all Registrable Securities which Holders request to be registered and included in such registration by written notice given by such Holders to the
Company within twenty (20) days after receipt of the Request Notice, subject only to the limitations of this Section 1. The Company may, if permitted by law, effect any registration pursuant to this Section 1.2 by the filing of a
registration statement on Form S-3. Any registration statement filed pursuant to this Section 1.2(a) may, subject to Section 1.2(c), include shares of Common Stock with respect to which the Company has registration obligations pursuant to
written contractual arrangements (“Other Registrable Securities”) including, if applicable, by post-effective amendment to any “shelf” registration filed with respect to any Registrable Securities. 
 (b) Mandatory Shelf Registration. The Company agrees to file with the SEC, in no event later the six month anniversary of the date hereof
(provided, that if the Company is eligible to file a registration statement on Form S-3, then such filing shall be made no later than the three month anniversary of the date hereof), a shelf registration statement on Form S-3 or such other form
under the Securities Act then available to the Company providing for the resale pursuant to Rule 415 from time to time by the Holders of any and all Registrable Securities (including the prospectus, amendments and supplements to such registration
statement or prospectus, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such registration statement, the “Mandatory Shelf
Registration Statement”); provided, however, that the Company will not file a registration statement on its behalf prior to filing the Mandatory Shelf Registration Statement. The Company shall use its commercially reasonable efforts to
cause such Mandatory Shelf Registration Statement to be declared effective by the SEC as soon as reasonably practicable following such filing; provided, however, that if the Mandatory Shelf Registration Statement is not declared effective by the SEC
on or prior to the nine month anniversary of the date hereof then the Company shall pay to each Investor an amount in cash equal to one and one-half percent (1.5%) of (i) the number of Series A Preferred held by such Investor as of such
date, multiplied by (ii) the purchase price paid by such Investor for such Series A Preferred then held; and on every monthly anniversary thereof until the Mandatory Shelf Registration Statement is declared effective by the SEC; provided
further, however, that if the SEC, by written or oral comment or otherwise, limits the Company’s ability to request effectiveness, or prohibits the effectiveness of, the Mandatory Shelf Registration Statement with respect to any or all the
Registrable Securities pursuant to Rule 415, it shall not be a breach or default by the Company under this Agreement and shall not be deemed a failure by the Company to use reasonable best efforts and no such penalty shall be due and payable. Any
Mandatory 

  

 2 

 
Shelf Registration Statement shall provide for the resale from time to time, and pursuant to any method or combination of methods legally available
(including, without limitation, an underwritten offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the Internet) by the Holders of any and all Registrable Securities. 
 (c) Underwriting. If the Holders initiating the registration request under this Section 1.2 (the “Initiating
Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, then they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company
shall include such information in the written notice referred to in subsection Section 1.2(a). In such event, the right of any Holder to include his, her, or its Registrable Securities in such registration shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent
provided herein. All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting by the Company.
Notwithstanding any other provision of this Section 1.2, if the underwriter(s) advise(s) the Company in writing that marketing factors require a limitation of the number of securities to be underwritten then the Company shall so advise all
Holders of Registrable Securities that would otherwise be registered and underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be reduced as required by the underwriter(s) and allocated
among the Holders of Registrable Securities on a pro rata basis according to the number of Registrable Securities then outstanding held by each Holder requesting registration (including the Initiating Holders); provided, however, that
the number of shares of Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities of the Company are first entirely excluded from the underwriting and registration. Any Registrable
Securities excluded and withdrawn from such underwriting shall be withdrawn from the registration. 
 (d) Maximum Number of Demand
Registrations. The Company is obligated to effect only two such registrations pursuant to Section 1.2(a). 
 (e) Expenses.
All expenses incurred in connection with a registration pursuant to this Section 1.2, including without limitation all registration and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company
and reasonable fees and disbursements of a single counsel for all Holders (but excluding underwriters’ discounts and commissions), shall be borne by the Company. Each Holder participating in a registration pursuant to this Section 1.2
shall bear such Holder’s proportionate share (based on the number of shares sold by such Holder over the total number of shares included in such registration at the time it is declared effective) of all discounts, commissions or other amounts
payable to underwriters or brokers in connection with such offering. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to this Section 1.2 if the registration
request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered, unless the Holders of a majority of the Registrable Securities then outstanding agree to forfeit their right to a demand
registration pursuant to this Section 1.2 (in which case such right shall be forfeited by all Holders of Registrable Securities); provided, further, however, that if at the time of such withdrawal, the 

  

 3 

 
Holders have learned of a material adverse change in the condition, business, or prospects of the Company not known to the Holders at the time of their
request for such registration and have withdrawn their request for registration with reasonable promptness after learning of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their
demand registration rights pursuant to this Section 1.2. 
 1.3 Piggyback Registrations. The Company shall notify all
Holders of Registrable Securities in writing at least thirty (30) days prior to filing any registration statement under the Securities Act for purposes of effecting a public offering of securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of securities of the Company, but excluding registration statements relating to any registration under Section 1.2, any employee benefit plan or a corporate reorganization or other
transaction covered by Rule 145 promulgated under the Securities Act, or a registration on any registration form which does not permit secondary sales or does not include substantially the same information as would be required to be included in
a registration statement covering the sale of Registrable Securities) and will afford each such Holder an opportunity to include in such registration statement all or any part of the Registrable Securities then held by such Holder. Each Holder
desiring to include in any such registration statement all or any part of the Registrable Securities held by such Holder shall, within twenty (20) days after receipt of the above-described notice from the Company, so notify the Company in
writing, and in such notice shall inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement. If a Holder decides not to include all of its Registrable Securities in any registration
statement thereafter filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with
respect to offerings of its securities, all upon the terms and conditions set forth herein. 
 (a) Underwriting. If a registration
statement under which the Company gives notice under this Section 1.3 is for an underwritten offering, then the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder’s Registrable
Securities to be included in a registration pursuant to this Section 1.3 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the
extent provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriter(s) selected for such
underwriting. Notwithstanding any other provision of this Agreement, if the managing underwriter determine(s) in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the managing underwriter(s) may
exclude shares (including Registrable Securities) from the registration and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be allocated, first, to the Company (assuming the
Company is the party which has requested the filing of such Registration Statement) or, if applicable, to the holders of Other Registrable Securities which, pursuant to written contractual arrangements, has demanded such registration, and
second to Holders requesting inclusion of their Registrable Securities in such registration statement and any holders of Other Registrable Securities requesting inclusion of their Other Registrable Securities in such registration statement on
a pro rata basis based on the number of Registrable Securities and Other Registrable Securities, as applicable, each such person has requested to be 

  

 4 

 
included in the registration. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice,
given in accordance with Section 3.1 hereof, to the Company and the underwriter, delivered at least ten (10) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from
such underwriting shall be excluded and withdrawn from the registration. For any Holder that is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family members of any such partners and
retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the aggregate amount of shares
carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence. 
 (b)
Expenses. All expenses incurred in connection with a registration pursuant to this Section 1.3, including without limitation all registration and qualification fees, printers’ and accounting fees, fees and disbursements of counsel
for the Company (but excluding underwriters’ discounts and commissions) shall be borne by the Company. Each Holder participating in a registration pursuant to this Section 1.3 shall bear such Holder’s proportionate share (based on the
number of shares sold by such Holder over the total number of shares included in such registration at the time it goes effective) of all discounts, commissions or other amounts payable to underwriters or brokers in connection with such offering.

 1.4 Obligations of the Company. Whenever required to effect the registration of any Registrable Securities under this
Agreement, the Company shall, subject to the provisions of Section 1.4(f) below, as expeditiously as reasonably possible: 
 (a) Use its
best efforts to prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective, and, upon the request of the
Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for up to ninety (90) days. 
 (b) Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions
of the Securities Act with respect to the disposition of all securities covered by such registration statement and comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered
by such registration statement until such time as all of such Registrable Securities registered thereunder shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such
registration statement. In the case of amendments and supplements to a registration statement which are required to be filed pursuant to this Agreement by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous
report under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company shall have incorporated such report by reference into such registration statement, if applicable, or shall file such amendments or
supplements with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or supplement such registration statement. 
  

 5 

 (c) Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of the Registrable Securities owned by them that are included in such registration. 
 (d) Use reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of
such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any
such states or jurisdictions. The Company shall promptly notify each Holder of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the
securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose. 
 (e) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter(s) of such offering and enter into such other customary agreements and take all such actions as such underwriter reasonably requests in order to expedite or facilitate the disposition of such shares. Each Holder
participating in such underwriting hereby agrees to also enter into and perform its obligations under such an agreement. 
 (f) Notify each
Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the occurrence of any event as a result of which the prospectus included
in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing and promptly prepare a supplement or amendment to such registration statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment to each Holder (or such other
number of copies as such Holder may reasonably request). 
 (g) The Company shall use its commercially reasonable efforts to
(i) prevent the issuance of any stop order or other suspension of effectiveness of any registration statement prepared hereunder, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and,
(ii) if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify each Holder who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose. 
 (h) The Company shall
use its commercially reasonable efforts either to cause all the Registrable Securities covered by a registration statement prepared hereunder to be listed on each securities exchange on which securities of the same class or series issued by the
Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange. The Company shall pay all fees and expenses in connection with satisfying its obligation under this
Section 1.4(h). 
  

 6 

 (i) The Company shall cooperate with the Holders who hold Registrable Securities being offered and, to
the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a registration statement filed hereunder and enable such
certificates to be in such denominations or amounts, as the case may be, as such Holders may reasonably request and registered in such names as such Holders may request. 
 (j) If requested by a Holder, the Company shall use its commercially reasonable efforts to (i) as soon as practicable incorporate in a prospectus supplement or post-effective amendment such information as a
Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required filings of such prospectus supplement or post-effective amendment after being
notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any registration statement if reasonably requested by a Holder holding any
Registrable Securities. 
 (k) Use commercially reasonable efforts to furnish, on or about the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, copies of (i) the opinion, if any, of the lead legal counsel representing the Company for the purposes of such registration issued pursuant to the
underwriting agreement relating to the offering and addressed to the underwriters and (ii) the letter (including any “bring-downs” related thereto) from the independent certified public accountants of the Company issued pursuant to
the underwriting agreement relating to the offering and addressed to the underwriters. 
 (l) Notwithstanding any other provision of this Agreement, from and after the time a registration statement filed under this Section 1 covering Registrable Securities is declared effective, the Company shall have the right to suspend
the registration statement and the related prospectus in order to prevent premature disclosure of any material non-public information related to corporate developments by delivering notice of such suspension to the Holders, provided, however,
that the Company may exercise the right to such suspension only once in any 12-month period and for a period not to exceed 90 days. From and after the date of a notice of suspension under this Section 1.4(l), each Holder agrees not to use the
registration statement or the related prospectus for resale of any Registrable Security until the earlier of (1) notice from the Company that such suspension has been lifted or (2) the 90th
 day following the giving of the notice of suspension. 
 (m) Cause the principal
executive officer of the Company, the principal financial officer of the Company, the principal accounting officer of the Company and all other officers and members of the management of the Company to cooperate fully in any offering of Registrable
Securities hereunder, which cooperation shall include participation in meetings with underwriters, attorneys, accountants and potential investors. 
  

 7 

 (n) Make available for inspection by the Holders included in such registration statement, any
underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional retained by any Holder included in such registration statement or any underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, as shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and employees to supply all information
reasonably requested by any of them in connection with such registration statement. 
 1.5 Furnish Information. It shall be a
condition precedent to the obligations of the Company to take any action pursuant to Section 1.2 or 1.3 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them, and
the intended method of disposition of such securities as shall be required to timely effect the registration of their Registrable Securities. 
 1.6 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 1. 
 1.7 Indemnification. In the event any Registrable Securities are
included in a registration statement under Section 1.2 or 1.3: 
 (a) By the Company. To the extent permitted by law, the Company
will indemnify and hold harmless each Holder, the partners, officers, directors, members, employees and agents of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, the “Violations” and,
individually, a “Violation”): 
 (1) any untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; or 
 (2) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or 
 (3) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any federal or state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any federal or state securities law in connection with the offering covered by such registration statement. 
 The Company will promptly reimburse each such Holder, partner, officer or director, underwriter or controlling person for any legal or other expenses reasonably incurred by them, after a request for reimbursement has
been received by the Company, in connection with investigating or 

  

 8 

 
defending any such loss, claim, damage, liability or action; provided however, that the indemnity agreement contained in this
Section 1.7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall
the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by such Holder, partner, officer, director, underwriter or controlling person of such Holder. 
 (b) By Selling Holders. To the extent permitted by law, each selling Holder will be required severally and not jointly to indemnify and hold harmless the Company, each of its directors, employees, agents, each
of its officers who have signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration statement or any of
such other Holder’s partners, directors or officers or any person who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which the Company
or any such director, officer, controlling person, underwriter or other such Holder, partner or director, officer or controlling person of such other Holder may become subject under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity
with written information furnished by such Holder expressly for use in connection with such registration. Each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling
person, underwriter or other Holder, partner, officer, director or controlling person of such other Holder in connection with investigating or defending any such loss, claim, damage, liability or action; promptly after a request for reimbursement
has been received by the indemnifying Holder, provided, however, that the indemnity agreement contained in this Section 1.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if
such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further, that the total amounts payable in indemnity by a Holder under this Section 1.7(b) in respect of
any Violation shall not exceed the net proceeds received by such Holder in the registered offering out of which such Violation arises. 
 (c) Notice. Promptly after receipt by an indemnified party under this Section 1.7 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to
be made against any indemnifying party under this Section 1.7, deliver to the indemnifying party a written notice of the commencement thereof. The indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain
its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests
between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party 

  

 9 

 
within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party
of any liability to the indemnified party under this Section 1.7, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 1.7. 
 (d) Defect Eliminated in Final Prospectus. The foregoing indemnity agreements of the Company and Holders are
subject to the condition that, insofar as they relate to any Violation made in a preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at the time the registration statement in question becomes effective or
the amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall not inure to the benefit of any person if a copy of the Final Prospectus was furnished to the
indemnified party and was not furnished to the person asserting the loss, liability, claim or damage at or prior to the time such action is required by the Securities Act. 
 (e) Contribution. If the indemnification provided for in this Section 1.7 is held by a court of competent jurisdiction to be unavailable to
an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by such indemnified
party with respect to such loss, liability, claim, damage or expense in the proportion that is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the statements or omissions that resulted
in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. In any such case, (A) no such Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and
sold by such Holder pursuant to such registration statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or
entity who was not guilty of such fraudulent misrepresentation. 
 (f) Conflict with Underwriting Agreement. Notwithstanding the
foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions
in the underwriting agreement will control. 
 (g) Survival. The obligations of the Company and Holders under this Section 1.7
shall survive the completion of any offering of Registrable Securities in a registration statement, and otherwise. 
 1.8 Rule 144
Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Registrable Securities to the public without registration, the Company agrees to:

 (a) Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act;

  

 10 

 (b) Use reasonable efforts to file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act; and 
 (c) So long as a Holder owns any Registrable
Securities, to furnish to the Holder forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of said Rule 144, and of the Securities Act and the Exchange Act, a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents of the Company as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without
registration. 
 1.9 Limitation on Sale of Registrable Securities. Notwithstanding the Holders’ rights pursuant to
Section 1.2 and 1.3 hereof (but without prejudice thereto), each Holder jointly and severally covenants and agrees that (i) no Registrable Securities may be sold pursuant to any registration statement filed under the Securities Act prior
to the six month anniversary of the date hereof and (ii) no more than one half of all Registrable Securities held by all Holders as a group may be sold pursuant to any registration statement filed under the Securities Act prior to the twelve
month anniversary of the date hereof. 
  

	 	2.	ASSIGNMENT AND AMENDMENT. 

 2.1
Assignment. Notwithstanding anything herein to the contrary: 
 (a) Registration Rights. The registration rights of a
Holder under Section 1 hereof may be assigned; provided, however that no party may assign any of the foregoing rights unless the Company is given written notice by the assigning party at the time of such assignment stating the
name and address of the assignee and identifying the securities of the Company as to which the rights in question are being assigned; and provided further that any such assignee shall receive such assigned rights subject to all the
terms and conditions of this Agreement, including without limitation the provisions of this Section 2. 
 2.2 Amendment and Waiver
of Rights. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and
Holders (and/or any of their permitted successors or assigns) holding Series A Preferred representing and/or convertible into a majority of all the Holders’ Shares (as defined below); provided, further, that the grant to third
parties of piggyback registration rights under Section 1.2 hereof on a pari passu basis with the piggyback registration rights of the Holders under Section 1.2 shall not be deemed to be a material and adverse change to the piggyback
registration rights of the Holders under this Agreement and shall not require the consent of Holders. As used herein, the term “Holders’ Shares” shall mean the shares of Common Stock then issuable upon conversion of all
then outstanding Series A Preferred. Any amendment or waiver effected in accordance with this Section 2.2 shall be binding upon each Holder, each permitted successor or assignee of such Holder and the Company. 
  

 11 

	 	3.	GENERAL PROVISIONS. 

 3.1
Notices. Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the
earliest of the following: (i) at the time of personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified by
subsequent notice to the parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iii) one (1) business day after deposit with an express
overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (iv) three (3) business days after deposit
in the United States mail by certified mail (return receipt requested) for United States deliveries. 
 All notices not delivered personally
or by facsimile will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address or facsimile number as follows, or at such other address or facsimile number as such other party may designate
by one of the indicated means of notice herein to the other parties hereto as follows: 
 (a) if to a Holder, at such Holder’s address
as set forth on Exhibit A hereto. 
 (b) if to the Company, marked “Attention: President”, at Avantair, Inc.; 4311
General Howard Drive, Clearwater, FL 33762; Facsimile: (727)539-7007. 
 3.2 Entire Agreement. This Agreement and the documents
referred to herein, together with all the Exhibits hereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede any and all prior understandings and agreements, whether
oral or written, between or among the parties hereto with respect to the specific subject matter hereof. 
 3.3 Governing Law;
Jurisdiction. This Agreement will be governed by and construed in accordance with the laws of the State of New York , without giving effect to that body of laws pertaining to conflict of laws. Each of the parties hereto hereby irrevocably
consents to the exclusive jurisdiction of the courts of the Second Department of the Supreme Court of the State of New York and the United States District Court for the Southern District of New York and waives trial by jury in any action or
proceeding with respect to this Agreement. 
 3.4 Severability. If any provision of this Agreement is determined by any court
or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced,
such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement.
Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be
binding, then both parties agree to substitute such provision(s) through good faith negotiations. 
  

 12 

 3.5 Third Parties. Nothing in this Agreement, express or implied, is intended to confer
upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement. 
 3.6 Successors And Assigns. Subject to the provisions of Section 2.1, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors,
assigns, heirs, executors, administrators and legal representatives. 
 3.7 Titles and Headings. The titles, captions and
headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections” and “exhibits”
will mean “sections” and “exhibits” to this Agreement. 
 3.8 Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 
 3.9 Costs And Attorneys’ Fees. In the event that any action, suit or other proceeding is instituted concerning or arising out of this
Agreement or any transaction contemplated hereunder, the prevailing party shall recover all of such party’s costs and attorneys’ fees incurred in each such action, suit or other proceeding, including any and all appeals or petitions
therefrom. 
 3.10 Adjustments for Stock Splits, Etc. Wherever in this Agreement there is a reference to a specific number of
shares of Common Stock of the Company of any class or series, then, upon the occurrence of any subdivision, combination or stock dividend of such class or series of stock, the specific number of shares so referenced in this Agreement shall
automatically be proportionally adjusted to reflect the affect on the outstanding shares of such class or series of stock by such subdivision, combination or stock dividend. 
 3.11 Further Assurances. The parties agree to execute such further documents and instruments and to take such further actions as may be
reasonably necessary to carry out the purposes and intent of this Agreement. 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first
written above. 
  

			
	THE COMPANY:
	
	 AVANTAIR, INC.

		
	 By:
	 	  

	 Name:
	 	Steve Santo
	 Title:
	 	Chief Executive Officer

  

							
	 INVESTOR:
	 		 	
	  
	 		 	
				
	 By:
	 	  
	 		 	  

	 Name:
	 	  
	 		 	  

	 Title:
	 	  
	 		 	

 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT 

 EXHIBIT A 
 List of Series A Preferred Holders 
  

			
	 Name and Address
	 	 Number of Shares
 of Common Stock Underlying
 Series A Preferred Held

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